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NABARD Subsidy for Godown, Guidelines, Rules, Eligibility

Introduction to NABARD Subsidy for Agricultural Godown: Agricultural Godowns are major necessity for small farmers to retain the produce with them until the market prices are favourable. The storage is also necessary to reduce the wastage and deterioration to enable it to meet their remunerative prices. You can assume this information for Nabard Warehouse Scheme, Nabard Rural Godown Scheme, Warehouse Subsidy, Rural Godown Subsidy Scheme, Gramin Bhandaran Yojana for Rural Godown and Warehouse, Guidelines and Rules for Agricultural Warehouse in India, Nabard Rural Godown Scheme 2020, Nabard Subsidy 2020, Agriculture Warehouse Subsidy in India. What are we waiting for? Let’s get into NABARD godown subsidy in India.

A guide to NABARD Subsidy for Agricultural Godown in India

As per the Grameena/Gramin Bhandaran Yojana, a subsidy scheme for construction of Rural Godowns and was implemented as per the NABARD.

Gramina Bhandaran Yojana Scheme.
Gramina Bhandaran Yojana Scheme.

Objectives for the Gramin Bhandaran Yojana scheme

The main objective of the this scheme includes-

  1. To create the storage capacity with all the allied facilities especially in rural areas to help farmers in storing farm procedures and in agricultural inputs.
  2. Promoting the quality of agricultural procedures in order to improve its marketability.
  3. Preventing the wastage and deterioration by providing the facility of financing and marketing credit.
  4. Creating an infrastructure for small scale farmers with respect to agricultural commodities stored which can be stored in such godowns.
  5. Reviving the procedures in agricultural investments by encouraging private and cooperate sectors to invest in the construction of the agricultural godowns in India, so that they will be easily available for farmers to store their agricultural produce.

You should not miss the Agriculture Borewell Permission and Subsidy.

Eligibility criteria for Gramin Bhandaran Yojana Scheme

Subsidies are provided by NABARD under Gramin Bhandaran Yojana Scheme to the farmers on submission of the project file which requires the following –

Eligible Organisations

The construction of these agricultural godowns are taken up by the individuals such as 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 and few Self-help groups.


As per the scheme, the entrepreneur can construct godown at any place freely, as per their convenience, except in the restriction if it is outside the limits of Municipal Corporation area. Rural godowns constructed in and around the Food Parks promoted by the Ministry of Food Processing Industries are eligible for this scheme.


Capacity of a godown can be decided as per the need by the farmer or the entrepreneur. But subsidy of the scheme will be restricted to a minimum of 100 tonnes capacity and maximum value of 10,000 tonnes. No subsidies are provided if the rural godowns are of Cooperative assistance by NCDC.

Rural godowns capacity up to 50 tonnes and smaller in size, are also eligible for subsidy under the scheme but it is totally based on viability analysis depending on the special requirement of that particular State/Region. In hilly areas/rural godowns will also be eligible for getting the subsidies having smaller size upto 25 tonnes capacity.

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Guidelines for agricultural godowns issued by NABARD

Guidelines for Agricultural Godowns in India.
Guidelines for Agricultural Godowns in India.

Godowns built under the scheme have to be constructed structurally sound in terms of engineering designs and must be functionally suitable for storing the agricultural produce. The general conditions for scientific construction of these agricultural godowns include the following:

  1. a) The construction of godown must follow the rules as per the Central Public Works Department/State Public Works Department specifications or any of the standard specifications noted. The godown should meet the basic criteria which include proper ventilation, perfect with well fitted doors, windows and ventilators and most importantly it should be waterproof (control of moisture from floor, walls and roof etc.)
  2. b) The godown structure has to be designed in such a way that it should be protected from rodents.
  3. c) The godown should be protected from the birds which have to cover the windows / ventilators with jail/ nets.
  4. d) The openings of godown especially doors, windows etc. should be designedand constructed in such a way that it can be sealed for some time after effective fumigation process etc.
  5. e) The godown complex must have easy access to roads, well-structured internal roads, proper drainage system, and proper arrangementsfor effective control against fire accidents and/or theft and also should have few implements for easy transport, loading and unloading of stocks into the godowns.

Subsidies available under the Scheme by NABARD

The below are the subsidies available for the farmers to construct the agricultural godowns. These include-

  1. If the category of the applicant is SC/ST entrepreneurs and their cooperatives, then the rate of subsidy available is 30-35% of the capital cost of the project and it is maximized to INR 3 crores.
  2. If the category of the applicant is Farmers, agricultural graduates and cooperative, then the rate of subsidy available is 20-25% of the total cost of the project and is limited to INR 2.25 crores.
  3. If the category of the applicant is Individuals, companies and corporations, then the rate of subsidy available is 10-15% of the capital/total cost of the project and it is maximized to INR 1.35 crores.
  4. If the category of the applicant is Renovation of godowns of cooperatives with the aid of NCDC, then the rate of subsidy available is 20-25% of the capital/total cost of the project.
  5. For godowns up to 1000 tonnes capacity the project cost was appraised by financing Bank or actual cost to INR 2500/- per tonne of storage capacity.
  6. Godowns exceeding 1000 tonnes capacity can get the appraisal by Bank and the actual cost ofINR 1875/-per tonne of storage capacity.
  7. For the godowns exceeding 10,000 tonnes capacity, the subsidy would be restricted to 10,000 tonnes only, and are also subjected to the relaxations.
  8. No beneficiary will draw the subsidy for the godown project from more than one source.
  9. The capacity of the godown is calculated at 0.4 Million tonnes per cubic meter.

Incase you miss this: Cold Storage License, Permission in India.

The affiliated banks that cover subsidies released through NABARD

Subsidies which are linked to the institutional credit and will be available to the project under the schemes which are financed by the bans listed- Urban Cooperative Banks, Regional Rural Banks, Commercial Banks, North Eastern Development Finance Corporation (NEDFI), State Cooperative Agricultural and Rural Development Bank, State cooperatives banks, and Agricultural Development Finance Committee.

Pledge loan facilities available

The farmers can avail the pledge loan for godowns constructions by hypothecation of their produce to keep their produce. The terms and conditions for pledge loans include margin, rate of interest, amount, pledge period, etc. which are issued by the National Bank for Agriculture and Rural Development – NABARD/RBI according to the normal banking practices which are followed by financial institutions.

Credit facility cover

As per the NABARD rules, the credit facility covers construction costs such as boundary wall, grading, platform, packaging, internal road system, as well as the internal drainage system. Besides these, the benefit would be extended to quality of certification and godown construction facilities.

Mode of release of subsidies for agricultural godowns

  1. a) the first 50% of subsidy amount is released on approval and acquisition of land and balance of the other 50% of subsidy amount will be released after godown construction reached roof level.
  2. b) 100% of subsidy amount would be released for renovation of godowns but that too after the completion of work of repair and renovation.
  3. c) The subsidy is provided as an interest free loan, but it can be adjusted only after the completion of the construction of godown just for the satisfaction of NCDC.

Refinance assistance by NABARD for rural warehouse

For construction of rural godowns, NABARD provides refinance assistance if required by commercial bank / RRBs/ ADFCs / SCBs/ SCARDBs and such other eligible institutions where 90% of the amount is financed by them as term loan. However, quantum of refinance gets changed, for example 95% in case of SCARDBs in North Eastern Region. The quantum of refinance from NABARD varies from time to time and region to region even. Rate of interest on refinance may vary and it is also decided by NABARD from time to time.

Applicable Agriculture Warehouse Subsody States

The above said  information may be applied to agriculture warehouse subsidy in telangana, agriculture warehouse subsidy in andhra pradesh, agriculture warehouse subsidy in karnataka, agriculture warehouse subsidy in maharashtra, agriculture warehouse subsidy in tamilnadu, agriculture warehouse subsidy in kerala, agriculture warehouse subsidy in gujarat, agriculture warehouse subsidy in rajasthan, agriculture warehouse subsidy in uttar pradeh, agriculture warehouse subsidy in punjab, agriculture warehouse subsidy in madhay pradesh, agriculture warehouse subsidy in odisha, agriculture warehouse subsidy in bihar, agriculture warehouse subsidy in haryana, agriculture warehouse subsidy in west bengal, agriculture warehouse subsidy in chhattisgarh, agriculture warehouse subsidy in uttarakhand and other states of India. You might be interested in How to Grow Vegetables in Shade.


  1. I own a 15 acre agriculture land and I am willing to give it on lease for warehouse and godown purpose to both private and government sectors.
    Anyone one interested please send a email. Thank you

  2. i have 3 acers road touch land, and want to give it on lease for governments,nabard godowns schemes, for contact plz e mail

  3. Hello sir,
    I am farmer and want to go for Gramin Bhandaran Scheme. Kindly arrange to send me the latest guidelines and duration of the schemes and time limit or and dead line for the submission of proposal……….

  4. Hello sir, I am Venkata peram having 62cents road facing agricultural land and planning for godown. Please share NABARD schemes and process details as well.

  5. I am interested please provide to me the cost of construction, per metric ton how much land is required. How can get a profit? So please help.


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