Storage & Pusa Bin / Silo Subsidy Schemes (state & central)

Introduction 

In India, Storage & Pusa Bin / Silo Subsidy Schemes (state & central) are public support programmes by the Government of India and various state governments to help farmers, farmer‐producer organisations (FPOs), self-help groups (SHGs), and private entrepreneurs build safe storage of farm produce. These schemes offer financial subsidies or cost support (for example, partial capital subsidy, grants, or credit‐linked assistance) to set up small bins (like Pusa bins or mud bins) or larger storage structures such as silos, cold storages, godowns and warehouses.

The problem these schemes seek to address is post-harvest loss: much of the produce gets spoiled in transit or while waiting for sale, often due to lack of good storage near farms. This causes waste, income loss, and pressure on markets. Policy makers see a need to improve storage infrastructure across India (including in remote and hilly regions) so that farmers can hold produce, reduce distress sales, and maintain quality.

One central programme, the “Storage & Godowns” scheme under Department of Food & Public Distribution, supports construction of godowns especially in the Northeast region. Also, under broader cold chain or capital investment subsidy schemes, the National Horticulture Board gives subsidies for storage modernization. At the state level, some schemes similarly help farmers build Pusa bins or silos with local subsidy. The target group is primarily farmers and small agribusiness entities.

Overview of the Scheme

The Storage & Godowns scheme is a Central Sector Scheme run by the Department of Food & Public Distribution (Government of India). Under this, silos and modern godowns are built on FCI or private land especially in regions where private investment is low. Separately, under horticulture and cold chain initiatives, the National Horticulture Board (NHB) (under the Ministry of Agriculture & Farmers’ Welfare) implements a Capital Investment Subsidy Scheme for cold storages and related facilities across India.

Implementing agencies include:

• FCI and state/union territory agencies for the Storage & Godowns scheme
• NHB via its regional offices and State Horticulture Missions for cold storage subsidy schemes
• State agriculture or horticulture departments often coordinate subsidy rollout in their states under these central schemes.

Here is the funding pattern and coverage in simple terms:

• Under NHB’s cold storage subsidy scheme, a credit-linked, back-ended subsidy is given at 35% of project capital cost in general areas, and 50% in North East, hilly & scheduled areas.
• For the Storage & Godowns scheme and silo construction under FCI, the projects often follow 100% central funding or PPP models, especially in difficult terrain or where private investment is lacking.
• The NHB scheme covers construction, expansion, modernization of cold storages including Controlled Atmosphere (CA), Modified Atmosphere (MA) units, pre-cooling units, and storages for specific crops like onion.

Current status / recent updates:

• The Storage & Godowns / silo initiative is active: as of July 2024, FCI has constructed food-grain depots and is executing silos under PPP mode.
• The NHB cold storage subsidy scheme continues under the Mission for Integrated Development of Horticulture (MIDH), with assistance rates as mentioned above.
• Also, newer schemes like Agricultural Marketing Infrastructure (AMI) under ISAM are providing support for farm-gate storage, warehouses, and cool chains.

Tiny example to clarify: Suppose an FPO in a hilly state wants to build a cold storage. Under NHB’s scheme, they may get 50% subsidy on capital cost (because of hilly location) after the project is built (back-ended). The rest of the cost must be supported via bank loan or equity.

Objectives 

• Increase the quantity and quality of farm produce that can be safely stored, to reduce losses after harvest.
• Support farmers, FPOs, SHGs or private entrepreneurs to build Pusa bins, silos, godowns, cold storages or allied units.
• Promote modern, scientific storage infrastructure including cold storage, controlled atmosphere units, and modernization of existing units.
• Provide financial subsidy (capital support) or credit‐linked subsidy to reduce the cost burden on beneficiaries.
• Encourage private and public investments in storage by guaranteeing hiring arrangements (in some schemes) or offering incentives.
• Strengthen food security and buffer stock management by augmenting grain storage capacity in underserved regions.
• Facilitate better market access and price realization for farmers by allowing them to hold produce instead of forced sales.
• Integrate storage infrastructure expansion under broader agricultural or marketing missions or schemes.

Key Features / Benefits 

Subsidy on capital cost of storage structures
The scheme gives financial help (subsidy) on the capital cost of building silos, cold storages, or godowns. (E.g. under NHB cold storage scheme, 35% subsidy in general areas, 50% in hilly/North-Eastern areas)

Support for modernization and expansion
Upgrades (modernization) or expansion of existing storage units are eligible for assistance.

Credit-linked back-ended subsidy
The subsidy is given after the project is completed (back-ended) and tied to a bank loan (credit-linked).

Inclusion of advanced storage components
Eligible components include cold storages with Controlled Atmosphere (CA), Modified Atmosphere (MA), pre-cooling units, insulations, cooling systems, etc.

Higher subsidy for difficult regions
Projects in hilly, North-Eastern, Himalayan, or scheduled areas enjoy higher subsidy rates.

Assistance for rural/primary storage infrastructure
Under agricultural marketing schemes (AMI under ISAM), subsidies are available for constructing farm-gate godowns and warehouses.

Support for allied infrastructure & ancillaries
Along with storage, costs for loading/unloading, internal roads, drainage, weighing, fire fighting etc. are covered as ancillary infrastructure.

Demand-driven scheme for diverse beneficiaries
Assistance is offered to individuals, farmers, FPOs, cooperatives, entrepreneurs, and state agencies.

Simplified application process
From March 2023 onward, NHB simplified documentation and cut subsidy approval time (from 6–8 months to under 100 days).

Large scale rollout & proven impact
Since 2001, over 48,512 storage infrastructure projects (godowns) with capacity ~ 93.99 million MT have been sanctioned.

Eligibility Criteria 

To apply under these subsidy schemes, one must meet certain eligibility criteria / documents depending on the category of beneficiary. These rules ensure that public funds go to genuine applicants for storage infrastructure.

Farmers / Individuals

• Must be a natural person (resident in India). (§ NHB scheme allows “natural person”)
• Must furnish proof of identity (e.g. Aadhaar, PAN, etc.). (§ Document checklist requires identity proofs)
• Must provide land ownership or lease documents, or usable site proof (so that storage can be built). (§ Technical norms require land records)
• Must have a bank account / passbook (for subsidy disbursement). (§ Many scheme document checklists include bank account)

SHGs (Self-Help Groups)

• Must be registered and active (formal registration under relevant act). (§ NHB guidelines allow SHGs as applicant types)
• Must have a bank linkage (i.e. a bank account) to handle funds / financial transactions. (Implicit in subsidy schemes requiring bank details)

FPOs (Farmer Producer Organisations) / Cooperatives / Registered Groups

• Must be legally registered (for example as a Producer Company, cooperative society, trust, etc.). (§ NHB guidelines list legal persons including FPOs)
• Should be operational and have a minimum number of members (if specified by state / scheme). (While NHB guidelines don’t always fix a number, FPOs are explicitly allowed)

Entrepreneurs / Startups / MSMEs / Private Firms

• Must be a registered legal entity (partnership, proprietorship, company) recognized under Indian law. (§ NHB scheme allows legal persons: partnership, company etc.)
• Must comply with technical standards and norms prescribed by the subsidy scheme (e.g. storage design, cooling, insulation) as per scheme guidelines. (§ Projects must adhere to prescribed technical norms)

Special / Regional / Social Categories

• Projects located in hilly, North-Eastern, Scheduled Areas may get higher assistance; the scheme allows these areas as special categories. (§ NHB scheme gives 55% subsidy in hilly/scheduled areas)
• (If a scheme states so) Preference or higher subsidy rates may be offered to women applicants, SC/ST applicants, or marginalized farmers – in schemes like AMI / Storage & Godowns this differential is sometimes mentioned. (§ Under AMI / Storage schemes, subsidy rates differ by category)

Not Eligible / Exclusions

• Activities not related to agriculture / horticulture storage, or non-priority sectors are excluded. (Only approved storage components qualify)
• Duplicate benefits: If the same beneficiary has already availed subsidy under another scheme for the same facility, they may be barred. (Schemes generally disallow duplication)

Mandatory Documents (as per official checklists)

• Identity proof (Aadhaar, PAN)
• Address / residency proof
• Land ownership / lease / site documents
• Detailed Project Report (DPR) / technical design and estimates
• Bank term loan sanction letter / loan documents
• Quotations / cost estimates, affidavits, and other prescribed forms as per scheme (LOI, checklists)

Application Process

1. Identify the appropriate scheme portal or nodal agency
   • For cold storage / horticulture storage subsidy: use the NHB “LOI Submission & Tracking System” on NHB website (https://www.nhb.gov.in/cs_checklist.aspx) for submitting Letter of Intent.
   • For Storage & Godowns / warehouse subsidy under Department of Food & Public Distribution, check the DFPD schemes portal (dfpd.gov.in) for scheme announcements.
   • In some state or cooperative storage schemes, applications may be filed via the State nodal agency or department of agriculture / marketing.
     
     
2. Register / log in on the portal
   • Use your identity (Aadhaar, PAN, etc.) to create an account (if not existing).
   • Log in to the scheme portal (e.g. NHB portal) with user ID & password.
     
     
3. Fill application form / Letter of Intent (LoI)
   • Enter beneficiary details: name, address, identity, category (farmer, FPO, etc.).
   • Fill land / project site details: survey number, ownership or lease, site map, etc.
   • Choose component / storage type: e.g. cold storage, silo, pre-cooling, modernization.
   • Provide bank / financial information: bank account, term loan sanction (if applicable).
   • Attach Detailed Project Report (DPR) and technical estimates.
     
     
4. Upload / submit required documents
   Typical documents include:
   • Identity proof (Aadhaar, PAN)
   • Land ownership / lease papers, NOC where needed
   • Registration certificate (for FPO, company, SHG)
   • Board resolution, MoA/Articles (for companies)
   • Technical drawings, DPR, site layout, cost estimates
   • Bank consent / term loan sanction letter
     
     
5. No application fee (if not specified)
   • Official sources do not mention a fixed fee for these subsidy applications in NHB guidelines.
   • The cost of documents or administrative fees may vary in state schemes – check state notices.
     
     
6. Receive application acknowledgment / Application ID
   • Once you submit the application, the portal gives you an Application ID / acknowledgment slip.
   • You may receive email or SMS confirmation as well.
     
     
7. Verification and site inspection
   • The scheme authority or a joint inspection team may visit the site to verify feasibility / suitability.
   • In the simplified NHB process (introduced in 2023), a mobile app–based self-inspection may replace full physical inspection in some cases.
     
     
8. Approval / Grant of Clearance (GoC) / Sanction
   • After verification and document scrutiny, the authority issues Grant of Clearance (GoC) or sanction for subsidy.
   • In earlier norms, there was an In-Principle Approval (IPA) stage, but post-2023 NHB introduced a simplified process by removing separate IPA steps.
     
     
9. Project implementation & completion
   • After GoC, begin construction/installation as per DPR.
   • Complete the project within specified time (e.g. 18 months in many schemes)
     
     
10. Submit subsidy claim / final documents
    • Provide a utilization certificate, expenditure statements, joint inspection report, final technical compliance documents.
    • The bank may forward the claim. In many cases, subsidy is released directly into the term loan account (i.e. bank disburses to the borrower’s loan account) after approval.
      
      
11. Status tracking & grievance redress
    • Use the portal’s tracking system to monitor the status of application / subsidy.
    • Contact helpline or nodal office if delays or queries.
      
      
12. Offline route (if allowed)
    • In some states, you may submit the application at your District Agriculture Office / Horticulture Office / Block Office / ATMA / KVK if the online portal is unavailable.
    • Fill the same forms, attach documents, and the office forwards to nodal agency.
    • Always collect an acknowledgment receipt from the office.

Tips / Common pitfalls

• Ensure name consistency: Make sure names in identity documents, land records, bank accounts all match exactly.
• Attach complete documents: Missing site plan, technical drawings, or land papers often delay or reject applications.
• Meet deadlines: After GoC, complete construction within stipulated period (e.g. 18 months) or risk subsidy cancellation.
• Check scheme updates: Use the latest guidelines (e.g. NHB simplified process from 2023) so you follow current rules, not outdated ones. 

Challenges or Limitations 

While the Storage & Pusa Bin / Silo Subsidy Schemes (state & central) offer vital financial and technical support to improve farm-level and commercial storage capacity, beneficiaries often face practical challenges during application and implementation. Understanding these early helps applicants save time and avoid rejection.

• Challenge: Delays in verification and approvals
  • What to do: Submit all documents clearly labeled and in the correct format. Track your application status regularly on the official portal or through your district horticulture/agriculture office to avoid missed communications.
    
    
• Challenge: Limited annual budget allocation
  • What to do: Apply early in the financial year since subsidies are released on a first-come, first-served basis until funds last. Contact your bank or nodal agency early to confirm current subsidy availability.
    
    
• Challenge: Document mismatch or incomplete land records
  • What to do: Keep land ownership or lease records updated and consistent with your Aadhaar and project documents. Small mismatches – like spelling errors or outdated maps – can delay approval.
    
    
• Challenge: Technical or DPR (Detailed Project Report) errors
  • What to do: Get your DPR prepared or verified by a registered agricultural engineer or NABARD/NHB consultant to ensure cost norms, specifications, and equipment types match official guidelines.
    
    
• Challenge: Long implementation and inspection timelines
  • What to do: Plan the project schedule realistically. Keep photos, bills, and work progress records ready for inspection teams. Using the NHB mobile app (where available) helps speed up self-verification.
    
    
• Challenge: Seasonal construction and procurement bottlenecks
  • What to do: Start procurement and civil works in non-peak agricultural months to avoid delays due to monsoon or harvest-time labour shortages.
    
    
• Challenge: Difficulty in understanding updated guidelines
  • What to do: Always download the latest scheme circular or press release from NHB, DFPD, or the State Agriculture Department portal. Local ATMA or Krishi Vigyan Kendra (KVK) offices can help interpret new rules.
    
    
• Challenge: Coordination between bank, nodal agency, and beneficiary
  • What to do: Maintain regular contact with your financing bank. Confirm that your subsidy claim documents are forwarded promptly after project completion. Keep copies of all correspondence for follow-up.

Government Support & Future Outlook 

The Storage & Pusa Bin / Silo Subsidy Schemes (state & central) work in close coordination with several national agriculture missions and flagship programs to strengthen post-harvest infrastructure. These schemes are often implemented alongside Rashtriya Krishi Vikas Yojana (RKVY), National Food Security Mission (NFSM), Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME), and Agriculture Infrastructure Fund (AIF). Together, they create an end-to-end support system – from crop production and processing to safe storage and marketing.

For example, a farmer-producer organization (FPO) receiving support under AIF for a rural warehouse can also claim a silo or Pusa bin subsidy under the state agriculture department, reducing both construction and equipment costs. Similarly, farmers benefiting from PM-KISAN income support can use those funds as part of their contribution for establishing small-capacity storage bins at the farm level.

The Ministry of Agriculture & Farmers Welfare has emphasized greater scheme convergence in its recent guidelines (2023–24), encouraging states to integrate storage infrastructure targets within RKVY and ATMA plans. This ensures better monitoring and balanced distribution of modern storage facilities, especially in climate-prone and remote areas.

Looking ahead, the government aims to promote climate-resilient and digital storage systems, such as IoT-enabled silos and solar-powered Pusa bins, under its modernization drive. These steps will help make storage schemes more inclusive, sustainable, and aligned with India’s long-term goal of reducing post-harvest losses and improving farmer income security.

Conclusion 

The Storage & Pusa Bin / Silo Subsidy Schemes (state & central) play a vital role in reducing post-harvest losses, improving food security, and ensuring farmers get better value for their produce. By offering financial assistance for modern silos, Pusa bins, and scientific storage units, these schemes empower small and marginal farmers, FPOs, SHGs, and agri-entrepreneurs to preserve grains safely and market them at the right time. Eligible applicants can apply through the respective state agriculture department or official portals after preparing required documents and verifying eligibility conditions. Farmers are encouraged to consult their nearest Agriculture Office, Krishi Vigyan Kendra, or NABARD district office for guidance. Always cross-check the latest benefits and procedural updates on official government websites before applying.

Explore detailed resources on this scheme and the full suite of programmes at ALL ABOUT AGRICULTURE. For one-on-one assistance, call us at +91 8484002628.