Question : Negotiable Warehouse Receipts

(a) whether the Government has issued notice to financial institutions to curb distress sale by the farmers through Negotiable Warehouse Receipts (NWRs); and

(b) if so, the details of loans sanctioned by the Government during the last three years?

Answer given by the minister

The Minister of State in the Ministry of Finance


(a) & (b): No, Madam. Government has not issued such notice to financial institutions.

However, under the extant Interest Subvention Scheme for short term crop loans up to Rs.3.00 lakh implemented by Government of India, inorder to discourage distress sale of crops by small and marginal farmers, the benefit of interest subvention of 2% is available to small and marginal farmers having Kisan Credit Card for a further period of up to six months against negotiable warehouse receipts for keeping their produce in warehouses.
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