· The Union Cabinet approved forming and empowering an Inter-Ministerial
Committee (IMC) to create the “world’s largest grain storage plan in the
cooperative sector” by converging eight
ongoing schemes of three ministries.
· The Cabinet meeting was chaired by Prime Minister Narendra Modi.
· It would be the world’s largest grain storage scheme in the cooperative
sector with an outlay of around Rs 1 lakh crore.
Q. What are the Eight schemes that will be converged?
Q. What will be the benefits?
· The “multi-pronged” plan aims to address not just shortage of agricultural storage infrastructure in
the country by facilitating establishment of godown at the level of primary agricultural credit societies
(PACS) but “would also enable PACS to undertake various other activities”.
· These are roles such as functioning as procurement centres for state
agencies or the Food Corporation of India (FCI); serving as fair price shops;
setting up custom hiring centres; setting up common processing units, including
assaying, sorting, grading units for agricultural produce, etc.
· Further, creation of
decentralized storage capacity at the local level would reduce grain wastage
and (will) strengthen food security.
· By providing various options to farmers, it would prevent distress sale of crops, thus enabling farmers to realise better
prices for their produce.
· It would hugely reduce the cost incurred in transportation of food grains to procurement centres and again transporting the stocks back from warehouses to FPS (fair price shops).
Test Yourself- IV
UPSC Mains PYQs Q1. In the villages itself no form of credit organisation will be
suitable except the cooperative society.” – All India Rural Credit Survey.
Discuss this statement in the background of agricultural finance in India.
What constraints and challenges do financial institutions supplying
agricultural finance face? How can technology be used to better reach and serve
rural clients? (UPSC Mains 2014)
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