Activate by Confirmation sent to your E-mail !

Gramin Bhandaran Yojana - General Knowledge Capsule

Home > Banking and Finance > Goverment Schemes > Gramin Bhandaran Yojana - General Knowledge Capsule


  1. Gramin Bhandaran Yojana was launched in FY 2001 - 2002 enable creation of scientific storage capacity in rural areas to meet requirements of -
    1. Storing and quality control of their agricultural produce to improve Its marketability. It is aimed at prevention of distress sale immediately after harvest, by providing pledge financing and marketing credit.
    2. Strengthening agricultural marketing infrastructure by paving way for introduction of a national system of warehouse receipts in respect of agricultural commodities stored in such godowns and encouraging private investment in creation of such rural storage infrastructure.
    3. A network of rural godowns will enable small farmers to enhance their holding capacity in order to sell their produce at remunerative prices and avoid distress sales.
  2. Construction of rural godowns under this scheme can be taken up by individuals, farmers, non-Government organizations (NGOs), Self Help Groups(SHGs), companies, co-operatives, federations and agricultural produce marketing committees,.
  3. Capacity - Subsidy under this scheme shall be restricted to a capacity of minimum 100 tonnes (Min 50 Tonnes may also be allowed if viable and 25 tonnes minimum for Hilly areas) and maximum 30,000 tonnes.
  4. Conditions for Scientific Storage - Godowns shall be structurally sound to store agricultural produce. Godowns of 1,000 tonnes capacity and more should get accreditation from Central Warehousing Cooperation (CWC).
  5. Credit Linked Assistance shall be available on capital cost of construction of godown including cost of allied facilities which are required to operate the godown.
  6. Pledge Loan Facility - farmers keeping their produce in godown shall be eligible to avail pledge loan on hypothecation of their produce.
  7. Subsidy -
    1. 33.33% of capital cost for SC/ST entrepreneurs and for projects located in North - Eastern States, hilly areas  subject to a maximum 3 crores.
    2. 25% of capital cost to all categories of farmers, agriculture graduates and cooperatives subject to a maximum INR 2.25 crores.
    3. 15% of capital cost to all other categories of individuals, companies & corporations etc., subject to a maximum 1.35 crores.
    4. 25% of capital cost of project for renovation of godowns of cooperatives with assistance from NCDC.
    5. Subsidy shall be released through NABARD for projects financed by commercial, cooperative banks and RRBs. It will be kept in Subsidy Reserve Fund Account of financing bank and shall be tax free.
  8. Capital cost for subsidy analysis shall be calculated as -
    1. For godowns up to 1000 tonnes capacity - project cost as appraised by financing bank or INR 3500 per tonne of capacity, whichever is lower.
    2. For godowns exceeding 1000 tonnes  - project cost as appraised by bank or INR 1500 per tonne of capacity, whichever is lower.