₹1,000 Cr Credit Boost For Farmers: Govt Launches Scheme To Ease Post-Harvest Loans

Union Food Minister Pralhad Joshi on Monday unveiled a ₹1,000 crore credit guarantee scheme to help farmers secure post-harvest loans more easily. The scheme focuses on loans backed by electronic warehouse receipts (e-NWRs) issued by Warehousing Development and Regulatory Authority (WDRA)-registered repositories.

Speaking at the launch, Joshi said the fund would encourage banks to adopt a more liberal approach to lending. “We aim to reduce banks’ hesitation and make loans more accessible for farmers,” he said.

Food Secretary Sanjeev Chopra highlighted the vast growth potential for post-harvest loans. Currently, loans in this category stand at ₹40,000 crore, a fraction of the ₹21 lakh crore in total agricultural lending. Loans specifically against e-NWRs are just ₹4,000 crore.

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Chopra is optimistic about the future. “We believe post-harvest lending can grow to ₹5.5 lakh crore in the next 10 years. This goal is achievable with efforts from banks and the warehousing sector,” he said.

He also called for better promotion of the e-Kisan Upaj Nidhi platform, raising farmer awareness about pledge financing, and increasing warehouse registrations, which now stand at 5,800.

The event also saw the presence of Ministers of State for Food, B L Verma and Nimuben Jayantibhai Bambhaniya, along with WDRA Chairperson Anita Praveen.

This initiative aims to bridge gaps in agricultural financing, ensuring farmers get the economic support they need post-harvest.