J&K among key beneficiaries as Centre expands world's largest grain storage plan

Srinagar, Jul 22: Jammu and Kashmir has emerged as one of the leading states in implementing the Centre’s ambitious “World’s Largest Grain Storage Plan in Cooperative Sector,” a major initiative aimed at transforming India’s rural economy and agricultural infrastructure.

The scheme, approved by the Union Cabinet in May 2023 under the leadership of Prime Minister Narendra Modi, is being rolled out as a pilot project across the country. It aims to develop multipurpose infrastructure through Primary Agricultural Credit Societies (PACS), turning them into rural agri-service hubs. The plan includes building godowns, custom hiring centres, primary processing units, and fair price shops at the PACS level through convergence with schemes such as the Agriculture Infrastructure Fund (AIF), Sub-Mission on Agricultural Mechanisation (SMAM), and PMFME.

In a written reply to the Lok Sabha, Union Home and Cooperation Minister Amit Shah said the pilot phase has already seen godowns completed in 11 PACS across as many states, with a total capacity of 9,750 metric tonnes.

Over 500 PACS have been identified for expansion, with completion targeted by December 2026.

Jammu and Kashmir has shown significant momentum under this cooperative-led model. Since the scheme’s approval in early 2023, the Union Territory has registered 161 new PACS. Additionally, 537 PACS in J&K have been approved for computerisation, of which 536 have already been onboarded onto the national ERP-based software platform. Hardware has been delivered to nearly all of them, indicating near-total digital integration.

The broader digitisation initiative—backed by Rs 2,925 crore—is expected to streamline the functioning of PACS by bringing them onto a single software platform linked with NABARD, State Cooperative Banks, and District Central Cooperative Banks. Officials believe this will enhance transparency, improve access to credit and services, and better integrate PACS with India’s formal rural financial infrastructure.

The Centre has also pushed for the creation of new multipurpose PACS, dairy, and fisheries cooperatives to ensure cooperative coverage in every panchayat within five years. As of June 30, 2025, a total of 22,933 new cooperatives have been registered nationwide—including 5,937 multipurpose PACS.

Officials say the enhanced storage and processing capabilities will be particularly impactful for regions like J&K, where small and marginal farmers often lack post-harvest infrastructure. With better warehousing, branding, and access to markets, local producers are expected to benefit from higher returns and reduced losses.

The grain storage plan is seen as a key piece in the Centre’s broader effort to address chronic rural storage gaps, reduce food grain wastage, and make procurement under welfare schemes more efficient. In J&K, where agriculture remains a crucial economic pillar, the rollout of this cooperative-led model is being closely watched as a potential driver of rural development and self-reliance.