State-owned Punjab National Bank (PNB) and Central Warehousing Corporation signed a Memorandum of Understanding (MoU) to facilitate financing under e-NWR (Electronic Negotiable Warehousing Receipt) on Thursday. The partnership is aimed at providing easy access to finance to farmers, food processors, and traders against the pledge of agriculture commodities stored in CWC warehouses, PNB said in a statement.
Punjab National Bank said, "Agriculture is an important sector of the country’s economy, and government has been focusing on increasing the income of the farmers who drive this segment. One of the main constraints in increasing farm income has been distress sales by the farmers. With a view to curbing the same, the bank has entered this new MoU."
General Manager Kanwal Jit Shorey signed the agreement on behalf of Punjab National Bank and Rajiv Kumar Bansal, group general manager (Comm.) on behalf of CWC in the presence of KS Rana, DGM and Neeraj Jakhmola, CM of PNB, RR Aggarwal (GGM- Finance, CWC), Amit Puri (GM Finance, CWC), and Ashwin (AGM, CWC).
The Central Warehousing Corporation (CWC) is a statutory body under the Ministry of Consumer Affairs, Food and Public Distribution, Government of India. The CWC informed about the MoU through a tweet. CWC said, "Central Warehousing Corporation and Punjab National Bank have entered into MoU on March 7, 2023, to promote pledge finance against e-NWRS for stocks/goods stored in WDRA accredited warehouses of CWC across the Country, to source MSME/Agriculture business for strengthening of e-NWR ecosystem."
The CWC has 348 general warehouses registered with the Warehousing Development and Regulatory Authority. In addition to offering farmers a 30 per cent storage fee discount, CWC also imparts training in post-harvest technology and assists farmers in avoiding distress sales through pledge financing against e-NWR, CWC added.