The Launch Of "e-Kisan Upaj Nidhi" By Piyush Goyal - Reduced Security Deposit Charges at WDRA Warehouses

Commerce Minister Piyush Goyal has announced a significant reduction in security deposit charges at Warehousing Development and Regulatory Authority (WDRA) registered warehouses, aiming to incentivize greater utilization by farmers, particularly small-scale ones, and boost their income.

Reduction in Security Deposit Charges at WDRA Warehouses

Under the new policy, farmers stocking their produce at these warehouses will only be required to pay a 1 per cent security deposit, down from the previous 3 per cent.

The Launch of ‘e-Kisan Upaj Nidhi’

The announcement came during the launch ceremony of the ‘e-Kisan Upaj Nidhi’ (Digital Gateway) by the WDRA in New Delhi. Minister Goyal emphasized that the ‘e-Kisan Upaj Nidhi’ initiative, leveraging technology, will streamline farmers’ warehousing logistics and facilitate fair pricing for their produce.

Benefits for Farmers

Describing the Digital Gateway initiative as a pivotal step towards making farming more attractive, Minister Goyal highlighted the significance of the ‘e-Kisan Upaj Nidhi’ in preventing distress sales by farmers. This is achieved through its no collateral and reduced security deposit policy, addressing the challenges of poor post-harvest storage facilities.

Digital Gateway’s Role in Fair Pricing

Minister Goyal underscored the high standards and robust infrastructure of WDRA-registered warehouses, ensuring the protection of farm produce and fostering farmer welfare.

The Launch Of "e-Kisan Upaj Nidhi" By Piyush Goyal - WDRA Warehouses

Prevention of Distress Sales

He urged for the mandatory registration of warehouses used by the Food Corporation of India (FCI) across states under WDRA and advocated for the preparation of infrastructure-ready roadmaps for state warehouses.

Moreover, Minister Goyal stressed the transformative potential of ‘e-Kisan Upaj Nidhi’ and e-National Agricultural Market (e-NAM), enabling farmers to leverage interconnected market technology.

WDRA Warehouse Standards

He highlighted that beyond selling produce to the government at Minimum Support Price (MSP), farmers can benefit from increased government procurement through MSPs, which has risen 2.5 times over the last decade.

Mandatory Registration of FCI Warehouses

Infrastructure-Ready Roadmaps

Transformative Potential of ‘e-Kisan Upaj Nidhi’ and e-NAM

Increased Government Procurement through MSPs

Conclusion

In conclusion, Commerce Minister Piyush Goyal’s announcement regarding the reduction in security deposit charges at WDRA warehouses and the launch of ‘e-Kisan Upaj Nidhi’ demonstrates the government’s commitment to supporting farmers and improving their income. By leveraging technology and implementing innovative policies, the government aims to address key challenges faced by farmers, such as post-harvest losses and distress sales. These initiatives are crucial steps towards enhancing the efficiency and competitiveness of the agricultural sector in India.

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FAQs

What is the significance of the reduction in security deposit charges at WDRA warehouses?
- The reduction in security deposit charges from 3% to 1% at WDRA warehouses is significant as it makes warehousing more affordable for farmers, particularly small-scale ones. This move is expected to incentivize farmers to use WDRA-registered warehouses, thereby ensuring the safety of their produce and boosting their income.
How will the ‘e-Kisan Upaj Nidhi’ initiative benefit farmers?
- The ‘e-Kisan Upaj Nidhi’ initiative will benefit farmers in several ways. It will streamline farmers’ warehousing logistics by leveraging technology, facilitate fair pricing for their produce, and prevent distress sales by offering no collateral and reduced security deposit policy. This initiative addresses the challenges of poor post-harvest storage facilities and aims to make farming more attractive.
What role does the Digital Gateway play in preventing distress sales by farmers?
- The Digital Gateway, through the ‘e-Kisan Upaj Nidhi’ initiative, plays a crucial role in preventing distress sales by farmers. By providing no collateral and reduced security deposit policy, the Digital Gateway ensures that farmers can store their produce safely without the fear of losing it to distress sales. This initiative also helps farmers get fair pricing for their produce, further preventing distress sales.
How will the mandatory registration of warehouses used by the FCI under WDRA impact farmers?
- The mandatory registration of warehouses used by the Food Corporation of India (FCI) under WDRA will have a positive impact on farmers. It will ensure that these warehouses meet high standards and have robust infrastructure, thereby protecting farm produce and fostering farmer welfare. This move will also help in preventing distress sales by providing farmers with access to safe storage facilities.
What are the long-term benefits of increased government procurement through MSPs for farmers?
- Increased government procurement through Minimum Support Prices (MSPs) has several long-term benefits for farmers. It provides them with a reliable market for their produce, ensures price stability, and reduces the risk of price fluctuations. This, in turn, improves farmers’ income security and encourages them to invest in their farming operations, leading to overall agricultural growth and development.