Union Food and Consumer Affairs Minister launches Credit Guarantee Scheme for e-NWR based pledge Financing (CGS-NPF)

The Union Minister of Consumer Affairs, Food and Public Distribution and New & Renewable Energy, Shri Pralhad Joshi launched the Credit Guarantee Scheme for e-NWR based Pledge Financing (CGS-NPF) here today. This scheme provides a corpus of Rs 1,000-crore for post-harvest finance availed by farmers against electronic negotiable warehouse receipts (e-NWRs) after depositing commodities in Warehousing Development and Regulatory Authority (WDRA) accredited warehouses.

The Union Minister said that this scheme is being launched to minimise distress selling by farmers. Noting that the most challenging task is to register all warehouses, he urged the Warehousing Development and Regulatory Authority (WDRA) to bring warehouse developers under its ambit and urged them to build warehouses nearer to farm lands. The Minister said that e-registration will make this scheme a huge success. He elaborated that the scheme is a significant initiative as a guarantee cover for the loans availed by farmers/ traders against electronic negotiable warehouse receipts (e-NWRs). CGS – NPF Scheme has been introduced to instill confidence in bankers, encouraging the extension of pledge finance against electronic Negotiable Warehouse Receipts (e-NWRs) for farmers /traders who store their agricultural / horticultural produce in warehouses registered with the WDRA.

Recollecting from his experiences, he further stated that banks need to adopt a liberal approach towards farmers in settling loan amounts and other finances like e-NWR receipts.

Shri Joshi during his address invoked PM’s commitment for farmers’ welfare. He said that fertiliser prices have globally increased due to ongoing conflicts, whereas Government of India is providing Urea to farmers at the lowest rates in the world.

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