·PIB

PROGRESS AND ACHIEVEMENTS OF THE WORLD'S LARGEST GRAIN STORAGE PLAN

In this note
  1. At a Glance
  2. Why in the News
  3. Background & Evolution
  4. Core Static Facts
  5. Multi-Dimensional Analysis
  6. Recent Developments (last 12-18 months)
  7. Prelims Hooks
  8. Mains Relevance
  9. Related Topics to Study Next
  10. Common Errors / Trap Areas

1. At a Glance

  • World's biggest decentralized foodgrain storage build-out, routed thru cooperative sector (PACS), not FCI/state warehousing corps. [1]
  • Approved 31.05.2023 by Cabinet, run by Ministry of Cooperation. [1]
  • Convergence scheme — pools AIF, AMI, SMAM, PMFME instead of new funding line. [1]
  • Aims cut post-harvest loss, stop distress sale, boost farmer price realisation. [2]

2. Why in the News

  • PIB press release dated 29 Jul 2026 (PRID 2291152) gives state-wise progress/annexure of storage projects — approved, under construction, completed. [1]

3. Background & Evolution

  • Approved: 31.05.2023, Cabinet decision, cooperative sector storage plan. [1]
  • Rolled out first as Pilot Project across 11 PACS in 11 states. [2][3]
  • Pilot: 11 godowns completed, 9,750 MT capacity created; 500 more PACS foundation-laid under pilot. [2][3]
  • Scaled up: 1,015 PACS identified nationally for godown construction; 313 completed, 1.80 LMT capacity created (as of mid-2026). [1]
  • Target: 500+ PACS godowns completion pushed to December 2026. [3]
  • FCI mapped storage requirement ~26.03 LMT across 216 potential PACS locations in 18 States/UTs for integration. [2]

4. Core Static Facts

Item Detail
Nodal Ministry Ministry of Cooperation [1]
Approval date 31.05.2023 [1]
Target unit Primary Agriculture Credit Society (PACS) [1]
Infra components Warehouses/godowns, Custom Hiring Centres, processing units, Fair Price Shops [1]
Converged schemes AIF (Agriculture Infrastructure Fund), AMI (Agricultural Marketing Infrastructure Scheme), SMAM (Sub Mission on Agricultural Mechanization), PMFME [1]
Subsidy AMI gives 33.33% subsidy to PACS for storage unit construction [3]
Pilot scale 11 PACS, 11 states, 9,750 MT capacity [2][3]
Scaled progress 1,015 PACS identified; 313 completed; 1.80 LMT capacity [1]
FCI-mapped demand ~26.03 LMT across 216 locations, 18 States/UTs [2]
Deadline (pilot expansion) Dec 2026 [3]

5. Multi-Dimensional Analysis

Economic

  • Cuts long-distance transport cost/loss by localizing storage at PACS level. [1]
  • Better price realisation, less distress sale by farmers. [2]

Social

  • Strengthens food security down to Panchayat/village level via decentralisation. [2]
  • PACS revival strengthens rural cooperative economy, farmer-member livelihoods. [1]

Administrative

  • Convergence model — no fresh scheme, pools 4+ existing GoI schemes' funds/subsidy, tests inter-ministerial coordination (Cooperation, Agriculture, Food, Consumer Affairs). [1]
  • National Level Coordination Committee formed to monitor rollout. [2]
  • Execution gap visible: pilot (11 PACS) vs full target (1,015 identified, only 313 done) — implementation lag. [1][2]

Governance

  • FCI integration into PACS-level storage marks shift from central to decentralized procurement/storage infra. [2]

6. Recent Developments (last 12-18 months)

  • Jul 2026: PIB progress note (state-wise annexure) — 1,015 PACS identified, 313 completed, 1.80 LMT capacity created. [1]
  • Regional workshop at Raipur reviewed plan progress alongside White Revolution 2.0, 2-lakh new cooperatives drive. [2]
  • Deadline set for 500+ PACS godown completion: December 2026. [3]
  • FCI storage requirement mapping (26.03 LMT, 216 locations, 18 States/UTs) completed for integration. [2]

7. Prelims Hooks

  • Plan approved 31.05.2023. [1]
  • Nodal ministry: Ministry of Cooperation (not Agriculture). [1]
  • Target unit: PACS (Primary Agriculture Credit Society). [1]
  • "World's Largest" tag — decentralized storage, cooperative sector. [1]
  • Converged schemes: AIF, AMI, SMAM, PMFME. [1]
  • AMI subsidy rate for PACS storage: 33.33%. [3]
  • Pilot project: 11 PACS, 11 states, 9,750 MT capacity. [2][3]
  • Pilot states included: Maharashtra, UP, TN, Karnataka, Gujarat, MP, Uttarakhand, Assam, Telangana, Tripura, Rajasthan. [1]
  • Scaled target: 1,015 PACS identified for godowns nationally. [1]
  • Completed (mid-2026): 313 PACS, 1.80 LMT capacity. [1]
  • FCI-mapped storage requirement: ~26.03 LMT across 216 locations, 18 States/UTs. [2]
  • Expansion deadline for 500+ PACS: December 2026. [3]
  • Infra components beyond godowns: Custom Hiring Centres, processing units, Fair Price Shops. [1]

8. Mains Relevance

9. Related Topics to Study Next

  • PACS computerisation scheme — same ministry, digitization of same institutions.
  • National Cooperation Policy / new Ministry of Cooperation (2021) — parent institutional context.
  • Agriculture Infrastructure Fund (AIF) — key converged financing scheme.
  • Buffer stock norms & FCI storage capacity — comparator/integration point.
  • White Revolution 2.0 — parallel Ministry of Cooperation flagship, mentioned jointly in reviews. [2]
  • 2 lakh new PACS/cooperative societies formation drive — linked cooperative expansion push. [2]
  • Agricultural Marketing Infrastructure Scheme (AMI) — subsidy backbone of this plan.

10. Common Errors / Trap Areas

  • Wrong ministry: aspirants often assume Ministry of Agriculture — actual nodal ministry is Ministry of Cooperation. [1]
  • Confusing Pilot Project figures (11 PACS/9,750 MT) with full scaled-up figures (1,015 PACS identified/313 completed/1.80 LMT) — different phases, don't merge. [1][2]
  • Mistaking this for FCI's own storage expansion — plan is PACS/cooperative-led; FCI only maps demand for integration. [2]
  • Approval date confusion — mixing 31.05.2023 (Cabinet approval) with later pilot launch dates.
  • Assuming single-scheme funding — it's a convergence of AIF+AMI+SMAM+PMFME, not one dedicated budget line. [1]

Sources

  1. 1World's Largest Grain Storage Plan in the Cooperative Sectorpib.gov.in · tier 1
  2. 2Development of Biggest Storage Capacity for the Farmerspib.gov.in · tier 1
  3. 3World's Largest Cooperative Foodgrain Storage Schemepib.gov.in · tier 1

Mains Q&A on this note

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