Credit Guarantee Scheme launched by the Govt. to facilitate credit access for farmers through e-NWR

Current Context: On December 17, 2024, the Union Minister of Consumer Affairs, Food, and Public Distribution, Prahlad Joshi, launched the Credit Guarantee Scheme for e-NWR-Based Pledge Financing (CGS-NPF).

• This initiative, with a corpus of Rs 1,000 crore, aims to provide farmers with easier access to credit by allowing them to secure loans using electronic negotiable warehouse receipts (e-NWRs).
• Key Points:
• Purpose: To reduce distress selling by farmers and improve their access to credit.
• Mechanism: Farmers can pledge their crops stored in Warehousing Development and Regulatory Authority (WDRA)-registered warehouses to obtain loans.
• Benefits:
• Encourages scientific storage of produce.
• Provides financial support, reducing the need for immediate sale of produce.
• Promotes better price realization for farmers.
• The scheme is expected to help farmers manage their finances more effectively and ensure better storage and marketing of their produce.

Question:

1 What is the total corpus of the Credit Guarantee Scheme for e-NWR-Based Pledge Financing (CGS-NPF)?

• A) Rs 500 crore
• B) Rs 1,000 crore
• C) Rs 1,500 crore
• D) Rs 2,000 crore

Answer: B) The Credit Guarantee Scheme for e-NWR-Based Pledge Financing (CGS-NPF) initiative has been launched with a corpus of Rs.1,000 crore to support farmers in obtaining credit against e-NWRs.