18 March 2026·PIB

World's largest food storage scheme for farmers

In this note

1. At a Glance

"World's Largest Grain Storage Plan in Cooperative Sector" — a convergence-based scheme to decentralise foodgrain storage at the Primary Agricultural Credit Society (PACS) level by building godowns, custom hiring centres, processing units & Fair Price Shops [1][3].
Anchored in the Ministry of Cooperation (Amit Shah); flagship initiative addressing India's chronic gap between foodgrain production (~310 MT) and total storage capacity (~145 MT) [1].
UPSC relevance: GS-III (agriculture, food security, cooperatives) + Prelims fact-heavy scheme launched 31 May 2023 [2].

18 March 2026 PIB release (Ministry of Cooperation) on Plan progress: pilot godowns completed in 11 PACS across 11 States with 9,750 MT capacity; 500+ PACS identified, target completion December 2026 [1][3].
Bihar update: ₹71.63 crore sanctioned by District Central Cooperative Banks & Bihar State Cooperative Bank to PACS for godown construction [1].

31 May 2023: Union Cabinet approved constitution of an Inter-Ministerial Committee (IMC) to facilitate the Plan, chaired by Minister of Cooperation [2].
IMC members: Ministers of Agriculture & Farmers Welfare, Consumer Affairs/Food & Public Distribution, Food Processing Industries, plus concerned Secretaries [2].
Plan rolled out as a Pilot Project, not a standalone scheme — it is a convergence framework over pre-existing GoI schemes [1][2].
Embedded in larger Ministry of Cooperation push to form/strengthen 2 lakh multipurpose PACS, Dairy & Fishery Cooperative Societies covering every panchayat [3].

Nodal Ministry: Ministry of Cooperation (created July 2021) [1].
Implementing agency (pilot): National Cooperative Development Corporation (NCDC), with NABARD, FCI, CWC, NABCONS, NBCC as support partners [3].
Unit of implementation: PACS / other cooperative societies [1].
Schemes converged:
Agriculture Infrastructure Fund (AIF)
Agricultural Marketing Infrastructure (AMI) Scheme
Sub Mission on Agricultural Mechanization (SMAM)
Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) [1][2].
Pilot output (as of Mar 2026): 11 godowns / 11 PACS / 11 States = 9,750 MT capacity [2].
Near-term target: 500+ PACS godowns by Dec 2026 [1].
Infrastructure created at PACS level: godowns, custom hiring centres (CHCs), processing units, Fair Price Shops (FPS) [1].

Economic — Cuts post-harvest losses, reduces transport of grain to faraway FCI godowns, enables farmers to sell at remunerative prices by avoiding distress sales; PACS earn business diversification revenue [1].
Administrative / Cooperative federalism — First scheme to operationalise convergence of 4 ministries' schemes through a single IMC; tests Ministry of Cooperation's coordination capacity with State cooperative departments [2].
Food Security — Decentralised scientific storage complements PDS via PACS doubling as FPS, supports buffer stock management closer to procurement points [1].
Financial — Leverages NABARD financing plus subsidy/interest subvention under AIF, AMI etc., avoiding fresh budgetary outlay; uses computerisation of PACS as digital backbone [1][3].
Governance — Strengthens 3-tier short-term cooperative credit structure (PACS → DCCBs → StCB), demonstrated by Bihar DCCB/SCB lending of ₹71.63 cr [1].

18 Mar 2026 — PIB: pilot status — 11 PACS / 9,750 MT completed; 500+ PACS under construction; Bihar disbursal ₹71.63 cr [1].
Ongoing convergence with the Computerisation of 2 lakh PACS programme (Ministry of Cooperation flagship) as the digital substrate for godown management [3].

Plan approved by Union Cabinet on 31 May 2023 [2].
Nodal ministry: Ministry of Cooperation (NOT Ministry of Agriculture, NOT Ministry of Consumer Affairs) [1].
IMC is chaired by the Minister of Cooperation [2].
Pilot implementing agency: NCDC [3].
Convergence covers four schemes: AIF, AMI, SMAM, PMFME [1].
Unit of operation: Primary Agricultural Credit Societies (PACS) [1].
Pilot status (Mar 2026): 11 PACS, 11 States, 9,750 MT [2].
Target: 500+ PACS godowns by December 2026 [1].
Support agencies include FCI, CWC, NABCONS, NBCC, NABARD [3].
Ministry of Cooperation target: 2 lakh multipurpose PACS / dairy / fishery societies across all panchayats [3].
Infrastructure at PACS: godown + CHC + processing unit + FPS [1].
Bihar cooperative banks sanctioned ₹71.63 crore under the Plan [1].

GS-III: Issues of buffer stocks & food security; storage, transport & marketing of agricultural produce; e-technology for farmers; cooperatives.
GS-II: Government schemes for vulnerable sections; role of NGOs/SHGs/cooperatives.
Probable question stems:
"Decentralised scientific storage at PACS level is the missing link in India's foodgrain economy. Discuss in light of the World's Largest Grain Storage Plan."
"Examine how convergence of existing schemes through the Ministry of Cooperation can revitalise the Primary Agricultural Credit Societies."
"Post-harvest losses remain a structural drag on Indian agriculture. Evaluate institutional measures taken since 2023 to address this."

PACS Computerisation Programme — digital backbone for the Plan.
Agriculture Infrastructure Fund (AIF), 2020 — convergent scheme.
PMFME Scheme — micro food processing leg of convergence.
FCI & decentralised procurement (DCP) model — counterpoint to centralised storage.
National Cooperative Policy (new policy under Ministry of Cooperation).
Essential Commodities Act, 1955 — storage limits historically constrained private storage.
eNAM & APMC reforms — marketing complement to storage.
Multi-State Cooperative Societies (Amendment) Act, 2023.

Ministry trap: Nodal is Ministry of Cooperation, not Agriculture or Consumer Affairs (which only sit on the IMC) [2].
Year trap: Cabinet approval 31 May 2023, NOT 2022 [2].
It is a convergence Plan, not a new standalone Centrally Sponsored Scheme with its own outlay [1].
Implementing agency confusion: pilot run by NCDC, not FCI or NABARD (they are support agencies) [3].
PACS ≠ Krishi Vigyan Kendras; the unit is the cooperative society, not extension centre.
The "2 lakh" figure refers to new PACS/dairy/fishery societies to be set up, not number of godowns [3].