Parliament Question: Implementation framework of CGS-NPF

GOVERNMENT OF INDIA MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION RAJYA SABHA UNSTARRED QUESTION NO. 2755 TO BE ANSWERED ON 17TH MARCH, 2026 IMPLEMENTATION FRAMEWORK OF CGS-NPF # 2755 SHRI MOKARIyA RAMBHAI: Will the Minister of Consumer Affairs, Food and Public Distribution be pleased to state (a): the objectives, key features and implementation framework of the Credit Guarantee Scheme for e-Negotiable Warehouse Receipts for Pledge Financing (CGS-NPF); (b) : the State-wise targets set for the on-boarding of banks and the adoption of e-NWR for the year 2025–26; (c) : whether the Ministry has prescribed any categories under CGS-e-NPF for giving priority to small, marginal, women and SC/ST farmers; and (d): if so, the details of the eligibility criteria thereoP ANSWER M[NISTER OF STATE FOR MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (SHRIMATI NIMUBEN JAYANTIBHAI BAMBHANIYA) (a): The objective of CGS-NPF Scheme is to encourage banks to extend pledge finance against e-NWRs to farmers and traders for their agricultural/ horticultural produce. Key features of Credit Guarantee Scheme for e-NWR based pledge Finance (CGS-NPF) are as follows: Total Corpus Rs. 1000 Crores Coverage Loans up to Rs. 75 lakhs for agricultural purpose and Loans up to Rs. 200 Lakhs for non agricultural purpose Eligible Institutions All scheduled banks and all cooperative banks Eligible Borrowers Small and Marginal Farmer (SMF)/ Women/SC/ST/PwD Farmers, other farmers, MSMEs, Traders, FPOs and Farmer cooperatr ves . Risks covered Credit and warehouseman risk Guarantee Fee 0.4% p.a. for farmers and 1% p.a. for non-farmers Guarantee coverage 85% for loans up to Rs. 3 lakhs, 80% for loan between 3 to 75 lakhs for small and marginal farmers/ women/ SC/ST/PwD 7Sc’/, for other borrowersSettlement of claim8 Eligible 1 st instalment 2nd instalment claim of claim of claim (% of default (% of default amount) amount) Upto Rs. 75 Lakhs 75% 25% Above Rs. 75 Lakhs and UDtO Rs. 2 crore 8 Settlement of the guarantee claim of the banks would be done in two stages. NCGTC has been appointed as the implementing agency to operate the said credit guarantee scheme. The banks have been onboarded with NCGTC to avail the guarantee under the scheme. (b): No state-wise targets for Credit Guarantee Scheme for e-NWR based pledge Finance (CGS-NPF) have been set for onboarding of banks and the adoption of e-NWR for the year 2025-26 (c ) & (d): The CGS-NPF is majorly focused on Small and Marginal Farmers, Women, SC, ST and Divyangjan (PwD) farmers, FPOs, farmer cooperatives and other farmers. Small and marginal farmers/Women/SC/ST/PwD farmers have been provided higher guarantee coverage, i.e. 80-85 % and lower guarantee fee, i.e. 0.4%. For other/non- farmer borrower, guarantee coverage is I ')Q/o and guarantee fee is fixed at 1 % per annum. ##88#