Rural Godowns Print

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In India where small and marginal farmers constitute major farming community, do not have the facility to retain the farm products with themselves till the market prices are favourable. It is very much essential to provide them with facilities for scientific storage so that to avoid produce deterioration and enable them to meet their credit requirement. An establishment of rural godowns will enable small and marginal farmers to increase their holding capacity which will make them to sell their produce at remunerative prices and avoid distress sales.  Accordingly, Gramin Bhandaran Yojana, a Capital Investment Subsidy Scheme for Construction / Renovation / Expansion of Rural Godowns has been introduced by Govt. of India.

 Objectives

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, consumer articles 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; strengthening agricultural marketing infrastructure in the country by paving 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 sector to invest in the creation of storage infrastructure in the country.  

 Salient features

 The project for construction of rural godowns can be taken up by individuals, farmers, group of farmers/Growers, Partnership/ Proprietary firms, Non-Government Organizations (NGO’s), Self Help Groups(SHGs), Companies, Corporations, Co-operatives, Agricultural Produce Marketing Committees, Marketing Boards and Agro Processing Corporations in the entire country. Assistance for renovation/ expansion of rural godowns will however, be restricted to the godowns constructed by cooperatives only.

 Eligibility

Individual farmers for storing Agricultural produce, Entrepreneurs and groups of persons engaged in storing and marketing of Agricultural commodities will be financed under the scheme for establishment of Rural Godowns. Persons who are engaged in storing of Agricultural produce with an idea of hoarding will not be considered under the scheme. Loans under tie up arrangements with Food Corporation of India(FCI), State Ware Housing Corporations (SWCs) and reputed corporations with suitable tripartite agreements will also be considered under the scheme.

Location

Rural areas as per the definition of NABARD are to be included under the scheme provided there is sufficient production and availability of potentiality. The structure shall be located on a well-drained site not liable to flooding or inundations and it shall be away from a place likely to be affected by seepage water.

Capacity

Godowns with capacity up to a maximum of 10000 MT capacities will be financed under the scheme.

Loan amount

2/3 rd of the cost of estimation will be allowed as a loan amount under the scheme. The cost of estimation should not include land cost. If the project is eligible for subsidy, the margin amount can be reduced to 25% of project cost.

Repayment schedule

12 to 15 years, including grace period of 12 months. Normally, the construction of godown should be completed within 6 months of disbursement of bank loan. Repayments are to be made in quarterly installments.

 Rate of interest

Interest at the rate of PTLR will be charged for loans up to Rs.2.00 lakhs and at PTLR + 1% for loans above Rs.2.00 lakhs. For the loans under tie-up arrangement with CWC/SWC/FCI, interest at PTLR will be charged.

Security

Primary security of the site and the godowns constructed there on, Collateral security is to be obtained at least 100% of loan amount.

 Insurance

The godowns including the stock there in are to be fully insured against all possible risks.

Rural godowns, commercial grading centres, Kapas grading centres in Tamil Nadu 2002-2003

S. No

Market Committees

Rural Godowns

Commercial Grading Centre

Kapas Grading Centre

1

Kancheepuram

3

4

--

2

Tiruvallur

2

3

--

3

Vellore

4

5

--

4

Tiruvannamalai

7

10

--

5

Cuddalore

4

6

--

6

Villupuram

8

13

1

7

Salem

1

3

--

8

Namakkal

1

3

--

9

Dharmapuri

4

5

--

10

Erode

8

10

2+1*

11

Coimbatore

11

2

3

12

The Nilgiris

--

--

--

13

Tiruchirapalli

5

1

--

14

Karur

2

1

--

15

Perambalur

3

2

--

16

Pudukkottai

2

2

--

17

Thanjavur

4

3

--

18

Nagapattinam

1

1

--

19

Tiruvarur

2

1

--

20

Madurai

2

2

--

21

Theni

1

1

1

22

Dindigul

5

4

--

23

Ramanathapuram

4

2

--

24

Virudhunagar

4

3

1

25

Sivagangai

2

1

--

26

Tirunelveli

8

3

1

27

Thoothukudi

5

3

2

28

Kanniyakumari

5

2

--

Total

108

96

11+1*

* Tobacco grading centre

List of Godowns in Tamil Nadu 

Name & address of the godowns

Capacity

(M.T)

Sector (Private, Cooperative

/public)

Commodity stored

Percentage of capacity utilized

Sakthi Ware House

RS 919/1,

Perundurai- 638 052

931

Individual

Turmeric,Copra

and other agrl. produce

70 to 90 %

R. Rajendran

SF.No.80/2B-1, Chinnamudalaipatti

Namakkal 637 003

3345

Individual

Raw material for poultry feed,eggs and other agrl. commodities

To be inspected

S.V. Arunachalam Chettiar

RS No.348/48 & 2A

Chinnasalem town panchayat

1749

Individual

Paddy and other food grains

70 to 90 %

Vee Pee Ware House

Aruvallakadu

Kangayam (Tk).

1847

Partnership

Turmeric, Paddy, Coconut, Maize etc.

To be inspected

Sri Sai Godowns

G T Road, Nallore

Ponneri Taluk

Tiruvallur Dt.

10041

Proprietary

Agrl. Produce and fertilizers

-do-

Erode Market committee

Kodumudi Unit

Rasampalyam Road, Salaipudor, Erode Dt.

530

Market Committee

Paddy,Turmeric, Ground nut, Coconut, Gingelly etc.

-do-

V. Ramakrishnan

Melapoodanur Village, Nagapattinam Taluk

Nagapattinam

402

Individual

Paddy and other food grains

-do-

A. Subramanian

Periapatti village, Namakkal

446

-do-

-do-

-do-

N. Ponnusamy &

V. Nallasamy, Vadaiyapatti village, Arachalur,

Erode Dt.

127

Partnership

Turmeric, Sugar cane, Tapioca, Coconut

-do-

Golden Ware House

Arumugam, Karungalpalyam.,

Erode Dt

200

Individual

Turmeric, Paddy and other agrl. produce

-do-

Pash Space International

Dasaganapalli village

Vepanapalli panchayat

Krishnagiri(Tk)-635 121

1000

Partnership

Agrl. produce

-do-

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