Warehousing Development Regulatory Authority (WDRA) has signed a memorandum of understanding (MoU) with the State Bank of India to help farmers in getting low-interest-rate loans. The Memorandum of Understanding (MoU) was signed to promote awareness about the new loan product called ‘Produce Marketing Loan’ to exclusively fund against e-NWRs (electronic Negotiable Warehouse Receipt).
Warehousing Development Regulatory Authority Signed MoU with SBI – Key Points
- It is envisaged that the product will have far-reaching consequences regarding the acceptance of e-NWRs among small and marginal farmers.
- It has the potential to make a significant impact on the finances of rural depositors by preventing distressed sales and releasing better prices for the produce.
- Combined with the inherent security and negotiability of the e-NWR system, the ‘Produce Marketing Loan’ will aim in improving rural liquidity and increasing farmers’ income.
- The Food and Consumer Affairs ministry informed that a conference on “Digital financing against e-Negotiable Warehouse Receipts and way forward” was held at NABARD Head Office in Mumbai.
- The purpose of the conference was to interact with bankers to increase post-harvest pledge finance against e-NWRs issued by warehouses registered by WDRA and evolve mechanisms that would improve the ease of doing business.
- Bankers present at the conference have expressed their satisfaction with the e-NWR system established by WDRA as it provides them with considerable safety and comfort against loans advanced by them against warehouse receipts.