Event Overview: Union Minister Piyush Goyal, heading the Ministry of Consumer Affairs, Food & Public Distribution (MoCAF&PD), inaugurated the ‘e-Kisan Upaj Nidhi’ platform. This digital initiative, developed under the auspices of the Warehousing Development and Regulatory Authority (WDRA), is designed to enhance post-harvest financing accessibility for farmers.
Key Features of ‘e-Kisan Upaj Nidhi’:
- Collateral-Free Loans: Farmers can obtain collateral-free loans from banks using their farm produce stored in WDRA-registered warehouses as security.
- Storage and Interest Rate: Enables farmers to store their agricultural produce at any WDRA-registered warehouse for a six-month period at a subsidized interest rate of 7% per annum.
- Reduced Security Deposits: The security deposit required by farmers to store produce in these warehouses has been lowered to 1% from the previous 3%.
- Interdepartmental Collaboration: The platform was jointly developed by the Department of Food and Public Distribution, the Department of Financial Services, and the National Bank for Agriculture and Rural Development (NABARD).
Process for Availing Loans:
- Issuance of e-NWRs: Farmers receive electronic Negotiable Warehouse Receipts (e-NWRs) upon storing their produce in registered warehouses.
- Loan Application: These e-NWRs serve as proof of storage and are used by farmers to apply for bank loans.
Objective and Benefits: This initiative aims to mitigate the financial impact of low commodity prices during the post-harvest season by providing timely and affordable financial support to farmers, enabling them to prepare better for the upcoming crop cycles.
Additional Information:
- Fee Waiver: WDRA has waived the application fees for warehouse registration for storing agricultural commodities until October 25, 2025, to encourage more farmers to utilize this facility.
About WDRA:
- Established: 2010
- Headquarters: New Delhi, Delhi
- Chairman: T K Manoj Kumar
- Role: The WDRA is a statutory body under the DFPD of MoCAF&PD, responsible for the regulation and governance of warehouses issuing e-NWRs.
This platform not only facilitates easier access to finance for farmers but also promotes better use of warehousing facilities, thereby reducing post-harvest losses and stabilizing income flows for the agricultural community.
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