Grain Storage Plan

Grain Storage Plan

Grain Storage Plan

This article covers “Daily Current Affairs” and the topic details “Grain Storage Plan”. The topic “Grain Storage Plan” has relevance in the Agriculture section for the UPSC CSE exam.

Relevance of the topic “Grain Storage Plan”

For Prelims:
What is Grain Storage Plan?

For Mains:
GS 3: Indian Economy – Agriculture
What is the significance of the Grain Storage Plan?
What are the issues with the Grain Storage ?
Way Forward

Why in the news?

Union Home Minister and Minister of Cooperation, Shri Amit Shah has thanked Prime Minister Shri Narendra Modi for approving the constitution of an Inter-Ministerial Committee (IMC) for the World’s Largest Grain Storage Plan in the Cooperative Sector.

What is Grain Storage Plan?

The Union Cabinet has given the green light to an impressive scheme that involves allocating a substantial ₹1 trillion for expanding storage capacity in the cooperative sector. 

India’s current grain storage capacity is 145 million tonnes, but the government aims to enhance it by 70 million tonnes to reach 215 million tonnes within five years. This expansion is crucial for reducing food wastage and improving farmers’ planning capabilities.

What is the role of Cooperatives?

  1. Cooperatives will establish decentralised storage facilities across the country.
  2. Reduces burden on the Food Corporation of India (FCI) and improves efficiency.
  3. Regional requirements and local needs will be integrated into nationwide implementation.

What is the role of Primary Agricultural Credit Societies?

Primary Agricultural Credit Societies (PACS) will emerge as a crucial pillar of the rural economy. It will not only enhance food security but also benefit millions of farmers associated with cooperatives. PACS will have the opportunity to expand their role beyond storage facilities, engaging in activities such as operating Fair Price Shops and Custom Hiring Centers. This comprehensive approach will empower PACS to contribute significantly to the agricultural ecosystem and uplift the livelihoods of farmers.

What are the benefits of this plan?

  1. PACS as MSP Agents: Farmers have the option to sell their crops to Primary Agricultural Credit Societies (PACS) and receive an advance payment at the Minimum Support Price (MSP). The remaining balance is settled once the PACS sells the food grains in the market, providing farmers with financial flexibility.
  2. Crop Storage and Financing: Farmers can store their crops in PACS-managed warehouses and avail finance for the next crop cycle. This enables them to sell their crops at a time of their choosing, taking advantage of market conditions and maximising their profits.
  3. Whole Crop Sale at MSP: Another option available to farmers is selling their entire crop to PACS at the Minimum Support Price (MSP). This provides a guaranteed price for their produce, ensuring income stability and reducing the risks associated with market fluctuations.

What is the significance of the Grain Storage Plan?

  1. Grain storage plans ensure food security by storing surplus grain for times of low agricultural production or emergencies.
  2. They contribute to price stability by regulating the supply and demand dynamics in the agricultural market.
  3. Grain storage plans help manage risks such as adverse weather conditions, pests, diseases, and market volatility.
  4. They promote agricultural development and rural economies by providing farmers with reliable storage infrastructure.
  5. Effective storage plans enable countries to engage in international trade and export their surplus grain.
  6. Grain storage reduces post-harvest losses and food waste.
  7. It maximises the utilisation of agricultural resources and minimises environmental impact.

What are the issues with Grain Storage ?

  1. Spoilage and quality loss due to inadequate storage conditions
  2. Pest infestation, including insects, rodents, and fungi.
  3. Insufficient or outdated storage infrastructure.
  4. Lack of monitoring and management practices.
  5. Financial constraints in building and maintaining storage facilities.
  6. Post-harvest losses resulting from physical damage, spoilage, and mishandling.
  7. Climate change impacts, such as extreme weather events, affect storage infrastructure and grain quality.


plutus ias current affairs eng med 1st June 2023


Q.1 The Grain Storage Plan approved by the Union cabinet aims to address various challenges and improve the agricultural landscape. Select all the correct objectives of this plan:

  • Increasing storage capacity by 100 million tonnes in the cooperative sector.
  • Reducing post-harvest losses and minimising food wastage.
  • Encouraging private sector participation in the storage infrastructure.
  • Implementing advanced technology for efficient grain storage.

Select the other correct answer from the code given below:

  • 1 only
  • 1 and 4 only
  •  2, 3, and 4 only
  •  All of the above

Answer: (c )

Q.2 What is the main objective of the Grain Storage Plan approved by the Union cabinet?

  1.  To reduce post-harvest losses of grains.
  2.  To increase the storage capacity of the Food Corporation of India (FCI).
  3.  To enhance the profitability of agricultural cooperatives.
  4.  To promote international trade in grain exports.

Select the correct answer from the code given below:

  1.  Option 1
  2.  Option 2
  3.  Option 3
  4.  Option 4

Answer: (a)

Mains Question

  1. What is the significance of Primary Agricultural Credit Societies (PACS) in the successful implementation of Grain Storage Plan?

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