Map & concept mind-map: World’s largest grain storage scheme in cooperatives

Relevance for Banking, SSC & RBI Grade B exams: Polity & Governance

The government has launched the world’s largest grain storage scheme in the cooperative sector, marking a transformative step in India’s agricultural infrastructure. Under this initiative, 1,015 Primary Agricultural Credit Societies (PACS) have been identified across the country for warehouse construction, with 313 already completed, creating a storage capacity of 1.80 lakh metric tonnes. The scheme integrates multiple existing government programs—such as the Agriculture Infrastructure Fund (AIF), Agriculture Marketing Infrastructure (AMI) scheme, Sub-Mission on Agricultural Mechanization (SMAM), and PM Formalization of Micro Food Processing Enterprises (PMFME)—to develop warehouses, custom hiring centers, processing units, and fair-price shops at the PACS level. This convergence ensures efficient resource utilization while addressing critical gaps in post-harvest storage, reducing wastage, and enhancing farmers’ income. The integration with the Food Corporation of India (FCI) further strengthens the supply chain, with FCI mapping storage needs across 216 locations in 18 states/UTs, offering uniform rental assurances for warehouses of 2,500 metric tonnes or more.

For banking and SSC aspirants, this scheme highlights the government’s focus on cooperative governance, rural infrastructure development, and financial inclusion through PACS. The modifications in schemes like AIF and AMI—such as extended loan guarantees, reduced margin money requirements, and increased subsidies—demonstrate policy interventions aimed at improving financial viability for cooperatives. RBI Grade B candidates should note the scheme’s alignment with FCI’s storage requirements, reflecting how agricultural policies intersect with food security and inflation control. Additionally, the emphasis on subsidies and infrastructure financing underscores the role of cooperative banks and financial institutions in supporting rural economies, a key theme in governance and economic policies.

Source: PIB (Press Information Bureau)

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