The Warehousing Development & Regulatory Authority (WDRA) will be operational by March next year. It is aimed at looking into the implementation of the new Warehousing (Development & Regulation) Act, 2007.
Akhilesh Prasad Singh, Union minister of state for consumer affairs, food and public distribution, said: ?The ministry is looking at a speedy implementation of the new act, which was enacted in 2007, in order to safeguard the interests of the small and marginal farmers. WDRA, which would function as a regulatory mechanism, would be made operational by March 2009.? He was present at a seminar organised by the Federation of Indian Chambers of Commerce and Industry.
The regulatory authority would also help in facilitating the formal mechanism of Negotiable Warehouse Receipt (NWR) system all across the country.
NWRs, issued by warehouses registered under the Act, would help farmers avoid distress sale of their produce by ensuring finance against the produce stored in registered warehouses. After their produce is deposited in a registered warehouse, farmers can get NWR and use it as collateral for short-term borrowing. Farmers can sell the produce later on and repay the loan.
According to ministry officials, this will increase the flow of credit to rural areas and the warehousing industry will get a boost as well. ?Only those warehouses that would like to issue the NWRs need to register with the WDRA under the Act,? said Singh.