KC Tyagi / Bishan Nehwal
India, a country with vibrant agricultural traditions, is struggling with a paradox. According to the Food and Agriculture Organization of the United Nations (FAO), the country’s total food grain production was to reach 311 million tonnes in 2023, but its current storage capacity is only 145 million tonnes. According to an estimate, 10 to 15 percent of the country’s food grains are wasted annually after harvest, mostly due to inadequate storage facilities and inefficient distribution networks. This situation demands immediate and innovative solutions. A few days ago, the Prime Minister has approved the ‘World’s Largest Grain Storage Scheme in the Cooperative Sector’ to overcome the shortage of food grain storage capacity in the country, which will be started as a pilot project in various states/union territories of the country. being done. Large-scale grain storage schemes, while beneficial, may not directly address the needs of marginal and small farmers in particular.
According to the Agriculture Census (2010-11), there are 81.9 percent marginal farmers in India, who have less than two hectares of land. This limited land ownership points to low yield quantities. Large storage facilities may not be economical for such small quantities. These marginal farmers lack the financial resources to store their grains for long periods. Many of these marginal farmers depend on immediate income from selling their crops to meet basic needs. Withholding the produce for better price cannot be an option for them. The geographical distance between marginal farmers and well-developed agricultural markets increases the challenge of access to storage facilities. Most marginal farmers live away from well-developed mandis (agricultural markets) or procurement centres. The transportation costs of getting goods there may outweigh the potential benefits of storing grain for better prices. Thus, a ‘one fit for all’ approach to grain storage may inadvertently exclude those who need it most. A more nuanced and decentralized approach is needed to empower marginal farmers and ensure their participation in the grain storage scheme. Instead of focusing only on large storage facilities, the government should explore the possibility of setting up small and rural scale storage facility networks near the production site. These decentralized storage units will also provide easy access to storage options to marginal farmers while reducing transportation costs.
Additionally, cooperative societies and farmer producer organizations (FPOs) can play an important role in facilitating collective use of storage facilities. By pooling resources and sharing costs, farmers can benefit from economies of scale and overcome financial barriers to storage. Monetary support from the government is necessary for successful implementation of such initiatives. Government support, in the form of specifically targeted subsidies or interest-free loans to marginal farmers, can further encourage their participation. Having a strong storage infrastructure is only half of the equation. Efforts should also be made to strengthen and improve market access for marginal farmers. The real strength lies in creating synergy between storage, market access and farmer empowerment initiatives. A more inclusive and resilient agricultural ecosystem can be developed by focusing on creating a network of village level storage units, using cooperatives and FPOs, and improving market access through infrastructure development and mobile purchasing units.
Implementing a decentralized storage network requires careful planning and implementation. Potential issues such as logistics, maintenance and corruption need to be addressed in advance. Better storage facilities can reduce post-harvest losses. Increased income of marginal farmers can uplift entire rural communities. Decentralized storage networks can provide buffer stocks in times of crisis, stabilizing food prices and preventing price increases. India’s grain storage scheme has immense potential to transform the agricultural landscape of the country, but it must also have targeted interventions to ensure inclusion of marginal farmers. Only when this happens will we be able to realize the vision of a more equitable and sustainable agricultural future for India.
(These are the personal views of the author.)