Decentralised Grain Storage Plan in the Cooperative Sector

The Decentralised Grain Storage Plan in the Cooperative Sector is making waves for its role in enhancing local grain storage capacity and agricultural infrastructure. This initiative is crucial for UPSC aspirants, particularly for General Studies Papers 2 and 3, as it relates to government policies and agricultural marketing. Last Updated: 07-09-2026

Key Facts About the Decentralised Grain Storage Plan in Cooperative Sector

• Launch Date: The plan was launched as a pilot project on May 31, 2023.
• Objective: To expand grain storage capacity through cooperatives and strengthen storage, processing, procurement, and distribution systems.
• Integrated Cooperative Approach: Utilizes Primary Agricultural Credit Societies (PACS) as decentralised storage and service centres.
• Benefits for Farmers: Avoids distress sales, provides better storage flexibility, and supports improved price realization.
• Pilot Phase: Initiated in 11 PACS across 11 states, creating 9,750 MT storage capacity.
• Expansion Phase: As of July 2026, 1,012 PACS identified, with 313 completing godown construction, creating over 1.80 LMT of storage capacity.

The Integrated Infrastructure and Convergence Framework

The Decentralised Grain Storage Plan aims to transform PACS into integrated rural service hubs by developing local storage, processing, and marketing infrastructure. This aligns with India's strategic goals of enhancing agricultural productivity and reducing post-harvest losses. The plan integrates multiple government schemes to bolster agricultural infrastructure, contributing to economic resilience and rural development.

Related Government Schemes/Policies

• Agriculture Infrastructure Fund (AIF): Provides financing support and interest subvention for post-harvest infrastructure.
• Agricultural Marketing Infrastructure (AMI) Scheme: Offers capital subsidy for constructing foodgrain storage facilities.
• Sub Mission on Agricultural Mechanization (SMAM): Supports the establishment of Custom Hiring Centres.
• Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme: Promotes growth and formalisation of micro food processing units.

UPSC Relevance

• GS Paper 2: Government policies and interventions for development in various sectors.
• GS Paper 3: Agricultural marketing, food processing, and related infrastructure.
• Prelims Angle: Questions on the objectives, benefits, and implementation of the Decentralised Grain Storage Plan.
• Mains Angle: Analytical themes on cooperative models in agriculture and infrastructure development.

FAQ Section

• What is the Decentralised Grain Storage Plan? It is a government initiative to enhance grain storage capacity through cooperatives, focusing on local storage, processing, and distribution systems.
• Why is the Decentralised Grain Storage Plan important? It reduces post-harvest losses, improves farmers' incomes, and strengthens food security by decentralizing storage infrastructure.
• What are the key features of the plan? The plan includes using PACS as storage hubs, integrating government schemes, and providing financial and technical support to enhance rural agricultural infrastructure.