Gramin Bhandaran Yojana

The Gramin Bhandaran Yojana is a valuable capital investment subsidy scheme designed to enhance the rural warehousing infrastructure by supporting the construction or renovation of rural warehouses or godowns for storing farm produce. This initiative is pivotal for farmers, enabling them to increase their holding capacity, thereby facilitating the sale of produce at rewarding prices while avoiding distress sales.

Objective

The objectives of the Gramin Bhandaran Yojana are multifold:

Create scientific storage capacity with allied facilities in rural areas to aid farmers in safely storing farm produce, processed farm produce, and agricultural inputs.
Promote grading, standardization, and quality control of agricultural produce to improve its marketability.
Prevent distress sale immediately after harvest by providing pledge financing and marketing credit facilities.
Create a robust agricultural marketing infrastructure nationwide by facilitating a national system of warehouse receipts for agricultural commodities stored in these warehouses.
Revive agricultural investment opportunities by encouraging private and cooperative sectors to invest in the creation of storage infrastructure in the country.

Eligibility

Loans under this scheme are extended to a wide range of eligible entities, including:

Marketing Boards
Agro-processing co-operative societies
Agro-processing corporations
Agro-industrial corporations
Other corporations
Quality testing laboratories
Partnership firms
Companies
Agricultural Produce Marketing Committees
Farmers
Proprietary firms (Proprietorship Firms)
Co-operatives
Non-Governmental Organizations (NGOs)
Farmers’ groups
Self-help groups

Location Specifications

Warehouses under this scheme can be constructed outside Municipal Corporation Area jurisdictions. Additionally, rural warehouses in Food Parks promoted by the Ministry of Food Processing Industries qualify for assistance. These warehouses must be structurally sound, suitable for storing agricultural produce, and comply with varying state licensing requirements. Warehouses with a capacity of 1,000 tonnes or more must be accredited by the Central Warehousing Corporation (CWC).

Subsidy

Entrepreneurs have the flexibility to decide on warehouse capacity, with subsidies restricted to capacities ranging from 100 tonnes to 30,000 tonnes. There is also provision for smaller warehouses, such as those up to 50 tonnes, based on regional viability or topography. Rural warehouses in hilly areas qualify if their capacity is not more than 25 tonnes. The subsidy rates are tabulated as follows:

S. No	Category of Applicant	Rate of Subsidy
1	SC/ST entrepreneurs and their cooperatives	33.33% of the capital cost, up to INR 3 crores
2	Farmers, agricultural graduates and cooperatives	25% of the capital cost, up to INR 2.25 crores
3	Individuals, companies and corporations	15% of the capital cost, up to INR 1.35 crores
4	Renovation of warehouses by cooperatives with NCDC assistance	25% of the capital cost

Subsidies are released through NABARD for projects funded by selected banks. Entrepreneurs can avail of these benefits by pledging security through the mortgage of land and warehouse.

What Does it Cover?

The credit facility under this scheme covers construction costs for boundary walls, grading, platforms, packaging, internal roads, and drainage systems. Additionally, quality certification and warehousing facilities are included.

Affiliated Banks

Subsidies linked to institutional credit are granted for projects funded by:

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

Pledge Loan Facilities

Farmers storing their produce in these warehouses may avail of pledge loan facilities on hypothecation of their produce. The terms and conditions align with guidelines issued by the Reserve Bank of India (RBI) and the National Bank for Agriculture and Rural Development (NABARD), as well as standard banking practices.

Learn more about the India Business Setup Guide to understand additional resources available for entrepreneurs participating in such initiatives. Additionally, if you're interested in expanding your business into new realms, you can explore the Import and Export opportunities in India that are becoming increasingly accessible.

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Frequently Asked Questions

Common questions about Gramin Bhandaran Yojana.

The Gramin Bhandaran Yojana is a capital investment subsidy scheme aimed at assisting farmers in increasing their farm produce storage capacity by providing financial assistance for the construction or renovation of rural warehouses or godowns. The scheme seeks to create scientific storage facilities with allied amenities in rural areas.

Various entities are eligible for loans under the scheme, including marketing boards, agro-processing cooperatives, corporations, quality testing laboratories, partnership firms, companies, agricultural produce marketing committees, farmers, proprietary firms, cooperatives, non-governmental organizations, and farmers' groups or self-help groups.

Warehouses constructed under the scheme must be located outside the jurisdiction of the Municipal Corporation Area. Additionally, rural warehouses located in Food Parks promoted by the Ministry of Food Processing Industries are also eligible for assistance.

The entrepreneur is free to decide the capacity of the warehouse. However, the subsidy disbursal is restricted to warehouses with a capacity between 100 tonnes and 30,000 tonnes. Smaller warehouses up to 50 tonnes capacity are also considered based on viability analysis or the topography of the region.

The rate of subsidy varies based on the category of the applicant. SC/ST entrepreneurs and their cooperatives receive 33.33% of the capital cost, subject to a maximum of INR 3 crores. Farmers, agricultural graduates, and cooperatives receive 25% of the capital cost, subject to a maximum of INR 2.25 crores. Individuals, companies, and corporations receive 15% of the capital cost, subject to a maximum of INR 1.35 crores.

The credit facility covers construction costs for boundary walls, grading, platforms, packaging, internal roads, and internal drainage systems. It also extends to quality certification and warehousing facilities.

Subsidy-linked institutional credit is granted for projects funded by various institutions, including urban cooperative banks, regional rural banks, commercial banks, North Eastern Development Finance Corporation (NEDFI), state cooperative agricultural and rural development banks, state cooperative banks, and the Agricultural Development Finance Committee.

Yes, farmers who maintain their produce in the warehouses constructed or renovated under the scheme are eligible for pledge loan facilities on hypothecation of their produce. The terms and conditions of such loans will be in accordance with the guidelines issued by the Reserve Bank of India (RBI) and the National Bank for Agriculture and Rural Development (NABARD).

Warehouses constructed under the scheme must be structurally sound in terms of engineering considerations and appropriate for the storage of agricultural produce. Rural warehouses with a capacity of 1,000 tonnes or more should be accredited by the Central Warehousing Corporation (CWC).

The Gramin Bhandaran Yojana aims to assist farmers in increasing their holding capacity for farm produce, preventing distress sales immediately after harvest, and promoting grading, standardization, and quality control of agricultural produce to improve its marketability. It also facilitates the creation of a national system of warehouse receipts and encourages private and cooperative sector investments in storage infrastructure.