WDRA Inks Pact With SBI To Help Farmers

The Warehousing Development Regulatory Authority (WDRA) signed a Memorandum of Understanding (MoU) with the State Bank Of India (SBI) to facilitate farmers in providing low-interest rate loans.

The MoU was signed with the intent of promoting awareness about the new loan product called Produce Marketing Loan to exclusively fund against e-NWRs (electronic Negotiable Warehouse Receipt) with features such as Nil processing fee, No Additional collateral and attractive interest rates.

The MoU is aimed to provide information to depositors and do further outreach activities to improve agricultural pledge finance in India.

"It is envisaged that the product will have far-reaching consequences with regard to acceptance of e-NWRs among small and marginal farmers. It has the potential to make a significant impact on the finances of rural depositors by preventing distress sale and releasing better prices for the produce," the statement added.

Combined with the inherent security and negotiability of the e-NWR system, the Produce Marketing Loan will go long way in improving rural liquidity and increasing farmers' income. The MoU was signed with the State Bank of India (SBI).

The bank representatives also highlighted the risks faced by the lending institutions in this sector. WDRA assured their full regulatory support in improving the fiduciary trust among stakeholders.