Warehousing Development and Regulatory Authority (WDRA) recently organised a seminar on “e-NWR – An Effective Tool for Promoting Pledge Financing”.
About Warehousing and Electronic Negotiable Warehouse Receipt (e-NWR):
- The negotiable warehouse receipt (NWR) system was launched in 2011 allowing the transfer of ownership of a commodity stored in a warehouse without having to deliver it physically.
- These receipts are issued in negotiable form, making them eligible as collateral.
- This has been enabled by enabling the financing of warehouse receipts through the Warehouse (Development and Regulation) Act, 2007.
- The Warehousing Development and Regulatory Authority (WDRA) regulates the entire operation under NWR.
Salient features of e-NWR:
- An e-NWR is available only in electronic form.
- The single source of information for the e-NWR is the repository system where e-NWR is issued by registered warehouses.
- Confidentiality, integrity and availability of the e-NWR information is provided by the Repository system.
- An e-NWR has time validity.
- All e-NWRS can be traded through off-market or on-market in Commodity Exchanges platforms.
- An e-NWR can be auctioned under certain conditions such as loan not repaid, on expiry and delivery not taken, and on likely damage or spoilage of the commodity in the warehouse.
- e-NWR can be transferred fully or in part.
- Electronic-Negotiable Warehouse Receipt (e-NWR) will help farmers/FPOs to have access to a large number of buyers across the country.
- It will help them get better bargaining powers and realise higher prices by selling graded produce.
- It will provide them with the facility to get their prices quoted and receive immediate payment, besides avoiding distress sales by helping them get loans from banks against warehouse receipts.
Warehousing Development and Regulatory Authority (WDRA):
- WDRA was constituted in 2010 under the Warehousing (Development and Regulation) Act, 2007.
- It is under the Department of Food and Public Distribution (DFPD).