PACS Grain Storage Plan is a major initiative by the Government of India to improve grain storage in rural areas. It is part of the world’s largest grain storage programme in the cooperative sector. The plan focuses on building modern storage facilities at the level of Primary Agricultural Credit Societies (PACS). Its main aim is to reduce post-harvest losses and support better foodgrain management.

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Improving Rural Storage Infrastructure

The government is working to create strong storage systems in villages. Under this plan, PACS will develop modern godowns to store foodgrains safely. This will help farmers keep their produce for a longer time and sell it at better prices. It also improves the overall supply chain and reduces wastage.

Selection Criteria for PACS

Not all PACS are selected for this programme. Societies must meet certain financial and operational conditions. They should be approved by District Cooperative Development Committees. Agencies like the Food Corporation of India, NAFED, and NCCF help identify areas with storage gaps.

Selected PACS must have a positive net worth for the last two years, should not be loan defaulters, and must show profits for at least three years. The storage facility should ideally have a minimum capacity of 500 metric tonnes.

Use of Multiple Government Schemes

The PACS Grain Storage Plan combines several existing schemes to provide better support. These include the Agriculture Infrastructure Fund, Agricultural Marketing Infrastructure Scheme, Sub Mission on Agricultural Mechanization, and PMFME Scheme.

This combined approach ensures that cooperatives get financial help and technical support to build storage facilities and improve farm logistics.

Financial Support and Subsidy Benefits

Under the Agriculture Infrastructure Fund, PACS get interest benefits on loans for building storage units. The Agricultural Marketing Infrastructure Scheme offers a subsidy of up to 33 percent for constructing godowns.

The NABARD plays a key role in providing and managing subsidies. It helps in approving and releasing funds for these projects.

Role of Cooperative Banks and Low Interest Loans

State Cooperative Banks and District Central Cooperative Banks provide loans to PACS under this scheme. These banks ensure timely credit support for building storage units.

With the help of NABARD refinance and a 3 percent interest subvention under AIF, the effective interest rate becomes very low, around 1 percent. Some states like Rajasthan and Gujarat also offer extra financial help, making it easier for PACS to build storage facilities.