Subsidy For Building Godowns In Rural Areas



Storage infrastructure is necessary for carrying over the agricultural produce from production period to the rest of the year. With most of the small farmers not financially sound to retain produce with them till the market prices are favourable, they need proper storage facilities to avoid wastage and reduce deterioration. Storage facilities also enable them to meet their credit requirement without being compelled to make distress sale of their produce.

Among the major agencies engaged in warehousing and storage, Food Corporation of India (FCI) constructs godowns for its own need of procurement and public distribution. The storage facilities of CWC and SWCs are by and large used by FCI, traders and for stocking fertilizers.

In 2000, a High Level Expert Committee set up by the government to consider various aspects of the problems related to storage of agricultural produce and to improve country’s storage space and also storage technology recommended creation of about 20 lakh tonne storage capacity in rural and semi-urban areas. The National Agriculture Policy has also emphasised creation of storage facilities for agri produce, particularly in rural areas. An Inter Ministerial Task Force set up by the Ministry of Agriculture has in its report recommended in 2002 that in addition to 78.83 MT available storage space in the country, 13 MT more space may be added during the 10th Plan period.   Of this, 9 MT was to be created in private and cooperative sectors. Similarly, the 11th Plan Working Group suggested for creation of 35 MT storage capacity with an investment of Rs. 7687 crore.

Accordingly, in 2001 the government launched Gramin Bhandaran Yojana for construction/renovation of rural godowns in the country. The main objectives of the scheme include creation of scientific storage capacity with allied facilities in rural areas to meet requirements of farmers for storing farm produce, processed farm produce, agricultural inputs, etc. and prevention of distress sale by creating the facility of pledge loan and marketing credit. The scheme is demand-driven and not location specific. Banks sanction the projects depending on the viability of the project.

Eligibility:

The project for construction of rural godowns can be taken up by individuals, farmers, group of farmers/growers, partnership, proprietary firms, Non-Government Organizations (NGOs), Self Help Groups (SHGs), companies, cooperatives, federations, Agricultural Produce Marketing Committees, Marketing Boards and Agro Processing Corporations. Assistance for renovation of godowns is, however, restricted to godownsconstructed by cooperatives only.

Under the scheme, the entrepreneur is free to construct godown at any place, as per his/her commercial judgment except for the restriction that it should be outside the limits of the Municipal Corporation area. Rural godowns constructed in the Food Parks promoted by the Ministry of Food Processing Industries are also eligible under the scheme for assistance. Capacity of a godown is to be decided by the entrepreneur. However, subsidy under the scheme is restricted to a minimum capacity of 100 tonnes and maximum capacity of 10, 000 tonnes.

Rural godowns of smaller sizes upto 50 tonnes capacity are also eligible for subsidy under the scheme as a special case based on viability analysis. In hilly areas, where the project site is located at a height of more than 1000 meters above mean sea level, rural godowns of smaller sizes upto 25 tonnes capacity are also eligible for subsidy.

A capacity of 271.97 lakh tonne has been sanctioned by NABARD and NCDC all over the country since the inception of the scheme. It includes subsidy release of Rs. 666.36 crore and total investment of Rs. 5764.85 crore.

Subsidy Pattern:

Under the revised scheme, subsidy @ 25% is given to all categories of farmers, agriculture graduates, cooperatives and CWC/SWCs. All other categories of individual companies and corporations are given subsidy @ 15% of the project cost. In case of NE States/hilly areas and SC/ST entrepreneurs and their cooperatives and women farmers, subsidy is 33.33%.

The scheme is being implemented by the Directorate of Marketing and Inspection, Faridabad and its sub-offices through NABARD and NCDC. Awareness and training programmes under the scheme are organized by the National Institute for Agricultural Marketing (NIAM), Jaipur.

Budgetary allocation for the scheme during Tenth and Eleventh Five Year Plan is given below:

Year Allocation ( in Rs. Crore)
2002-03 64.86
2003-04 79.82
2004-05 100.00
2005-06 90.00
2006-07 70.00
2007-08 80.00
2008-09 70.00
2009-10 70.00
2010-11 90.00
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301 Comments

  1. Rishu Garg says:

    Respected sir/madam,
    I am having a land around 3 acres about 25 km from Bathinda in punjab.I am in mood of setting up a warehouse.Please let me kmow the required procedure.

  2. DWAIPAYAN DUTTA says:

    I help in arranging govt.subsidy for storing food grains. You may contact me through mail or over phone.

    09717288069

  3. dear sir; i want to built a rural godown of 10000 m.t.in my own land at balaghat,m.p. please advice me to current subsidy given by govt.of india & govt.of m.p.for the year 2012-13

  4. jitendra kothari says:

    dear sir; i want to build a rural godown of 10000 m.t.in rural area at garra(balaghat)m.p. please advice me to current subsidy given by govt.of m.p.& govt of india for the year 2012-13

  5. RAJ WADHWANI says:

    I AM INTERESTED TO CONST WEARHOUSE IM MP NEAR IODORE VILLAGE PL GIVE ME ALL INFORMETION

  6. Gyan choudhary says:

    Dear DWAIPAYAN DUTTA, can you share me the mail ID.

    regds
    Gyan

  7. Gopal Agrawal says:

    I m intrested to costruct warehouse in Gondia Maharashtra in the village so pls gibe me full detail about it

  8. Siddharth Narula says:

    I am about to build a Godown in the outskirts of Jabalpur…I have about 13000 sq ft space in wbhich i’m planning to do this…Could you please tell me if I am eligible for any subsidy…??

  9. jay doshi says:

    i m intrested to construct warehouse on highway touch farm so how much subcidy i can get……
    we are farmer n we can construct abut 70000 sq ft godown …

  10. Anurag says:

    I am interested in building a warehouse in MP (Shivpuri district). Could you pls advice on the latest on Gramin Bhandaran Yojana scheme and what is the procedure for availing the subsidy? Thanks.

  11. Harendra chaudhary says:

    I am interested to contruct warehouse in UP(agra district). could u plz tell me the procedure for this and current subsidy given by up govt. and govt. of india in this yera.

  12. mohan says:

    I am interested in building a warehouse in M.P. at village Kathar, Unchehra. Distt. Satna. I am having approx. 5 acres of land out side the municipal area of Unchehra and adjoing the Unchehra Railway station.Can you please guide me how I can proceed in the matter and type of project/scheme to awail?
    Thanks.

  13. M.VIJAYA KUMAR says:

    dear sir, our family is having 15acres of agri land which produces mainly paddy , black/green gram, etc , as we need a storage facility our self and neighbors farmers also to store till we get the good market to sell or to take bank loans keeping in storage till we get the good market .

    pl advise the procedure of availing subsidy by construction of ware house in my village at the earliest possible in return mail

  14. M.VIJAYA KUMAR says:

    dear sir,Iam from Andhra pradesh , our family is having 15acres of agri land which produces mainly paddy , black/green gram, etc , as we need a storage facility our self and neighbors farmers also to store till we get the good market to sell or to take bank loans keeping in storage till we get the good market .

    pl advise the procedure of availing subsidy by construction of ware house in my village at the earliest possible in return mail

  15. Ajay singh says:

    i am interested to develop a warehouse in own land which is adjacent of state highway and there are more potential to storage because at the near by of our village sorrounding approximately 20 km no godown are avail;able.

  16. Ajay singh says:

    i am interested to develop a warehouse in own land which is adjacent of state highway and there are more potential to storage because at the near by of our village sorrounding approximately 20 km no godown are avail;able.

  17. rajendra khandelwal says:

    I AM INTERESTED TO MADE WHEREHOUSE IN TUMSAR TALUKA MAHARASHTRA
    PLEASE ADVICE SUBSIDY FOR 10000MT

  18. umanh says:

    I am having a land around 4 acres about 15 km from kurukshetra in haryana.I am in mood of setting up a warehouse.Please let me kmow the required procedure.

  19. dear sir; i want to build a rural werehouse godown of 5000 m.t.in tehsil palace area at khachrod(ujjain)m.p. please advice me to current subsidy given by govt.of m.p.& govt of india for the year 2012-13

  20. dear sir; i want to build a rural godown of 10000 m.t.in area at khachrod(ujjain)m.p. please advice me to current subsidy given by govt.of m.p.& govt of india for the year 2012-13

  21. pradeep kumar patel says:

    sir i want to make a 10000 m. t. warehouse in sainkheda m.p. so please give me any instruction about finance & subsidy

  22. dear sir i hv 0.35 hector land on road touch and on name of my father 8.5 acre land in sindewahi dt- chandrapur maharashtra. and i interested to build up a godown aprox.2500 sq.ft. under scheme of nabard. so sir plz suggest me for finance and subsidy.

  23. chetan bhagwat says:

    we want to built industrial ware house near nasik if any subsidy availble please let me know

  24. VIVEK JAIN says:

    kindly guide me for buldingup ware house at burhanpur.

  25. sanjeev says:

    Respected i want to construct a warehouse in bulandshahr UP rural area with the capacity of 10000MT SO You are requested to tell me abbout subsidy from cetre and state govt. thanking n regards.

  26. Dr ASHOK says:

    I am interested in Hyderabad , please advice .

  27. Jitendra Jindal says:

    Dear sir, I am having land around 1 hectare in gram lasudia parmar around 10KM from indore, madhya pradesh. & i want to construct a warehouse so please give me detailed information of subsidy & finance scheme.

  28. narendra says:

    i want were house subcidy

  29. amitkochar says:

    dear sir iwant to built a godawn of 5000mt at gharsana rajasthan

  30. amitkochar says:

    please tellme godawn height & breath

  31. neeraj rai says:

    I ‘m intrested in constructing 2 warehouses of atleast 2000 MT each.so what ‘ll be the budget (total cost) /finance /subcidy /rental plssibility /FCI norms for taking it on rent /repayment option/diverted space reqrd etc.etc…

  32. VIJAY BARSAINYA says:

    i m interested in setting up a warehouse in JHANSI (U.P.)pls let me know the detailed information of subsidy and finance scheme.ROI ON WAREHOUSE

  33. girish khathuria says:

    i am interested in setting up a ware houe near by indore (m.p.)of 5000mt,please guide me

  34. Kamla Devi says:

    Respected sir,
    Will u accept costing of Rs. 1200 per squire feet for subsidy purpose for construction of Whaerhouse in rural area.
    If u don’t accept then upto what extent of cost(per squire feet) u can provide me subsidy.Plz reply as soon as possible.

  35. Vaibhav agrawal says:

    I m vaibhav agrawal frm neem .i want to constrct warehouse in my area .could u explan me the procedure to start thin and also explain the goverment subsidy on warehose.?

  36. ranjan somdale says:

    I WANT TO BUILT THE GODOWN 6000Sq ft. in rural area I AM FRAMER plz reply nobes to built the godown map rules & subsidy prossess

  37. pradeep gupta says:

    we have 7 acres of land in shivpuri district (m.p) on highway , we want to set a warehouse on it. As this is an unfertile land.

    Please send us details of subsidy or facilities & Loan Etc. which are being provided by you and government. Also suggest us the name of experienced and government certified planner or architect.

  38. jayram says:

    i want to open a warehouse in my village please send me all requird documents and following procedure in my mail id.

  39. vijay gautam says:

    RESPECTED SIR,
    i WANT TO BUILT THE GODOWN IN MY OWN LAND WHICH IS STATE HIGHWAY TOUCH IN BALAGHAT DISTRICT. sIR PLEASE GUIDE ME TO WHOM TO APPROACH

  40. Harsh Chhabra says:

    Respected Sir/Mam
    i am intrested in setting up a warehouse in Shajapur district M.P. so please give me detailed information of subsidy & finance scheme.

  41. Harsh Chhabra says:

    Respected Sir/Mam
    i am intrested in setting up a warehouse in Shajapur district M.P. so please send me detailed information of subsidy , facilities provided & complete procedure to start with.

  42. Vasu says:

    Interested to construct rural godowns under NABARD subsidy scheme in Andhra Pradesh state . Appreciate if you can touch base on this by providing the relavent information.
    Thanks in advance.
    Vasu.

  43. Vinod Shrivastava says:

    Dear sir/madom,
    I want construct ware house at land 2 Acre at jobat alirajpur(Mdhyapradesh). Plase give me details for scheme , loan facilities & sbsisiry.which bank will be provde loan.
    Thanks

  44. Hello dear Mr Vinod Srivastav,
    Pre engg building sysytem is the latest type of steel building
    the construction of this fast compared to regular building
    in 2acres of your LAND UPTO 30,000SQFT IS ENOUGH KEEP THE REST
    OF LAND FOR VEHICLE MOVEMET.

  45. DEAR VASU,
    PRE ENGG STEEL BUILDING ARE THE LATEST & FATEST CONSTRUCTION FOR GODOWN &STORAGE BUILDINGS, THIS IDEAL SINCE U WANT TO AVAIL UNDER NABARD SCHEME IN AP.

  46. PRAFUL MANGE says:

    I am doing major project on subsidy and benifits provide from central government and state government for warehous an implementation so please give me subsidy and benifits provide from central government and state government for warehous.

  47. Nitin kardak says:

    I am interested in setting up a werehouse in rural areas . so pleas send me details of subsidy & finance scheme.

  48. Abhyudai singh says:

    sir, i want 2 know about a subsidy of ware house in rural areas

  49. rakesh says:

    i am inst.in wearehouse satup in rural areas.pl kindly send me detal of subsidy and finance scheme.

  50. anil rathi says:

    i am interested to set up ware house in rural area in mp at ujjain road (near nagda) . so pls send detail me for sussidy & finane scheme

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