Agriculture is one of the most critical sectors in India and it drives the growth and development of not only rural people but also India as a whole. Agriculture and Warehousing go hand-in-hand, and with an increase in agriculture across India, there is a huge demand for agricultural warehouses.
Various benefits of owning a Warehouse:-
- Huge Government Subsidies are available on the construction of agricultural warehouses.
- Regular Income earning with little or no presence needed.
- India is an agriculture hub, so warehouses are highly required.
- Different kinds of crops can be stored in a warehouse, so it is a persistent business and not just seasonal.
- Warehouses require very less Variable and Running Costs.
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Amount of Earning / Income
As of now, there is a huge opportunity to earn a good amount of rental income from warehouses. For instance in Madhya Pradesh, India one can earn Rs. 83 per MT per month or Rs.8.3 per Bag per month on an average basis, for example for a 5000 MT warehouse per month rent will be Rs. 6,64,000 (83 x 5000) i.e. Rs. 79,68,000 in a year.
NABARD Warehouse Subsidy Available
The government of India provides subsidies on warehousing routed through NABARD (National Bank for Agriculture and Rural Development) and Various Financial Institutions at the following rates under the Scheme – New Agricultural Marketing Infrastructure Scheme:-
The capital cost of the project for subsidy will be calculated on the Project cost as appraised by a financial institution or actual cost of eligible components as certified by a Chartered Accountant, whichever is lower subject to the subsidy ceiling per MT as well as overall ceiling given below:
|Category||Rate of Subsidy (on capital cost)||Subsidy Ceiling (50-1000 MT in Rs./MT)||Subsidy Ceiling [More than 1000 MT and up to 10,000 (in Rs./MT)]||Subsidy Ceiling [Maximum ceiling (in Rs. Lakhs)]|
|A) North Eastern States, Sikkim, UTs of Andaman & Nicobar and Lakshadweep Islands, hilly* areas||33.33%||1333.20||1333.20||133.20|
|B) In other Areas|
|1. For Registered FPOs, Panchayats, Women, Scheduled Caste (SC)/ Scheduled Tribe (ST) entrepreneurs or their cooperatives**/ Self-help groups||33.33%||1166.55||1000.00||100.00|
|2. For all Other categories of Beneficiaries||25%||875/-||750/-||75.00|
* Hilly area is a place at an altitude of more than 1,000 meters above mean sea level.
** SC/ ST Cooperatives to be certified by the concerned officer of the State Government.
The details set out above can be applied to warehouse subsidy in Madhya Pradesh, warehouse subsidy in Andhra Pradesh, warehouse subsidy in Karnataka, warehouse subsidy in Maharashtra, warehouse subsidy in Tamil Nadu, warehouse subsidy in Kerala, warehouse subsidy in Gujarat, warehouse subsidy in Rajasthan, warehouse subsidy in Uttar Pradesh, warehouse subsidy in Punjab, warehouse subsidy in Odisha, warehouse subsidy in Bihar, warehouse subsidy in Haryana, and other states of India.
Usually, any promoter in India should look to construct any warehouse with 50-5000 MT capacity in one place. Moreover, any promoter can avail subsidy to the extent of 10,000 MT, accordingly, a promoter can look to construct 2 warehouses of 5000 MT each on different lands. For general understanding 5000MT is equivalent to storage of 50,000 Bags.
VALIDITY of the Scheme
The current scheme – New Agricultural Marketing Infrastructure Scheme was launch in the year 2018 and is valid until 31 March 2021. Moreover, for the eligibility of the projects, projects must be sanctioned before 31 March 2021 until further specified.
Note: The Subsidy date has been extended, If you want to know more please contact us.
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