Punjab National Bank (PNB) and Central Warehousing Corporation have recently signed a Memorandum of Understanding (MoU) to ease financing under e-NWR (Electronic Negotiable Warehousing Receipt). The partnership aims to provide simple access to finance to farmers, food processors, and traders in exchange for pledge of agriculture commodities stored in CWC warehouses. The move is a step towards supporting the government’s focus on increasing the income of farmers who drive the agriculture sector.
PNB stated, “Agriculture is a significant sector of the country’s economy, and the government has been focusing on increasing the income of farmers who drive this segment. One of the main constraints in increasing farm income has been distress sales by the farmers. With a view to curbing the same, the bank has entered into this new MoU.”
The agreement was signed by General Manager Kanwal Jit Shorey on behalf of Punjab National Bank and Rajiv Kumar Bansal, group general manager (Comm.) on behalf of CWC. The Central Warehousing Corporation (CWC) is a statutory body under the Ministry of Consumer Affairs, Food and Public Distribution, Government of India.
CWC announced the MoU through a tweet, stating that “Central Warehousing Corporation and Punjab National Bank have entered into an MoU on March 7, 2023, to promote pledge finance against e-NWRS for stocks/goods stored in WDRA accredited warehouses of CWC across the Country, to source MSME/Agriculture business for strengthening of e-NWR ecosystem.”
The CWC has 348 general warehouses registered with the Warehousing Development and Regulatory Authority. CWC offers farmers a 30% storage fee discount, provides training in post-harvest technology, and helps them avoid distress sales through pledge financing against e-NWR.
PNB’s partnership with CWC is a positive step towards easing the burden on farmers who struggle with financial constraints. By facilitating finance against pledge of stored commodities, farmers will be able to avoid distress sales and earn a fair price for their produce.
The partnership is expected to strengthen the e-NWR ecosystem, promoting growth in the agriculture sector. With easy access to finance, farmers and traders will be able to grow their business and contribute to the economy’s growth.
The move is in line with the government’s focus on doubling farmers’ income by 2022. The government has taken several measures to support the agriculture sector, such as increasing MSP, promoting organic farming, and launching several schemes and initiatives.
The MoU signed between PNB and CWC is a positive step towards supporting the agriculture sector and providing farmers with easy access to finance. With the pledge of stored commodities, farmers can avoid distress sales and earn a fair price for their produce, contributing to the growth of the sector and the economy.
