The Indian government has started a major project to build the world’s largest grain storage system in the cooperative sector, focusing on rural areas. This plan, approved on May 31, 2023, aims to improve storage facilities and strengthen the role of Primary Agricultural Credit Societies (PACS)—local cooperative institutions that support farmers.
Union Cooperation Minister Amit Shah updated Parliament, saying this project is a step toward making the cooperative sector a strong part of the rural economy.
What the Plan Includes, The plan helps PACS build, Storage godowns (grain warehouses), Custom hiring centers (for farm machinery), Food processing units and Fair Price Shops.
This is being done by combining resources from several government schemes like:
Agriculture Infrastructure Fund (AIF)
Agricultural Marketing Infrastructure (AMI)
Sub-Mission on Agricultural Mechanization (SMAM)
PM Formalization of Micro Food Processing Enterprises (PMFME)
Godowns have already been built in 11 states, including Maharashtra, Uttar Pradesh, Tamil Nadu, and others.
These can store 9,750 metric tonnes of grain.
Other facilities like seed grading, processing centers, and Grameen Haats (village markets) have also been added in some places.
Over 500 more PACS have been chosen for construction work, which is set to finish by December 2026.
New Cooperatives Being Formed:
To expand support, the government is also setting up new PACS, as well as dairy and fisheries cooperatives. The goal is to have at least one in every village and panchayat within five years.
Since February 15, 2023, 22,933 new cooperatives have been registered, including 5,937 multipurpose PACS. A guide called Margadarshika (meaning “guideline”) was released on September 19, 2024, to help organize and manage this large-scale effort.
Digital Transformation:
To make PACS more efficient and transparent, the government approved a ₹2,925.39 crore computerization project. This will connect all PACS using one national software system. So far:
73,492 PACS in 31 states and UTs have been approved for digital integration.
59,920 PACS have already been connected.
Hardware has been delivered to over 64,000 PACS.
Key Benefits:
This ambitious project is expected to:
Reduce grain losses
Improve farmers’ access to storage and markets
Speed up loans and other services from PACS
Bring better transparency and digital record-keeping
Leading States:
States like Maharashtra, Tamil Nadu, Rajasthan, Gujarat, and Uttar Pradesh are ahead in implementing the digital system for PACS.
