Gramin Bhandaran Yojana

Gramin Bhandaran Yojana

 It is well known that the small farmers do not have the economic strength to retain the produce with themselves till the market prices are favorable. There has been a felt need in the country to provide the farming community with facilities for scientific storage so that wastage and produce deterioration are avoided and also to enable it to meet its credit requirement without being compelled to sell the produce at a time when the prices are low. 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. Accordingly, Gramin Bhandaran Yojana, a capital investment subsidy scheme for construction / renovation of rural godowns was introduced in 2001-2002.

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; promotion of grading, standardization and quality control of agricultural produce to improve their marketability; prevention of distress sale immediately after harvest by providing the facility of pledge financing and marketing credit; strengthen agricultural marketing infrastructure in the country by paving the way for the introduction of a national system of warehouse receipts in respect of agricultural commodities stored in such godowns and to reverse the declining trend of investment in agriculture sector by encouraging private and cooperative sectors to invest in the creation of storage infrastructure in the country.

The project for construction of rural godowns can be taken up by individuals, farmers, groups of farmers/growers, firms, non-Government organizations (NGOs), Self Help Groups(SHGs), companies, corporations, co-operatives, federations and agricultural produce marketing committees in the country.

 Location

Under the scheme, the entrepreneur will be free to construct godown at any place, as per his/her commercial judgment except that it should be outside the limits of Municipal Corporation area. Rural godownsconstructed in the food parks promoted by the Ministry of Food Processing Industries shall also be eligible under the scheme for assistance.

 Size

Capacity of a godown shall be decided by an entrepreneur. However, Subsidy under the scheme shall be restricted to a capacity of minimum 100 tonnes and maximum 30,000 tonnes. Rural godowns of smaller sizeupto 50 tonnes capacity will also be eligible for subsidy under the scheme as a special case based on viability analysis. In hilly areas, rural godowns of smaller size upto 25 tonnes capacity will also be eligible for subsidy.