The Ministry of Cooperation has been rolling out the Decentralised Grain Storage Plan in Cooperative Sector since May 2023 to strengthen how India stores foodgrains at the local level. The initiative works through Primary Agricultural Credit Societies, or PACS, which are village-level cooperative institutions that provide credit and financial services to farmers. This programme affects farmers, rural cooperatives, and communities dependent on the Public Distribution System across the country.
How the plan works and what has been built
The scheme began with pilot projects in 11 states, creating 9,750 MT of storage capacity. By July 2026, the plan had expanded substantially. Godowns have been completed in 313 PACS across the country, generating more than 1.80 lakh MT of storage capacity. The plan aims to build storage facilities of 50 MT, 100 MT, and 200 MT sizes at the cooperative level.
The programme combines four existing government schemes: the Agriculture Infrastructure Fund, the Agricultural Marketing Infrastructure scheme, the Sub Mission on Agricultural Mechanization, and the Pradhan Mantri Formalisation of Micro Food Processing Enterprises scheme. This convergence allows PACS to become hubs offering multiple services including equipment rental, grain procurement, food processing, and grain distribution.
To participate, PACS must have their own land or a lease lasting more than 20 years. The land cannot be waterlogged or in forest areas. District Cooperative Development Committees identify and approve eligible PACS.
Financial support has been enhanced to improve project viability. The subsidy under the Agricultural Marketing Infrastructure scheme was raised from 25 percent to 33.33 percent. Margin money requirements were cut from 20 percent to 10 percent. When combined with a 3 percent interest subvention under the Agriculture Infrastructure Fund, participating PACS can access loans at just 1 percent interest. NABARD provides refinance support, and the Food Corporation of India has agreed to hire eligible godowns created under the plan.
Quality standards mandate that storage structures comply with Warehousing Development and Regulatory Authority norms and use durable, corrosion-resistant materials with proper ventilation. All facilities must display the scheme logo with the prescribed colour scheme. Regular inspections ensure compliance.
What this means for you
If you are a farmer, this scheme can help you store grain closer to home, avoiding forced sales at low prices and accessing credit against stored produce. For rural communities, these storage facilities reduce grain wastage and help ensure stable supplies through the Public Distribution System. Village cooperatives gain income from storage rentals and processing activities, strengthening local institutions and creating employment.