Gramin Bhandaran Yojana is a capital investment subsidy scheme for the construction or renovation of rural warehouses or godowns for storing farm produce. The scheme is aimed at assisting farmers in increasing their holding capacity. This could, in turn, lead to the sale of produce at rewarding prices by avoiding distress sales. Objective The scheme seeks to: Create scientific storage capacity with allied facilities in rural areas to help farmers in storing farm produce, processed farm produce and agricultural inputs. Promote grading, standardization and quality control of agricultural produce so as to improve its marketability. Prevent distress sale immediately after harvest by providing the facility of pledge financing and marketing credit. Create a robust agricultural marketing infrastructure in the country by facilitating the creation of a national system of warehouse receipts in respect of agricultural commodities stored in such warehouses. Revive the prospects of agricultural investments by encouraging private and cooperative sectors to invest in the creation of storage infrastructure in the country. Eligibility Loans under the scheme is extended to: 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 Co-operatives Non-Governmental Organizations Farmers’ groups Self-help groups Location Specifications Warehouses, for the purpose of this scheme, can be constructed/located anywhere outside the jurisdiction of the Municipal Corporation Area. Also, rural warehouses located in Food Parks promoted by the Ministry of Food Processing Industries are eligible for assistance. Warehouses constructed under the scheme must be structurally sound in terms of engineering considerations and appropriate for the storage of agricultural produce. The licensing requirements vary in accordance with the different states. Rural warehouses of 1,000 or more tonnes capacity should be accredited by the Central Warehousing Corporation (CWC). Subsidy The entrepreneur is free to decide on the capacity of a warehouse. The disbursal of subsidies, however, would be restricted to a capacity of between 100 tonnes and 30,000 tonnes. Smaller-size rural warehouses of up to 50 tonnes capacity are also considered based on viability analysis/topography of the region. Rural warehouses located in hilly areas qualify if their capacity is not more than 25 tonnes.
