Warehousing Capital Subsidy
Warehousing Capital Subsidy
Warehousing Capital Subsidy - Introduction
Storage infrastructure is essential in agricultural marketing for preserving quality and extending the shelf life of produce. Efficient storage reduces post-harvest losses, stabilizes prices, and ensures year-round food availability.
Objectives
- Reduce post-harvest losses with timely storage facilities.
- Stabilize agricultural prices via supply regulation.
- Improve farmers’ income by enabling produce storage until market conditions improve.
- Enhance national food security.
Quantum of Assistance
Subsidy depends on facility capacity, region, and promoter type:
- North Eastern States & Hilly Areas: 33.33% subsidy, ₹1,333.20 per MT ceiling, max ₹133.20 lakhs.
- Registered FPOs, Women, SC/ST, SHGs: 33.33% subsidy, ₹1,000 per MT (1,000-10,000 MT), max ₹100 lakhs.
- All Other Beneficiaries: 25% subsidy, ₹750 per MT (1,000-10,000 MT), max ₹75 lakhs.
Conditions & Eligible Activities
The subsidy is applicable for new construction or capacity expansion of storage infrastructure (warehouses, silos, cold storage upgrades) and must be linked to institutional credit financing.
- Construction of new warehouses and silos.
- Upgrading existing storage capacity and efficiency.
- Controlled atmosphere storage for perishables.
- Quality monitoring technology implementation.
Implementation Period
- Projects must be completed within 18 months from the first loan disbursement.
- Up to 6-month extension allowed with a penalty (0.5% subsidy reduction per month).
- Non-completion within 24 months disqualifies the project.
Eligibility & Application
Eligible Entities: Farmers, FPOs, Cooperatives, Agri-businesses, and Private Agri-storage enterprises.
Documentation: Submit Detailed Project Reports (DPR), budget, technical specs, land ownership proof, and necessary environmental clearances.
Role of Wealth Design LLP
Wealth Design LLP assists stakeholders such as government agencies, cooperatives, SHGs, private firms, and FPOs with eligibility guidance, application preparation, compliance, and maximizing financial incentives for efficient project execution.
Impact & Future Prospects
The scheme enhances agricultural storage capacity, reducing post-harvest losses and raising farmer incomes. Future plans include increasing project capacity limits and integrating with digital platforms like e-NAM.