The most awaited subsidy which is recently announced by the central government is a subsidy on rural godowns and warehouses. 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 and agriculture inputs.
It is well known that the small farmers do not have the economic strength to retain the produce with them until the market price are favourable. There has been a felt need in the country to provide the farming community with facilities for scientific storage so that wastage and produce deterioration are avoided and also to enable it to meet its credit requirement without being compelled to sell the produce at a time when the prices are low.
A network of rural godowns will enable small farmers to enhance their holding capacity in order to sell their produce at remunerative prices and avoid distress sales.
There are certain eligibility criteria under the scheme such as the project for construction of rural godowns can be taken up by individuals, farmers, groups of farmers/growers, partnership/proprietary firms, non-government organisations, self-help groups, companies, corporations etc. The subsidy would be restricted to that admissible for capacity of 10,000 tonnes only.
All the relevant specifications like location, size, cost and how to apply for this loan are available on the government platform.