Roadmap for Answer Writing

1. Introduction
   • Briefly introduce Primary Agricultural Credit Societies (PACS) and their significance in rural credit systems in India.
   • Mention the role of PACS in storage and marketing of agricultural produce.
2. Contribution of PACS to Storage and Marketing of Agricultural Produce
   • Storage Facilities:
     • Explain how PACS create storage infrastructure at the village level, helping farmers store produce and avoid distress sales.
     • Highlight the reduction of post-harvest losses due to PACS storage options.
     • Example: PACS help farmers store their produce and sell it when market prices are favorable, preventing distress sales.
   • Marketing Support:
     • PACS aggregate produce from small and marginal farmers and help in collective marketing.
     • They ensure better prices by linking farmers directly with buyers, eliminating middlemen.
     • Market Linkages: Describe how PACS help establish direct linkages between farmers and buyers.
   • Credit Provision:
     • Pledge Loans: PACS offer loans against stored produce, enabling farmers to access immediate funds without selling.
     • Post-Harvest Loans: PACS extend post-harvest loans to farmers, enabling them to hold onto their produce until market conditions improve.
3. World’s Largest Grain Storage Plan in Cooperative Sector
   • Introduction:
     • Describe the new initiative launched to improve grain storage and food security in India.
     • Mention the goal of modernizing the storage infrastructure through PACS and other cooperative sectors.
   • Significance of the Plan:
     • Storage Capacity: The plan aims to address the current storage shortage of 166 million metric tons (MMT) of capacity by constructing new facilities and modernizing old ones.
     • Reducing Post-Harvest Losses: Emphasize how the modern storage facilities will reduce losses, currently ranging from 5-13% for fruits and vegetables and 3-7% for crops.
     • Farmer Income: By preventing distress sales, the plan will improve farmer income stability.
     • Strengthening the Cooperative Sector: This initiative strengthens PACS by enhancing their roles in storage and marketing, further decentralizing grain storage.
4. Conclusion
   • Sum up the key contributions of PACS to storage and marketing.
   • Conclude with the importance of the World’s Largest Grain Storage Plan in enhancing food security and strengthening the cooperative sector in India.

Relevant Facts and Sources for the Answer

1. Number of PACS and Membership:
   • India has over 100,000 PACS, with a membership exceeding 130 million farmers.
2. Storage Facilities and Infrastructure:
   • PACS help reduce post-harvest losses by providing storage solutions. The losses are around 5-13% for fruits and vegetables and 3-7% for crops.
3. Storage Capacity Shortage:
   • India currently faces a 166 million metric tons (MMT) shortage in storage capacity.
4. Marketing and Credit Provision by PACS:
   • PACS enable farmers to hold onto their produce and sell at better prices later by providing post-harvest loans and pledge loans. This system reduces distress sales and enhances bargaining power.
5. World’s Largest Grain Storage Plan:
   • The plan will modernize storage facilities and construct new warehouses and silos, significantly enhancing the storage capacity.