The Government of Bihar has identified 36 Primary Agricultural Credit Societies (PACS) under the World’s Largest Grain Storage Plan in the cooperative sector. These PACS have received approval from the respective District Cooperative Development Committees (DCDC). However, the state has noted that PACS are yet to be identified for implementation of the scheme in Patna district, according to an official statement from the Ministry of Cooperation dated March 25, 2026.
Convergence of Central Schemes
The ambitious storage initiative is being implemented through convergence of multiple Government of India schemes, including the Agriculture Infrastructure Fund (AIF), Agricultural Marketing Infrastructure (AMI) Scheme, Sub-Mission on Agricultural Mechanization (SMAM), and Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) Scheme.
Project Cost and Subsidy Support
The total estimated project cost for the 36 approved PACS stands at Rs 104.3 crore. Under the AMI scheme, PACS are eligible for a 33 percent subsidy on project costs for constructing foodgrain storage facilities, along with an additional one-third subsidy on eligible costs for ancillary infrastructure such as internal roads, weighbridges, and boundary walls. Further financial support is extended through interest subvention under the AIF scheme for loans taken to build storage facilities.
Interest Relief and NABARD Support
The plan is also supported by NABARD’s special refinance scheme, which significantly reduces the financial burden on cooperatives. When combined with the 3 percent interest subvention under AIF, the effective interest rate on loans for PACS is reduced to as low as 1 percent under World’s Largest Grain Storage Plan, according to the statement.
Loan Sanctions So Far
"According to the State of Bihar, under the World’s Largest Grain Storage Plan, loan amount of Rs 71.63 crores have been sanctioned so far by concerned District Central Cooperative Banks and the Bihar State Cooperative Bank," the Ministry said.
Expansion of Storage Capacity
Separately, Bihar has reported progress in strengthening storage capacity at the grassroots level. A total of 7,286 godowns have been constructed so far, creating a storage capacity of 17.47 lakh metric tonnes. For the financial year 2025–26, the state has sanctioned 278 additional godowns for PACS and Vyaparmandals, with Rs 180.20 crore released for their construction.
Benefits for Farmers and Supply Chain
The decentralized storage infrastructure at the village and PACS levels is expected to reduce post-harvest losses by enabling scientific storage closer to farms and minimizing handling. It is also likely to lower transportation costs by reducing long-distance movement to warehouses and mandis, thereby improving farmers’ price realization, enhancing supply chain efficiency, and strengthening overall food security.
Parliamentary Statement
This information was provided by Union Minister for Home and Cooperation, Amit Shah, in a written reply in the Rajya Sabha.
