The scheme offers a fund of Rs 1,000 crore to support farmers with post-harvest finance.
Farmers can access loans by using electronic negotiable warehouse receipts (e-NWRs) after storing their produce in warehouses approved by the Warehousing Development and Regulatory Authority (WDRA).
Key Objectives of the Scheme
The main goal of this scheme is to encourage banks to lend more easily against e-NWRs. These receipts are issued by WDRA-registered warehouses,
and the scheme seeks to reduce banks’ reluctance to provide loans against them.
Loan Growth and Future Expectations
Currently, post-harvest loans total around Rs 40,000 crore, which is part of the overall agricultural loan pool of Rs 21 lakh crore. The loan for e-NWRs stands at only Rs 4,000 crore.
However, Food Secretary Sanjeev Chopra has stated that the government aims to increase this figure to Rs 5.5 lakh crore in the next 10 years.
Efforts to Boost Warehouse Registrations
The government also plans to improve the e-Kisan Upaj Nidhi online platform and raise awareness about guaranteed financing for farmers.
Additionally, there is a focus on reviewing depository charges and increasing the number of warehouse registrations, which currently stands at 5,800.
Loan Coverage for Farmers and Small Traders
This scheme targets small and marginal farmers, women, SC, ST, and Divyangjan (PWD) farmers by offering loans with minimal guarantee fees.
The scheme also benefits small traders, MSMEs, and farmer producer organizations (FPOs). Small and marginal farmers are eligible for 80 to 85% coverage on loans up to Rs 75 lakh.
Loans for MSMEs, FPOs, and traders can receive up to 75% coverage for amounts up to Rs 200 lakh.
