The scheme was launched in March 2007 and is valid up to March 2012. 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. Also, promotion of grading, standardization, and quality control of agricultural produce to improve their marketability. The scheme also aims at prevention of distress sale immediately after harvest by providing the facility of pledge financing and marketing credit by strengthening agricultural marketing infrastructure in the country. There are certain conditions like

1. Rural godowns may be treated as infrastructure for financing;
2. The participating banks / NCDC / NABARD, etc., will adhere to their own norms for appraisal of projects;
3. A signboard at the site "Assisted under Gramin Bhandaran Yojana of Ministry of Agriculture, Government of India" will be exhibited;
4. Govt.´s interpretation of various terms will be final;
5. Besides Joint Inspection Committee (JIC) inspection, pre & post completion inspections of the project may be undertaken to verify physical, financial and operational progress, as and when required;
6. Govt. reserves the right to modify, add and delete any term and condition without assigning any reason.

The funds for this scheme are contributed by National Bank for Agricultural and Rural Development, National Cooperative Development Corporation and by cooperative banks and cooperative societies. 50% of the subsidy amount will be released to NABARD by the Department of Agriculture in advance. NABARD would release subsidy to participating banks in advance for keeping the same in the Subsidy Reserve Fund Account of the concerned borrower. This amount of 50% advance subsidy would be released by NABARD to the participating banks on submission of a project profile-cum-claim form. An interested promoter will have to submit a copy of the project proposal for term loan and subsidy to the respective banks on an application form as prescribed by the concerned bank along with project report and other documents for appraisal and sanction of loan.

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. Assistance for renovation of rural godowns will, however, be restricted to godowns constructed by cooperatives only.

Contact

Director (A&F)
Government of India,
Ministry of Agriculture
Department of Animal Husbandry, Dairying & Fisheries
Room No. 398
Krishi Bhawan
New Delhi-110001
Tele fax: 011-23388534