Subsidies are provided by NABARD under Gramin Bhandaran Yojana Scheme to the farmers on submission of the project file which requires the construction of these agricultural warehouses are taken up by the individuals as below:

  • Farmers
  • Farmers’ groups
  • Proprietary firms
  • Co-operatives
  • Non-Governmental Organizations
  • Marketing Boards
  • Agro-processing co-operative societies
  • Agro-processing corporations
  • Agro-industrial corporations
  • Agricultural Produce Marketing Committees
  • Other corporations
  • Quality testing laboratories
  • Partnership firms
  • Companies, and
  • Self-help groups

As per the scheme, the entrepreneur can construct a warehouse at any place freely, as per their convenience, except in the restriction if it is outside the limits of the Municipal Corporation area. Rural warehouse constructed in and around the Food Parks promoted by the Ministry of Food Processing Industries is eligible for this scheme.

The capacity of a warehouse can be decided as per the need by the farmer or the entrepreneur. But subsidy of the scheme will be restricted to a minimum of 100-ton capacity and maximum value of 10,000 ton.

Scheme Details

Below are the subsidies:

  1. For SC/ST entrepreneurs and their cooperatives, the rate of subsidy available is 30-35% of the capital cost of the project and it is maximized to Rs.3 cr.
  2. For Farmers, agricultural graduates, and cooperative, the rate of subsidy available is 20-25% of the total cost of the project and is limited to Rs.2.25 cr.
  3. Individuals, companies, and corporations, the rate of subsidy available is 10-15% of the capital/total cost of the project and it is maximized to Rs.1.35 cr.
  4. For the Renovation of the warehouse of cooperatives with the aid of NCDC, the rate of subsidy available is 20-25% of the capital/total cost of the project.
  5. For warehouse up to 1000 ton capacity the project cost was appraised by financing Bank or actual cost to Rs.2500/- per ton of storage capacity.
  6. Warehouse exceeding 1000 ton capacity can get the appraisal by Bank and the actual cost of Rs.1875/-per ton of storage capacity.
  7. For the warehouses exceeding 10,000-ton capacity, the subsidy would be restricted to 10,000 ton only, and are also subjected to the relaxations.
  8. No beneficiary will draw the subsidy for the warehouse project from more than one source.
  9. The capacity of the warehouse is calculated at 0.4 Million tons per cubic meter.

Banks that cover subsidies released through NABARD

Subsidies which are linked to the institutional credit and will be available to the project under the schemes which are financed by the banks listed-

  • Urban Cooperative Banks,
  • Regional Rural Banks,
  • Commercial Banks,
  • North Eastern Development Finance Corporation (NEDFI),
  • State Cooperative Agricultural and Rural Development Bank,
  • State cooperatives banks, and
  • Agricultural Development Finance Committee

Mode of the release of subsidies

  1. The first 50% of subsidy amount is released on approval and acquisition of land and balance of the other 50% of subsidy amount will be released after godown construction reached roof level.
  2. 100% of subsidy amount would be released for the renovation of warehouses but that too after the completion of work of repair and renovation.
  3. The subsidy is provided as an interest-free loan, but it can be adjusted only after the completion of the construction of godown just for the satisfaction of NCDC.

Loan facilities

The farmers can avail the pledge loan for warehouse constructions by hypothecation of their products to keep their produce. The terms and conditions for pledge loans include margin, rate of interest, amount, pledge period, etc. which are issued by the National Bank for Agriculture and Rural Development – NABARD/RBI according to the normal banking practices which are followed by financial institutions.

Credit facility cover

As per the NABARD rules, the credit facility covers construction costs such as boundary wall, grading, platform, packaging, internal road system, as well as the internal drainage system. Besides these, the benefit would be extended to the quality of certification and godown construction facilities


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