Step-by-Step Guide to NABARD Warehouse Subsidy 2025

Planning to build an agri godown or warehouse? The NABARD subsidy scheme offers a golden opportunity to significantly reduce your project cost and increase profitability. This scheme is designed to support farmers, entrepreneurs, cooperatives, and self-help groups in setting up new agricultural storage facilities with financial assistance. By leveraging this subsidy, you can not only save a substantial portion of your investment but also ensure compliance with technical standards and quality infrastructure norms. This guide explains eligibility criteria, funding structure, subsidy rates, and application procedures, helping you maximize benefits while building a modern, efficient, and compliant agri storage facility.

Introduction

Agricultural infrastructure is a cornerstone of India’s economy, directly impacting farmers’ income, food security, and post-harvest management. One of the major challenges in the sector is the loss of crops and produce due to inadequate storage facilities. To address this, the National Bank for Agriculture and Rural Development (NABARD) offers capital subsidies for constructing new godowns and warehouses under the Agriculture Marketing Infrastructure Scheme (AMIS), formerly known as the Gramin Bhandaran Yojana.

This scheme aims to encourage farmers, cooperatives, self-help groups, and entrepreneurs to invest in modern storage facilities that comply with technical standards, ensuring safe and efficient handling of agricultural produce. By availing of the NABARD subsidy, you can significantly reduce the initial investment required for building or expanding a warehouse, while benefiting from a structured funding model that includes bank loans and promoter contributions. Implementing a NABARD-supported project not only cuts costs but also promotes long-term profitability, operational efficiency, and contribution to India’s sustainable agricultural development.

Eligible Under the Scheme

Credit-Linked Projects: The subsidy is available exclusively for projects with a bank loan. Self-funded projects are not eligible.
New Construction Only: Renovation or repair of existing godowns does not qualify.
Eligible Activities: The scheme primarily supports food grain storage and allied activities such as sorting, grading, and packaging, ensuring that the natural quality and nutritional value of produce are maintained.
Eligible Beneficiaries: Farmers, entrepreneurs, cooperatives, Self-Help Groups (SHGs), FPOs, and private companies can apply based on their category and location.
Capacity Limit: Subsidy can be claimed for up to 5,000 MT capacity at one time, with maximum 10,000 MT per district.

Who Can Apply for the Scheme?

The NABARD subsidy scheme is open to a wide range of beneficiaries involved in agricultural storage projects:

Individual Entrepreneurs: Farmers or private individuals planning to construct a new godown.
Cooperatives & FPOs: Farmer Producer Organizations and cooperatives engaged in storage and marketing of agricultural produce.
Self-Help Groups (SHGs): Women, SC/ST, and community groups eligible for special subsidies.
Panchayats & Local Bodies: Local governance bodies can also establish storage infrastructure under the scheme.
Private Companies & MSMEs: Firms or companies investing in agri-warehousing projects are eligible for standard subsidies.

Financial Benefits

Capital Subsidy

Subsidy Rate: 25% to 33.33% of the project cost
Maximum Limits:
- Reserved Categories (Women, SC/ST, FPOs, SHGs, Panchayats): Up to ₹1.00 Crore
- Other Beneficiaries (Individuals, Firms, Companies): Up to ₹75 Lakhs
Permissible Project Cost: ₹6,000 per MT (e.g., ₹3.00 Cr for 5,000 MT capacity)

Funding Structure

Promoter Contribution: Minimum 20% of project cost
Bank Loan: At least 50% of project cost
Land Cost: Can be included up to 10% of total cost

Subsidy Disbursement

- First Installment: 50% advance, claimed within 90 days of loan disbursement
- Second Installment: Remaining 50% after project completion, within 18 months

Interest Subsidy under AIF

- 3% annual interest subvention on loans up to ₹2 Crore
- Maximum period: 7 years

How KIP Can Help You

KIP provides end-to-end support for NABARD subsidy projects, ensuring maximum financial benefits and smooth project execution:

Subsidy Viability Report (SVR): Customized report listing all eligible subsidies and incentives for your project.
Detailed Project Report (DPR): Complete project documentation considering bank financing and subsidy benefits.
Technical Compliance Assistance: Guidance on site selection, construction norms, and WDRA registration requirements.
Bank Loan Coordination: Assistance in aligning loans with subsidy benefits to secure financing at lower interest rates.
Subsidy Application & Processing: Filing and follow-up for NABARD capital subsidy approvals.
AIF Interest Subvention Support: Help in claiming the additional 3% interest subsidy under the Agriculture Infrastructure Fund.
Ongoing Compliance Support: Ensures timely adherence to regulations for recurring incentives like interest subsidies, GST refunds, and electricity duty exemptions.