India’s pilot project under the “World’s Largest Grain Storage Plan in Cooperative Sector” has led to vital policy upgrades aimed at bolstering food-grain storage at the Primary Agricultural Credit Society (PACS) level. This initiative is designed to tackle national storage deficiencies by integrating multiple central schemes to establish modern agricultural infrastructure.
The plan primarily focuses on the development of godowns, processing units, Fair Price Shops, and Custom Hiring Centres. This is achieved through a coordinated approach using various schemes such as AIF, AMI, SMAM, and PMFME. Implementation on a state-wise basis commenced following cabinet approval in May 2023, with progress monitored by designated field agencies.
The pilot phase revealed several challenges, including outdated construction norms under AMI, the limited financial capacity of PACS, a lack of standardized documentation, and delays arising from absent hiring assurances. Furthermore, it highlighted the necessity to align PACS selection with storage-deficit locations identified by national procurement and warehousing authorities.
In response to these challenges, the government implemented significant revisions to cost norms, expanded subsidies, and relaxed financial conditions. The loan repayment period under AIF was extended to 2+8 years, while construction cost ceilings were increased to ₹7,000 per MT for plain areas and ₹8,000 per MT for northeastern states. Additionally, subsidies for PACS were raised to 33.33%, including extra support for ancillary infrastructure such as weighbridges and internal roads. Detailed Standard Operating Procedures (SOPs), model Detailed Project Reports (DPRs), and unified documentation were issued to streamline execution.
The pilot demonstrated the potential of PACS godowns to function as hubs for procurement, Fair Price Shops, and hiring centres. To enhance impact, the plan has been expanded to include all cooperative societies and federations, facilitating scalable storage infrastructure that supports national food security objectives.
Q1. What is the main objective of India's Grain Storage Plan?
Answer: The main objective is to strengthen food-grain storage at the PACS level, addressing national storage deficits through modern agricultural infrastructure.
Q2. When was the Grain Storage Plan approved?
Answer: The Grain Storage Plan was approved on 31 May 2023, marking a significant initiative in the cooperative sector.
Q3. What are the revised construction cost norms under AMI?
Answer: The revised construction cost norms under AMI are ₹7,000 per MT for plain areas and ₹8,000 per MT for northeastern states.
Q4. How much has the subsidy for PACS been increased?
Answer: The subsidy for PACS has been increased to 33.33%, with additional support available for related infrastructure projects.
Q5. What is the hiring assurance granted by FCI?
Answer: The FCI has granted a uniform 9-year hiring assurance for PACS godowns that can store 2,500 MT and above.
Question 1: What is the focus of India's Grain Storage Plan?
A) Increasing agricultural exports
B) Strengthening food-grain storage
C) Promoting urban farming
D) Enhancing livestock management
Correct Answer: B
Question 2: Which scheme's construction cost norms were revised in 2023?
A) PMFME
B) AMI
C) SMAM
D) AIF
Correct Answer: B
Question 3: When was the Grain Storage Plan approved?
A) April 2023
B) May 31, 2023
C) June 2023
D) March 2023
Correct Answer: B
Question 4: What percentage is the subsidy for PACS increased to?
A) 25%
B) 50%
C) 33.33%
D) 40%
Correct Answer: C
Question 5: What is the duration of the hiring assurance provided by FCI?
A) 5 years
B) 7 years
C) 10 years
D) 9 years
Correct Answer: D
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