Many farmers sell their crops right after harvest, when prices are often at their lowest, because they need cash. Warehouse receipts offer another way: store the crop in a registered warehouse, take a loan against it and sell later when prices improve. Here is how it works.
The regulator
The Warehousing (Development and Regulation) Act, 2007 set up the Warehousing Development and Regulatory Authority (WDRA). WDRA registers warehouses that meet standards for storage, safety and insurance, and regulates negotiable warehouse receipts.
What is an e-NWR
An electronic Negotiable Warehouse Receipt (e-NWR) is a digital document issued by a WDRA registered warehouse when a farmer deposits produce. It records the commodity, quantity, quality grade and owner. Being negotiable, it can be transferred to a buyer or pledged with a bank.
How farmers benefit
- Get a loan from a bank by pledging the e-NWR, without selling the crop.
- Avoid distress sale at harvest time.
- Sell the crop later when prices are better, or sell the receipt itself to a buyer.
- Produce is stored scientifically, with insurance against risks like fire and theft.
Also Read: eNAM Registration for Farmers: How to Sell Crops Online on the National Agriculture Market | Wheat Sowing Guide for Rabi Season: Best Time, Seed Rate, Varieties and Tips From ICAR
Interest support
Small and marginal farmers with Kisan Credit Cards can get the benefit of interest subvention on post harvest loans against negotiable warehouse receipts for a limited period, as per the government’s interest subvention scheme. Check the latest terms with your bank.
Credit guarantee
In late 2024, the government launched a credit guarantee scheme for post harvest loans against e-NWRs, to encourage banks to lend more to farmers and small traders. WDRA also launched the e-Kisan Upaj Nidhi platform to make storage and pledge loans easier to access.
How to use the system
- Find a WDRA registered warehouse near you on the WDRA website.
- Deposit clean, dried and graded produce.
- Receive an e-NWR through a repository linked account.
- Approach a bank to pledge the e-NWR for a loan.
- Repay the loan and take back or sell the produce when prices improve.
Things to keep in mind
- Storage charges apply, so compare them with the expected price gain.
- Prices may not always rise, so plan carefully.
- Produce must meet quality standards for storage.
- Farmer Producer Organisations can help small farmers pool produce and access these services.
Bottom line
Warehouse receipts let farmers hold their crop instead of selling cheap. With a WDRA registered warehouse and an e-NWR, farmers can get bank credit and sell at a better time.
Source / स्रोत: Warehousing Development and Regulatory Authority, Department of Food and Public Distribution, Press Information Bureau
