India’s cooperative sector is playing an increasingly important role in strengthening decentralised grain storage infrastructure through the Decentralised Grain Storage Plan, launched in 2023. The initiative seeks to improve storage, processing, procurement and distribution by leveraging Primary Agricultural Credit Societies (PACS) and converging existing government schemes.
The programme began with pilot projects covering 11 states and PACS, creating 9,750 MT of storage capacity. By July 2026, construction of godowns had been completed in 313 PACS, creating more than 1.80 lakh tonnes (LMT) of additional storage capacity across the country.
The integrated model goes beyond storage. PACS can establish Custom Hiring Centres to provide farm machinery such as tractors and harvesters on rental, while Fair Price Shops support local distribution of grains and processed food products. Primary processing units facilitate cleaning, sorting and drying of produce, improving quality and marketability. Procurement centres also enable PACS to procure grains for State agencies and the Food Corporation of India (FCI).
The initiative is aimed at reducing post-harvest losses, strengthening local supply chains and improving farmers’ access to markets while transforming PACS into multipurpose rural economic institutions.
