Rural Godown Scheme (RGS) or Gramin Bhandaran Yojana. The purpose of scheme include creation of scientific storage capacity with allied facilities in rural . The popular Gramin Bhandaran Yojana has been launched by the central government of India to provide facilities to small farmers so that they could get right. SBI Gramin Bhandaran Yojana Capital Investment Subsidy Scheme For Construction or Renovation Of Rural Godowns is designed to create scientific storage.
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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 favourable.
There has been a felt need in yijana 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 bhajdaran will enable small farmers to enhance their holding capacity in order to sell their produce at remunerative prices and avoid distress sales. 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.
Rural godowns constructed in the food parks promoted by the Ministry of Food Processing Industries shall also be eligible under the scheme for assistance. Capacity of a godown shall be decided by an entrepreneur.
However, Subsidy under the scheme shall be restricted to a capacity of minimum tonnes and bhaandaran 30, tonnes. Rural godowns of smaller size upto 50 tonnes capacity will also be eligible for subsidy under the scheme as a special case based on viability analysis.
Revised operational guidelines for Gramin Bhandaran Yojana | National Portal of India
In hilly areas, rural godowns of smaller size upto 25 tonnes capacity will also be eligible for subsidy. Conditions for Scientific Storage.
Godowns built under the scheme shall be structurally sound on account of engineering considerations and functionally suitable to store the agricultural produce. The entrepreneur may obtain a licence to operate the bhandarznif required by the State Government concerned, under the State Warehousing Act or any other relevant laws. The rural godowns of 1, tonnes capacity and more should get accreditation from Central Warehousing Cooperation CWC.
Gramin Bhandaran Yojana A Capital Investment Subsidy for ConstructionRenovation of Rural Godowns
Loan to the entrepreneurs from banks for the construction of godowns would carry an adequate long-term repayment period. Assistance under the scheme shall be available on capital cost of construction of godown including the cost of allied facilities like boundary wall, internal road, platform, internal drainage system, weighing, grading, packaging, quality certification, warehousing facilities which are functionally required to operate the godown.
The farmers keeping their produce in the godown shall be eligible to avail pledge loan on hypothecation of their produce. Rate of subsidy shall be: Capital cost of the project for the purpose of subsidy under the scheme shall be calculated as follows: It will be kept in the Subsidy Reserve Fund Account of the financing bank and shall be tax free.
With inputs from the Ministry of Agriculture.