§1What this business is

The owner builds a pucca, well-ventilated godown with a raised floor, rodent-proofing and weighing facilities, and lets out space by the bag or by the tonne to farmers, traders, FPOs and procurement agencies. A registered warehouse can also issue receipts against which farmers borrow from banks. NABARD's Bihar unit-cost booklet for 2025-26 puts dry storage at ₹7,000 per MT for godowns below 1,000 MT and ₹6,000 per MT above 1,000 MT.

Capacity: Any size; the booklet gives separate rates below and above 1,000 MT.

§2Is it right for you?

Who it is for

A landowner, FPO, cooperative or trader near a mandi or in a grain-surplus block.

Who it is not for

Someone who needs quick returns or has no clear title to the land.

Advantages

  • Farmers can hold grain and sell when prices rise
  • Rent income with few staff
  • The building keeps its value for decades

Drawbacks

  • Long gestation and slow payback
  • Occupancy is seasonal
  • Needs own land on a good road

Skills you need

  • Scientific storage — stacking, fumigation, moisture control
  • Stock records and weighing
  • Dealing with banks, traders and procurement agencies

Why difficulty 3/5: Simple to run, but it is a slow, land-heavy investment.

§3Market

Who buys

  • Farmers and FPOs
  • Grain traders and millers
  • Government procurement agencies

How it sells

  • Monthly storage rent per bag or per tonne
  • Leasing the whole godown to an agency

Good to know

  • NABARD says all unit costs are indicative and banks may finance at prevailing market rates including GST.

§4Raw material & machinery

ItemQtyCost
Dry storage godown, below 1,000 MT—₹7,000 per MT
Dry storage godown, above 1,000 MT—₹6,000 per MT

From: NABARD Bihar Regional Office — Unit Cost for Investment Activities in Agriculture and Allied Sectors in Bihar 2025-26 (2025)

§5Licences & registration

  1. Registration with the Warehousing Development and Regulatory Authority (WDRA) to issue negotiable warehouse receipts
  2. State warehouse licence where the State requires it
  3. Building plan approval and fire safety clearance
  4. GST registration
  5. FSSAI registration or licence

We can do this registration for you

Start it in your state

Pick your state: today’s cost, central + state subsidy, raw material, land and help, on one page.

§6Schemes & subsidies

The Agriculture Infrastructure Fund gives 3% interest subvention and a credit guarantee on loans up to ₹2 crore for warehouses. The Agricultural Marketing Infrastructure scheme, implemented through NABARD, gives a capital subsidy on rural godowns; ask your bank which window is open. At ₹35–70 lakh the project is above PMEGP's limit for services.

§7Money

How the investment is worked out: NABARD Bihar unit cost 2025-26: ₹7,000 per MT for a dry storage godown below 1,000 MT (₹6,000 per MT above 1,000 MT). The range shown applies that printed rate to two example sizes — 500 MT (₹35 lakh) and 1,000 MT (₹70 lakh); the booklet itself prints only the per-MT rate. Land is extra. No total is shown because NABARD prints only the rate per tonne.

How to prepare a loan file

§8Export potential

A local service; there is no goods export in this business.

§9Risks — where people fail

  • Stock damage from pests, damp or fire
  • Low occupancy in a poor harvest year
  • Construction cost overrun

§1030 / 60 / 90-day plan

A general plan that applies to any business. A plan for this business will be added after research.

  1. Days 1–30: Visit a working dry storage godown (rural warehouse) unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
  2. Days 31–60: Udyam and the licences you need (Registration with the Warehousing Development and Regulatory Authority (WDRA) to issue negotiable warehouse receipts, State warehouse licence where the State requires it), a project report (DPR), and the scheme or loan file.
  3. Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.

§11Who to connect with

§12Watch

There is no episode on this business yet. Shows are coming soon on the Podcast page.

Want to start Dry Storage Godown (Rural Warehouse)?

DPR, loan file or registration — ask us on WhatsApp.

Get a DPR / loan file made

Sources

  1. NABARD Bihar Regional Office — Unit Cost for Investment Activities in Agriculture and Allied Sectors in Bihar 2025-26 (2025)

Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.