Credit Guarantee Scheme for e-NWR based Pledge Financing (CGS-NPF) launched
Union Minister Pralhad Joshi launched the Credit Guarantee Scheme for e-NWR based Pledge Financing (CGS-NPF) with a ₹1,000 crore corpus on 16 December 2024.
Summary
The Credit Guarantee Scheme for e-NWR based Pledge Financing (CGS-NPF) was launched by Union Minister of Consumer Affairs, Food and Public Distribution Pralhad Joshi on 16 December 2024. The scheme provides a corpus of ₹1,000 crore for post-harvest finance availed by farmers against electronic negotiable warehouse receipts (e-NWRs) after depositing commodities in warehouses accredited by the Warehousing Development and Regulatory Authority (WDRA). It provides guarantee cover for such loans and addresses default arising from both credit risk and warehouseman risk, aiming to minimise distress selling by farmers. Food Secretary Sanjeev Chopra said the scheme is expected to boost post-harvest lending to ₹5.5 lakh crore in the next 10 years.
Key facts
- Launched
- 16 December 2024, by Union Minister Pralhad Joshi
- Corpus
- ₹1,000 crore
- Covers
- Pledge loans against e-NWRs for produce in WDRA-registered warehouses
- Risks covered
- Credit risk and warehouseman risk
- Aim
- Minimise distress selling by farmers
- Target
- Post-harvest lending of ₹5.5 lakh crore in 10 years
Practice MCQs 3 questions
What is the corpus of the Credit Guarantee Scheme for e-NWR based Pledge Financing (CGS-NPF) launched on 16 December 2024?
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Correct answer: B — ₹1,000 crore
PIB (Consumer Affairs, Food & PD): the scheme provides a corpus of ₹1,000 crore for post-harvest finance availed by farmers against e-NWRs.
CGS-NPF provides guarantee cover for loans against electronic negotiable warehouse receipts for produce stored in warehouses registered with which body?
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Correct answer: D — Warehousing Development and Regulatory Authority
PIB (Consumer Affairs, Food & PD): the scheme covers pledge finance against e-NWRs for farmers/traders who store produce in warehouses registered with the Warehousing Development and Regulatory Authority (WDRA).
Consider the following statements about CGS-NPF: 1. It was launched by Union Minister Pralhad Joshi. 2. It addresses default arising from both credit risk and warehouseman risk. 3. It is expected to boost post-harvest lending to ₹55,000 crore in the next 10 years. Which of the statements given above are correct?
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Correct answer: A — 1 and 2 only
PIB (Consumer Affairs, Food & PD): Pralhad Joshi launched the scheme, and it addresses default arising from both credit risk and warehouseman risk. Statement 3 is incorrect: the Food Secretary said it is expected to boost post-harvest lending to ₹5.5 lakh crore in the next 10 years.