NABARD Subsidy
NABARD Subsidy for Food Grain Storage Godown
Are you dealing in Food Grain Business like Rice mill, Flour mill, Oil mill, Food Processing Unit, Cold Chain, Primary Processing Unit Etc.
we are sharing you all a very important update for those planning warehousing projects, especially in the agricultural sector. A major modification has been announced under the NABARD scheme, which provides subsidies for the warehousing sector. This change can significantly impact your subsidy eligibility.
NABARD issued a new notification on 4th November 2024. According to this, if you have taken a bank loan for creating food grain storage facilities for warehousing purposes sanctioned after 10th November 2024, then the revised subsidy guidelines will be applicable to you.
Now, let’s understand what these revised guidelines are and what changes they bring.
As you might know, NABARD provides capital subsidies for constructing warehouses.
- For female entrepreneurs, the subsidy is 33% of the cost of construction.
- For others, it is 25% of the cost of construction.
Till now, NABARD provided a maximum subsidy for godowns of up to 5000 MT capacity. The subsidy was calculated based on a “permissible cost of construction”, which was earlier capped at ₹3,000 per MT. So, for a 5,000 MT godown, the permissible cost was 5,000 × ₹3,000 = ₹1.5 crore. Accordingly, 33% subsidy would be ₹50 lakh.
What’s the new update?
Now, NABARD has doubled the permissible cost from ₹3,000 per MT to ₹6,000 per MT. This change reflects the increased cost of construction due to inflation and updated construction standards (as per WDRA norms).
This means:
A 5,000 MT godown will now have a permissible cost of ₹3 crore (5,000 × ₹6,000).
And 33% of ₹3 crore will be ₹1 crore subsidy — double the previous amount.
So, if you are planning to set up a godown or food grain storage facility, you must strictly follow WDRA norms, as NABARD will only release the final subsidy when your godown is certified as per WDRA standards.
Earlier, many representations were made to NABARD offices stating that due to rising construction costs and strict compliance with WDRA norms, the cost has gone up significantly. Hence, this revision was much needed and highly beneficial.
You should also ensure that no deviation is made from the standard design and structural norms while constructing your godown.
Key Benefits:
- Revised permissible cost – from ₹3,000/MT to ₹6,000/MT.
- Doubled subsidy amount – potential to get ₹1 crore subsidy for a 5,000 MT godown.
- Follow WDRA norms – mandatory for final subsidy release.
- Additional benefit – You can also avail 3% interest subvention under the Agriculture Infrastructure Fund (AIF) scheme if the loan is sanctioned from a recognized bank.
So, whether you’re setting up the storage facility for your own use, your agribusiness, food processing unit, private warehousing needs, or even for giving it on rent to a government agency — you can maximize your subsidy benefit by complying with these guidelines.
Why Choose KIP Financial Consultancy?
We are one of the leading consultants in the Warehouse, offering expert services such as:
- Customized Project Reports
- Subsidy & Incentive Support
- Business Plan & Investment Advisory
- Government Tender Assistance (including GeM)
- Location-specific Planning Across India
You can consult with our experts. They will guide you in all aspects regarding tender , susbidy availing and many more.
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Call Us : 8683898080
E-mail Us : sales@kipfinancial.com
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