The Government of India launched the Credit Guarantee Scheme for e-NWR Based Pledge Financing (CGS-NPF) on 16 December 2024, providing a ₹1,000-crore corpus to support post-harvest financing for farmers. Under this scheme, farmers can access credit by pledging their produce stored in Warehousing Development and Regulatory Authority (WDRA) accredited warehouses, backed by electronic negotiable warehouse receipts (e-NWRs). Aimed at reducing distress sales, the initiative addresses a critical gap in agricultural finance while also encouraging warehouse registration and development closer to farmland. Union Minister of Consumer Affairs, Food and Public Distribution Shri Pralhad Joshi has also called upon the WDRA to expand its reach and ensure more warehouses are accredited.This initiative supports the government’s broader efforts to bolster Indian agriculture, which contributes 17.7% to the overall Gross Value Added (GVA) at current prices in FY 24. The sector remains the backbone of the economy, employing nearly half the population and benefiting from one of the world’s largest tracts of agricultural land. Recognising its importance, the government continues to prioritise farmer welfare through initiatives that enhance productivity, provide financial support, and promote self-reliance. The CGS-NPF scheme represents a significant step towards empowering farmers and strengthening the foundation of Aatmanirbhar Bharat.The Credit Guarantee Scheme for e-NWR Based Pledge Financing has garnered significant demand from various stakeholders, particularly in the banking sector. By increasing post-harvest lending against e-NWRs, the scheme aims to improve farmers’ income and enhance their access to institutional credit.Focused on inclusivity, the scheme primarily benefits small and marginal farmers, women, Scheduled Castes (SC), Scheduled Tribes (ST), and Divyangjan (PwD) farmers with a minimal guarantee fee. It also extends its advantages to small traders (MSMEs), Farmer Producer Organisations (FPOs), and farmer cooperatives. The scheme ensures higher guarantee coverage for smaller loans, supporting equitable financial access.
Content retrieved from: https://pib.gov.in/PressReleasePage.aspx?PRID=2086154.
