An electronic Negotiable Warehouse Receipt (e-NWR) is a digital document provided by registered warehouses, confirming the deposit of agricultural goods. This receipt serves as proof of ownership and can be utilized for trading, obtaining loans, and transferring stored commodities.
The e-NWR is maintained in an electronic repository, which functions as a secure and centralized system for managing and tracking these receipts. Each e-NWR is associated with the shelf-life of the commodity until it is withdrawn from storage.
The e-NWR system was designed to eliminate risks linked to traditional paper-based warehouse receipts, such as fraud, damage, and unauthorized access. By ensuring greater transparency and reducing operational risks, e-NWRs facilitate easier access to finance for farmers.
The WDRA oversees the implementation of the e-NWR system under the Warehousing (Development & Regulation) Act, 2007. It ensures that warehouses adhere to specific standards and that e-NWRs are issued according to regulations.
If a loan against an e-NWR is not repaid, the e-NWR may be auctioned under specific conditions, such as non-payment, failure to claim delivery, or damage to the stored commodity.
The e-NWR system tackles issues like fraudulent receipts, multiple loans on the same stock, unauthorized withdrawals, and discrepancies in stock value, which were prevalent with the traditional paper-based approach.
Only accredited and registered warehouses recognized by the WDRA are permitted to issue e-NWRs through authorized repositories such as M/s CCRL and M/s NeRL.
The e-NWR system encourages improved storage practices, increases warehouse accountability, reduces financial risks, and ultimately assists in stabilizing farmer incomes by providing them with control over the timing and method of selling their produce.
Q1. What is the significance of e-NWR for farmers?
Answer: e-NWR is crucial for farmers as it offers secure storage, access to credit, and reduces post-harvest losses, empowering them to manage their produce effectively.
Q2. How does the e-NWR system improve transparency?
Answer: The e-NWR system enhances transparency by eliminating risks of fraud and ensuring secure digital documentation of commodity ownership.
Q3. Can e-NWRs be used for multiple transactions?
Answer: No, e-NWRs cannot be utilized for multiple transactions simultaneously, thereby minimizing the risk of fraud.
Q4. Who regulates the e-NWR system in India?
Answer: The Warehousing Development and Regulatory Authority (WDRA) regulates the implementation of the e-NWR system to ensure compliance with standards.
Q5. What happens to e-NWRs if a loan is not repaid?
Answer: If a loan against an e-NWR is defaulted, the receipt may be auctioned under certain conditions, such as non-payment or damage to the commodity.
Question 1: What does an e-NWR represent in agriculture?
A) A digital loan document
B) A receipt for agricultural produce storage
C) A trading certificate
D) A government subsidy document
Correct Answer: B
Question 2: Who can issue e-NWRs in India?
A) Any farmer
B) Only government agencies
C) Accredited warehouses registered with WDRA
D) Private traders
Correct Answer: C
Question 3: What is a major benefit of e-NWRs for farmers?
A) Increased crop yield
B) Secure access to credit
C) Reduced labor costs
D) Government grants
Correct Answer: B
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