Grain Storage Plan: Godowns Built in 313 PACS by July 2026
Godown construction under the Decentralised Grain Storage Plan was complete in 313 PACS by July 2026, creating more than 1.80 lakh metric tonnes of storage capacity.

Why in News
A PIB backgrounder of 3 September 2026 reviewed the Decentralised Grain Storage Plan in Cooperative Sector, reporting completed godowns in 313 PACS and more than 1.80 lakh metric tonnes of new storage capacity by July 2026.
A PIB backgrounder of 3 September 2026 set out the progress of the Decentralised Grain Storage Plan in Cooperative Sector. The Plan was launched in 2023 and works through Primary Agricultural Credit Societies, or PACS, which are village-level bodies that give short-term credit to rural borrowers. It is meant to improve storage, processing, procurement and distribution by bringing existing government schemes together.
Why storage matters
Foodgrain production for 2025-26 is put at 376.563 million tonnes in the Third Advance Estimates. That is about 18.8 million tonnes more than the 357.732 million tonnes of the previous year, a rise of 5.3 per cent. India also runs the National Food Security Act of 2013, which covers about 80 crore people. The Ministry of Cooperation has therefore pressed for storage close to where grain is grown, so that transport costs between procurement centres fall and wastage drops.
From pilot to scale
| Plan launched | 2023; pilot rolled out on 31 May 2023 |
| Pilot | 11 PACS across 11 states, 9,750 MT of capacity |
| PACS identified, July 2026 | 1012 |
| Godowns completed, July 2026 | 313 PACS |
| Capacity created | More than 1.80 lakh metric tonnes |
| Silo sizes provided for | 50 MT, 100 MT and 200 MT |
| Implementing agency | National Cooperative Development Corporation |
The pilot states were Maharashtra, Uttar Pradesh, Gujarat, Rajasthan, Madhya Pradesh, Uttarakhand, Tamil Nadu, Telangana, Assam, Karnataka and Tripura.
How it is financed
The Plan converges four schemes: the Agriculture Infrastructure Fund, the Agricultural Marketing Infrastructure scheme, the Sub Mission on Agricultural Mechanization and the Pradhan Mantri Formalisation of Micro Food Processing Enterprises scheme. The subsidy under the marketing infrastructure scheme was raised from 25 per cent to 33.33 per cent, and the margin money requirement was cut to 10 per cent. NABARD channels the subsidy, while State Cooperative Banks and District Central Cooperative Banks lend to PACS. With NABARD's special refinance facility and the 3 per cent interest subvention under the Agriculture Infrastructure Fund, the effective loan interest rate for a PACS comes down to 1 per cent. The Food Corporation of India has been authorised to give assured hiring of eligible godowns.
One society's story
Nerpingalai PACS in Amravati, Maharashtra, built a warehouse of 3,000 MT under the Plan with support from the marketing infrastructure and infrastructure fund schemes. Around 300 farmers store nearly 32,000 bags of soybean there. The society has advanced about Rs 4.50 crore against the stored produce, which helps farmers avoid distress sales. Storage structures must display the approved grain storage logo and the prescribed colour scheme, and must meet Warehousing Development and Regulatory Authority norms. PACS are identified and approved by District Cooperative Development Committees, should preferably own their land, and where land is leased the lease must run longer than 20 years.
Important Facts
| Plan | Decentralised Grain Storage Plan in Cooperative Sector |
|---|---|
| Launched | 2023; pilot rolled out on 31 May 2023 |
| Works through | Primary Agricultural Credit Societies (PACS) |
| Implementing agency | National Cooperative Development Corporation (NCDC) |
| Pilot | 11 PACS across 11 states, 9,750 MT of capacity |
| PACS identified by July 2026 | 1012 |
| Godowns completed by July 2026 | 313 PACS |
| Capacity created | More than 1.80 lakh metric tonnes |
| Silo sizes | 50 MT, 100 MT and 200 MT |
| AMI subsidy raised | From 25 per cent to 33.33 per cent |
| Effective loan rate for PACS | 1 per cent |
| Quality norms | Warehousing Development and Regulatory Authority (WDRA) |
Exam Point of View
Remember the launch year (2023) and pilot date (31 May 2023), the pilot of 11 PACS with 9,750 MT, the July 2026 figures of 1012 PACS identified and 313 completed, the implementing agency (NCDC), the silo sizes of 50, 100 and 200 MT, and the effective interest rate of 1 per cent.
Practice Questions
Which body is the implementing agency of the Decentralised Grain Storage Plan in Cooperative Sector?
- A.Food Corporation of India
- B.National Cooperative Development Corporation
- C.NABARD
- D.Warehousing Development and Regulatory Authority
Show answer
The backgrounder names it as the implementing agency, supported by coordination at the national, state and district levels through an Inter-Ministerial Committee, a National Level Coordination Committee, and State and District Cooperative Development Committees.
Read the full explanation →By July 2026, in how many PACS had godown construction been completed under the Plan?
- A.11
- B.313
- C.521
- D.1012
Show answer
The backgrounder reports that as of July 2026 godown construction had been completed in that many PACS across the country, creating more than 1.80 lakh metric tonnes of storage capacity.
Read the full explanation →To what level does the effective loan interest rate for a PACS fall under the Plan?
- A.1 per cent
- B.3 per cent
- C.4 per cent
- D.7 per cent
Show answer
The Plan uses NABARD's special refinance facility to lighten the burden on participating cooperatives, and when that is combined with the 3 per cent interest subvention available under the Agriculture Infrastructure Fund, the effective loan interest rate for a PACS comes down to 1 per cent.
Read the full explanation →Frequently Asked Questions
Through which bodies is the Decentralised Grain Storage Plan implemented?
Through Primary Agricultural Credit Societies, or PACS, which are village-level institutions providing short-term credit to rural borrowers. The National Cooperative Development Corporation is the implementing agency of the Plan.
What progress had the Plan made by July 2026?
1012 PACS had been identified, and godown construction was complete in 313 PACS, creating more than 1.80 lakh metric tonnes of storage capacity. The pilot had covered 11 PACS across 11 states with 9,750 MT.
How does the effective interest rate for PACS fall to 1 per cent?
NABARD's special refinance facility reduces the financial burden, and when combined with the 3 per cent interest subvention available under the Agriculture Infrastructure Fund, the effective loan interest rate for a PACS comes down to 1 per cent.
Which schemes converge under the Plan?
The Agriculture Infrastructure Fund, the Agricultural Marketing Infrastructure scheme, the Sub Mission on Agricultural Mechanization and the Pradhan Mantri Formalisation of Micro Food Processing Enterprises scheme.
Sources
- Decentralised Grain Storage Plan in Cooperative Sector (opens in a new tab) — Press Information Bureau
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