The Union Cabinet on Wednesday approved a Rs 1 lakh crore initiative to boost the cooperative sector's capacity for foodgrain storage by 700 million tonnes. The country currently has a grain storage capacity of roughly 1,450 lakh tonnes, according to Information and Broadcasting Minister Anurag Singh Thakur.
A total of 2,150 lakh tonnes capacity would be added to the storage facility managed by cooperative societies over the next five years.
Terming the proposed scheme as the "world's largest foodgrain storage programme" in the cooperative sector, Thakur said a 2,000-tonne capacity godown will be set up in each block.
He said the move is aimed at reducing the damage of food grains due to a lack of storage facilities, helping in checking distress sales by farmers, reducing import dependence and creating employment opportunities in rural India.
The minister added that more storage capacity will reduce transportation costs for farmers and strengthen food security.
India annually produces about 3,100 lakh tonne of foodgrains, but the existing godowns can store only up to 47 percent of the produce.
(Edited by : Anushka Sharma)
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