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The IUP Journal of Infrastructure :
Rural Infrastructure: Spread, Investment and Benefit from Grameen Bhandaran Yojana
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Development of storage infrastructure especially in rural areas is essential to harness the agriculture potential and help the farming community. This study has been conducted to know specifically the extent of spread of constructed/renovated rural godown, regional imbalances in construction of rural godowns, investment made and subsidy distributed, the availability of rural godowns in terms of geographical area as well as production, utilization pattern and to examine the benefits extended to rural economy in terms of employment generated, wastage reduction and price gain by launching of the scheme in India. The study also suggests to extend benefit to more number of farmers, small-sized farmers, farmers of hilly and desert dominated areas and also to check the growing imbalance among the regions, states and districts in the construction of rural godowns by (a) Giving priority to the sanction of rural godown projects among the hill-dominated states; (b) Enhancing banking services by making on the spot sanction of loan; (c) Launching intensive training and awareness about the scheme in the poorly developed areas; (d) Implementing pledge financing by simplifying procedure and pursuing the banks for advancement; and (e) Introduction of negotiable Warehouse Receipt System by drawing time bound implementation plan and promoting accreditation organization having compatibility with future trading and commodity exchanges.

Agricultural growth in any developing country, including India, is intertwined with its rural infrastructure development and there is a strong positive association between the two. The rural infrastructure deficit continues to haunt Indian agriculture. Provision of quality rural infrastructure is vital for the Indian agriculture to nudge its sustainable growth trajectory upwards. Storage infrastructure is a crucial element of the Indian agriculture infrastructure scenario. Development of storage infrastructure, especially in rural areas, is essential to harness the agriculture potential and help the farming community. There is a long felt need in the country to provide the farming community with facilities for scientific storage so that wastage and produce deterioration are avoided and also to enable the farmer-producers to meet the credit requirement without being compelled to sell the produce at a time when prices are low and unfavorable. Accordingly, a Capital Investment Central Sector Scheme for Construction/Renovation of Rural Godowns has been introduced in 2001 initially for a period of 2 years to setup 20 lakh tons storage capacity. The scheme was later on extended for the remaining period of 10th Five Year Plan to setup additional 68 lakh tons storage capacity. The scheme aimed at creation of scientific storage capacity with allied facilities in rural areas to meet the requirement of the farmers for storing farm produce, processed farm produce and agricultural inputs, promotion of grading, standardization and quality improvement of agricultural produce and prevention of distress sale by providing the facilities of pledge financing and marketing credit.

 
 
 

Rural Infrastructure, Investment, Grameen Bhandaran Yojana, agriculture potential, rural economy, banking services, future trading and commodity exchanges, rural infrastructure development, Capital Investment Central Sector, financing and marketing credit, agricultural inputs.