Prime Minister Narendra Modi with Union Ministers Amit Shah, Piyush Goyal and Arjun Munda during the inauguration & foundation stone laying ceremony of multiple key initiatives for cooperative sector, in New Delhi, Saturday, Feb. 24, 2024.
| Photo Credit: PTI

Prime Minister Narendra Modi on February 24 inaugurated 11 godowns for grain storage in primary agricultural credit societies (PACS) spread across 11 states as part of the government’s flagship ‘World’s Largest Grain Storage Plan’ in the cooperative sector.

Mr. Modi also laid the foundation stone for an additional 500 PACS across the country for the construction of godowns and other agri infrastructure.

He also inaugurated a project for computerisation of 18,000 PACS across the country.

The aim behind these initiatives is to seamlessly integrate PACS godowns with the food grain supply chain, with a collaborative effort of NABARD and spearheaded by the National Cooperative Development Corporation (NCDC).

Addressing a gathering in New Delhi, the Prime Minister said the cooperative sector is instrumental in shaping a resilient economy and propelling the development of rural areas.

“Today we have launched the world’s largest storage scheme for our farmers. Under this, thousands of warehouses and thousands of godowns will be constructed across the country,” he said.

He also urged the cooperative sector to help India reduce its import dependence on agricultural products, including edible oils, and also fertilisers.

Prime Minister Narendra Modi with Union Ministers Amit Shah, Piyush Goyal and Arjun Munda during the inauguration and foundation stone laying ceremony of multiple key initiatives for cooperative sector, in New Delhi, on February 24, 2024.
| Photo Credit: PTI

Cooperatives have the potential to tackle the personal issues of farmers with collective strength, Prime Minister Narendra Modi said while inaugurating multiple key initiatives for the cooperative sector here on Saturday. The Prime Minister inaugurated the pilot project of “world’s largest grain storage plan” in cooperative sector, which is being done in 11 Primary Agricultural Credit Societies (PACS) of 11 States. Mr. Modi also laid the foundation stone for additional 500 PACS across the country for construction of warehouses and other agriculture-related infrastructure under this initiative.

The Centre said the initiative aims to integrate PACS warehouses with the food grain supply chain, fortifying food security and fostering economic development in the country with a collaborative effort supported by NABARD and spearheaded by the National Cooperative Development Corporation. He also launched a project for computerisation in 18,000 PACS across the country.

“The power of cooperation has a huge role in strengthening the foundation of agriculture and farming, this has led to a separate Ministry for Cooperation,” he said adding that the new storage plan will result in thousands of warehouses and godowns in every corner of the country. “This and other projects like computerisation of PACs will give new dimensions to agriculture and modernise farming in the country,” he hoped.

He said the spirit of cooperatives is beyond the boundaries of systems and resources and produces exceptional results. “The benefits of cooperatives are now reaching fishermen and pushupalaks also. More than 25,000 cooperative units are functional in the fishery sector,” he said underlining that cooperatives have the potential to tackle the personal issues of farmers with collective strength and gave the example of storage.

He asked the cooperatives to list the items for which the country is dependent on import and explore how the cooperative sector can help with producing them locally and gave examples of edible oil and ethanol that can reduce dependence on edible oil imports for energy needs. “Many manufacturing goods can also be taken up by the cooperatives,” he said.

Union Minister for Home Affairs and Cooperation Amit Shah, Union Minister for Agriculture Arjun Munda, and Union Minister for Commerce Piyush Goyal were also present on the occasion.

Farmers could sell their crops to Primary Agricultural Credit Societies by receiving some advance payment at the Minimum Support Price. File
| Photo Credit: The Hindu

The Union Cabinet on Wednesday approved the constitution and empowerment of an Inter-Ministerial Committee (IMC) for facilitation of the “world’s largest grain storage plan in cooperative sector” by convergence of various schemes of the Ministries of Agriculture and Farmers Welfare, Consumer Affairs, Food and Public Distribution and Food Processing Industries.

A government statement said that to ensure timely and uniform implementation of the plan in a professional manner, the Ministry of Cooperation would implement a pilot project in at least 10 selected districts of different States.

The committee will be chaired by Cooperation and Home Minister Amit Shah. It will lay guidelines for creation of infrastructure such as godowns, for agriculture and allied purposes, at selected ‘viable’ Primary Agricultural Credit Societies (PACS).

The plan would be implemented by utilising the available outlays provided under the identified schemes of the respective Ministries.

Welcoming the decision, Mr. Shah said in a tweet, “Lack of agricultural storage capacity leads to wastage of food grains and farmers are forced to sell their crops at low prices. With this decision, farmers will now get modern grain storage facilities in their blocks through PACS, so that they will be able to get fair price for their grains.”

He said PACS were an important pillar of the rural economy. “With this plan, the country will get food security and crores of farmers associated with cooperatives will be benefited. This plan will enable PACS to not only provide storage facilities but also undertake many other activities, such as Fair Price Shop and Custom Hiring Centres,” he said.

The statement said that farmers could sell their crops to PACS by receiving some advance payment at the Minimum Support Price, and get the balance after the PACS sold the food grains in the market. Farmers would also be able to store their crops in the warehouses managed by PACS and get finance for the next crop cycle and sell their crops at the time of their choice or could sell their entire crop to PACS at minimum support price.

A primary agricultural cooperative credit society at Somarasampettai near Tiruchi. File
| Photo Credit: The Hindu

In order to strengthen the cooperative sector, the Union Cabinet on Wednesday approved setting up of new primary agricultural credit societies (PACS) and dairy-fishery cooperatives in uncovered villages and panchayats. Its implementation will be done over a period of five years.

25 different facilities to be provided through them. Dairy and fishery will also be linked to the agri cooperatives.

At present, there are around 63,000 functional PACS in the country.

The Cabinet approved steps to strengthen the cooperative movement in the country and deepen its reach up to the grassroots.

The plan is to establish PACS in each uncovered panchayat, viable dairy cooperatives in each uncovered panchayat/village and viable fishery cooperatives in each coastal panchayat/village as well as panchayat/village having large water bodies.

The initial target is to establish 2 lakh multipurpose PACS/dairy/fishery cooperatives in the next five years, I&B Minister Anurag Thakur said at a Cabinet briefing.

The plan will be implemented with the convergence of various schemes by leveraging the ‘whole of government’ approach. The proposal will enable cooperative societies to set up and modernise necessary infrastructure.

It will provide farmer members with requisite forward and backward linkages and enhance their income. The move will also help in generating employment opportunities in rural areas.

In June last year, the Cabinet Committee on Economic Affairs approved the computerisation of PACS to increase the efficiency of PACS as well as to bring transparency and accountability in their operations. The computerisation will help in facilitating PACS to diversify their business and undertake multiple activities/ services.

About 63,000 functional PACS are being computerised with a total budget outlay of ₹2,516 crore which includes a central share of ₹1,528 crore.

(With inputs from PTI)