Context:
Finance Ministry Pushes for Farm Loans against E-NWRs
Electronic Negotiable Warehouse Receipts (e-NWRs):
- e-NWRs are digital warehousing receipts issued by registered warehouses.
- Governed by the Warehousing Development and Regulatory Authority (WDRA) under the Warehousing (Development and Regulation) Act, 2007.
- Key Features –
- Negotiability: Enables transfer of ownership of commodities stored in warehouses without physical delivery.
- Digital Format: e-NWRs are available only in electronic form, ensuring confidentiality, integrity, and availability.
- Ease of Use: Facilitates trading, financing, and settlement without physical exchange of goods.
- Benefits –
- Trust and Transparency: Regulated by WDRA, ensuring secure and transparent transactions.
- Efficient Price Discovery: Promotes fair pricing through spot and futures markets.
- Scientific Storage: Ensures quality and quantity preservation of commodities.
- Easy Finance Options: Enables farmers to access loans at lower interest rates.
- Reduced Paperwork: Simplifies transfer and splitting of receipts.
- Significance for Farmers –
- Provides a mechanism for farmers to store produce in scientific warehouses near their farms.
- Helps reduce post-harvest losses and ensures better price realization.
- Role of WDRA –
- WDRA regulates warehouses issuing e-NWRs to ensure safety and standardization.
- Promotes pledge financing through partnerships with banks and financial institutions
Source: BS
Previous Year Question
With reference to the circumstances in Indian agriculture, the concept of “Conservation Agriculture” assumes significance. Which of the following fall under the Conservation Agriculture?
1. Avoiding the monoculture practices
2. Adopting minimum tillage
3. Avoiding the cultivation of plantation crops
4. Using crop residues to cover soil surface
5. Adopting spatial and temporal crop sequencing/crop rotations.
Select the correct answer using the code given below:
[UPSC Civil Service Exam – 2018 Prelims]
(a) 1, 3 and 4 only
(b) 2, 3, 4 and 5 only
(c) 2, 4 and 5 only
(d) 1, 2, 3 and 5 only
Answer: (c)