Sep 30, 2024
ELECTRONIC NEGOTIABLE WAREHOUSE RECEIPTS (E-NWR)
ELECTRONIC NEGOTIABLE WAREHOUSE RECEIPTS (E-NWR)
1. What is an e-NWR?
An electronic Negotiable Warehouse Receipt (e-NWR) is a digital document issued by a registered warehouse that acknowledges the deposit of agricultural produce. It is used as proof of ownership and can be used for trading, loans, and transfers of the commodities stored.
2. How does e-NWR work?
The e-NWR is stored in an electronic repository, which serves as a secure and centralized platform for managing and tracking these receipts. The e-NWR is linked to the shelf-life of the commodity or until the commodity is withdrawn from the warehouse.
3. Why was e-NWR introduced?
The e-NWR system was introduced to overcome the risks associated with paper-based warehouse receipts, such as fraud, mutilation, and unauthorized access. The e-NWR ensures better transparency, reduces operational risks, and facilitates easier access to finance for farmers.
4. What are the benefits of e-NWR for farmers?
• Access to Credit: Farmers can use e-NWRs to get loans from banks, avoiding distress sales when prices are low.
• Safe Storage: It provides safe, scientific storage for their produce in accredited warehouses.
• Avoids Post-Harvest Losses: Helps farmers avoid post-harvest losses and better manage their produce.
• Trading: e-NWRs can be used for trading commodities on various platforms, giving farmers the flexibility to sell when prices are favorable.
5. What is the role of the Warehousing Development and Regulatory Authority (WDRA)?
The WDRA regulates the implementation of the e-NWR system under the Warehousing (Development & Regulation) Act, 2007. It ensures that warehouses meet certain standards and that e-NWRs are issued in compliance with regulations.
6. What are the key features of e-NWR?
• Digital Only: e-NWRs are available exclusively in electronic form.
• Secure and Confidential: The repository ensures confidentiality, integrity, and availability of the e-NWR data.
• Time Validity: They are valid only for the duration of the commodity’s shelf-life or until the commodity is withdrawn.
• Restrictions on Dual Use: e-NWRs cannot be used simultaneously for multiple transactions, reducing the risk of fraud.
7. What happens if a loan against an e-NWR is not repaid?
If a loan is not repaid, the e-NWR can be auctioned under certain conditions, such as non-payment of the loan, failure to take delivery, or damage to the stored commodity.
8. What challenges does the e-NWR system address?
The system addresses issues like fraudulent receipts, multiple loans against the same stock, unauthorized withdrawals, and discrepancies in stock value, which were common with the old paper-based system.
9. Who can issue e-NWRs?
Only accredited and registered warehouses with the WDRA are authorized to issue e-NWRs through licensed repositories like M/s CCRL and M/s NeRL.
10. How does e-NWR benefit the agricultural sector?
The e-NWR system promotes better storage practices, improves warehouse accountability, reduces financial risks, and ultimately helps stabilize farmer incomes by giving them control over when and how they sell their produce.