Rural Godown


A network of rural godowns will enable small farmers to enhance their holding capacity in order to sell their produce at remunerative prices and avoid distress sales. The main objectives of the scheme include creation of scientific storage capacity with allied facilities in rural areas to meet the requirements of farmers for storing farm produce, processed farm produce and agricultural inputs.

Promotion of grading, standardization and quality control of agricultural produce to improve their marketability; prevention of distress sale immediately after harvest by providing the facility of pledge financing and marketing credit; strengthen agricultural marketing infrastructure in the country by paving the way for the introduction of a national system of warehouse receipts in respect of agricultural commodities stored in such godowns and to reverse the declining trend of investment in agriculture sector by encouraging private and cooperative sectors to invest in the creation of storage infrastructure in the country.

The project for construction of rural godowns can be taken up by individuals, farmers, Group of farmers/growers, Partnership/ Proprietary firms, Non-Government Organizations (NGO’s), Self Help Groups (SHGs), Companies, Corporations, Co-operatives, Local Bodies other than Municipal Corporations, Federations, Agricultural Produce Marketing Committees, Marketing Boards and Agro Processing Corporations in the entire country. Under the scheme, the entrepreneur will be free to construct godown at anyplace, as per his/her commercial judgment except for the restriction that it would be outside the limits of Municipal Corporation area.

The entrepreneur may obtain a license to operate the godown, if so required by the concerned State Government, under the State Warehousing Act or any other relevant laws. According to Gram Bhandaran yojna subsidy of 33.33% of the capital cost of the project in case of projects located in North – Eastern States, hilly areas and those belonging to Women Farmers/ their self help groups / co-operatives and SC/ST entrepreneurs & their self-help groups/ Co-operatives subject to a maximum ceiling on subsidy of Rs.62.50 lakh.

No maximum ceiling on subsidy in the case of cooperatives assisted by NCDC25% of the capital cost of the project to all categories of farmers (Other than Women Farmers), agriculture graduates, cooperatives and State/ Central Warehousing Corporations subject to a maximum ceiling on subsidy of Rs. 46.87 lakh. No maximum ceiling on subsidy in the case of cooperatives assisted by NCDC 15% of the capital cost of the project to all other categories of individuals, companies & corporations etc.

Subject to a maximum ceiling on subsidy of Rs. 28.12 lakh and 25% of the capital cost of the project for renovation of godowns of cooperatives with assistance from NCDC.

Portfolio of Rural Godown