Cooperative Storage




             Agriculture cooperatives have been playing a significant role in stepping up the growth of agriculture production in the country through supply of farm inputs and other technical services to the farmers. Cooperatives also provide post-harvest services for procurement, grading, processing, storage and marketing of farmers surplus produce. These cooperatives are rendering an equally

useful service by maintaining the supply-line and distribution of consumer articles including essential commodities in rural areas.


To undertake these functions effectively, cooperatives require adequate captive storage capacity of their own at the village, mandi and rail head centres. To meet this requirement, the National Cooperative Development Corporation (NCDC) has been assisting primary and marketing societies functioning at the village, mandi, district, regional, state and national levels for construction of godowns of their own to create storage facility,and repair/ renovation of existing capacity of godowns under Central Sector Schemes and Corporation Sponsored Scheme.




            Under the Central Sector Schemes and Corporation Sponsored and, cooperative societies are assisted for constructionand repair /renovation of godowns depending upon the potential.


For developing primary cooperatives into growth centres at the village level, NCDC assists for construction of an office room, a shop for sale of consumer articles and a residence for the Secretary or Manager wherever required with the godown. The Corporation also encourages primary cooperatives to prepare business development plans to expand their non-credit business and for fuller utilisation of godowns.





The Corporation, since its inception in 1962-63, has been making systematic and sustained efforts to assist in the creation of scientific storage facilities at various levels in cooperative sectors. As a result of concerted efforts, the storage capacity assisted by the Corporation and owned by cooperatives has increased from about 11 lakhs tonnes in 1962-6 to 160.07 lakh MT by the end of March, 2016 comprising of 57105 rural and 10373 marketing godowns by the end of March,2016. A total amount of 98897 lakh has been provided by the Corporation under its various storage programmes towards construction /renovation/expansion of godowns.




            a)     During the period of 10th Five Year Plan i.e. 2002-07, subsidy was provided by Govt. of India under Gramin Bhandaran Yojana, a Capital Investment Subsidy Scheme for Construction and Repair/Renovation of Rural Godowns. NCDC has been one of the implementing agencies to provide funds to the cooperative societies. The required term loan is funded by Corporation from its own resources.


The scheme was continued during 11th Five Year Plan i.e. from 2007-2012. During 12th Plan i.e. from 2012-2017, the credit linked subsidy was continued under Central Sector Agriculture Marketing Infrastructure Scheme (AMI) sub scheme of Central Sector Integrated Scheme on Agriculture Marketing (ISAM) upto 06.08.2014. Subsequently, credit linked subsidy was continued for new projects of SC/ST category and for all categories in NER upto 31.10.2016 and later upto 31.12.2016.

Stipulation under the scheme


The scheme stipulates 25% subsidy (other than NE States, Hilly area, SC/ST cooperatives) and 33.33% subsidy for NE States, Hilly area, SC/ST Cooperatives and women, without maximum ceiling on subsidy in case of storage infrastructure projects of cooperatives assisted by NCDC.


As per the scheme, the capital cost of construction of godown includes the cost of allied facilities like boundary wall, internal road, platform, internal drainage system, weighing, grading packaging, quality certification, warehousing facilities which are functionally required to operate the godown.


Renovation of godowns


The scheme stipulates subsidy 25% of the project cost subject to subsidy ceiling of 187.50 per MT of storage capacity for renovation of storage projects by cooperatives.


b NCDC has also been providing financial assistance for construction of godown under Central Sector Integrated Scheme on Agricultural Cooperation(CSISAC) erstwhile restructured Central Scheme for assistance to NCDC. The scheme stipulates grant-in-aid 25% for projects located in cooperatively least developed states, 20% for projects located in cooperatively under-developed states and 15% for projects located in cooperatively developed states for projects related to weaker sections/women cooperatives and labour cooperatives. The scheme continued during 12th Five Year Plan.


c)    Corporation Sponsored Scheme


Under the scheme, the loan assistance is provided upto 90% of the project cost. The members contribution should be minimum 10%.






For financing through State Govt.

The eligible societies will have to apply to the Registrar of Cooperative Societies (RCS) for assistance for construction and repair/renovation of godowns. The prescribed application forms are available at the offices of the State Cooperative Departments, Regional Offices of NCDC and on NCDCs website . Based on the recommendation received from the State Govt, NCDC approves the programme and sanctions assistance for construction/repair/renovation of godowns.


For financing under direct funding


The information on eligibility criteria, application form and application procedure are available at NCDCs website