Government approves cooperative grain storage program worth Rs. 1L crore
The Centre on Wednesday approved a Rs. 1 lakh crore program to increase the foodgrain storage capacity in India's cooperative sector by 700 lakh tons, said Union Minister Anurag Singh Thakur, terming it the world's largest such scheme. Thakur said India's grain storage capacity in the cooperative sector will increase from 1,450 lakh tons to 2,150 lakh tons in the next five years.
Why does this story matter?
Food security in India and across the world has been jeopardized because of disruptions in the food supply and fluctuating prices, which have worsened since the Russia-Ukraine crisis began. India lags behind other countries in terms of grain storage and storage capacity. Despite possessing large arable lands, India also struggles with low productivity as compared to China, Europe, and the United States.
Godowns with 2,000-ton capacity will be set up across India
Thakur said that godowns with a capacity of 2,000 tons will be set up in each block or tehsil across the country. This move will help in reducing the damage suffered by foodgrains caused by a lack of storage facilities, reducing farmer distress sales, lowering transportation costs, and lowering import dependence while creating employment opportunities in rural India.
Currently, India has 65,000 agricultural cooperative societies
Annually, India produces around 3,100 lakh tons of foodgrains, but the existing storage facilities can store only up to 47% of the produce. There are around 65,000 agricultural cooperative societies across the country. Thakur said the new scheme will be beneficial for cooperative societies, farmers, and consumers. He added that farmers will get up to 70% loans from these societies.
Will system for grain storage be manual or mechanized
What remains to be seen is the method used for storage. Currently, laborers carry one sack at a time and stack them in a pyramid. The proposed system is a mechanized one, which is said to be more transparent. Agricultural experts said that the program's full potential will be realized only if warehouses are mandated to register with the Warehousing Development and Regulatory Authority.
