According to the third advance estimates for the 2025-26 fiscal year, the country’s total food grain production is projected to reach 376.563 million tonnes. This represents an increase of approximately 18.8 million tonnes—or 5.3 percent—compared to the previous year’s production of 357.732 million tonnes. This information was provided in an official factsheet on Thursday. Under the National Food Security Act, 2013, India operates one of the world’s largest food security programs, covering approximately 800 million people.
The factsheet stated, “With the expansion of agricultural production and food security efforts in India, the importance of a decentralized grain storage infrastructure across the country has grown. The decentralized grain storage scheme, launched in the cooperative sector in 2023, has helped improve storage, processing, procurement, and distribution systems through Primary Agricultural Credit Societies (PACS).”
This scheme is supported through institutional coordination and financial assistance mechanisms. Starting with pilot projects across 11 states—with a combined storage capacity of 9,750 tonnes—the initiative is continuously expanding. According to the factsheet, by July 2026, the construction of warehouses at 313 PACS across the country had been completed, creating a storage capacity of over 1.80 lakh tonnes (LMT). This infrastructure also emphasizes quality standards, transparency, and operational viability.
The objectives of the decentralized grain storage scheme in the cooperative sector are to reduce food grain wastage and strengthen food security; provide farmers with greater flexibility to avoid distress sales and secure better prices; reduce transportation costs between procurement centers, warehouses, and fair price shops; and expand the role of Primary Agricultural Credit Societies (PACS) by diversifying agricultural activities.
The scheme also helps create opportunities for higher income for farmers. Pilot projects were implemented in Maharashtra, Uttar Pradesh, Gujarat, Rajasthan, Madhya Pradesh, Uttarakhand, Tamil Nadu, Telangana, Assam, Karnataka, and Tripura. The factsheet states that these pilot projects have established a significant operational foundation and demonstrated the viability of local storage infrastructure at the cooperative level.
