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Assistance to Warehousing Development and Regulatory Authority

The Government of India has introduced a negotiable warehouse receipt system in the country by enacting the Warehousing (Development and Regulation) Act, 2007 (37 of 2007) which has been made effective with effect from the 25th October, 2010. The Negotiable Warehouse Receipt (NWR) system was formally launched on the 26th April, 2011.

The main objectives of the Warehousing (Development and Regulation) Act, 2007 are to make provisions for the development and regulation of warehouses, negotiability of warehouse receipts, establishment of a Warehousing Development and Regulatory Authority (WDRA) and related matters. The 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 WDRA is in 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 for registration of warehouses and registration of accreditation agencies.

The Planning Commission has accepted and included the scheme of Assistance of WDRA along with other schemes of the Department of Food and Public Distribution for the 12th Five Year Plan. After review and detailed examination of activities, the revised cost estimates of WDRA has been approved as Rs. 84.70 crores during the 12th Plan period (2012-17).


With a view to bring change in the mind set of farmers and other stakeholders about the concept of negotiable warehouse receipt, the WDRA has initiated massive publicity programmes which include organization of awareness programmes for farmers, training programme for trainers, warehouse managers, officers of accreditation agencies etc. It has also produced a documentary film on the aims objectives of WDR Act and benefits of NWR to farmers and other depositors. Besides, leaflet, pamphlet and bulletins are also being published by the WDRA.

For capacity building in the warehousing sector and to promote efficiency in the conduct of the warehousemen training programmes for the warehouse managers of the CWC, SWCs and private warehouses have been organized at different part of Country.

With a view to apprise the officers of accreditation agencies about the detailed procedure of accreditation of warehouses, the WDRA has organized three training programmes at New Delhi.

The Warehousing Development and Regulatory Authority (WDRA) has registered 552 warehouses. Out of these, 176 warehouses belong to Central Warehousing Corporation, 125 to State Warehousing Corporation, 77 warehouses to the Private Sector and 174 warehouses to the Primary Cooperative Societies. Three cold storages have also been registered.

With the introduction of the NWR system in cold storages, growers/farmers producing horticulture produce may also avail the benefits of concessional loan from the banks against NWRs issued by the registered cold storages. This will increase liquidity among growers/ producers of horticulture produce and will also maintain the uninterrupted supply of good quality fruits and vegetables in the market round the year. Besides, the wastages in horticulture produce which are around 30% would be minimized. This will also help in commercialization, effective post-harvest management and integrated development of agriculture including horticulture in the country. The applications for accreditation and registration of cold storages have been received from the States of Andhra Pradesh and Gujarat.

Future Plan

E-Governance initiative of the WDRA

The WDRA is undertaking transformation plan of WDRA in consultation with National Institute of Public Finance and Policy (NIPFP) which besides other objectives, envisages creation of information system relating to the Negotiable Warehouse Receipts (NWRs) market. It is proposed to put in place an enabling frame work for establishment of data base for storing and sharing of information related to warehouses, warehouse service providers and the issuance and trade of NWRs.

Registration of Accreditation Agencies: Currently 14 accreditation agencies have been empanelled by WDRA, the future projection of empanelling accreditation agencies are as follows:

Future Projections of Accreditation Agencies - During 12th Five Year Plan

2012-2013 2013-2014 2014-2015 2015-2016 2016-2017
14 16 20 25 30

The position of registered warehouses and future projections for the next the five years are as follows:

Future Projections for Registered Warehouses

2012-2013 2013-2014 2014-2015 2015-2016 2016-2017
300 400 800 1200 1800

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