Warehousing watchdog halts physical receipts by regulated players from June

On derivatives exchanges. however, only e-NWRs can be accepted; no impact on overall financing against warehoused commodities

Warehousing sector regulator, the Warehousing Development and Regulatory Authority (WDRA), has decided to suspend issuance of physical negotiable warehouse receipts (NWRs) from June 1, 2019, by all regulated warehouse.

At present more than 1,000 warehouses with 8.7 million tonnes of registered capacity are understood to have been registered by WDRA, on whom this directive will apply. They have been given over two months’ time to comply with the directive. All of them deal with farm commodities, said industry official, as the regulator is yet to finalise parameters for non-agriculture commodities.

In a direction to the registered warehousemen across the country,