Electronic Negotiable Warehouse Receipts (ENWR) is receiving positive response from agriculture participants after two months of their launch.
The first ENWR was issued on 26th September under the aegis of National e-Repository Limited (NERL) by Union minister of consumer affairs, food and public distribution Ram Vilas Paswan, NERL, a subsidiary company of NCDEX, which was formed to provide repository services for electronic negotiable warehouse receipts has started witnessing demand for issuance of e-Negotiable warehouse receipt (ENWR), said a release issued by NCDEX on Friday.
The ENWRs are issued in Gujarat and Rajasthan for commodities in guar gum and sesame seed. Utilizing key advantage of ENWR, farmers and various stakeholders will get easy access to bank finance facility. With ENWR under their possession, the value chain participants are using the Exchange warehouses even after Exchange Deliverable Date (EDD) under Warehousing Development and Regulatory Authority(WDRA) framework which was not possible in earlier regime.
"Although it's a small beginning, it indicates the willingness of depositors to accept goods in ENWR leading to encouragement of Repository Participants for opening their account in e-Repository and thereby improving the fiduciary trust of the depositors and the Banks. This is considered to be a step towards the achievement of objective of NERL, which aims to transform commodities into a financial asset, improving financial liquidity, lowering the cost of financing, and ensuring better price risk management", said Mr Kedar Deshpande, CEO, NERL.
The first ENWR was issued on 26th September under the aegis of National e-Repository Limited (NERL) by Union minister of consumer affairs, food and public distribution Ram Vilas Paswan, NERL, a subsidiary company of NCDEX, which was formed to provide repository services for electronic negotiable warehouse receipts has started witnessing demand for issuance of e-Negotiable warehouse receipt (ENWR), said a release issued by NCDEX on Friday.
The ENWRs are issued in Gujarat and Rajasthan for commodities in guar gum and sesame seed. Utilizing key advantage of ENWR, farmers and various stakeholders will get easy access to bank finance facility. With ENWR under their possession, the value chain participants are using the Exchange warehouses even after Exchange Deliverable Date (EDD) under Warehousing Development and Regulatory Authority(WDRA) framework which was not possible in earlier regime.
"Although it's a small beginning, it indicates the willingness of depositors to accept goods in ENWR leading to encouragement of Repository Participants for opening their account in e-Repository and thereby improving the fiduciary trust of the depositors and the Banks. This is considered to be a step towards the achievement of objective of NERL, which aims to transform commodities into a financial asset, improving financial liquidity, lowering the cost of financing, and ensuring better price risk management", said Mr Kedar Deshpande, CEO, NERL.