No Godowns Built in J&K Despite Rollout of Mega Storage Scheme

Ziraat Times Team Report

New Delhi, March 18: Jammu and Kashmir has seen limited progress under the Centre’s ambitious “World’s Largest Grain Storage Plan in Cooperative Sector,” with only two cooperative societies identified, one Detailed Project Report (DPR) submitted, and no storage infrastructure completed so far, the government informed Parliament on Wednesday.

The nationwide scheme, aimed at creating decentralised and scientific grain storage infrastructure, has so far led to the completion of godowns in 120 cooperative societies across India, generating a total storage capacity of 72,702 metric tonnes.

Union Minister for Home and Cooperation Amit Shah, in a written reply in the Rajya Sabha, said the initiative is being implemented as a pilot project to address storage shortages and strengthen rural agri-infrastructure.

Massive Storage Push Through Cooperatives

Approved in May 2023, the plan envisages setting up storage and agri-infrastructure at the level of Primary Agricultural Credit Societies (PACS) and other cooperatives. Facilities include:

• Scientific godowns

• Custom hiring centres

• Food processing units

• Fair Price Shops

The scheme is being implemented through convergence of multiple central programmes such as the Agriculture Infrastructure Fund (AIF), Agricultural Marketing Infrastructure (AMI), Sub-Mission on Agricultural Mechanisation (SMAM), and the PM Formalisation of Micro Food Processing Enterprises (PMFME).

Financial Incentives and Subsidies Enhanced

To boost participation, the Centre has introduced several financial incentives:

• Interest subvention under AIF, bringing effective loan interest rates down to nearly 1%

• Credit guarantee period extended from 2+5 to 2+8 years

• Subsidy under AMI increased to 33.33% for PACS

• Construction cost norms revised up to ₹7,000–₹8,000 per metric tonne

• Margin money requirement reduced from 20% to 10%

• Additional subsidy provision for ancillary infrastructure such as roads and weighbridges

The Food Corporation of India has also committed to a 9-year uniform hiring assurance for warehouses built under the scheme, ensuring viability for cooperatives.

Structured, Time-Bound Implementation

The plan follows a structured rollout process:

• Identification of viable PACS by State Cooperative Departments

• Approval by District Cooperative Development Committees

• Hiring assurance from agencies like FCI, National Agricultural Cooperative Marketing Federation of India Ltd. and National Cooperative Consumers’ Federation of India Ltd.

• Preparation of DPRs and loan approvals through District Central Cooperative Banks

• Completion of construction within six months

Construction can be undertaken directly by cooperatives or through state agencies and project management consultants, subject to quality standards.

National Progress and Storage Gap

Across the country, 560 cooperative societies have been identified under the plan, with 426 DPRs submitted and 120 projects completed.

Government agencies including FCI, NAFED, NCCF and State Warehousing Corporations have identified 378 districts with a storage gap of 46.92 lakh metric tonnes, and states have been asked to provide land for new facilities.

Rajasthan leads in implementation with 91 completed projects, while several states including Jharkhand, Punjab, and northeastern states are yet to make progress.

Cold Chain Component Included

In addition to grain storage, the scheme allows cooperatives to set up cold chain infrastructure such as cold storages, pack houses, and refrigerated transport under the Mission for Integrated Development of Horticulture (MIDH), aimed at supporting fruit and vegetable supply chains.

Focus on Reducing Rural Infrastructure Gap

The government said the plan leverages refinance support from National Bank for Agriculture and Rural Development to reduce financial burden on cooperatives and accelerate infrastructure creation.

Despite its scale, the slow progress in regions like Jammu and Kashmir highlights implementation challenges, even as the Centre continues to push states to identify land and expedite project execution under the scheme.