PM launches the world ‘s largest agri storage platform

PM launches the world ‘s largest agri storage platform

Subject: Schemes

Context:

• Prime Minister Shri Narendra Modi inaugurated and laid the foundation stone of several major initiatives for the cooperative sector at Bharat Mandapam in New Delhi.

More on news:

• The Prime Minister inaugurated the pilot project of ‘World’s Largest Grain Storage Scheme in Cooperative Sector’ in 11 Primary Agricultural Credit Societies (PACSs) in 11 states.
• PM Modi laid the foundation stone of additional 500 PACSs across the country for creation of godowns and other agri-related infrastructure and also inaugurated a project for computerization of 18,000 PACSs.

World largest Grain Storage Plan:

• Prime Minister Shri Narendra Modi inaugurated the pilot project of ‘World’s Largest Grain Storage Scheme in Cooperative Sector’ in 11 Primary Agricultural Credit Societies (PACSs) in 11 states. 
• Under the scheme, thousands of warehouses and godowns will be constructed across the country.
• The scheme aims to create storage capacity for storing 100 per cent of India’s grain production.
• It aims to seamlessly integrate PACS godowns with the food grain supply chain, with a collaborative effort of NABARD and spearheaded by the National Cooperative Development Corporation (NCDC).
• The initiative is being implemented through the convergence of various existing schemes like the Agriculture Infrastructure Fund (AIF), Agriculture Marketing Infrastructure (AMI), etc. to enable PACS participating in the project to avail subsidies and interest subvention benefits for undertaking infrastructure development.
• PM also laid the foundation for creating godowns and other agri infrastructure in 500 more PACS.
• The PM also inaugurated a project for computerisation of 18,000 PACS across the country.
•  In India, storage capacity with regards to food grain production is only 47%, whereas in the USA it is 161%, Brazil 149%, Canada 130% and China 107%. 
• 700 lakh tonne storage capacity will be created in the next five years, with an investment of ₹1.25 lakh crore.

About PACS

• Primary Agricultural Credit Societies are the grass root level arms of the short-term co-operative credit structure.
• PACS deals directly with the rural (agricultural) borrowers, give those loans and collect repayments of loans given and also undertake distribution and marketing functions.

Organizational Structure of PACS

• General Body of PACS: Exercise the control over board as well as management.
• Management Committee: Elected by the general body to perform the work as prescribed by the society’s rules, acts, and by-laws.
• Chairman, Vice-Chairman, and Secretary: Work for the benefit of the members by performing their roles and duties as assigned to them.
• Office Staff: Responsible for performing day to day work.

Significance of Primary Agriculture Credit Society

• For the uninitiated, a PACS is the first building block of the century-old cooperative banking system of India.
• PACS can play a colossal role, in bringing farmer communities closer to credit, inputs, market and value addition.
• No commercial bank branch can ever come close to providing the kind of services a Primary Agriculture Credit Society (PACS) can.
• PACS can also play a major role by integrating its warehouse with the physical and financial supply chain of agro-commodities in the upcoming Garmin Agriculture Markets (GrAMs) or large warehouses in the private sector.
• Promotion of training and awareness through National Council for Cooperative Training (NCCT).
• By increasing its reach, NCCT has conducted 3,287 training programs and provided training to 2,01,507 participants in FY 2022-23.

Computerization of Agriculture and Rural Development Banks (ARDBs): 

• To strengthen the long-term cooperative credit structure, the project of computerization of 1,851 units of Agriculture and Rural Development Banks (ARDBs) spread across 13 States/ Union Territories has been approved by the Government.
• NABARD is the implementing agency for the project and will develop a national level software for ARDBs.

Multi-State Co-operative Societies (Amendment) Act, 2023:

Amendment has been brought in the MSCS Act, 2002 to strengthen governance, enhance transparency, increase accountability, reform electoral processes and incorporate provisions of the 97th Constitutional Amendment in the Multi State Cooperative Societies.