NABARD Rural Godown Scheme
Strengthening Rural Storage Infrastructure
NABARD's initiative to create scientific storage capacity and prevent distress sale by farmers through construction of rural godowns.
About the Scheme
The Rural Godown Scheme was launched by the Government of India in 2001-02 to create scientific storage capacity with allied facilities in rural areas to meet various requirements of farmers for storing farm produce, processed farm produce, agricultural inputs, etc.
The scheme promotes establishment of rural godowns with the objectives of:
- Creating scientific storage capacity for agricultural commodities
- Preventing distress sale by farmers immediately after harvest
- Strengthening agricultural marketing infrastructure in the country
- Promoting grading, standardization and quality control of agricultural produce
- Improving farmers' access to institutional credit through warehouse receipts
The scheme is implemented by NABARD through various eligible organizations and individuals across the country.
Storage Capacity
Creating scientific storage facilities in rural areas
Financial Support
Providing capital investment subsidy to eligible entities
Credit Linkage
Enabling farmers to access institutional credit through warehouse receipts
Quality Control
Promoting grading, standardization and quality control of agricultural produce
Benefits of Rural Godowns
Prevent Distress Sales
Farmers can store their produce during harvest season and sell when market prices are favorable, avoiding distress sales.
Reduce Post-Harvest Losses
Scientific storage facilities help minimize post-harvest losses due to factors like moisture, pests, rodents, and fungi.
Access to Credit
Farmers can use warehouse receipts as collateral to access loans from banks and financial institutions.
Quality Maintenance
Proper storage facilities help maintain the quality and nutritional value of agricultural produce for longer periods.
Price Stabilization
Adequate storage capacity helps stabilize agricultural commodity prices by managing supply during peak harvest seasons.
Employment Generation
Construction and operation of rural godowns create employment opportunities in rural areas, contributing to rural development.
Application Process
Follow these simple steps to apply for the NABARD Rural Godown Scheme
Prepare Project Report
Develop a detailed project report including land details, construction plan, cost estimates, and financial projections.
Approach Bank
Submit your application to any commercial bank, regional rural bank, or cooperative bank along with required documents.
Bank Appraisal
The bank will appraise your project for technical feasibility, financial viability, and eligibility for subsidy.
Loan Sanction
Upon approval, the bank sanctions the loan and forwards the application to NABARD for subsidy.
Project Implementation
Construct the godown as per approved specifications within the stipulated timeframe (18 months).
Subsidy Release
After completion and inspection, NABARD releases the subsidy to the bank, which is adjusted against your loan.
Eligibility Criteria
Who Can Apply?
Individual Farmers
Individual farmers with own land or leased land for construction of rural godowns.
Farmer Groups
Farmer Producer Organizations (FPOs), Self-Help Groups (SHGs), and Joint Liability Groups (JLGs).
Cooperatives
Agricultural Produce Marketing Committees (APMCs), Marketing Boards, and Cooperative Societies.
Private Companies
Private companies, corporations, and non-governmental organizations (NGOs) engaged in agricultural marketing.
Government Agencies
State agencies, local bodies, and public sector undertakings involved in agricultural development.
Project Requirements
- The godown should be constructed in rural areas with a minimum capacity of 100 MT.
- The applicant must own the land or have a registered lease for a minimum period of 10 years.
- The godown must be constructed as per the technical specifications approved by NABARD.
- The project should be technically feasible and financially viable.
- The applicant must obtain necessary approvals and clearances from local authorities.
- The godown should be accessible by road and have basic utilities like water and electricity.
- The project should be completed within 18 months from the date of sanction.
Subsidy Pattern
Financial assistance provided under the Rural Godown Scheme varies based on category and location
| Category | Location | Subsidy Rate | Maximum Subsidy |
|---|---|---|---|
| Individuals, Farmers, FPOs | General Areas | 33.33% of capital cost | ₹30 lakh |
| Individuals, Farmers, FPOs | Hilly Areas/NE States | 33.33% of capital cost | ₹40 lakh |
| Women Farmers & SC/ST Entrepreneurs | All Areas | 33.33% of capital cost | ₹40 lakh |
| Cooperatives & State Agencies | General Areas | 25% of capital cost | ₹1.5 crore |
| Cooperatives & State Agencies | Hilly Areas/NE States | 33.33% of capital cost | ₹2 crore |
| Private Companies | All Areas | 15% of capital cost | ₹30 lakh |
Additional Information
- The subsidy is back-ended and adjusted against the loan amount after completion of the project.
- The subsidy is available for new construction as well as expansion of existing godowns.
- The cost of land is not included in the project cost for subsidy calculation.
- The subsidy is also available for renovation of existing godowns subject to certain conditions.
Subsidy Calculator
Estimate the subsidy amount for your rural godown project
Frequently Asked Questions
Success Stories
Hear from beneficiaries who have successfully implemented the Rural Godown Scheme
Rajesh Singh
Farmer, Uttar Pradesh
"The Rural Godown Scheme helped me construct a 200 MT storage facility on my farm. Now I can store my wheat and rice harvest and sell when prices are favorable. My income has increased by 30% in just one year."
Priya Kumari
FPO Member, Bihar
"Our Farmer Producer Organization constructed a 500 MT godown with NABARD's support. It has transformed our business model. We now aggregate produce from 200+ small farmers and negotiate better prices with bulk buyers."
Mohan Reddy
Agri-Entrepreneur, Telangana
"I established a 1000 MT godown in our village with NABARD's subsidy. It's not just a storage facility but a rural business hub now. We provide grading, sorting, and packaging services to farmers and link them to markets."
Need Expert Assistance with Government Schemes?
Our team of experienced consultants can guide you through the entire process — from application to final compliance, across various schemes.