Introduction & Objectives

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, consumer articles and agricultural inputs; promotion of grading, standardization and quality control of agricultural produce to improve their marketability; prevention of distress sale immediately after harvest, promotion of pledge financing and marketing credit and to strengthen agricultural marketing infrastructure in the country for the introduction of a national system of warehouse receipts in respect of agricultural commodities stored in such godowns. However, the materials used and design of the godown would depend upon the produce proposed to be stored.

Salient Features

Eligible Organisations

The project for construction of rural godowns can be taken up by individuals, farmers, group of farmers / Growers, Partnership / Proprietary firms, Non-Government Organisations (NGO’s), Self Help Groups (SHGs), Companies, Corporations, Co-operatives, Agro-Processing Co-operative Societies, Agricultural Produce Marketing committees, Marketing Boards and Agro Processing Corporations in the entire country, Assistance for renovation / expansion of rural godown will however, be restricted to the godowns constructed by cooperatives only.


Under the scheme, the entrepreneur will be free to construct godown at any place and of any size as per his commercial judgement except for the restrictions that it would be outside the limits of Municipal Corporation area and be of a minimum capacity of 100 MT.

Credit linked assistance

  • Subsidy under the scheme is linked to institutional credit and will be available to only such projects as are financed by commercial banks, cooperative banks, regional rural banks, ADFCs, Scheduled PCBs, NEDFI and other institutions eligible for refinance from NABARD. Loan to the entrepreneur’s from banks for the construction / renovation / expansion of godowns etc. would carry an adequate long-term repayment period.
  • Assistance under the scheme shall be available on capital cost of construction of godown only. Banks will, however, be free to finance, in addition to storage, allied facilities like consumer shop,Agriclinics, weighing, grading, packaging and qualitycertification, warehousing etc. to meet various requirements of the farmers.


A general awareness programme on the scheme for the farmers and a training programme for the entrepreneur for construction, maintenance and operation of Rural godown will be organised by the National Institute for Agricultural Marketing, Jaipur (NIAM) and also be eligible under the scheme for assistance.