Electronic Negotiable Warehouse Receipt (e-NWR)

Why is in news? Warehousing and e-NWR are going to play a critical role in the transformation of India

®WDRA celebrated its Foundation Day as it was constituted in 2010 under the Warehousing (Development and Regulation) Act, 2007. As a part of its Foundation day celebrations, a series of events was organized from 17th to 31st October 2022.

®On this occasion, the Secretary Department of Food and Public Distribution (DFPD) said that the warehousing and Electronic Negotiable Warehouse Receipt (e-NWR) are going to play a critical role in the transformation of India and rural India in particular.

®WDRA was an initiative of public policy where the benefits of technology had been transferred into benefits for farmer with the objective to make e-NWR a prime tool of trade, increase rural liquidity, increase farmers’ income, reduce post-harvest losses, etc.

®There had been an increase in the number of warehouses registered with WDRA and its outreach with banks and farmers had improved exponentially.

Negotiable Warehouse Receipt System:

®It was launched in 2011 but the Ministry of Consumer Affairs, Food & Public Distribution.

®The negotiable warehouse receipt (NWR) system was 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.

®Farmers can seek loans from banks against the warehouse receipts issued to them against their storage.

®These receipts issued by the warehouses registered with the WDRA would become a fully negotiable instrument backed by a Central legislation.

®The Electronic Negotiable Warehouse Receipt (e-NWR) System was launched in 2017, the NWR is integrated with e-NAM platform.

Warehousing Development and Regulatory Authority:

®It was constituted on 26th October 2010 under the Warehousing (Development and Regulation) Act, 2007.

®It is a statutory authority under the Department of Food and Public Distribution, Government of India.

®It is headquartered in New Delhi.

®The Act provides for the establishment of the WDRA to exercise the powers conferred on it and to perform the functions assigned to it under the Act, Rules and Regulations for the development and regulation of warehouses, negotiability of warehouse receipts and promote orderly growth of the warehousing business in the country.