New Credit Guarantee Scheme (CGS)
The Indian government introduced a new Credit Guarantee Scheme (CGS) to support small and marginal farmers, allocating ₹1,000 crore to prevent distress selling of crops. Farmers can use electronic warehouse receipts (e-NWRs) as collateral to secure loans, enabling them to wait for better market prices. The scheme aims to enhance agricultural credit access, which largely benefits traders and large farmers, and encourages sustainable farming practices. Currently, ₹4,000 crore is provided post-harvest through e-NWRs, with a goal of ₹5.5 lakh crore in the next decade. Efforts include farmer education on pledge financing and increasing registered warehouses.
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