Cabinet okays Rs 1 lakh crore to create grain storage capacity in co-op sector

 The Union Cabinet on Wednesday approved a Rs 1 lakh crore programme to create the world's largest grain storage capacity in the cooperative sector to reduce crop damages and prevent distress sales by farmers, besides strengthening the country's food security.

The government is planning to create 700 lakh tonne of grain storage capacity in the cooperative sector over the next five years and said the move will also help in creating job opportunities in rural India.

Briefing media, Information and Broadcasting Minister Anurag Singh Thakur said the Cabinet has approved the "world's largest grain storage plan in the cooperative sector".

On investment, he said the programme will start "with an expenditure of around Rs 1 lakh crore". As per the plan, a godown of 2,000 tonne capacity will be established in each block.

This will help in strengthening the cooperative sector, as Primary Agricultural Credit Societies (PACS) can diversify into the storage of food grains. There are 1 lakh PACS in the country, out of which around 63,000 are functional.

Thakur said the country's foodgrains production is around 3,100 lakh tonne, while the storage capacity is only 47 per cent of the total output. In developed economies, he said, the storage capacities are higher than output.

Asked about the source of funding, Thakur said the funds available in ministries of agriculture, food processing and food and consumer affairs would be utilised.

At present, the total grain storage capacity in the country is about 1,450 lakh tonne, he said, adding that 700 lakh tonne storage capacity will now be established in the cooperative sector. This will take the total capacity to 2,150 lakh tonne.

On benefits, the minister said the creation of decentralised storage capacity at the local level would reduce food grain wastage and strengthen the food security of the country.