In a significant move, the Union Cabinet has approved the establishment of an Inter-Ministerial Committee (IMC) to facilitate the implementation of the World’s Largest Grain Storage Plan in the Cooperative Sector. This plan aims to address the shortage of agricultural storage infrastructure in India and empower farmers through the convergence of various schemes from the Ministry of Agriculture and Farmers Welfare, Ministry of Consumer Affairs, Food and Public Distribution, and Ministry of Food Processing Industries. By creating decentralized storage facilities at the local level, this initiative will enhance food security, prevent crop wastage, and provide farmers with better opportunities for their produce.
Implementation of the Plan:
1.1 Formation of the Inter-Ministerial Committee: An Inter-Ministerial Committee (IMC) will be constituted to modify guidelines and implementation methodologies of the respective ministries’ schemes as required. The IMC will oversee the creation of infrastructure such as godowns (warehouses) at selected ‘viable’ Primary Agricultural Credit Societies (PACS), ensuring efficient storage facilities for agriculture and allied purposes.
1.2 Utilization of Existing Schemes: The plan will be implemented by utilizing the available outlays provided under identified schemes of the Ministry of Agriculture and Farmers Welfare, Ministry of Consumer Affairs, Food and Public Distribution, and Ministry of Food Processing Industries.
Converged Schemes:
2.1 Ministry of Agriculture and Farmers Welfare:
- Agriculture Infrastructure Fund (AIF)
- Agricultural Marketing Infrastructure Scheme (AMI)
- Mission for Integrated Development of Horticulture (MIDH)
- Sub Mission on Agricultural Mechanization (SMAM)
2.2 Ministry of Food Processing Industries:
- Pradhan Mantri Formalization of Micro Food Processing Enterprises Scheme (PMFME)
- Pradhan Mantri Kisan Sampada Yojana (PMKSY)
2.3 Ministry of Consumer Affairs, Food and Public Distribution:
- Allocation of food grains under the National Food Security Act
- Procurement operations at Minimum Support Price
Objectives and Benefits:
3.1 Addressing Storage Infrastructure Shortage: The primary objective of this plan is to overcome the shortage of agricultural storage infrastructure in the country. By establishing godowns at the PACS level, it will reduce food grain wastage and strengthen the overall food security of the nation.
3.2 Empowering PACS and Farmers: The plan enables PACS to undertake various activities, such as functioning as procurement centers for State Agencies and the Food Corporation of India, serving as Fair Price Shops, setting up custom hiring centers, and establishing common processing units. These initiatives diversify the business activities of PACS, enhancing the incomes of farmer members and preventing distress sale of crops.
3.3 Improved Economic Viability: By providing farmers with multiple options, this plan aims to prevent distress sales and enable farmers to realize better prices for their produce. Moreover, the decentralized storage capacity will significantly reduce transportation costs from procurement centers to warehouses and subsequently to Fair Price Shops.
Primary Agricultural Credit Societies (PACS):
4.1 Definition and Structure: Primary Agricultural Credit Societies (PACS) are village-level cooperative credit societies that form the last link in a three-tier cooperative credit structure. They operate under the guidance of State Cooperative Banks (SCB) at the state level.
4.2 Role of PACS:
- PACS deal directly with farmers, acting as intermediaries between farmers and higher-level cooperative institutions.
- These cooperative bodies provide short-term lending, commonly known as crop loans, to individual farmers.
- PACS members elect office-bearers from within their ranks, and multiple PACS can exist in a village.
Important Points:
- 🌾 Inter-Ministerial Committee (IMC) established for World’s Largest Grain Storage Plan in Cooperative Sector.
- 🤝 Ministries involved: Ministry of Agriculture and Farmers Welfare, Ministry of Consumer Affairs, Food and Public Distribution, and Ministry of Food Processing Industries.
- 💡 Modification of guidelines and implementation methodologies as required.
- 🏗️ Creation of infrastructure, including godowns, at viable Primary Agricultural Credit Societies (PACS).
- 💰 Utilization of existing schemes:
- Agriculture Infrastructure Fund (AIF)
- Agricultural Marketing Infrastructure Scheme (AMI)
- Mission for Integrated Development of Horticulture (MIDH)
- Sub Mission on Agricultural Mechanization (SMAM)
- Pradhan Mantri Formalization of Micro Food Processing Enterprises Scheme (PMFME)
- Pradhan Mantri Kisan Sampada Yojana (PMKSY)
- Allocation of food grains under the National Food Security Act
- Procurement operations at Minimum Support Price
- 🎯 Objectives and benefits:
- Address shortage of agricultural storage infrastructure.
- Strengthen food security.
- Reduce food grain wastage.
- Empower PACS and farmers.
- Prevent distress sale of crops.
- Improve farmer incomes.
- Reduce transportation costs.
- 🏢 PACS:
- Primary Agricultural Credit Societies (PACS) are village-level cooperative credit societies.
- Last link in a three-tier cooperative credit structure.
- Provide short-term lending (crop loans) to farmers.
- Members elect office-bearers.
- Multiple PACS can exist in a village.
Why In News
The Cabinet’s recent approval of the Constitution and Empowerment of an Inter-Ministerial Committee (IMC) marks a significant milestone in the realization of the “World’s Largest Grain Storage Plan in Cooperative Sector.” This strategic move highlights the government’s commitment to fostering efficient grain storage systems and empowering the cooperative sector to meet the nation’s food security needs.
MCQs about The World’s Largest Grain Storage Plan in the Cooperative Sector
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What is the primary objective of the World’s Largest Grain Storage Plan in the Cooperative Sector?
A. Strengthening agricultural marketing infrastructure
B. Reducing transportation costs for farmers
C. Empowering Primary Agricultural Credit Societies (PACS)
D. Addressing the shortage of agricultural storage infrastructure
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Which ministries are involved in the implementation of the World’s Largest Grain Storage Plan?
A. Ministry of Agriculture and Farmers Welfare
B. Ministry of Food Processing Industries
C. Ministry of Consumer Affairs, Food and Public Distribution
D. All of the above
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What are the benefits of creating decentralized storage capacity at the local level?
A. Reduction in food grain wastage
B. Prevention of distress sale of crops
C. Strengthening food security
D. All of the above
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What is the role of Primary Agricultural Credit Societies (PACS) in the cooperative credit structure?
A. Providing long-term loans to farmers
B. Acting as intermediaries between farmers and state-level cooperative banks
C. Undertaking food processing activities
D. Serving as procurement centers for government agencies
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