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Best Rural Godown Subsidy Scheme Consultants in Hyderabad

Best rural godown subsidy scheme consultants in hyderabad - Enrich Services

Best Rural Godown Subsidy Scheme Consultants in Hyderabad

The situation and plight of farmers in our country is something that most of us are aware of. Despite being the primary beings in food providers they have to go through a lot of struggles in farming and selling goods. However, the Government of India along with states keeps launching schemes from time to time that can help farmers in buying raw material like seeds, fertilizers, selling their produce, getting finance from banks, etc. The yearly plan of fixed MSP, debt-waive offs, compensation in case of draught/heavy rains are some of the initiatives taken by the GOI in order to ensure peace of mind to the farmers.

It is quite obvious that most farmers farm two or more different types of produce according to the different seasons in India. However, what this does is create storage and selling problems for the farmers. Let us explain how.

For Example, a farmer farms barley in the first half of the year and groundnut in the second. When the crop is ripe, he will reap it, but due to shortage on the storage front he will have to sell the produce at whatever available price. This shows the two major problems that a farmer sowing more than 2 crops face, first being storage space and second being selling.

To counter selling, GOI sets MSP for most crops to make sure farmers get a certain amount of return on their crop. And to counter the storage problem the Government of India launched the Rural Godown Subsidy Scheme also known as the Gramin Bhandaran Yojna in 2001. In order to take advantage of the scheme people often got to Rural Godown Subsidy Scheme consultants who can help them make the most of the scheme.

What is the Rural Godown Subsidy Scheme?

Now that we know what the government has done to curb the storage issue for the farmers. Let’s read further on the details of the scheme.

The Rural Godown Subsidy Scheme focuses on creating a robust and secure chain of non-urban storage godowns to store farmers’ produce. This scheme is meant to reap two fold benefits to farmers, first being giving them storage space to protect the crop from any natural disaster and second giving them the option to sell the crops at a later point of time.


The scheme applies to anyone/everyone who wants to create storage godowns to help farmers store their goods. What’s the definition of anyone/everyone?

These are the people eligible:

● Partnership firms
● Agro-industrial corporations
● Quality testing laboratories
● Agro-processing corporations
● Companies
● Agricultural Produce Marketing Committees
● Farmers
● Proprietary firms
● Co-operatives
● Non Governmental Organizations
● Corporations
● Farmers’ groups
● Self-help groups
● Marketing boards
● Agro-processing co-operative societies

Condition for Godowns

The scheme marks important mandates and conditions on the size, storage capacity of godowns and offers subsidies only on the basis of certain parameters

  1. Size of Godowns
    Under the Rural Godown Subsidy Scheme only those godowns can attain the benefit of the scheme that have storage capacity between 50 – 5,000 MT. State agencies can take subsidies for storage capacity between 50-10000 MT.
  2.  Location of Godowns
    The only condition on location is that such godowns should be located outside the governing area of any municipal corporation. However, if the godown is located in a food park approved by MFPI are also eligible for this scheme.
  3.  Amount of SubsidyThe first and foremost information provided under the rulings of subsidy for this particular scheme is that all projects that have received financing from commercial or cooperative banks will get subsidy through NABARD.There are further criteria set for different organizations on the amount of subsidy receivable, they are as follows:33.33%: Projects developed by Registered FPOs, Panchayat, Women, SC/ST entrepreneurs can receive 33.33% subsidy of the total project cost subject to the capping of Rs. 1 Crores (Subsidy).33.33%: Projects developed in hilly regions (states: North Eastern States, Sikkim, UTs of Andaman & Nicobar and Lakshadweep Islands, hilly areas*) can receive 33.33% subsidy of the total project cost subject to the capping of Rs. 1.332 Crores (Subsidy).25%: All other Individuals or corporations apart from the above mentioned categories willing to set up godowns will receive a 25% subsidy on the total project cost subject to a capping of Rs. 75 Lakhs (subsidy).
  4. Project Cost Calculation
    The project cost on which the subsidy shall be provided also has certain criteria preset in order to prevent misuse of the scheme.They are as follows:a. Godowns with capacity less than 1000 Tones: Cost as appraised by the financing bank or Rs 1333.20 (for hilly regions), Rs 1166.55 (for the second category of individuals/organizations) and Rs 875 (for the last category) per MT capacity. (Whichever is lower)
    b. Godown with capacity more than 1000 Tones: Cost as appraised by the financing bank or Rs 1333.20 (for hilly regions), Rs 1000 (for the second category of individuals/organizations) and Rs 750 (for the last category) per MT capacity.
    c. The storage capacity for godown will be calculated as 1.8 MT per square meter for units with height more than 4.5 meters and calculated as 0.4 MT per cubic meter for units with height less than 4.5 meters.That’s all that you need to know about the scheme. If you need help in applying for the scheme and filing documents, completing legalities you can contact Best Rural Godown Subsidy Scheme Consultants in Hyderabad who can help you with this.

Authors Bio:-

Sudheer Varma Vegesna 

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