Dr. K.P. Ranjan
India holds 11 percent (16 Crore Hectares) of world’s total cultivable area (138 Crore Hectares) and 18 percent (140 crore) of the total world population (790 Crore). This means meeting the food requirement of 18 percent of the world population. India only has 11 percent of cultivable land. Based on the FAO Statistical Data 2021 total food grain production in India is 311 million ton and total storage capacity in the country is only 145 million metric ton which means there is a shortage of 166 million metric tons for storage. There is surplus storage capacity in many countries, while there is a shortfall in India.
The plan entails establishing diverse agricultural infrastructure at the level of Primary Agriculture Credit Societies (PACS), encompassing warehouses, custom hiring centers, processing units, and more. By elevating PACS into multifunctional entities, this strategy aims to reduce food grain wastage through enhanced storage capacity, fortify the nation’s food security and empower farmers to command better prices for their produce.
Recognizing their pivotal role in shaping the agrarian and rural landscape of the Indian economy and capitalizing on their extensive outreach to the grassroots, this initiative seeks to establish decentralized storage facilities at the PACS level, alongside altering agricultural infrastructure. This endeavor not only bolsters the nation’s food security but also empowers PACS to metamorphose into dynamic entities.
Objectives of the Programme:-
- Decentralization of grain storage in India and benefits of the same at PACS level.
- Reduction of Postharvest losses from existing 6%
- Drastic reduction on multiple handling and transportation costs.
- Prevention of distress sale by farmers at low rates.
- Decentralized procurement by FCI/State Government.
- Storage based “Hub” and “Spoke” Model.
The Programme will also provide various benefits to the farmers:
- Farmers will be able to store their produce in the godown and warehouses constructed at PACS and avail bridge finance for the next cycle of crop and sell the produce at a time of their choice, or sell their whole crop to the PACs at Minimum Support Price (MSP), which would enable them to avoid distress sale of crops.
- They will be able to get various agri inputs and services at the panchayat/village level itself.
- Through diversification of business, farmers will be able to get additional sources of income.
- Through integration with the food supply management chain, farmers will be able to expand their market size and realise better value for their produce.
- Creation of adequate food grain storage capacity at PACS level will help in reduction of post-harvest loss, thus enabling farmers to earn better prices.
- In addition to the above, this Plan would help in ensuring food security at panchayat/village level across the country, thereby benefitting the consumers.
Dr. K.P. Ranjan is the Director of RICM, Chandigarh
