Food and Consumer Affairs Minister Piyush Goyal unveiled a digital platform named 'e-Kisan Upaj Nidhi' on Monday. This platform is designed to streamline the process for farmers to secure loans against their stored produce, marking a significant step towards enhancing the financial capabilities of the farming community.
During the launch event, Goyal emphasized the transformative potential of the digital gateway, which will enable farmers to access post-harvest loans from banks using electronic Negotiable Warehouse Receipts (e-NWRs). Currently, there are over 5,500 registered warehouses under the Warehousing Development and Regulatory Authority (WDRA), providing a substantial infrastructure for this initiative.
One of the key highlights of the announcement was the reduction of the security deposit required for warehouse owners from 3 percent to just 1 percent of the stock value, a move aimed at further incentivizing the utilization of registered warehouses.
Minister Goyal underscored the importance of leveraging technology to bolster farmers' income and make agriculture a more appealing venture. By facilitating timely access to affordable loans at a fixed interest rate of 7 percent, without the need for collateral, the e-Kisan Upaj Nidhi platform aims to alleviate financial constraints faced by farmers and prevent distress sales of their crops.
Participating banks will offer farmers flexibility in terms of interest rates and loan amounts, enhancing accessibility and catering to diverse agricultural needs across the country.
In his address, Minister Goyal commended the efforts of the Modi government in advancing agricultural growth and doubling farmers' income over the past decade. He highlighted the significant increase in procurement of food grains and other crops at Minimum Support Price (MSP), underscoring the government's commitment to supporting agricultural livelihoods.
Looking towards the future, Goyal reiterated the importance of fostering the growth of the agricultural sector, emphasizing its pivotal role in realizing India's vision of becoming a developed nation by 2047. He called for continued modernization of warehouses operated by both government and state agencies to ensure efficiency and maintain stringent quality standards.
The Warehousing Development and Regulatory Authority (WDRA) aims to establish a robust negotiable warehouse receipt system, facilitating trade and finance against warehouse reciepts.
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