Amit Shah Reviews World’s Largest Grain Storage Scheme to Boost Rural Economy

Union Home Minister and Minister of Cooperation, Shri Amit Shah, chaired a comprehensive review meeting of the world’s largest cooperative food grain storage scheme in New Delhi, reaffirming the government's commitment to achieving the vision of ‘Sahkar Se Samriddhi’ and ‘Atmanirbhar Bharat’ through cooperative development and rural empowerment.

The meeting brought together high-ranking officials and stakeholders from multiple government bodies and cooperative institutions. In attendance were Minister of State for Cooperation Shri Krishan Pal Gurjar, Minister of State for Consumer Affairs, Food and Public Distribution Shri Murlidhar Mohol, senior representatives from the Ministry of Cooperation, Food Corporation of India (FCI), National Cooperative Development Corporation (NCDC), National Bank for Agriculture and Rural Development (NABARD), NAFED, and the National Cooperative Consumers' Federation (NCCF).

Vision and Impact: A Rural Economic Transformation

Addressing the gathering, Shri Amit Shah emphasized that the scheme is a monumental step toward Prime Minister Narendra Modi’s vision of using the cooperative model to bring prosperity to farmers and the rural population. “This food grain storage scheme is a game-changer. It not only addresses the issue of post-harvest losses but also stimulates the rural economy by creating new employment opportunities,” said the Union Minister.

He further stated that the scheme directly supports India’s two key economic indicators—Gross Domestic Product (GDP) and employment generation. Through its implementation, rural India can experience increased agricultural productivity, reduced wastage, better pricing for farmers, and an integrated supply chain for food distribution.

Strengthening the Role of PACS in the Storage Ecosystem

A central theme of the discussion was the enhanced participation of Primary Agricultural Credit Societies (PACS). Shri Shah highlighted that PACS must be made the backbone of the scheme, stressing the importance of improving their financial health and operational capacity. To support this, he called for extending the loan period under the Agriculture Infrastructure Fund (AIF), making it more viable for PACS to invest in infrastructure and operations.

Shri Shah issued directives to the Ministry of Food and Public Distribution and the Food Corporation of India to carry out a national-level mapping of existing food storage infrastructure. This exercise aims to identify gaps and optimize the location of new storage units according to regional needs. By mapping existing warehouses, the implementation strategy can be tailored to bridge storage deficits, especially in high-production zones.

Building a Cooperative Supply Chain

Another critical directive from the meeting was for FCI, NCCF, NAFED, and State Warehousing Corporations to integrate PACS into their operational frameworks. These partnerships would ensure that PACS are not merely collection points but also serve as effective distribution and storage hubs. This approach is set to revolutionize the rural supply chain, ensuring a bottom-up model of cooperative growth.

Furthermore, Shri Shah instructed that State Governments take proactive steps to include more PACS in the scheme. He encouraged State Level Marketing Federations to actively participate and align their infrastructure with the central initiative. This unified approach is designed to promote synergized development across storage, procurement, and distribution.

National Goals: Self-Sufficiency Through Cooperatives

The scheme is one of the core components of the government’s broader Maritime India Vision, Amrit Kaal Vision, and Atmanirbhar Bharat initiatives. With over 1 lakh PACS operating across the country, the government plans to upgrade at least 70,000 PACS into modern agri-infrastructure hubs equipped with scientific grain storage, cold storage, processing units, and logistics support.

These PACS will not only reduce post-harvest losses but also become local centers of commerce, employment, and agro-industrial innovation. By acting as procurement agents, warehousing nodes, and retail outlets, PACS will bring the entire agricultural value chain within the reach of farmers.

Inter-Ministerial and Multi-Institutional Coordination

The meeting also emphasized the importance of inter-ministerial coordination and continuous engagement with financial institutions like NABARD and NCDC to ensure timely credit flow, training, and capacity-building initiatives. Shri Shah reiterated that all organizations must work in tandem to meet timelines and benchmarks.

He remarked, “This is not merely a scheme—it is a nationwide mission. When implemented effectively, it will leave a lasting legacy on India’s agricultural landscape, ensuring sustainable rural livelihoods, reducing dependency on urban migration, and boosting national food security.”

Looking Ahead: A Blueprint for Rural Prosperity

As the scheme gears up for phase-wise rollout across the country, pilot projects in states such as Madhya Pradesh, Uttar Pradesh, Maharashtra, and Gujarat have already begun to demonstrate the positive economic impact of decentralizing storage infrastructure. Early indicators show a 20–30% reduction in post-harvest losses and improved price realization for farmers.

The Ministry of Cooperation plans to unveil a digital dashboard for real-time monitoring of storage capacities, fund disbursements, PACS integration, and performance indicators at the national and state levels.

By empowering the grassroots cooperative movement, Shri Amit Shah’s leadership signals a paradigm shift in India’s approach to rural development, pivoting from top-down subsidies to bottom-up infrastructure-led empowerment.