Key facts
- India's Decentralised Grain Storage Plan in Cooperative Sector has created over 1.80 lakh metric tonnes of storage capacity.
- The plan, launched in May 2023, aims to strengthen food security and reduce wastage.
- Construction is complete in 313 Primary Agricultural Credit Societies (PACS) across the country.
- The initiative is supported by converging existing government schemes like the Agriculture Infrastructure Fund (AIF).
India is significantly expanding its decentralized grain storage infrastructure to bolster food security and reduce wastage, according to government statements. The Decentralised Grain Storage Plan in Cooperative Sector, initiated in May 2023, has successfully created over 1.80 lakh metric tonnes (LMT) of storage capacity across 313 Primary Agricultural Credit Societies (PACS) nationwide as of July 2026.
The plan, which began as a pilot project with 9,750 MT capacity in 11 states, aims to improve storage, processing, procurement, and distribution systems by leveraging the cooperative framework. It integrates various existing government schemes, including the Agriculture Infrastructure Fund (AIF), to establish decentralized godowns, custom hiring centers, processing units, and cold storage facilities.
This initiative is crucial given India's estimated foodgrain production of 376.563 million tonnes for the 2025-26 season and its extensive food security program covering approximately 80 crore people. By establishing storage closer to production centers, the plan seeks to minimize transportation costs, reduce foodgrain wastage, and provide farmers with greater flexibility to avoid distress sales and achieve better price realization.
Beyond storage, the broader cooperative strengthening plan approved in February 2023 also includes establishing 2 lakh new multipurpose PACS and computerizing existing ones, with over 50,000 PACS already onboarded onto an ERP-based common national software.