Warehousing Development and Regulatory Authority

Warehousing Development and Regulatory Authority 

Subject: Polity

Section: National organisation

Warehouses are scientific storage structures especially constructed for the protection of the quantity and quality of stored products.

Warehousing In India

• Central warehousing corporation (CWC): Central Warehouse Corporation was established as a statutory body in New Delhi on 2nd March 1957. The Central Warehousing Corporation provides safe and reliable storage facilities for about 120 agricultural and industrial commodities.

• State Warehousing Corporations (SWCs): Separate warehousing corporations were also set up in different States of the Indian Union. The areas of operation of the State Warehousing Corporations are centers of district importance. The total share capital of the State Warehousing Corporations is contributed equally by the concerned State Govt. and the Central Warehousing Corporation.

• Food Corporation of India (FCI): Apart from CWC and SWCs, the Food Corporation of India has also created storage facilities. The Food Corporation of India is the single largest agency which has a capacity of 26.62 million tonnes.

• The Warehousing Development and Regulatory Authority (WDRA): WDRA was set up by the Government of India on 26.10.2010 to ensure implementation of the provisions of the Warehousing (Development & Regulation) Act, 2007.

It is a statutory authority under the Department of Food and Public Distribution, Government of India.

The main objective of WDRA is to implement Negotiable Warehouse Receipt (NWR) System in the country, which would help farmers to store their produce in scientific storage go downs near by their farms and to seek loan from banks against their NWR. Thus, It implements and regulates the Negotiable Warehouse Receipt (NWR) /electronic-NWR (e-NWR) System in the country.

The main the powers and functions of the Authority shall include the following, namely: –

• to issue to the applicants fulfilling the requirements for warehousemen a certificate of registration in respect of warehouses, or renew, modify, withdraw, suspend or cancel such registration;
• to regulate the registration and functioning of accreditation agency, renew, modify, withdraw, suspend or cancel such registration, and specify the code of conduct for officials of accreditation agencies for accreditation of the warehouses;
• to specify the qualifications, code of conduct and practical training for warehousemen and staff engaged in warehousing business;
• to regulate the process of pledge, creation of charges and enforcement thereof in respect of goods deposited with the warehouse;
• to promote efficiency in conduct of warehouse business;
• to make regulations laying down the standards for approval of certifying agencies for grading of goods;
• to promote professional organizations connected with the warehousing business;
• to determine the rate of, and levy, the fees and other charges for carrying out the provisions of this Act;
• to call for information from, undertaking inspection of, conducting enquiries and investigation including audit of the warehouses, accreditation agencies and other organizations connected with the warehousing business;
• to regulate the rates, advantages, terms and conditions that may be offered by warehousemen in respect of warehousing business;
• to specify, by regulations, the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by warehousemen;
• to maintain a panel of arbitrators and to nominate arbitrators from such panel in disputes between warehouses and warehouse receipt holders;
• to regulate and develop electronic system of holding and transfer of credit balances of fungible goods deposited in the warehouses;
• to determine the minimum percentage of space to be kept reserved for storage of agricultural commodities in a registered warehouse;
• to specify the duties and responsibilities of the warehouseman;
• to exercise such other powers and perform such other functions as may be prescribed.