Strengthening Rural Supply Chains: The Role of PACS in Decentralized Grain Storage

The Indian agricultural sector has long grappled with significant post-harvest losses, often attributed to inadequate storage facilities and the high costs associated with transporting produce to distant warehouses. To address these structural bottlenecks, the government has intensified its focus on decentralizing grain storage infrastructure by leveraging the extensive network of Primary Agricultural Credit Societies (PACS). By integrating storage, procurement, and processing capabilities directly at the farm gate, this initiative seeks to empower small and marginal farmers by providing them with better bargaining power and reducing their dependence on distress sales. As of July 2026, the successful completion of storage facilities across 313 PACS, yielding a capacity of over 1.80 lakh metric tonnes, marks a pivotal step in modernizing rural agricultural logistics. This decentralized model is designed to create a robust 'hub-and-spoke' system where PACS act as the primary nodes for local aggregation. Beyond merely providing space, these facilities enable farmers to store their produce during periods of price volatility, allowing them to wait for more favorable market conditions. Furthermore, the proximity of these units to the point of production significantly lowers the carbon footprint and logistical overheads associated with long-haul transportation.