Key Highlights
- Balaghat district in Madhya Pradesh serves as the pilot location for a 500‑tonne storage facility inaugurated on 24 February 2024 by Prime Minister Narendra Modi.
- The scheme integrates existing programmes – Agriculture Infrastructure Fund, AMI, SMAM and PMFME – to upgrade Primary Agricultural Credit Societies (PACS) with modern godowns.
- Construction subsidy for PACS rises to 33.33%, loan tenure under AIF extends to 2+8 years, and per‑tonne cost is capped at ₹7,000‑₹8,000.
- Farmers gain local storage, pledge‑based credit, reduced post‑harvest loss and the ability to secure better market prices.
- Overall impact envisages lower logistics costs, stronger supply‑chain efficiency and enhanced national food security.
Detailed Insights
The Government of India has embarked on the World’s Largest Grain Storage Plan in the Cooperative Sector (WLGSP) to fortify village‑level storage capacity. By converging the Agriculture Infrastructure Fund (AIF), Agricultural Marketing Infrastructure (AMI) Scheme, Sub‑Mission on Agricultural Mechanisation (SMAM) and Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME), the programme upgrades PACS infrastructure across the country.
In the pilot, a 500‑metric‑tonne godown was erected at Bahudeshiya Prathamik Krishi Saakh Sahakari Society in Balaghat. The facility is managed by the Madhya Pradesh Warehousing and Logistics Corporation (MPWLC). Revised financial parameters include a per‑tonne construction ceiling of ₹7,000 for plain areas and ₹8,000 for the North‑Eastern states, a reduction of margin money from 20 % to 10 %, and a heightened subsidy of 33.33 % for PACS, with an extra one‑third of the admissible subsidy earmarked for ancillary works such as internal roads and weigh‑bridges.
By granting farmers proximity storage, the model curtails post‑harvest wastage, diminishes transportation expenses, and empowers producers—especially marginal cultivators—to obtain pledge‑based financing and avoid distress sales. The anticipated outcome is a more resilient agricultural supply chain and reinforced food security at the national level.
Key Concepts
- PACS (Primary Agricultural Credit Societies): Grass‑roots cooperative bodies that provide credit and other services to farmers, now being equipped with modern grain storage.
- AIF (Agriculture Infrastructure Fund): A central scheme offering financial assistance for creating agricultural assets, now extended with a longer repayment horizon for PACS.
- Decentralised Storage: Locally situated warehouses that enable farmers to hold produce close to the field, reducing transit loss and improving price realization.
- Subsidy Enhancement: Increased fiscal support (up to 33.33 %) that lowers the effective cost of constructing storage facilities for cooperatives.
- Convergence of Schemes: Strategic alignment of multiple government programmes to deliver integrated solutions for agricultural infrastructure.