Scheme
Decentralised Grain Storage Plan in Cooperative Sector
GS3 Agriculture and food storageGS2 Food securityPrelims and Mains
- Why in news
- On 3 September 2026, PIB reported progress of the Decentralised Grain Storage Plan in Cooperative Sector: as of July 2026, godowns were complete in 313 PACS, creating over 1.80 LMT capacity.
- What it is
- The Decentralised Grain Storage Plan in Cooperative Sector is a Ministry of Cooperation initiative to build godowns and related farm services at Primary Agricultural Credit Societies (PACS). It converges existing schemes instead of creating new funding. The aim is storage near production centres, less wastage and better farmer incomes.
- Launch
- Rolled out as a pilot project on 31 May 2023.
- Implementing agency
- The National Cooperative Development Corporation (NCDC) implements the Plan.
- Converged schemes
- AIF, AMI, SMAM and PMFME are converged at PACS level.
- Subsidy and margin money
- AMI subsidy raised from 25% to 33.33%; margin money cut from 20% to 10%.
- Effective interest rate
- With NABARD refinance and 3% AIF interest subvention, the effective loan rate for PACS falls to 1%.
- PACS selection
- PACS are identified and approved by District Cooperative Development Committees under the Margdarshika SOP.
Don’t confuse with AIF vs AMI: AIF gives financing with interest subvention for post-harvest infrastructure; AMI gives back-ended capital subsidy for storage construction.
Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.
Why it matters
- Storage near production centres cuts transport costs and wastage, supporting food security.
- Makes PACS multi-service hubs, and lets farmers avoid distress sales.
Problems
- Capacity so far (about 1.80 LMT) is small against national storage needs.
- Dependence on PACS' land availability and financial health, and on loans from cooperative banks.
Way forward
- Speed up godown completion in the 1012 identified PACS with strong monitoring.
- Keep assured FCI hiring and quality audits to maintain viability and grain quality.
Put in your answer
Foodgrain production 2025-26: Third Advance Estimates put foodgrain output at 376.563 million tonnes.
- 2024Mains GS3 · Q14Importance of buffer stocks for farm prices and challenges in storing buffer stock
- 2019Mains GS3 · Q13Reformative steps taken to make the food grain distribution system more effective
- 2014Mains GS3 · Q4Role of cooperative societies in rural credit, with constraints facing agricultural finance institutions
- 2013Prelims Q27Which organisms produce aflatoxins in improperly stored cereal grains and oilseeds
- 2020Prelims Q61Which items count as public investment in agriculture, including PACS computerisation and cold storage
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
Prelims practice · Statements
Ours, not from a UPSC paper
Consider the following statements:
- 1.The Decentralised Grain Storage Plan in Cooperative Sector is implemented by the National Cooperative Development Corporation.
- 2.Under the Plan, the effective loan interest rate for PACS, after NABARD refinance and the AIF interest subvention, is reduced to 3 percent.
- 3.Under the Plan, PACS are identified and approved by District Cooperative Development Committees.
Which of the statements given above is/are correct?
True or false?
1 of 7
Statements the way Prelims prints them. Say first, then see the fact.
1.The Plan is implemented by the National Cooperative Development Corporation.
True. NCDC is the implementing agency.
2.The Plan creates new funding by replacing existing schemes such as AIF and AMI.
False. It works by converging existing schemes such as AIF, AMI, SMAM and PMFME.
3.Under the Plan, the subsidy under the AMI scheme was enhanced from 25 percent to 33.33 percent.
True. AMI subsidy rose from 25% to 33.33%.
4.The Plan was rolled out as a pilot project in 2023.
True. Pilot began on 31 May 2023.
5.Under the AMI scheme, the Food Corporation of India acts as the subsidy-channelizing agency.
False. NABARD is the subsidy-channelizing agency under AMI.
6.PACS are selected by the District Cooperative Development Committees under the Plan's Margdarshika.
True. DCDCs identify and approve PACS.
7.With NABARD refinance and AIF interest subvention, the effective loan rate for PACS under the Plan is reduced to 3 percent.
False. The effective rate is 1 percent; 3 percent is the AIF interest subvention.
Written by us from the release, not by UPSC; checked by a second model.
Worth revising until Prelims 2028: most news questions come within two years of the event.