Agricultural Sector and Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.

Centre to amend Warehousing Act


From UPSC perspective, the following things are important :

Prelims level: Warehousing Act

Mains level: Read the attached story

The Union Food and Public Distribution Ministry has suggested major amendments to the Warehousing (Development and Regulation) Act of 2007.

Warehousing Act, 2007

  • The GOI has introduced a negotiable warehouse receipt system in the country by enacting the Warehousing (Development and Regulation) Act, 2007 (37 of 2007).
  • It has been made effective with effect from the 25th October, 2010.
  • The Negotiable Warehouse Receipt (NWR) system was formally launched on the 26th April, 2011.

Why was this Act enacted?

  • To make provisions for the development and regulation of warehouses, negotiability of warehouse receipts, establishment of a Warehousing Development and Regulatory Authority (WDRA) and related matters.
  • The Negotiable Warehouse Receipts (NWRs) issued by the warehouses registered under this Act would help the farmers to seek loans from banks against NWRs.
  • It will avoid distress sale of agricultural produce.

What is the amendment about?

  • The aim is to help farmers get access to the services of quality warehouses.
  • The amendment is:
  1. To make registration of godowns compulsory
  2. To raise the penalty for various offences and
  3. To do away the jail term as a punishment for the offences
  • Central government will have powers to exempt any class of warehouses from registration with the Authority.
  • At present, registration with the Warehousing Development and Regulation Authority (WDRA) is optional.
  • After the proposed amendment, which is yet to be cleared by the cabinet, registration of all third party warehouses throughout the country, will be undertaken in a phased manner.
  • The Act wants to establish a system of negotiable and non-negotiable warehouse receipt (NWR), which is now in electronic form.


  • Farmers pressure groups fears that the amendments are for bringing back certain provisions of the repealed Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act through the backdoors.


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