The Ministry of Consumer Affairs Food and Public Distribution launched Electronic Negotiable Warehou...........

Economic and Social Issues Agriculture - Caracterstics and trends

The Ministry of Consumer Affairs, Food and Public Distribution launched Electronic Negotiable Warehouse Receipt (e-NWR). What are the benefits of e-NWR?

It can be traded, sold, swapped and used as collateral to support borrowing or loans from banks.
It will allow more convenient trading of produce on the electronic National Agriculture Markets (e- NAM).

Which of the above is/are correct?

1 only

2 only

Both 1 and 2

None

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Explanation:

It aims at simplifying Warehouse Registration Rules, digitizing entire process of registration, monitoring and surveillance as well as creation and management of NWRs in electronic form through two repositories. NWRs are documents issued by warehouses to depositors against commodities deposited in warehouses for which warehouse is bailee. NWRs can be traded, sold, swapped and used as collateral to support borrowing or loans from banks. These receipts were made negotiable under Warehouse (Development and Regulation) Act, 2007 and are regulated by Warehousing Development and Regulatory Authority (WDRA). e-NWR will have no chances of any tempering, mutilation, fudging, loss or damage and also no possibility of any multiple financing. e-NWR will also help to save expenditure in logistics as stocks could be traded through multiple buyers without physical movement and can be even split for partial transfer or withdrawal.