Loans against warehouse receipt to bring revolution in farming:Pawar

New Delhi, Aug 29 (UNI) Minister for Agriculture, Consumer Affairs, Food and Public Distribution Sharad Pawar today informed the Consultative Committee attached to his ministry that the Warehousing (Development&Regulation) Bill has been passed by both Houses of Parliament.

Mr Pawar said by enabling farmers to raise credit against warehouse receipts, this initiative would bring about a revolution in the farming sector.

''This step of the government will make warehouse receipts a negotiable instrument and enable farmers to seek bank loans against the receipts,''he said. It would also encourage farmers to store their agricultural produce in scientific warehouses after harvesting, thereby enabling them to sell their produce at higher prices after storage of produce for reasonable periods of time. It is also expected that it would result in providing considerable benefits, both at the macro and micro levels and increase liquidity in the rural areas, encourage scientific warehousing of goods, lower cost of financing, improve supply chain and better price risk', the Minister added.

Mr Pawar said farmers would need to be made aware of the provisions of the ensuing law through the media and the agricultural extension system. The banking system would also need to come forward to help farmers take advantage of this new initiative.

The Consultative Committee discussed the performance of the Central Warehousing Corporation and matters relating to the warehousing sector. Members lauded the fast growth of the Corporation in the last 50 years and the range of diverse activities undertaken by it. They also emphasised that the Corporation needs to provide greater support to the farming sector.

The Minister facilitated the CWC for evolving from a warehousing company to a total logistic player and also for moving towards supply-chain management of farm produce, not just setting up godowns in rural areas.

Ministers of State Taslimuddin and Dr Akhilesh Prasad Singh also attended the meeting.

UNI