NABARD Agricultural Marketing Infrastructure Support

NABARD – Major Financing Schemes for Agriculture & Food Processing

1. Food Processing Fund (FPF)

Scheme Introduction / Overview

The Food Processing Fund (FPF) was established by the Government of India with NABARD in 2014–15, with a corpus of ₹2,000 crore, to provide affordable credit for development of food-processing infrastructure.

The fund primarily supports Designated Food Parks notified by the Ministry of Food Processing Industries (MoFPI) and food-processing units established in such parks.

NABARD provides term-loan support under the fund, while MoFPI's applicable capital-grant/subsidy schemes can be dovetailed with the financing where the project meets the respective conditions.

Eligibility Criteria

Eligible entities may include:

State Governments
Entities promoted by State Governments
Entities promoted by the Central Government
Joint Ventures
Special Purpose Vehicles (SPVs)
Cooperatives
Federations of Cooperatives
Farmer Producer Organisations (FPOs)
Companies
Corporates
Entrepreneurs
Other eligible entities meeting NABARD's lending requirements

For individual food-processing units, the project generally needs to be located in an eligible/designated Food Park under the applicable FPF framework.

Eligible Industries / Businesses

The FPF is primarily applicable to:

Food-processing units
Designated Food Parks
Mega Food Parks
Agro-processing clusters
Food-processing infrastructure
Value-addition facilities
Processing and preservation facilities
Modernisation of eligible food-processing units
Technology-upgradation projects
Automation of processing facilities
Infrastructure supporting food processing

Eligible project activities are subject to the applicable NABARD FPF guidelines and project appraisal.

Subsidy / Financial Assistance Details

Important: FPF is primarily a term-loan/credit facility, not a direct capital subsidy.

NABARD provides affordable term loans to eligible projects. Where applicable, the loan can be combined/dovetailed with capital assistance available under relevant MoFPI schemes.

NABARD's published information identifies FPF as providing direct term loans to eligible food-processing units in designated Food Parks.

Maximum Subsidy / Assistance

There is no standard FPF subsidy percentage or universal subsidy ceiling comparable to a conventional capital-subsidy scheme.

The financial assistance is primarily in the form of a term loan, with the amount determined based on:

Project cost
Eligible project components
Debt-equity structure
Repayment capacity
Project viability
Security/collateral requirements
NABARD's appraisal and applicable lending terms

NABARD's published interest-rate information identifies different lending rates depending on the category of borrower.

Key Benefits

Access to term finance for eligible food-processing projects
Support for development of food-processing infrastructure
Affordable credit for eligible designated Food Park projects
Support for modernisation and technology upgradation
Promotion of value addition to agricultural produce
Reduction of post-harvest losses
Employment generation
Potential convergence with eligible MoFPI capital assistance
Strengthening of farmer-to-processing linkages

NABARD states that the FPF is intended to promote food processing on a cluster basis and reduce wastage of agricultural produce while creating employment opportunities, particularly in rural areas.

Applicable Conditions

Project must satisfy the eligibility requirements of the FPF.
Food-processing units generally need to be located in an eligible/designated Food Park under the applicable framework.
Project must be technically and financially viable.
Promoter contribution/equity must be arranged as required.
Repayment capacity must be demonstrated.
Appropriate security/guarantees may be required.
The project is subject to NABARD's appraisal and sanction.
Loan disbursement is made according to approved milestones and conditions.
Any MoFPI subsidy is governed separately by the relevant MoFPI scheme guidelines.

2. Warehouse Infrastructure Fund (WIF)

Scheme Introduction / Overview

The Warehouse Infrastructure Fund (WIF) was created by the Government of India with NABARD to support development of scientific and modern agricultural storage infrastructure.

The fund supports infrastructure such as warehouses, silos, cold storages and other eligible cold-chain infrastructure. It also supports certain modernisation/upgradation projects and agricultural marketing infrastructure.

NABARD's published information identifies WIF as a credit facility for both public and private sectors.

Eligibility Criteria

Eligible entities may include:

State Governments
Central/State Government-owned or assisted entities
Cooperatives
Federations of Cooperatives
FPOs
Federations of farmer collectives
SPVs established under PPP models
PACS
Cooperative Marketing Societies
Corporates
Companies
Individual entrepreneurs
APMCs
Other eligible institutions

NABARD's official information specifically identifies public and private entities, cooperatives, FPOs, SPVs, companies and individual entrepreneurs among eligible categories.

Eligible Industries / Businesses

WIF can support projects involving:

Agricultural warehouses
Grain storage
Silos
Cold storages
Controlled Atmosphere (CA) stores
Pack houses
Integrated pack houses
Reefer vans
Bulk coolers
IQF facilities
Chilling infrastructure
Freezing infrastructure
Other eligible cold-chain infrastructure
Modernisation/upgradation of existing storage facilities
Agricultural marketing infrastructure

NABARD's official WIF information specifically lists warehouses, silos, cold storage, CA stores, pack houses, reefer vans, bulk coolers, IQF and chilling/freezing infrastructure.

Subsidy / Financial Assistance Details

WIF is primarily a loan/credit facility, rather than a direct capital subsidy.

NABARD provides loans for eligible infrastructure projects, subject to appraisal and applicable lending terms.

Maximum Subsidy / Assistance

There is no standard WIF subsidy percentage applicable to all projects.

The amount of loan depends on:

Project cost
Eligible project components
Promoter contribution
Debt-equity structure
Project viability
Repayment capacity
Security
NABARD's appraisal
Applicable lending limits and terms

For certain storage projects, NABARD's published guidelines historically specified minimum aggregate storage capacity requirements; government/government-owned projects can have different requirements.

Key Benefits

Financing for modern agricultural storage
Development of scientific warehousing
Reduction of post-harvest losses
Improved storage of agricultural commodities
Support for cold-chain infrastructure
Better market access for farmers
Reduction of distress selling
Strengthening of agricultural logistics
Development of rural infrastructure
Support for value addition and supply-chain efficiency

Applicable Conditions

Project must fall within eligible WIF activities.
Applicant must satisfy NABARD's eligibility requirements.
Project should be technically and financially viable.
Required land and statutory approvals must be available.
Promoter contribution must be arranged.
Appropriate security may be required.
Loan is subject to NABARD appraisal and sanction.
Project must comply with applicable storage, food-safety, environmental and construction requirements.
Disbursement is made according to sanctioned conditions.

Quick Comparison – NABARD Financing Schemes

Scheme / Fund	Primary Purpose	Nature of Assistance	Typical Projects
Food Processing Fund (FPF)	Food-processing infrastructure	Term Loan / Credit	Food Parks, food-processing units, processing infrastructure
Warehouse Infrastructure Fund (WIF)	Agricultural storage & logistics	Term Loan / Credit	Warehouses, silos, cold storage, pack houses, reefer/cold-chain infrastructure

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