Warehousing and e-NWR critical for transformation of India: Food Secretary

New Delhi, Nov 1 (KNN) Warehousing and e-NWRs (electronic negotiable warehousing receipts) are going to play a critical role in the transformation of India, Food Secretary Sudhanshu Pandey said on Monday.

While addressing a seminar on "e-NWR – An Effective Tool for Promoting Pledge Financing" organised by the Warehousing Development and Regulatory Authority (WDRA) under DFPD, Pandey said that the centre has taken steps to increase registration of warehouses and promote the benefits of registration with WDRA.

Pandey further spoke about a paradigm shift and how in the next 25 years, real growth is going to come from rural India, with mechanisation of agriculture, regulation of warehousing, organisation of the informal sectors of the economy, increase in financing and credit flow access in the rural economy, and mobilisation of the potential of cooperative societies, leading to better governance and accountability.

"Warehouses will continue to be required for safe storage, food security, financing, and export," he said.

eNWRs were introduced in 2017 and made mandatory from August 2019. These instruments allow the transfer of ownership of a commodity stored in a warehouse without having to deliver it physically.

Addressing the event, WDRA Chairman T K Manoj Kumar said, "The number of warehouses registered with WDRA is on a rise and its outreach with banks and farmers has improved exponentially."

Kumar further highlighted that "The decision that the government-procured stocks should be stored in WDRA-registered warehouses or those warehouses which have applied for WDRA registration has resulted in the increased registration, particularly from State Warehousing Corporations (SWCs)."

The State Bank of India (SBI) has launched a special product for lending against e-NWRs at reduced interest rate and lower fees. "Karnataka Bank too has informed that it is in the process of launching a new product on e-NWR pledge finance," he said.

According to WDRA Joint Secretary Dheeraj Sahu, the pledge financing has increased to Rs 1,492 crore in 2021-22 from Rs 732 crore in 2020-21.

Central Warehousing Corporation Managing Director Arun Kumar Shrivastava, NERL Managing Director and CEO Kedar Desh Pande, NCML Managing Director and CEO Sanjay Kumar Gupta were among those present at the event.  (KNN Bureau)