Unlock Growth: Gujarat’s Subsidies for Agri Warehousing Business

The Agri Warehousing sector in India is growing rapidly due to GST reforms, robust road infrastructure, and the e-commerce boom. Among all states, Gujarat leads the logistics landscape — ranked 1st in LEADS 2018 & 2019 and recognized as an “Achiever” in LEADS 2023.

With such strong fundamentals and generous state & central subsidies, Gujarat is one of the most profitable destinations for setting up or expanding agri warehouses, cold storage, and logistics hubs.

This guide breaks down Gujarat’s Integrated Logistics & Logistics Park Policy, 2021, along with Central Government schemes (AIF, NABARD) and tax incentives, to help you unlock maximum benefits.

Key Incentives for Agri Warehousing in Gujarat

1. Gujarat State-Specific Incentives

Capital Subsidy – 25% of Eligible Fixed Capital Investment (EFCI), capped at ₹15 Cr
Interest Subsidy – 7% on term loans for 7 years (up to ₹50 lakh/year)
Stamp Duty Refund – 100% reimbursement on new units (in stages)
Electric Duty Exemption – 100% for 5 years
Skill Development Support – Training reimbursement up to ₹15,000 per trainee
Tech & Quality Assistance – 50% reimbursement (up to ₹50 lakh for tech, ₹10 lakh for certification)

2. Central Government Schemes

Agriculture Infrastructure Fund (AIF):

3% interest subvention on loans up to ₹2 Cr/project
Max 25 projects allowed across locations (₹50 Cr total potential support)
Credit Guarantee under CGTMSE (fee paid by GoI)
Eligible for warehouses, silos, cold storage for cereals & millets

NABARD Subsidy for Agri Godowns:

33.33% subsidy (FPOs, women, SC/ST entrepreneurs) – up to ₹100 lakh/project
25% subsidy (others) – up to ₹75 lakh/project
Applicable for projects up to 5,000 MT capacity
Multiple districts allowed → higher aggregate subsidy

3. Income Tax Benefits

Section 35AD, Income Tax Act, 1961
100% deduction on capital expenditure for setting up new agri warehouses/godowns (excluding land).

Who Can Benefit?

Food grain traders & commission agents
Farmers & FPOs
Cold storage & processing units
Agri wholesalers & retailers
Real estate developers (warehousing rental income)
Industrial manufacturers needing storage
Logistics & 3PL companies
Supply chain & e-commerce fulfillment centers
Investors looking for subsidy-backed ventures

Why Gujarat is a Strategic Location?

Handles 40% of India’s cargo (514+ MMT)
560 km of Dedicated Freight Corridor (DFC) passes through Gujarat
₹7,000+ Cr investments expected in logistics parks
11 jetties, 7 rail connectivity projects, multiple ports in development
Logistics granted “Industry” status for policy support

How KIP Can Help You Succeed

At KIP4business, we assist:
Project Feasibility Reports – DPRs with cost, ROI & payback analysis
Subsidy Advisory & Filing – AIF, NABARD, Gujarat policy benefits
Bank Financing Support – Loan structuring & documentation
Business Setup Assistance – Land, licenses, approvals
Tender & Government Linkages – Access to procurement opportunities

Frequently Asked Questions (FAQs)

Q1. What is the max capital subsidy under Gujarat’s policy?▼

₹15 Cr (25% of EFCI, excluding land cost).

Q2. How much interest subsidy is available?▼

7% on term loans for 7 years, capped at ₹50 lakh/year.

Q3. Are existing warehouses eligible for capital subsidy?▼

No. Capital & interest subsidies are for new units. But existing units can claim tech & quality reimbursements.

Q4. Can I combine state & central subsidies?▼

Yes. Both can be availed, provided the combined assistance does not exceed scheme-specific limits.

Q5. What’s the NABARD subsidy cap?▼

₹75 lakh for general promoters, ₹100 lakh for FPOs/women/SC-ST entrepreneurs (per project, per district).

Q6. What projects qualify under AIF?▼

Warehouses, silos, cold storage, and post-harvest infra for cereals & millets.

Unlock Growth: Gujarat’s Subsidies for Agri Warehousing Business