✎ Decentralized grain storage via PACs enhances food security by reducing wastage and transport costs.
Relevance for Banking, SSC & RBI Grade B exams: Polity & Governance
The government’s decentralized grain storage scheme in the cooperative sector, launched in May 2023, aims to strengthen local storage infrastructure through Primary Agricultural Credit Societies (PACS). By integrating existing schemes like the Agriculture Infrastructure Fund (AIF), Agricultural Marketing Infrastructure Scheme (AMI), and PM Formalization of Micro Food Processing Enterprises (PMFME), it enhances storage, processing, and distribution systems at the grassroots level. As of July 2026, 313 PACS across 11 states have established warehouses with a capacity of over 1.80 lakh metric tonnes, reducing transport costs, minimizing grain wastage, and ensuring better price realization for farmers. This aligns with India’s goal of achieving food security, as reflected in the National Food Security Act (NFSA) 2013, which covers nearly 80 crore people. The scheme’s focus on decentralized storage complements centralized systems managed by the Food Corporation of India (FCI) and state agencies, creating a robust network to handle rising agricultural output, projected at 376.563 million tonnes in 2025-26—a 5.3% increase from the previous year.
For banking and SSC aspirants, this scheme highlights the role of cooperative institutions like PACS in rural credit and financial inclusion, a key topic in exams like IBPS PO and RBI Grade B. It also underscores government initiatives to modernize agricultural infrastructure, linking it to broader economic policies such as the AIF and PMFME, which are frequently tested in competitive exams. For SSC CGL aspirants, the scheme’s emphasis on food security, waste reduction, and farmer welfare ties into governance and economic development themes. The integration of multiple schemes further demonstrates the government’s multi-pronged approach to rural upliftment, making it a relevant case study for Polity & Governance sections in these exams.
Source: PIB (Press Information Bureau)
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