Credit Guarantee Fund for Farmers

On 18th September 2024, the government announced that it will soon introduce a ₹1,000 crore credit guarantee fund aimed at boosting lender confidence in pledge financing against electronic Negotiable Warehouse Receipts (e-NWRs) for farmers and traders using WDRA-registered warehouses.

Key Points

Announcement: This initiative reflects the government's achievements in the first 100 days of the Modi 3.0 administration.
Enhancing Pledge Financing: The current post-harvest pledge financing stands at ₹3,962 crore, far below the potential target of ₹1,05,000 crore in the next decade.
Optimizing Food Grain Movement: The department has implemented PM Gati Shakti to optimize logistics for food grain distribution, resulting in savings of ₹112 crore. Plans are in place to quantify carbon emissions reduced and potentially earn carbon credits.
Transition to Bulk Food Grain Storage: The government is transitioning to bulk food grain storage, with silos already operational and additional capacities under construction. A total of 21.75 lakh tonnes are functional, and 7.5 lakh tonnes are being built.
Innovative Logistics Solutions: The government is arranging for food grain movement using specialized wagons designed for bulk loading and unloading, aimed at reducing logistics costs.
Transforming Fair Price Shops: A pilot program to convert 60 fair price shops into Jan Poshan Kendras (JPKs) has been launched in select cities, focusing on offering nutrition-dense commodities at competitive prices.