Balaghat Chosen as Pilot Under Grain Storage Plan

Cooperative-Led PACS Storage Infrastructure Gains Momentum

Balaghat district in Madhya Pradesh has been designated as the pilot district under the World’s Largest Grain Storage Plan (WLGSP). As part of the initiative, a 500 MT storage godown was developed at a Primary Agricultural Credit Society (PACS) in Parswada. The facility, inaugurated in February 2024, marks a significant step toward decentralised grain storage at the cooperative level.

Scheme Convergence Strategy

The Grain Storage Plan is being implemented through convergence of multiple central schemes, including the Agriculture Infrastructure Fund (AIF), Agricultural Marketing Infrastructure (AMI), SMAM, and PMFME. Under AIF, PACS benefit from interest subvention on loans for warehouse construction. Importantly, repayment tenure norms have been extended to improve financial viability.

Enhanced Financial Incentives

Policy revisions aim to strengthen PACS participation. Margin money requirements under AMI have been reduced, easing entry barriers. Eligible construction cost ceilings have been updated, while subsidy support for PACS has been raised to 33.33% . Additional incentives are provided for supporting infrastructure such as internal connectivity and logistics facilities.

Agricultural and Economic Benefits

Village-level scientific storage reduces post-harvest losses, improves supply chain efficiency, and enables farmers to utilise pledge financing. By allowing produce retention during unfavourable price cycles, the model mitigates distress sales and supports income stabilisation, particularly for smallholders.

Strategic Significance

The Balaghat pilot demonstrates a cooperative-centric approach to strengthening rural storage capacity, aligning infrastructure development with farmer welfare and food security objectives.

Exam-Focused Points

• Pilot district: Balaghat (Madhya Pradesh)

• Storage model: PACS-level decentralised infrastructure

• Key scheme: Agriculture Infrastructure Fund (AIF)

• PACS subsidy under AMI: 33.33%

• Objective: Reduce losses & distress sales