Food Minister Ram Vilas Paswan today rolled out negotiable warehousing receipts in electronic format that farmers can use to avail of bank credit easily and without fear of losing or misusing it.
He also unveiled a web portal for registration of warehouses in a faster and more transparent manner.
Negotiable warehouse receipt, which was launched in 2011, allows transfer of ownership of that commodity stored in a warehouse without having to deliver the physical commodity.
These receipts are issued in negotiable form, making them eligible as collateral for loans.
Warehouse receipts are made negotiable under the Warehouse (Development and Regulation) Act, 2007, and regulated by the Warehousing Development and Regulatory Authority (WDRA).
"Till now, the receipts were issued manually. Now, it will be given in an electronic format, which will not only benefit farmers, but banks and other stakeholders," Paswan said at the launch of the event.
Farmers will not have to worry about losing the receipt -- which has details of the quantity, quality and the warehouse where the commodity is stored -- as it will be uploaded online and will be accessible to banks while sanctioning loan, he said.
This will also stop farmers from taking multiple bank loans on a single receipt, he added.
On the new portal, the minister said the process of registration with the WDRA has been simplified and fastened.
Now, warehouses can register online through the portal.
"Digitalising the entire process of registration, monitoring and surveillance as well as creation and management of negotiable warehouse receipts in electronic form through two repositories will benefit farmers and is a step towards doubling farmers' income by 2022," Paswan said.
So far, 980 warehouses have been registered with the WDRA while there are 64,000 warehouses in the country storing over 20,000 tonnes of commodities.
Paswan noted that "the pace of registration is slow" and suggested that the regulatory body should take time-bound steps in this regard.
Minister of State for Food C R Chaudhary, Food Secretary Preeti Sudan and WDRA Chairman G C Chaturvedi were among other officials present at the event.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)