Gramin Bhandaran Yojana

Gramin Bhandaran Yojana is a capital investment subsidy scheme which works towards the construction and renovation of the godowns in the rural areas. This scheme can also be availed by the rural godowns which are positioned in various food parks.

The Gramin Bhandaran Yojana, announced in 2001, is a capital investment subsidy scheme for renovation and construction of rural godowns. Godowns should, however, be constructed outside municipal corporation limits. It is important to note that rural godowns (promoted by Ministry of Food Processing) which are located in food parks can also avail of Gramin Bhandaran Yojana.

What’s the purpose of Gramin Bhandaran Yojana?

The Gramin Bhandaran Yojana envisages a robust network of non-urban godowns to help build adequate scientific storage for farm produce in rural areas. Owing to enhanced storage capacity, farmers in villages are less likely to opt for distress sale of their harvest courtesy marketing credit and pledge financing available under the scheme. The purpose of the scheme is to cater to better storage facilities of farm produce, agricultural inputs, processed farm produce besides standardization of farm produce to boost its demand in the market and pave way for a system of warehouse receipts on a national level. The scheme is aimed at arresting the decreasing investment ratio in the agriculture sector in the country by extending subsidy to cooperative and private sectors.

Features of Gramin Bhandaran Yojana

The salient features of Gramin Bhandaran Yojana are listed in the table below:

Feature Description
Size of godown

Owner has to decide the capacity of his or her godown. Subsidy for the scheme is provided for a minimum potential of 100 loads and maximum of 30,000 loads. A smaller rural godown - 50 ton capacity is also qualified under the scheme on the basis of topography or viability analysis/requirement of a region. Also, godowns located in hilly areas with 25 ton capacity also qualify for the scheme in specific cases

Pledge Loan

Upon hypothecation of farm produce, farmers can avail of the pledge loan facility. The interest rates, loan amount and pledge period are based on the RBI/NABARD guidelines and banking practices of various financial institutions


Godowns should be robust in terms of their structure for storage of agricultural produce. Entrepreneurs may have to get a licence under the State Warehousing Act. Godowns which have capacity to store around 1,000 tonnes must be accredited by the Central Warehousing Corporation (CWC)


Godowns must be constructed outside the limits of municipal corporation. Also, any godowns (promoted by Ministry of Food Processing Industries) located at food parks are eligible as well

Credit-linked assistance

Subsidy linked to institutional credit is available for projects financed by the following:

  • Urban Cooperative Banks

  • Regional rural banks

  • Commercial banks

  • North Eastern Development Finance Corporation (NEDFI)

  • State Co-operative Agricultural and Rural Development Bank

  • State cooperative banks

  • Agricultural Development Finance Companies

Credit facility will be extended for construction costs of boundary wall, grading, platform, packaging, internal road, internal drainage system in addition to quality certification and warehousing facilities

Capital Cost

Godowns (1000 tonnes)

Godowns above 1000 tonnes capacity

Depends on the actual cost or cost of a project appraised by a bank or Rs.3500 per ton, whichever is lower

Depends on the actual cost or cost of a project appraised by a bank or Rs.1500, whichever is lower


Projects which receive finance from cooperative and commercial banks will get subsidy via NABARD. The subsidy in the Subsidy Reserve Fund Account is tax free

The subsidy rate is as follows:

  • 25% of a project’s cost for farmers and cooperatives subject ceiling on Rs.2.25 crores (subsidy)

  • 33.33% of a project’s cost for SC/ST entrepreneurs and projects in hilly areas subject to ceiling on Rs.3 crores (subsidy)

  • 15% of a project’s capital cost for individuals, corporations, subject to ceiling on Rs.1.35 crores (subsidy)

  • 25% of a project’s cost for godowns’ renovation aided by NCDC


Mortgage of land and godown

Eligibility for Gramin Bhandaran Yojana

The following are eligible to avail of the Gramin Bhandaran Yojana

  • Marketing boards
  • Agro-processing co-operative societies
  • Quality testing laboratories
  • Agro-processing corporations
  • Partnership firms
  • Agro-industrial corporations
  • Companies
  • Agricultural Produce Marketing Committees
  • Farmers
  • Proprietary firms
  • Co-operatives
  • Non Governmental Organisations
  • Corporations
  • Farmers’ groups
  • Self-help groups

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