Gramin Bhandaran Yojana 2020: In India, farming is widely practiced by most of the people living in rural areas. They are the ones who are responsible for the bulk export of grains, cash crops, and other agricultural products.
Although India is one of the largest producers of agricultural goods the farmers face a huge problem when it comes to irrigation, storage, and sale of their crops. In addition to this, farmers are not given a very high remuneration for what they do and at times, due to unavailability of storage facilities, they have to sell their products even when the prices are very low.
In order to remove such pain areas and to promote agriculture amongst the urban sectors as well, the government of India came up with a scheme in 2001 which is known as Gramin Bhandaran Yojana.
Gramin Bhandaran Yojana 2020
This scheme provides the farmers with capital for investment subsidy scheme for construction/renovation of rural godowns. The fact that without scientific equipment and facilities it is very difficult for farmers to retain their produce for a long time, led to this scheme in the first place.
The main objectives of the scheme include:
- Developing an excellent facility for storage with allied facilities in rural areas to meet the requirements of farmers for storing and processing the produce
- Promotion of grading, standardization and quality control of agricultural products to improve their marketability
- Prevention of sale when prices are low, immediately after harvest by providing the facility of pledge financing and marketing credit
- Increase the strength of agricultural marketing infrastructure in the country by paving the way for the introduction of a national system of warehouse receipts.
This is not just limited to the government because even individual far owners, farmers, NGO’s, corporations, co-operatives, etc. can invest in the building of such godowns and get a certain percentage out of the goods that are sold.
Gramin Bhandaran Yojanaallows the owners to build such storages anywhere they want which in turn gives confidence to such agricultural developers to work in full capacity. There are certain limitations in regards to the above; however, it is allowed to be built anywhere in rural areas.
Although the owner can decide on the size of the storage as per the scheme the minimum can be 100 tonnes and maximum can be 30,000 tonnes. The subsidy is provided by the government for farmers who take a line of credit from any type of financial institution.
This scheme provides a robust network of non-urban godowns to help build adequate scientific storage for farm produce in rural areas.
The purpose of the scheme is to provide better storage facilities of farm produce, agricultural inputs, processed farm produce besides standardization of farm produce to boost its demand in the market and pave way for a system of warehouse receipts on a national level.
The scheme is aimed at arresting the decreasing investment ratio in the agriculture sector in the country by extending the subsidy to cooperative and private sectors. (Gramin Bhandaran Yojana 2020)