Balaghat Chosen for Grain Storage Plan Pilot

Balaghat district in Madhya Pradesh has been selected as the pilot district under the World’s Largest Grain Storage Plan in the Cooperative Sector (WLGSP). As part of the pilot, a 500 metric tonne (MT) godown was constructed at the Bahudeshiya Prathamik Krishi Saakh Sahakari Society Maryadit, Parswada. The facility was inaugurated by the Prime Minister on 24 February 2024 and has been hired by the Madhya Pradesh Warehousing and Logistics Corporation (MPWLC).

The initiative marks a key step in decentralising grain storage infrastructure at the Primary Agricultural Credit Society (PACS) level.

Implementation Through Scheme Convergence

The plan is being implemented through convergence of existing Government of India schemes, including the Agriculture Infrastructure Fund (AIF), Agricultural Marketing Infrastructure (AMI) Scheme, Sub Mission on Agricultural Mechanization (SMAM) and the Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) Scheme.

Under AIF, PACS receive interest subvention on loans taken for godown construction. The loan repayment period has been extended from 2+5 years to 2+8 years for PACS. Under the AMI scheme, subsidy support is provided for foodgrain storage infrastructure.

Revised Subsidies and Financial Incentives

Several financial norms have been revised to strengthen PACS participation. The margin money requirement under AMI has been reduced from 20 per cent to 10 per cent. Construction costs eligible for assistance have been revised to ₹7,000 per MT in plain areas and ₹8,000 per MT in northeastern states.

The subsidy for PACS has been enhanced from 25 per cent to 33.33 per cent. In monetary terms, this translates to ₹2,333 per MT in plain areas and ₹2,666 per MT in northeastern states. Additionally, PACS are eligible for an extra one-third of the total admissible subsidy for ancillary infrastructure such as internal roads, weighbridges and boundary walls.

Reducing Post-Harvest Losses and Distress Sales

Decentralised storage at the village and PACS level enables farmers to store produce locally and access pledge financing. This allows them to sell at favourable market conditions rather than resorting to distress sales. The model is particularly beneficial for small and marginal farmers.

Scientific storage closer to farms reduces post-harvest losses and minimises repeated long-distance transportation to distant warehouses or mandis. The integrated approach enhances price realisation, improves supply-chain efficiency and strengthens food security.

Important Facts for Exams

• World’s Largest Grain Storage Plan in Cooperative Sector focuses on PACS-level storage.
• Balaghat (Madhya Pradesh) is the pilot district under WLGSP.
• Agriculture Infrastructure Fund (AIF) provides interest subvention for agri-infrastructure projects.
• Subsidy for PACS under AMI has been increased to 33.33%.

Strengthening Cooperative-Led Storage Infrastructure

By integrating financial support, infrastructure development and cooperative participation, the Grain Storage Plan seeks to modernise rural storage systems. The pilot in Balaghat is expected to serve as a model for nationwide expansion, reinforcing the cooperative framework and enhancing resilience in India’s agricultural supply chain.