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Farmers in Bihar opened Repository Accounts with NERL

AgriNation News Network

Mumbai. 26th December 2018

National E-Repository Limited (NERL) – a Repository that manages electronic Negotiable Warehouse Receipts, also known as eNWRs, recently opened 16 Repository Accounts of Farmers in Samastipur, Bihar. These accounts have been opened for produce which will be stored in a WDRA registered warehouse in Samastipur, managed by ERGOS Business Solutions Pvt. Ltd., a Warehouseman. Indian Farmers being at the core of the value chain, are slowly realizing the benefits and convenience that follows eNWRs, especially regarding access to easy finance. Svakarma Finance Pvt. Ltd., an NBFC that supports Agri and MSMEs, and a Repository Participant (Pledgee) with NERL, has successfully pledged against eNWRs this December.

 This has been a result of a partnered effort between NERL, ERGOS and Svakarma Finance to help farmers in India avail easy access to credit facilities, which is a beginning for many more farmers to come on board the Repository platform. Mr. Kishore Jha, CEO, ERGOS is working closely with the farmers to onboard them through the company’s Digital and offline platform backed by a grid of rural, medium and micro warehouses at farm-gate across the geography, for storage, and forward linkages. Mr. Kedar Deshpande, MD & CEO, National E-Repository Ltd., who was very pleased with the company’s efforts for the farmers in India, said, “This is an honest effort towards making a difference in the lives of farmers by overcoming various challenges faced with physical receipts. We hope to empower the farmers with a service that will help them to manage their storage documents with ease and better access to credit facilities.”

Warehousemen are responsible for issuance of eNWR or eWR on NERL platform and maintenance of its underlying commodity. Meanwhile, Banks or NBFCs can become Repository Participants (RP) with NERL as a Pledgee or for Account Maintenance. RPs are expected to provide services as per Repository guidelines. Since the company’s inception in September 2017, 77 Farmers / FPOs (Farmer Producer Organizations) in India have opened an account with NERL where 9 eNWRs have been generated in the names of farmers. As on December 2018, over 230 Private, Central and State agriwarehouses are using the NERL platform for generating eNWRs. Total eNWR/eWRs has crossed the 46,000 mark for over 3.5 lakh MT of quantity.

Dr. B.B. Pattanaik, Chairman, Warehousing Development and Regulatory Authority (WDRA), feeling optimistic about the benefits of eNWRs to farmers, said, “WDRA is constantly making efforts towards enhancing er BENEFITS FOR DEPOSITORS / FARMERS · Electronic Book-entry holding of Warehouse Receipts for efficient transfers and pledging · Multiple transfers of electronic Negotiable Warehouse Receipt (eNWR) · Standardization of farm produce, grading, scientific warehousing, packaging and efficient logistics management · Efficient clearing, settlement and delivery of eNWRs on Exchanges · Transparency and traceability of transactions at every step · Splitting of eNWRs to enable break-up and transfer of ownership and availing finance date. We stand by our motto – WDRA ka Prayaas, Kisaanon Ka Aarthik Vikas to fulfill our objectives”.

As on December 2018, eNWRs have been generated in 10 States and 1 Union Territory. Apart from Depositors and Farmers, eNWRs also bring an entire suite of benefits for all the value chain participants like Banks, Warehousemen, Traders, etc