Government Schemes

Gramin Bhandaran Yojana โ€” Rural Warehouse Subsidy

Gramin Bhandaran Yojana gives 25-33% subsidy to farmers and cooperatives building rural warehouses. Apply via NABARD or commercial banks.

CitizenNest Editorial Team4 min read
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What is Gramin Bhandaran Yojana?

Gramin Bhandaran Yojana (Rural Godown Scheme) is a Government of India programme that provides 25% to 33% capital subsidy to farmers, cooperatives, and agri-entrepreneurs to construct scientific storage warehouses in rural areas. The scheme prevents post-harvest losses and helps farmers store produce and sell when prices are better.

The scheme is implemented through NABARD and commercial/cooperative banks.


Key Benefits

Beneficiary Type Subsidy Rate Max Subsidy
Farmers & cooperatives 25% of project cost โ‚น37.5 lakh
SC/ST farmers & NE states 33% of project cost โ‚น49.5 lakh
Grameen societies & agriculture students 25% โ‚น37.5 lakh

The subsidy is back-ended and credit-linked โ€” you take a bank loan, build the warehouse, get it inspected, then the subsidy is deposited.


Who is Eligible?

Eligible applicants:

  • Individual farmers and groups of farmers
  • Agriculture graduates setting up agri-businesses
  • Panchayati Raj institutions
  • Self-Help Groups (SHGs)
  • Cooperatives and Farmer Producer Organisations (FPOs)
  • State warehousing corporations
  • Agri-entrepreneurs

You are NOT eligible if:

  • You plan to build the warehouse without a bank loan (this is a credit-linked subsidy)
  • The proposed warehouse is purely for non-agricultural goods

Warehouse Specifications

Parameter Requirement
Capacity Minimum 50 tonnes, maximum 10,000 tonnes
Construction Pucca (permanent) structure only
Location Within village/gram panchayat limits
Certification Must get certified by State Warehousing Corporation or Warehousing Development and Regulatory Authority (WDRA)

The warehouse must be used for agricultural produce only to qualify for subsidy.


Documents Required

  1. Aadhaar Card โ€” identity
  2. Land documents โ€” ownership or long-term lease (minimum 15 years)
  3. Bank loan sanction letter โ€” from NABARD-linked scheduled bank
  4. Approved building plan / DPR โ€” certified by registered civil engineer
  5. Caste certificate โ€” SC/ST (for higher subsidy)
  6. WDRA registration (or application) โ€” after construction

How to Apply โ€” Step by Step

Step 1 โ€” Prepare a Detailed Project Report (DPR)

Your DPR must include:

  • Land details and ownership proof
  • Warehouse capacity (in tonnes)
  • Construction cost estimate (from licensed engineer)
  • Revenue projections (storage rental, own use)

Step 2 โ€” Apply for Bank Loan

Submit the DPR to:

  • NABARD for direct application
  • Your state/national commercial bank
  • Cooperative bank or RRB

Step 3 โ€” Bank Sanction and Construction

After loan sanction:

  • Construct the warehouse to approved specifications
  • Keep all contractor bills and material invoices

Step 4 โ€” Inspection and WDRA Registration

After construction:

  • State Warehousing Corporation / WDRA inspector certifies the structure
  • Apply for WDRA registration (mandatory for subsidy release) at wdra.gov.in

Step 5 โ€” Subsidy Release

NABARD releases the subsidy to your bank loan account after inspection:

  • For loans โ‰ค โ‚น1 lakh: upfront subsidy
  • For loans > โ‚น1 lakh: back-ended (deposited as TDR, adjusted at loan closure)

How Farmers Benefit

After building a warehouse:

  • Store your own produce and wait for better prices
  • Earn rental income from other farmers who store at your warehouse
  • Get warehouse receipt-based loans (up to 75% of produce value) from banks โ€” sell when price rises, repay loan

This means farmers no longer have to sell at distress prices right after harvest.


Frequently Asked Questions

1. I want to build a 200-tonne warehouse. How much loan and subsidy will I get?

Approximate cost: โ‚น25โ€“30 lakh. Subsidy: โ‚น6.25โ€“7.5 lakh (25%). Bank loan: โ‚น18โ€“22 lakh. Verify exact cost norms with NABARD.

2. Is WDRA registration mandatory?

Yes. WDRA (Warehousing Development and Regulatory Authority) certification is required to release the subsidy and to issue Negotiable Warehouse Receipts (NWRs) to stored commodity owners.

3. Can an SHG build a godown under this scheme?

Yes. SHGs and farmer cooperatives are eligible. An SHG applying for a warehouse to store members' produce qualifies for 25% subsidy.

4. Can I earn money by renting out the warehouse to other farmers?

Yes. Renting storage space to other farmers is allowed and encouraged โ€” it generates income to repay the loan.

5. Which bank should I approach?

Any scheduled commercial bank, cooperative bank, or RRB that has a NABARD refinancing arrangement. NABARD itself also provides direct loans for this purpose.


Purpose Link
NABARD (rural godown scheme) nabard.org
WDRA (warehouse registration) wdra.gov.in
Department of Agriculture dac.gov.in

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