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Agriculture & Food Security May 22, 2026 6 min read Daily brief · #7 of 50

Regional Workshop at Raipur reviews progress of World’s Largest Grain Storage Plan, White Revolution 2.0 and formation of 2 lakh new cooperative societies

The Ministry of Cooperation convened a high-level regional workshop to review progress on three flagship initiatives: the World's Largest Grain Storage Plan ...


What Happened

  • The Ministry of Cooperation convened a high-level regional workshop to review progress on three flagship initiatives: the World's Largest Grain Storage Plan in the Cooperative Sector, the White Revolution 2.0 programme, and the target to form 2 lakh new multipurpose cooperative societies (M-PACS).
  • On the grain storage front, godowns have been successfully constructed at Primary Agricultural Credit Societies (PACS) in 11 states — Maharashtra, Uttar Pradesh, Tamil Nadu, Karnataka, Gujarat, Madhya Pradesh, Uttarakhand, Assam, Telangana, Tripura, and Rajasthan — achieving a cumulative storage capacity of 9,750 metric tonnes under the pilot phase.
  • More than 500 PACS have been identified for further godown construction, with a target to complete construction by December 2026.
  • White Revolution 2.0 targets the establishment of 75,000 new Dairy Cooperative Societies (DCS) and the strengthening of 46,000 existing ones over the next five years, scaling the dairy cooperative model to new geographies.
  • The cooperative ecosystem strengthening initiative is supported by modern infrastructure, technology-enabled systems, and farmer-centric convergence across the Ministries of Agriculture, Food Processing, Fisheries, and Rural Development.

Static Topic Bridges

World's Largest Grain Storage Plan in Cooperative Sector

The World's Largest Grain Storage Plan was approved on May 31, 2023, as part of Union Budget 2023-24 announcements. It aims to create decentralised grain storage infrastructure at viable PACS across India, reducing post-harvest losses and dependence on the Food Corporation of India's centralised godown network.

  • Approved: May 31, 2023; implemented across 24 States/Union Territories.
  • Target: Creation of godowns and allied agri-infrastructure (primary processing, assaying units, custom hiring centres) at selected PACS.
  • Financial support: 3% interest subvention on loans up to ₹2 crore under the Agriculture Infrastructure Fund (AIF); 33.33% capital subsidy under the Agricultural Marketing Infrastructure Scheme (AMI).
  • Pilot phase capacity achieved: 9,750 metric tonnes across 11 states.
  • Expansion target: 500+ PACS identified; construction to be completed by December 2026.
  • Significance: Decentralised storage at the village level reduces distress sales by farmers, minimises post-harvest losses (estimated at 10–15% of foodgrain production in India), and strengthens food security at the last mile.

Connection to this news: The regional workshop represents a mid-course review of implementation — assessing pilot results, identifying bottlenecks (land availability, PACS viability, financing), and planning the scale-up phase toward the original vision of distributed grain reserves embedded in the cooperative network.


White Revolution (Operation Flood) and White Revolution 2.0

Operation Flood, launched on January 13, 1970, was the world's largest dairy development programme, implemented by the National Dairy Development Board (NDDB) under Dr. Verghese Kurien. It transformed India from a milk-deficit country into the world's largest milk producer — a transformation known as the White Revolution.

  • NDDB established: 1965, under Dr. Verghese Kurien ("Father of the White Revolution," "Milkman of India").
  • Operation Flood launched: January 13, 1970; implemented in three phases (1970–1996).
  • Blueprint: The Anand Pattern — the successful Kaira District Co-operative Milk Producers' Union (AMUL, est. 1946) was scaled nationally, linking village dairy cooperatives to urban consumers through a national milk grid.
  • Impact: Expanded dairy cooperatives from 18 milksheds to 173; linked over 73,000 village societies; India surpassed the United States as the world's largest milk producer (1998).
  • White Revolution 2.0 (current): Targets 75,000 new Dairy Cooperative Societies in underserved regions, strengthening 46,000 existing ones over five years — extending the cooperative dairy model to states and districts not covered under Operation Flood.

Connection to this news: White Revolution 2.0 uses the institutional architecture built by Operation Flood — village-level dairy cooperatives, district-level unions, state-level federations — and extends it to new geographies, particularly in eastern India and tribal areas, under the coordination of the Ministry of Cooperation (est. 2021).


Primary Agricultural Credit Societies (PACS)

PACS are the foundational tier of India's short-term cooperative credit structure — village-level institutions that serve as the first formal financial contact point for rural farmers. Over 1,01,000 PACS operate across India as of 2024.

  • 3-tier cooperative credit structure: PACS (village level) → District Central Cooperative Banks (DCCBs, district level) → State Cooperative Banks (SCBs, state level); refinanced by NABARD.
  • PACS provide short-term crop loans, Kisan Credit Cards (KCC), and input supplies (seeds, fertilisers, pesticides).
  • PACS account for 41% of all KCC loans; 95% of KCC loans disbursed through PACS go to small and marginal farmers.
  • The Multi-State Cooperative Societies (Amendment) Act, 2023, and the Model Bye-Laws for PACS (notified 2023) expanded the mandate of PACS to include over 25 business activities — transforming them from credit-only entities into Multipurpose PACS (M-PACS).
  • The 2 lakh new M-PACS target (under the Ministry of Cooperation) aims to establish at least one M-PACS per gram panchayat where none currently exists.

Connection to this news: The grain storage plan directly piggybacks on PACS infrastructure — building godowns at PACS premises leverages existing land, membership databases, and supply-chain relationships to create decentralised storage without building a parallel institutional network.


Ministry of Cooperation and the 3-Tier Cooperative Structure

The Ministry of Cooperation was carved out of the Ministry of Agriculture and Farmers Welfare as a standalone ministry in July 2021 — the first time India has had a dedicated ministry for the cooperative sector. The creation reflects the government's intent to use cooperatives as a vehicle for rural economic development and Viksit Bharat 2047 goals.

  • Constitutional basis: Article 43-B (Directive Principle, inserted by 97th Constitutional Amendment, 2011) directs the State to promote voluntary formation, autonomous functioning, democratic control, and professional management of cooperatives.
  • Article 19(1)(c): Citizens have the right to form associations, including cooperatives.
  • Multi-State Cooperative Societies Act, 2002 (amended 2023): Governs cooperatives operating in more than one state (IFFCO, KRIBHCO, NAFED, NCCF, AMUL).
  • State Cooperative Acts: Each state regulates intra-state cooperatives (including PACS, dairy cooperatives) under its own legislation.
  • 3-tier dairy structure: Village Dairy Cooperative Societies (VDCS) → District Cooperative Milk Producers' Unions → State Cooperative Milk Marketing Federations (e.g., AMUL/GCMMF at the federation level).

Connection to this news: The Ministry of Cooperation's regional workshop is its mechanism for hands-on federal coordination — bringing together state cooperative departments, NABARD, FCI, and implementing agencies to resolve bottlenecks and accelerate the convergent delivery of grain storage, dairy, and M-PACS programmes.


Key Facts & Data

  • World's Largest Grain Storage Plan: Approved May 31, 2023; covers 24 States/UTs; pilot capacity 9,750 MT across 11 states
  • Expansion target: 500+ PACS godowns to be completed by December 2026
  • Financial support: 3% interest subvention (AIF) + 33.33% capital subsidy (AMI) for PACS godowns
  • White Revolution 2.0 targets: 75,000 new Dairy Cooperative Societies; 46,000 existing DCS to be strengthened
  • Operation Flood: Launched January 13, 1970; three phases (1970–1996); architect: Dr. Verghese Kurien, NDDB
  • NDDB established: 1965
  • AMUL: Kaira District Co-operative Milk Producers' Union (est. 1946) — blueprint for Operation Flood
  • PACS in India: Over 1,01,000 (as of 2024); account for 41% of all KCC loans
  • Ministry of Cooperation: Established July 2021 as standalone ministry
  • 2 lakh M-PACS target: One Multipurpose PACS per gram panchayat where none exists currently
  • Post-harvest losses (India): Estimated 10–15% of foodgrain production
  • Constitutional basis for cooperatives: Article 43-B (97th Amendment, 2011) and Article 19(1)(c)
On this page
  1. What Happened
  2. Static Topic Bridges
  3. World's Largest Grain Storage Plan in Cooperative Sector
  4. White Revolution (Operation Flood) and White Revolution 2.0
  5. Primary Agricultural Credit Societies (PACS)
  6. Ministry of Cooperation and the 3-Tier Cooperative Structure
  7. Key Facts & Data
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