Indian Economy News

The government launched the world’s largest grain storage initiative to enhance storage capacity

In a historic milestone toward improving India's agricultural infrastructure and supporting farmers, the Central Government has introduced the largest cooperative grain storage initiative on a global scale. In a Rajya Sabha testimony, Minister of State for Cooperation Murlidhar Mohol highlighted that 11 godowns have been constructed across 11 states as part of a pilot phase. Furthermore, over 500 PACS have been identified as candidates for the next stage of development. If successfully executed, this will represent the first large-scale cooperative effort to build grain storage facilities, supporting the Government's commitment to decentralising infrastructure, rural empowerment, and food security. As such, the cooperative-led model will help eliminate unnecessary delays, reduce post-harvest losses, and provide better access to storage facilities.
In addition, the Minister highlighted that increasing PACS' capacity for food storage would fundamentally alter how agriculture is done in India (the agriculture value chain). With more storage facilities available, farmers will be able to keep their products longer without rushing to market, allowing them time to negotiate better prices (higher prices) and avoid selling at distress prices. Overall, this increased access to storage will enable farmers to earn higher incomes from their farm products than they would without adequate storage. Reducing losses from wasted crops, providing last-mile infrastructure, and expanding access to storage will directly support national food security while improving the economic resilience of agricultural communities.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.