Context:

The Union Cabinet approved the constitution and empowerment of an Inter-Ministerial Committee (IMC) for facilitation of the “world’s largest grain storage plan in the cooperative sector”.

How will it be achieved?

• Nodal Ministry: Ministry of Cooperation would implement a pilot project in at least 10 selected districts of different States.
• It will be achieved by convergence of various schemes of the Ministries of Agriculture and Farmers Welfare, Consumer Affairs, Food and Public Distribution and Food Processing Industries.

Inter-Ministerial Committee (IMC):

• The committee will be chaired by the Cooperation and Home Minister.
• It will lay guidelines for creation of infrastructure such as godowns, for agriculture and allied purposes, at selected ‘viable’ Primary Agricultural Credit Societies (PACS).

Benefits:

• Farmers will now get modern grain storage facilities in their blocks through PACS, so that they will be able to get fair prices for their grains.
• With this plan, the country will get food security and crores of farmers associated with cooperatives will be benefited.
• Farmers could sell their crops to PACS by receiving some advance payment at the Minimum Support Price, and get the balance after the PACS sold the food grains in the market.

Importance of Primary Agricultural Credit Societies (PACS):

• PACS are village level cooperative credit societies.
• They serve as the last link in a three-tier cooperative credit structure headed by the State Cooperative Banks (SCB) at the state level. 
• They offer last mile connectivity to farmers in disbursing credit.
• PACS have the capacity to extend credit with minimal paperwork within a short time.

News Source: The Hindu