According to the National Cooperative Database, 3,667 new PACS have been registered across India as of 27 January 2025. The highest number of newly registered PACS is in Odisha (1,535), followed by Rajasthan (760) and Gujarat (291).

In a significant move to enhance food grain storage capacity and streamline the agricultural supply chain, the Government of India has launched a pilot project under the World’s Largest Grain Storage Plan in the Cooperative Sector. Union Minister for Cooperation, Amit Shah, provided details of the initiative in a written reply in the Rajya Sabha.

The plan, approved on May 31, 2023, aims to create decentralised food grain storage at the Primary Agricultural Credit Society (PACS) level, reducing transportation costs and ensuring better price realisation for farmers. The initiative also integrates various agri-infrastructure components, including godowns, processing units, sorting and grading facilities, pack-houses, and cold storage units. This infrastructure development is being implemented through the convergence of several government schemes, such as the Agriculture Infrastructure Fund (AIF), Agricultural Marketing Infrastructure Scheme (AMI), and Pradhan Mantri Formalization of Micro Food Processing Enterprises Scheme (PMFME).

India faces a significant challenge in foodgrain storage, with a substantial gap between production and storage capacity, leading to potential losses and impacting food security. To address this, the government is implementing a large-scale grain storage plan, focusing on decentralized storage at the Primary Agricultural Cooperative Societies (PACS) level. 

India produces a large amount of foodgrains (around 311 million tonnes), but its storage capacity is significantly lower (145 million tonnes), leading to a shortfall of 166 million tonnes. Some states have adequate storage capacity, while others, particularly in the north, have capacities below 50 per cent. Lack of sufficient storage facilities can lead to food grain wastage, damage, and distress sales by farmers. 

Pilot Project Underway

As part of the pilot phase, 11 godowns have been constructed across 11 PACS nationwide, adding a total storage capacity of 9,750 metric tonnes (MT). This step is expected to address the critical issue of food grain wastage due to inadequate storage while minimising farmers’ reliance on intermediaries by enabling direct storage at local PACS facilities.

The initiative is particularly significant for rural India, where storage shortages often result in post-harvest losses. By allowing farmers to store their produce closer to their villages, the plan is expected to curb spoilage, improve efficiency, and bolster the country’s food security.

Strengthening the Cooperative Movement

In addition to boosting storage capacity, the government has also approved a broader plan to strengthen the cooperative movement, ensuring its reach extends to the grassroots level. The plan includes the establishment of 2 lakh new multipurpose PACS (M-PACS), as well as dairy and fishery cooperative societies, in all panchayats and villages across India over the next five years. This will be executed in collaboration with various government agencies, including the National Bank for Agriculture and Rural Development (NABARD), the National Dairy Development Board (NDDB), and the National Fisheries Development Board (NFDB).

According to the National Cooperative Database, 3,667 new PACS have been registered across India as of 27 January 2025. The highest number of newly registered PACS is in Odisha (1,535), followed by Rajasthan (760) and Gujarat (291). Maharashtra has also recorded significant progress with 148 new PACS established.

Digital Transformation in PACS

Recognising the need for digital transformation in the cooperative sector, the government has also approved a nationwide PACS computerisation project with a total financial outlay of ₹2,516 crore. The project aims to integrate PACS into a common ERP-based software platform, linking them with NABARD through State Cooperative Banks (StCBs) and District Central Cooperative Banks (DCCBs).

To date, 50,455 PACS have been onboarded onto the ERP system. Additionally, proposals for computerization of 67,930 PACS across 30 states and union territories have been sanctioned, with ₹741.34 crores released to support the initiative. Hardware has already been delivered to 60,382 PACS, marking a significant step towards modernizing cooperative banking and storage operations.

A Boon for Farmers and Rural Employment

The comprehensive grain storage plan is expected to provide multiple benefits, including reducing logistical costs, preventing post-harvest losses, and ensuring better price realisation for farmers. Furthermore, the initiative is anticipated to generate employment opportunities in rural areas by strengthening the cooperative network and expanding agricultural infrastructure.

By decentralising storage and integrating PACS with procurement and marketing systems, the initiative aims to create a more resilient and self-sufficient agricultural economy. The government’s commitment to expanding cooperative networks and enhancing food security through storage and digital transformation marks a new era in India’s agricultural sector.

As the pilot phase progresses, its impact on farmers and rural communities will be closely monitored, paving the way for full-scale implementation of the world’s largest grain storage scheme in the cooperative sector.

The minister was alluding to the plan launched by the government to create decentralised storage capacity at the PACS level, aiming to address the storage infrastructure gap and enhance food security. The plan involves establishing storage facilities at PACS, which will act as both procurement centers and Fair Price Shops (FPS), reducing transportation costs and promoting local food grain management. The plan aims to increase India’s foodgrain storage capacity by 700 lakh tonnes through the establishment of godowns at PACS level.

The government has transferred technology for a Smart Food Grain Storage System (SAFEETY) to industry for manufacturing and supply, including features like RFID for traceability and online weight and moisture measurement.