Should our FPO build a warehouse or rent space for member produce?

For an FPO, the choice between owning a warehouse and renting depends on how much volume the group handles reliably and for how much of the year. Owning makes sense only if members consistently store enough to keep the warehouse well used; an under-used warehouse still carries loan repayment, maintenance and staff cost, which the group then has to cover. Renting from a WDRA registered warehouse has no fixed cost, no utilisation risk, and lets members get e-NWRs and warehouse receipt loans, so it is the safer starting point for a young FPO. As the group grows and proves steady volume, building can be considered, especially with subsidy support under the Agriculture Infrastructure Fund interest subvention and horticulture schemes, which lower the cost of an owned facility. A common middle path is to rent first, build the trading habit and volume, then build once the demand is proven. Whatever you choose, prefer WDRA registered storage so members can access pledge finance. Prepare a clear business plan with realistic utilisation and verify subsidy and loan terms with NABARD, your bank and the district authorities before committing the group to a building.