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Consider the following statements:
The Negotiable Warehouse Receipts (NWRs) issued by registered warehouses help farmers to seek loans from banks against NWRs and can avoid distress sale of agricultural produce by the farmers in the peak marketing season.
It allows transfer of ownership of that commodity without being stored in a warehouse without having to deliver the physical commodity.
The National Bank for Agriculture and Rural Development (NABARD) is the regulator for NWRs.
Which of the statements given above is/are correct?
- a)1 only
- b)1 and 3 only
- c)2 and 3 only
- d)1, 2 and 3
Correct answer is option 'A'. Can you explain this answer?
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Verified Answer
Consider the following statements: The Negotiable Warehouse Receipt...
Statement 1 is correct. Warehouse Receipts are documents issued by warehouses to depositors against the commodities deposited in the warehouses, for which the warehouse is the bailee. In India, the term ‘negotiable warehouse receipt’ is defined in Section 2(m) of the Warehousing (Development and Regulation) Act, 2007 (WDR Act), which came into force from 25 October 2010. WDR Act provides for issuance of NWRs by the warehouses registered under this Act. NWRs issued by registered warehouses help farmers to seek loans from banks against NWRs and this way NWRs become a prime tool of trade.
NWRs provide farmers with an instrument that allows them to extend the sales period of modestly perishable products well beyond the harvesting season. When delivering the product to an accredited warehouse, the farmer obtains a Warehouse Receipt that can be used as collateral for short-term borrowing to obtain working capital. That way, the farmer does not need to sell the product immediately to ease cash constraints. This option would be attractive only if the farmer expects that seasonal price increases will make it worthwhile to store the product and sell it later. This way NWRs can avoid distress sale of agricultural produce by the farmers in the peak marketing season when there is glut in the market.
Statement 2 is incorrect. Negotiable warehouse receipts allow transfer of ownership of that commodity stored in a warehouse without having to deliver the physical commodity. These receipts are issued in negotiable form, making them eligible as collateral for loans.
Statement 3 is incorrect. The Warehousing Development and Regulatory Authority (WDRA) was constituted under the WDR act. The Act provides for the establishment of the WDRA to exercise the powers conferred on it and to perform the functions assigned to it under the Act, Rules and Regulations for the development and regulation of warehouses, negotiability of warehouse receipts and promote orderly growth of the warehousing business in the country.
Most Upvoted Answer
Consider the following statements: The Negotiable Warehouse Receipt...
The correct answer is option 'A' - 1 only.
Explanation:
1. The Negotiable Warehouse Receipts (NWRs) issued by registered warehouses help farmers to seek loans from banks against NWRs and can avoid distress sale of agricultural produce by the farmers in the peak marketing season.
- This statement is correct. Negotiable Warehouse Receipts (NWRs) are documents issued by registered warehouses to farmers or traders against the agricultural produce stored in the warehouse. These receipts serve as collateral for farmers to obtain loans from banks. By using NWRs, farmers can access credit facilities and avoid the distress sale of their agricultural produce during the peak marketing season when prices are usually low. This helps farmers to get better prices for their produce and reduce their financial burden.
2. It allows transfer of ownership of that commodity without being stored in a warehouse without having to deliver the physical commodity.
- This statement is incorrect. The Negotiable Warehouse Receipts (NWRs) represent the ownership of the physical commodity stored in the warehouse. They cannot be transferred without the physical commodity being stored in the warehouse. NWRs are essentially a document that acknowledges the existence and ownership of the stored agricultural produce.
3. The National Bank for Agriculture and Rural Development (NABARD) is the regulator for NWRs.
- This statement is incorrect. The National Bank for Agriculture and Rural Development (NABARD) is not the regulator for NWRs. NABARD is a development financial institution that focuses on providing credit and other financial services to agriculture and rural sectors in India. The regulation and oversight of NWRs are done by the Warehousing Development and Regulatory Authority (WDRA), which is an autonomous body under the Ministry of Consumer Affairs, Food and Public Distribution.
In conclusion, only statement 1 is correct. NWRs help farmers to seek loans from banks and avoid distress sale of agricultural produce, while statement 2 and 3 are incorrect.
Explanation:
1. The Negotiable Warehouse Receipts (NWRs) issued by registered warehouses help farmers to seek loans from banks against NWRs and can avoid distress sale of agricultural produce by the farmers in the peak marketing season.
- This statement is correct. Negotiable Warehouse Receipts (NWRs) are documents issued by registered warehouses to farmers or traders against the agricultural produce stored in the warehouse. These receipts serve as collateral for farmers to obtain loans from banks. By using NWRs, farmers can access credit facilities and avoid the distress sale of their agricultural produce during the peak marketing season when prices are usually low. This helps farmers to get better prices for their produce and reduce their financial burden.
2. It allows transfer of ownership of that commodity without being stored in a warehouse without having to deliver the physical commodity.
- This statement is incorrect. The Negotiable Warehouse Receipts (NWRs) represent the ownership of the physical commodity stored in the warehouse. They cannot be transferred without the physical commodity being stored in the warehouse. NWRs are essentially a document that acknowledges the existence and ownership of the stored agricultural produce.
3. The National Bank for Agriculture and Rural Development (NABARD) is the regulator for NWRs.
- This statement is incorrect. The National Bank for Agriculture and Rural Development (NABARD) is not the regulator for NWRs. NABARD is a development financial institution that focuses on providing credit and other financial services to agriculture and rural sectors in India. The regulation and oversight of NWRs are done by the Warehousing Development and Regulatory Authority (WDRA), which is an autonomous body under the Ministry of Consumer Affairs, Food and Public Distribution.
In conclusion, only statement 1 is correct. NWRs help farmers to seek loans from banks and avoid distress sale of agricultural produce, while statement 2 and 3 are incorrect.
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Consider the following statements: The Negotiable Warehouse Receipts (NWRs) issued by registered warehouses help farmers to seek loans from banks against NWRs and can avoid distress sale of agricultural produce by the farmers in the peak marketing season. It allows transfer of ownership of that commodity without being stored in a warehouse without having to deliver the physical commodity. The National Bank for Agriculture and Rural Development (NABARD) is the regulator for NWRs. Which of the statements given above is/are correct?a)1 onlyb)1 and 3 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer?
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Consider the following statements: The Negotiable Warehouse Receipts (NWRs) issued by registered warehouses help farmers to seek loans from banks against NWRs and can avoid distress sale of agricultural produce by the farmers in the peak marketing season. It allows transfer of ownership of that commodity without being stored in a warehouse without having to deliver the physical commodity. The National Bank for Agriculture and Rural Development (NABARD) is the regulator for NWRs. Which of the statements given above is/are correct?a)1 onlyb)1 and 3 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements: The Negotiable Warehouse Receipts (NWRs) issued by registered warehouses help farmers to seek loans from banks against NWRs and can avoid distress sale of agricultural produce by the farmers in the peak marketing season. It allows transfer of ownership of that commodity without being stored in a warehouse without having to deliver the physical commodity. The National Bank for Agriculture and Rural Development (NABARD) is the regulator for NWRs. Which of the statements given above is/are correct?a)1 onlyb)1 and 3 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements: The Negotiable Warehouse Receipts (NWRs) issued by registered warehouses help farmers to seek loans from banks against NWRs and can avoid distress sale of agricultural produce by the farmers in the peak marketing season. It allows transfer of ownership of that commodity without being stored in a warehouse without having to deliver the physical commodity. The National Bank for Agriculture and Rural Development (NABARD) is the regulator for NWRs. Which of the statements given above is/are correct?a)1 onlyb)1 and 3 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer?.
Consider the following statements: The Negotiable Warehouse Receipts (NWRs) issued by registered warehouses help farmers to seek loans from banks against NWRs and can avoid distress sale of agricultural produce by the farmers in the peak marketing season. It allows transfer of ownership of that commodity without being stored in a warehouse without having to deliver the physical commodity. The National Bank for Agriculture and Rural Development (NABARD) is the regulator for NWRs. Which of the statements given above is/are correct?a)1 onlyb)1 and 3 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements: The Negotiable Warehouse Receipts (NWRs) issued by registered warehouses help farmers to seek loans from banks against NWRs and can avoid distress sale of agricultural produce by the farmers in the peak marketing season. It allows transfer of ownership of that commodity without being stored in a warehouse without having to deliver the physical commodity. The National Bank for Agriculture and Rural Development (NABARD) is the regulator for NWRs. Which of the statements given above is/are correct?a)1 onlyb)1 and 3 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements: The Negotiable Warehouse Receipts (NWRs) issued by registered warehouses help farmers to seek loans from banks against NWRs and can avoid distress sale of agricultural produce by the farmers in the peak marketing season. It allows transfer of ownership of that commodity without being stored in a warehouse without having to deliver the physical commodity. The National Bank for Agriculture and Rural Development (NABARD) is the regulator for NWRs. Which of the statements given above is/are correct?a)1 onlyb)1 and 3 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer?.
Solutions for Consider the following statements: The Negotiable Warehouse Receipts (NWRs) issued by registered warehouses help farmers to seek loans from banks against NWRs and can avoid distress sale of agricultural produce by the farmers in the peak marketing season. It allows transfer of ownership of that commodity without being stored in a warehouse without having to deliver the physical commodity. The National Bank for Agriculture and Rural Development (NABARD) is the regulator for NWRs. Which of the statements given above is/are correct?a)1 onlyb)1 and 3 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
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