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Consider the following statements with reference to Negotiable Warehouse Receipts (NWRs):
  1. Farmers can seek loans from banks against the NWRs issued by the Warehousing Development and Regulatory Authority (WDRA).
  2. NWRs are not transferable and cannot be traded.
  3. NWRs can be issued only for food crops.
Which of the statements given above is/are correct?
  • a)
    1 and 2 only
  • b)
    2 and 3 only
  • c)
    1 only
  • d)
    1 and 3 only
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Consider the following statements with reference to Negotiable Warehou...
  1. Warehouse Receipts are documents issued by warehouses to depositors against the commodities deposited in the warehouses, for which the warehouse is the bailee. 
  2. Warehousing (Development and Regulation) Act, 2007 (WDR Act) defines a "negotiable warehouse receipt" to mean a warehouse receipt under which the goods represented therein are deliverable to the depositor or order, the endorsement of which has the effect of the transfer of goods represented thereby and the endorsee for which takes a good title;” 
  3. NWRs can be traded, sold, swapped and used as collateral to support borrowing. Hence, statement 2 is not correct. 
  4. Benefits of NWRs: 
    • NWRs issued by registered warehouses help farmers to seek loans from banks against NWRs and this way NWRs become a prime tool of trade. Hence, statement 1 is correct. 
    • 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. 
  5. Warehousing Development and Regulatory Authority (WDRA) has notified 123 agricultural commodities including cereals, pulses, oil seeds, spices, rubber, tobacco, coffee etc for issuing negotiable warehouse receipts and also 26 horticultural commodities for cold storage. Hence, statement 3 is not correct.
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Consider the following statements with reference to Negotiable Warehouse Receipts (NWRs): Farmers can seek loans from banks against the NWRs issued by the Warehousing Development and Regulatory Authority (WDRA). NWRs are not transferable and cannot be traded. NWRs can be issued only for food crops.Which of the statements given above is/are correct?a)1 and 2 onlyb)2 and 3 onlyc)1 onlyd)1 and 3 onlyCorrect answer is option 'C'. Can you explain this answer?
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Consider the following statements with reference to Negotiable Warehouse Receipts (NWRs): Farmers can seek loans from banks against the NWRs issued by the Warehousing Development and Regulatory Authority (WDRA). NWRs are not transferable and cannot be traded. NWRs can be issued only for food crops.Which of the statements given above is/are correct?a)1 and 2 onlyb)2 and 3 onlyc)1 onlyd)1 and 3 onlyCorrect answer is option 'C'. 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 with reference to Negotiable Warehouse Receipts (NWRs): Farmers can seek loans from banks against the NWRs issued by the Warehousing Development and Regulatory Authority (WDRA). NWRs are not transferable and cannot be traded. NWRs can be issued only for food crops.Which of the statements given above is/are correct?a)1 and 2 onlyb)2 and 3 onlyc)1 onlyd)1 and 3 onlyCorrect answer is option 'C'. 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 with reference to Negotiable Warehouse Receipts (NWRs): Farmers can seek loans from banks against the NWRs issued by the Warehousing Development and Regulatory Authority (WDRA). NWRs are not transferable and cannot be traded. NWRs can be issued only for food crops.Which of the statements given above is/are correct?a)1 and 2 onlyb)2 and 3 onlyc)1 onlyd)1 and 3 onlyCorrect answer is option 'C'. Can you explain this answer?.
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