What is the massive grain storage plan the govt has unveiled, how it’ll help farmers

• The Union Cabinet recently approved the constitution of an Inter-Ministerial Committee (IMC) to facilitate the world’s largest grain storage plan in the cooperative sector.
• The IMC is to be constituted under the Chairmanship of Minister of Cooperation with the Minister of Agriculture (MoAFW); Minister of Consumer Affairs; and Minister of Food Processing Industries, etc., as other members.

Why does India need a Grain Storage Plan?

• India is the most populous country in the world, accounting for 18% (1.4 billion) of the global population (7.9 billion).
• However, it accounts for only 11% (160 million hectare) of the arable land (1,380 million hectare) in the world.
• Also, India runs the world’s largest food programme under the National Food Security Act, 2013, that covers about 81 crore people.
• Therefore, to ensure food security of a billion plus population, a robust network of foodgrain storage facilities becomes essential.

Present Food grain Storage Capacity in India

• At present, India has a food grain storage capacity of 145 million metric tonnes (MMT) against the total food production of 311 MMT - leaving a gap of 166 MMT.
• This means, India has a storage capacity of 47% of its total foodgrains production.
• At the regional level, only a few southern states have the storage capacity of 90% and above. In northern states like UP and Bihar, it is below 50%.
• At present, multiple government agencies, like the Food Corporation of India (FCI), Central Warehouse Corporation, Warehouse Development Regulatory Authority, Railways, and the civil supply departments of states are involved in grain management.
• However, that has not yielded the desired results and in the absence of sufficient storage facilities, food grains are sometimes stored in the open, which results in damage.

Global Scenario

• Several countries have better storage capacities. For instance, against the total food grain production of 615 MMT, China has a storage capacity of 660 MMT.
• The USA, Brazil, Russia, Argentina, Ukraine, France, and Canada have the capacity to store more food grains than they produce.

What are the Benefits of the Plan?

• The modern silos will have the facility of computerised real-time monitoring systems.
• It would reduce post-harvesting losses.
• It would bring down the food grain handling and transportation cost.
• Farmers would have a choice to sell their produce depending on the market conditions, and not be forced into distress sale.