One of the most essential and profitable agri-businesses that comes under the NABARD subsidy scheme is Drying Units—both solar-based and mechanical-based.

These units help in reducing the moisture content in grains, fruits, vegetables, spices, and herbs, making them suitable for long-term storage, better quality, and value addition in secondary processing. High moisture content can lead to spoilage, fungus, and rejection in the supply chain. Hence, drying is a must in post-harvest management.

Business Use-Cases:

  • Farmers’ groups setting up village-level drying systems.

  • FPOs and cooperatives offering drying as a service.

  • Agri-preneurs setting up commercial units for contract drying.

  • Warehousing units integrating drying to improve storage life.

States with High Potential:

The following states have high agro-climatic potential and government focus for such units:

  • Andhra Pradesh

  • Telangana

  • Tamil Nadu

  • Odisha

  • Rajasthan

Integration with Other Projects :

Drying units can be integrated with:

  • Warehousing projects (to prepare grain for storage)

  • Food processing units (as pre-processing step)

  • Export-oriented units (to meet international moisture standards)

This makes it a smart investment for MSMEs, logistics players, and FPOs looking to expand their infrastructure.

NABARD Subsidy for Agriculture Projects

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KIP Financial Consultancy Pvt. Ltd.

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