Warehousing Development Regulatory Authority
Source: PIB
GS II: Statutory, regulatory and various quasi-judicial bodies; GS III: Transport and marketing of agricultural produce and issues and related constraints; e-technology in the aid of farmers
Overview
- News in Brief
- About Warehousing Development Regulatory Authority
- About Regional Rural Bank
Why in News?
Warehousing Development and Regulatory Authority (WDRA) under the Department of Food and Public Distribution held a conference on e-NWR based pledge finance with Regional Rural Banks (RRBs).
News in Brief
- It aims to create awareness amongst the RRBs about the eco-system of WDRA and the benefits of pledge finance through e-NWR.
- 70% of the RRB credit flows through the agricultural sector and 64% of their credit is targeted towards weaker sections including small and marginal farmers.
- This will help the agriculture sector as institutional credit to the agricultural and rural sectors in India through its vast network of 21,000+ branches in rural and semi-urban areas.
- WDRA repositories can start lending through electronic-negotiable warehouse receipts (e-NWR).
About Warehousing Development Regulatory Authority
- The WDRA is a Statutory Authority under the Department of Food and Public Distribution, Government of India.
Photo by CHUTTERSNAP on Unsplash - The function of the Warehousing Development and Regulatory Authority (WDRA) is to
- Regulate and ensure implementation of the provisions of the Warehousing (Development and Regulation) Act, 2007 for the development and regulation of warehouses, Regulations of Negotiability of Warehouse Receipts and to promote orderly growth of the warehousing business.
- Constituted on 26.10.2010 under the Warehousing (Development and Regulation) Act, 2007 vide Government of India Gazette Notification dated 26th October 2010.
- The Authority has its Headquarters in New Delhi.
- Composition
- The Authority consists of a Chairperson and two Members appointed by the Central Government.
- How does it help?
- Negotiable Warehouse Receipts (NWRs) issued by the warehouses registered under this Act would help the farmers to seek loans from banks against NWRs and will avoid distress sale of agricultural produce.
- It will also be beneficial for a number of other stakeholders such as banks, financial institutions, insurance companies, trade, commodities exchanges as well as consumers.
- The Warehousing Development and Regulatory Authority (WDRA) has registered 552 warehouses.
- 176 warehouses belong to Central Warehousing Corporation
- 125 to State Warehousing Corporation
- 77 warehouses to the Private Sector
- 174 warehouses to the Primary Cooperative Societies.
- Association with NABARD
- WDRA jointly with NABARD is also working on developing a digital gateway for reducing the time and complexity.
WDRA is in the infant stage and has to be given continued financial support during the 12th Five-Year Plan, as it does not have any source of revenue except the nominal registration fee.
Negotiable Warehouse Receipt
- It was launched in 2011 by the Ministry of Consumer Affairs, Food & Public Distribution.
- Electronic Negotiable Warehouse Receipt (e-NWR)
- It has negotiability and can be used for the deposit and withdrawal of commodities as well as trade transactions such as transfers and Pledges.
- It was launched in 2017.
- It has been integrated with the electronic National Agriculture Market (e-NAM) platform by providing an interface between e-NAM and repositories.
Warehousing (Development and Regulation) Act, 2007
- To make provisions for the development and regulation of warehouses, negotiability of warehouse receipts, the establishment of a Warehousing Development and Regulatory Authority (WDRA), and related matters.
- Issue to the applicants fulfilling the requirements for warehousemen a certificate of registration in respect of warehouses, or renew, modify, withdraw, suspend, or cancel such registration;
- Regulate and develop an electronic system of holding and transfer of credit balances of fungible goods deposited in the warehouses.
- Determine the rate of and levy, the fees, and other charges for carrying out the provisions of this Act.
- To regulate the process of pledge, creation of charges, and enforcement thereof in respect of goods deposited with the warehouse.
Regional Rural Banks
- Regional Rural Banks were established under the provisions of an Ordinance passed on 26 September 1975.
- Later established under the Regional Rural Banks Act of 1976.
- It aims to provide sufficient banking and credit facility for agriculture and other rural sectors.
- Regional Rural Banks (RRB) are Indian Scheduled Commercial Banks ( Government Banks) operating at the regional level in different states of India.
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