PM Modi launches ‘world’s largest agri storage plan’; Rs 1.25 lakh cr outlay over 5 years

AT A TIME when farmers in Punjab are demanding a legal guarantee of Minimum Support Price for 23 crops and trying to march towards Delhi, Prime Minister Narendra Modi Saturday announced a plan to set up the “world’s largest grain storage plan in the cooperative sector”.

Inaugurating a pilot project being undertaken in 11 Primary Agricultural Credit Societies (PACS) in 11 states under the largest grain storage plan, Modi said farmers incurred losses due to lack of storage infrastructure. “Earlier governments never focused on storage of agricultural produce. Our plan is to set up a storage infrastructure of 700 lakh metric tons over the next five years at a cost of Rs 1.25 lakh crore. This will enable farmers to store their produce and sell it at the right time according to their own needs. This will also help them to avail loans from banks.”

Modi also laid the foundation stone for additional 500 PACS for construction of godowns and other agri infrastructure. Further, he inaugurated a project for computersation in 18,000 PACS across the country, aligning farming with cutting edge technology and shifting to fully digital payments.

The launch of multiple initiatives for the cooperative sector at the Bharat Mandapam in New Delhi is intended to address one of the key farmer concerns of storage, and comes days ahead of the expected announcement of dates for the Lok Sabha elections and the kicking in of the Moral Code of Conduct.

“The vision of Sahakar se Samriddhi (prosperity through cooperatives) is to rejuvenate the cooperative sector and empower small and marginal farmers. Cooperatives have a great role in strengthening farming. That is why we have set up a separate Cooperation Ministry,” Modi said.

“Farmers today even export their produce through Farmer Producer Organisations (FPO). Eight thousand FPOs are already functional. Our target is to set up 10,000 FPOs. Even those involved in animal husbandry and fishing are benefiting from cooperatives. Our aim is to have 2-lakh cooperative societies,” he said.

Recounting his Gujarat experience, Modi said, “As Chief Minister, I experienced the strength of cooperatives. The world knows Amul and Lijjat Papad. Women led these initiatives. Today, crores of women are part of cooperatives of farmers. Given this fact, we have given women priority.”

Modi said that women directors are now mandated in the boards of multi-state cooperative societies, and said while it was not much discussed, this move was no less important than the constitutional amendment act paving the way for women’s reservation in Lok Sabha and state legislative assemblies.

Modi sought to align the cooperative system with India’s traditions, and said, “Cooperatives are an ancient system in Bharat. Even our shastras talk about it. In the ancient rural economy, cooperatives were always present. They were the base of our self-reliant society. It isn’t just a system but also a spirit. It can give results beyond resources. Cooperatives solve farmers’ problems through group/collective strength.”

“For Viksit Bharat, modernising agriculture is very important. We are preparing PACS for new responsibilities. They are also working as centres to run PM Kisan Samriddhi Kendra. We have allowed them to sell petrol, diesel and LPG. Their sources of income are increasing in number. Through computerisation, they are now being connected with Digital India,” Modi said.

The PM said that while the country was always called an agrarian society, it had to import edible oil and pulses. Cooperatives could step in to change this scenario, he said, adding they could also foray into the fertiliser sector and reduce the country’s import bill.

Explained

Co-ops, the new engine

THE GOVERNMENT seems to be increasingly emphasising the role of cooperatives in agricultural marketing and storage. This is reflected in the creation of a full-fledged Ministry of Cooperation under Amit Shah and routing of non-basmati rice and sugar exports on government account through the newly-registered National Cooperative Exports Ltd.

He underlined that India also had to import oil for transport. “We have to reduce our import bill. So, we are working on production, buying and blending of ethanol for sugar mills. Government companies buy from them. Can cooperatives not enter this area?” Modi said.

The Prime Minister urged cooperative societies to facilitate soil testing. “We have started a huge programme for soil testing. I call upon cooperatives to make small labs for soil testing in your areas,” he said. Skill development and training through cooperatives were also priority areas, he said.

His government had reduced minimum alternate tax on cooperative societies – bringing it at par with the corporate sector – and raised the slab for tax to be deducted at source to income above Rs 3 crore, Modi said. He also cautioned that elections to cooperative societies must be transparent and more people must associate with them.

Earlier, Union Minister for Home Affairs and Minister of Cooperation Amit Shah said the computerisation of PACS with a single software would enable farmers to “talk” in their own languages. “By August 24, all PACS will be computerised through this software. Eleven godowns (in 11 states) are being unveiled today, and the foundation stone for 500 more will happen today. Before 2027, we will have cent percent storage capacity via cooperatives.

PACS will have all requirements of modern agriculture,” Shah said.

EXPLAINED: Co-ops, the new engine

BY HARISH DAMODARAN

THE GOVERNMENT seems to be increasingly emphasising the role of cooperatives in agricultural marketing and storage, as opposed to government-owned entities such as Food Corporation of India and Central Warehousing Corporation.

According to the latest available data, the total storage capacity with the Food Corporation of India alone is 361.62 lakh tonnes as of February 1, 2024. Of this, 146.86 lakh tonnes is owned by FCI and the balance 214.76 lakh tonnes is hired. The storage capacity with state government agencies is another 400.74 lakh tonnes. Together, it adds up to 762.36 lakh tonnes.

The new storage plan aims to add another 700 lakh tonnes capacity over the next five years through cooperatives, in effect, double the existing capacity.

The creation of a full-fledged Ministry of Cooperation under Amit Shah and routing of non-basmati rice and sugar exports on government account through the newly-registered National Cooperative Exports Ltd points to the importance the government is placing on cooperatives.

Both Prime Minister Narendra Modi and Shah probably believe that the success achieved by Gujarat Cooperative Milk Marketing Federation (Amul) in augmenting income of farmers in their home state can be replicated across the country.

The government may also not be expecting much investment in agri infrastructure and marketing to flow from the private sector. Understandably so, since the private sector is not comfortable with the stocking limits and export restrictions imposed from time to time by the government in response to food inflationary pressures.

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