Among the various schemes, the NABARD Warehouse subsidy scheme is one that was started to protect the interests of the farmers. Read on to get details about the scheme.
The farmers of our country work day and night to produce grains that are consumed by the entire country. They are the backbone of our society. But while farming, the farmers have to go through several challenges, storing crops being one of them.
India’s climatic conditions are very diverse and weather changes happen frequently. As a result, the farmers of the country face extreme challenges to grow their crops and store them safely.
Often during floods and drought, especially in mountain areas a lot of crops get damaged. In order to address this issue, the warehouse subsidy scheme was introduced.
A Brief About the Warehouse Subsidy Scheme
Also known as the Gramin Bhandaran Yojna 2022-22, the Government of India has introduced this scheme to help the farmers keep their harvest safe and secure. The scheme allows farmers to build their own warehouse or even repair any existing warehouse in order to keep the crops safe.
Building a go-down or warehouse is pretty expensive and is something that a poor farmer cannot afford to invest in. As per the scheme the government will build new warehouses if it’s not yet been constructed.
However, if a farmer wishes to build the warehouse on his own, he will be given affordable credit options to build the warehouse. As per the scheme the warehouse will be made under the supervision of the cooperative societies.
The NABARD warehouse subsidy scheme was first launched on 1st April 2001. As per the scheme, the national and state farmers will receive a 25% to 33% subsidy to build the warehouse facility. However, there are certain rules & regulations associated with the scheme. Read below to get further details.
Warehouse Subsidy Scheme’s Interest Rate
The recent update on the Rural Storage Scheme outlines the regulations for obtaining subsidies. The government has established specific conditions that must be met to qualify for these subsidies.
| Subsidy | Who could get a subsidy? | On Maximum Ammount |
|---|---|---|
| 25% | Subsidy on loan for a graduate farmer undertaking a project in their area | 2.5 crore |
| 15% (Of full cost) | Subsidy available if the farmer obtains assistance from any institution, corporation or company | 1.35 crore |
| 33% | Available for hill areas, Scheduled Castes, and Scheduled Tribes | 3 crore |
Rules and subsidy rates as per the NABARD Warehouse Scheme 2022-22
Following are the warehouse subsidy scheme rates that are applicable for different people:
- The warehouse holder & other organisations related to the project apart from the farmer will get a 15% subsidy which is about ₹1.35 crore in amount.
- Farmers who are directly related to the project will get a 25% subsidy.
- Government organizations related to the project will get a 25% subsidy which is about ₹2.25 crore in amount.
- Farmers belonging to the rural areas will get a larger amount of subsidy, that is 33% subsidy the valuation of which is about ₹3 Crore in amount.
- SC or ST applicants will receive a 33% subsidy.
What are the major benefits farmers and the agricultural industry benefit from this scheme?
The major aim of this scheme was to help farmers construct warehouses at a minimum rate and increase their income. Here are the most prominent benefits of the warehouse subsidy scheme:
- Helps construct warehouses with end-to-end high-quality storage facilities to store crops in the best possible way.
- Encourages private & cooperative sectors to invest more in storage infrastructure & agricultural industry.
- The rural storage scheme allows farmers from rural areas to get a good price.
- Farmers do not need to worry any further about storing crops. Climatic conditions won’t be an issue anymore.
- Brings an end to distress sales by farmers soon after the harvesting seasons, as they will be able to store the crops in the warehouse and sell it later at a good price.
- Improves the overall quality of the crops.
- Makes the agricultural marketing infrastructure in the country
Which banks are working under this Yojana/Scheme?
Following are the banks working under the warehouse scheme:
- Commercial Bank
- Regional Rural Bank
- State Co-Operative Agricultural & Rural Development Bank
- Urban Co-operative Bank
- State- Co-operative Bank
Individuals and Organisations who can benefit from this Yojana/Scheme
Following is the list of individuals and organisations who can directly benefit from the NABARD Warehouse Subsidy Scheme:
- Farmers & groups of farmers
- NGOs
- Ownership and Partnership farms
- Self-help groups
- Cooperative information
- Companies & corporations
- Municipal to permanent body
- Agricultural Producer Marketing Societies.
- Agricultural produce processing corporations
- Agro-processing corporate societies & corporations
- Quality testing laboratories.
Eligibility criteria to avail of the warehouse subsidy scheme
To be eligible for the scheme the applicant needs to be:
- Any one of the categories mentioned above in the list of the previous section.
- A Citizen of the country belonging to a rural area.
- Farmer or an individual working in the agricultural sector.
- Farmers with low income
Documentations required to apply for the warehouse subsidy scheme
The main documentation required while applying for the scheme are:
- Aadhaar Card
- Residence proof
- Ration Card
- Bank Account Details
- Contact number
- Passport sized photo of the applicant
How to apply for the scheme online?
The process to apply online for the scheme is very simple.
- Step 1: Visit www.nabard.org (official website)
- Step 2: Go to the Warehouse Subsidy scheme or Gramin Bhandaran Yojana page
- Step 3: Click the ‘Apply Now button
- Step 4: Provide every detail mentioned in the online application form. The details may include name, birth, village, district residence, etc.
- Step 5: Attach other documents asked below on the form page.
- Step 6: Click the ‘Submit’ button.
Just make sure while applying for the scheme you have all the above-mentioned documents handy.
What are the facilities that are a must-have in the warehouses built under this scheme?
Quality control is a key factor here. The warehouses built under this scheme must have the following facilities or amenities:
- Platform
- Four walls
- Inside road
- Packaging
- Quality checker
- Internal sound draining system
- Grading
- Credit resource
Apart from these the following guidelines need to be met:
- There should be a pucca road, security system, drainage system, & facility for equal transactions & fluctuations.
- The wet window is for protection against birds and small animals.
- Airtight windows and doors for optimum protection.
- The storage needs to be built in accordance with the CPWD guidelines.
- The maximum height of the warehouse needs to be five meters.
Conclusion
The NABARD Warehouse Scheme is one of the best schemes introduced by the central government to protect the interests of the hard-working farmers of the country. Not only is it helping the farmers to increase their earnings by improving the storage quality and capacity, but it’s also enhancing the overall agricultural sector of the country. Post the introduction of the scheme, more and more private sectors have started investing in agriculture in India.
FAQs
1. What should be the size of the godown as per the scheme?
The capacity of the godown needs to be decided by the farmer or the owner. However, as per the scheme, the warehouse size limit is 100 tons to 10,000 tons capacity.
2. What does the credit facility cover as per the rules?
As per the rules of the scheme, the credit facility will cover building costs such as grading, platform, boundary walls, internal drainage, internal road system, and platform.
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