World Largest Grain Storage Plan (GS Paper 3, Economy)
Why in news?
- Recently, the Minister of Cooperation, in a written reply to a question in the Lok Sabha, discussed about the World’s largest grain storage plan.
About World’s Largest Grain Storage Plan:
- The Government on 31st May 2023 has approved the “World’s Largest Grain Storage Plan in Cooperative Sector”, which is being rolled out as a Pilot Project in different states/UTs of the country.
- The Plan entails creation of various agri infrastructure at PACS level, including setting up decentralized godowns, custom hiring center, processing units, Fair Price Shops, etc. through convergence of various existing schemes of the Government of India (GoI), such as, Agriculture Infrastructure Fund (AIF), Agricultural Marketing Infrastructure Scheme (AMI), Sub Mission on Agricultural Mechanization (SMAM), Pradhan Mantri Formalization of Micro Food Processing Enterprises Scheme (PMFME), etc.
- Under these schemes, PACS can avail subsidies and interest subvention benefits for construction of godowns/storage facilities and setting up of other agri infrastructure.
- Further, NABARD is also extending financial support to PACS by refinancing them at highly subsidized rates of around 1 percent, after incorporating the benefits of 3% interest subvention under AIF scheme for projects up to Rs. 2 Crore.
- Therefore, the plan aims to strengthen the economic condition of PACS by diversifying their business activities and giving them additional sources of revenue thus improving their financial sustainability.
Implementation:
- The Pilot project is being implemented by National Cooperative Development Corporation (NCDC) with the support of NABARD, Food Corporation of India (FCI), Central Warehousing Corporation (CWC), NABARD Consultancy Services (NABCONS), National Buildings Construction Corporation (NBCC), etc. in different States/ UTs. Consultancy support is also being extended to PACS through these agencies under the project.
- In order to ensure accountability and smooth, effective and transparent implementation of the plan, Ministry of Cooperation has constituted an Inter-Ministerial Committee (IMC), which is authorized to modify guidelines/ implementation methodologies of the schemes identified for convergence, as and when need arises.
- A National Level Coordination Committee (NLCC) has also been constituted having members from Ministry/ Departments, Central Government agencies concerned to steer the overall implementation of the Plan and reviewing the progress of implementation, etc.
- To monitor the implementation of the project and to ensure its seamless integration with the existing policies/ programmes at State level, State Cooperative Development Committee (SCDC) at State level and District Cooperative Development Committee (DCDC) in each District of the State/UT have also been constituted.
The project will also provide various benefits to the farmers, including the following:
- Farmers will be able to store their produce in the godown constructed at PACS and avail bridge finance for the next cycle of crop and sell the produce at a time of their choice, or sell their whole crop to the PACS at Minimum Support Price (MSP), which would enable them to avoid distress sale of crops.
- They will be able to get various agri inputs and services at the Panchayat/ village level itself.
- Through diversification of business, farmers will be able to get additional sources of income.
- Through integration with the food supply management chain, farmers will be able to expand their market size and realize better value for their produce.
- Creation of adequate food grain storage capacity at PACS level will help in reduction of post-harvest loss, thus enabling farmers to earn better prices.
- It would help in ensuring food security at Panchayat/ village level across the country, thereby benefitting the consumers.
Centre launches forest certification scheme to counter foreign agencies
(GS Paper 3, Economy)
Why in news?
- Amid rising international concerns on deforestation and illicit trade in timber, the government has launched its own “national” forest certification scheme to validate entities that adhere to sustainable practices in management of forests and its products.
- The Indian Forest and Wood Certification Scheme (IFWCS) will offer an alternative to the private foreign certification agencies that have been operating in the Indian market for the last two decades.
New standards:
- The launch of the certification follows the development of new standards for forest management that will be mandatory for all forest divisions in the country.
- Forests in India are managed according to their respective working plans. These working plans have now been updated with the newly-developed Indian Forest Management Standards that contains eight criteria, 69 indicators and 254 verifiers.
- These standards will be mandatory for all forest divisions in the country to implement.
Types of certification:
- IFWCS would offer certification for sustainable forest management, sustainable management of trees outside forests like those in plantations, and chain of custody which is a sort of guarantee of the traceability of a forest product throughout its supply chain, from the origins to the market.
- Certification may be of use to forest management units, corporations, or wood-based industries, tree growers, timber or NTFP (Non-Timber Forest Produce) traders, saw millers, exporters or importers of wood-based and NTFP-based products, and other end-user industries.
Climate change concerns:
- Europe and the United States happen to be the largest export markets for India’s forest-based products, particularly handicraft and furniture.
- These markets have been tightening the rules for import of forest products because of greater sensitivity around deforestation on climate change concerns.
- At the Glasgow climate change conference in 2021, over 100 countries had come together in a pledge to halt, and reverse, deforestation by 2030.
Way Forward:
- Right now, it is a government-initiated and government-backed scheme, but eventually it is likely to evolve into an independent entity like the Bureau of Indian Standards or Quality Council of India.
