MASSIVE GRAIN STORAGE PLAN

1. Context

2. Need for the grain storage plan in India

• India, the most populous country in the world, accounts for 18 per cent (1.4 billion) of the global population (7.9 billion).
• However, it accounts for only 11 per cent (160 million hectares) of the arable land (1, 380 million hectares) in the world.
• Also, India runs the world's largest food programme under the National Food Security Act, of 2013, which covers about 81 crore people.
• Therefore, to ensure the food security of a billion-plus population, a robust network of foodgrain storage facilities becomes essential.
• At present, India has a foodgrain storage capacity of 145 million metric tonnes (MMT) against the total food production of 311 MMT leaving a gap of 166 MMT.
  In the absence of sufficient storage facilities, food grains are stored in the open, which results in damage.
• According to the Ministry of Cooperation, several countries have better storage capacities.
• For instance, against the total foodgrain production of 615 MMT, China has a storage capacity of 660 MMT.
• USA, Brazil, Russia, Argentina, Ukraine, France and Canada are among other countries with the capacity to store more food grains than they produce.
• India has a storage capacity of 47 per cent of its total foodgrains production.
• At the regional level, only a few southern states have a storage capacity of 90 per cent and above.
• In northern states like Uttar Pradesh and Bihar, it is below 50 per cent.

• At present, multiple government agencies, like the Food Corporation of India (FCI), Central Warehouse Corporation, Warehouse Development Regulatory Authority, Railways and the Civil Supply departments of states are involved in grain management. However, that has not yielded the desired results.
• Under the new plan, the Ministry of Cooperation aims to set up a network of integrated grain storage facilities through Primary Agricultural Credit Societies (PACS) across the country.
• According to the ministry, there are more than 1, 00, 000 PACS has a huge member base of more than 13 crore farmers across the country.

• The Union Cabinet has approved an IMC for the scheme to be constituted under the Chairmanship of the Minister of Cooperation.
• Three other ministers, the Minister of Agriculture and Farmer's Welfare, the Minister of Consumer Affairs, Food and Public Distribution and the Minister of Food Processing Industries and Secretaries will be members of the committee.
• The IMC will "modify guidelines/ implementation methodologies of the schemes of the respective ministries as and when the need arises, within the approved outlays and prescribed goals" for facilitation of the scheme, "by the creation of infrastructure such as godowns, etc, for Agriculture and Allied purposes, at selected viable Primary Agricultural Credit Societies (PACS)".
  
  

• Though the plan does not have a separate allocation, it will be implemented by the convergence of 8 schemes. 
• These schemes are the Agriculture Infrastructure Fund (AIF), Agricultural Marketing Infrastructure Scheme (AMI), Mission for Integrated Development of Horticulture (MIDH) and Sub Mission on Agricultural Mechanisation (SMAM) under the Ministry of Agriculture and Farmers Welfare.
• It includes two schemes of the Ministry of Food Processing Industries: Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme (PMFME) and Pradhan Mantri Kisan Sampada Yojana (PMKSY).
• Besides, the Plan also includes two schemes of the Ministry of Consumer Affairs, Food and Public Distribution: Allocation of food grains under the National Food Security Act, and Procurement operations at Minimum Support Price.

1. It would reduce post-harvesting losses
2. It would bring down the food grain handling and transportation cost
3. Farmers would have a choice to sell their produce depending on the market conditions and not be forced into distress sales.

• Spread over 1 acre of land, the facility will be built for Rs 2.25 crores. The integrated modular PACS will have a custom hiring centre, a multi-purpose hall procurement centres, primary processing units for cleaning and winnowing a storage shed, container storage and silos.
• Of the Rs 2.25 crores, Rs 51 lakh will come as a subsidy, while the remaining will come as margin money or loan.
• The PACS is expected to earn Rs 45 lakh in a year.
• According to the Cooperation Ministry, the new storage plan is based on the hub and spoke model.
• Of the 63, 000 PACS across the country, 55, 767 will function as spoke and will have a grain storage capacity of 1, 000 metric tonnes each, while the remaining 7, 233 PACS, which will function as hubs, will have a storage capacity of 2, 000 metric tonnes each. 
• Thus, all the 63, 000 PACs will have a combined grain storage capacity of 70 million tonnes.
• The PACS will purchase agricultural equipment like tillers, rotary tillers, disc harrows, harvesters and tractors under various government schemes, such as Sub-Mission on Agricultural Mechanisation (SMAM) and Agriculture Infrastructure Fund (AIF).
• It will then offer this equipment to farmers on rent.
• The modern silos will have the facility of computerised real-time monitoring systems.
• These will be rented out to the FCI and other private agencies.