Is NeRL The Next Big Agri Fintech After NCDEX? Let's Anaylse

As NCDEX expands beyond commodities in equity and derivatives, the National E Repository Limited (NERL) is emerging as India's next big player for the Agricultural Commodity Lending and Fintech initiatives. The NCDEX subsidiary has the government backing and NABARD's trust for warehouse receipt financing, transforming how farmers access formal credit.

NeRL is Digitising The Agricultural Credit System

From 1st August 2019, the Warehousing Development and Regulatory Authority (WDRA) guidelines require the issue of warehouse receipts electronically, called eNWRs (Electronic Negotiable Warehouse Receipts). NERL’s main business is offering a digital platform for creating and managing eNWRs issued in warehouses registered with the WDRA.

These eNWRs act as proof of ownership that the depositor owns a certain quantity and quality of commodities stored in a warehouse. Farmers and traders can pledge eNWRs to banks instead of physically moving goods. This process makes it easier for farmers to unlock credit against their stored produce because banks trust the digital, tamper-proof system.

Early Adoption In Q1 FY26, Strong Momentum Ahead

NeRL is has already reached Rs 1,500 crore e-NWR pledge finance in Q1FY26, showing signs of early positive adoption. Now, the government plans to target Rs 10,000 crore worth of agricultural loans to be routed through eNWRs, out of its total annual lending of Rs 32.5 Lakh Crore in FY26. In all these plans, NeRL will act like the CSDL/NSDL of warehouse receipts.

What Does This Mean For NeRL?

Boost In Revenue: NeRL earns from charges on eNWR creation, maintenance, pledging, and settlement. More loan disbursements mean more pledging and higher revenue.
Strengthened Position as Market Leader: NeRL is one of the two WDRA-licensed repositories (the other one being CCRL, backed by CDSL). The government backing will push farmers, FPOs, traders, and banks toward using NERL’s platform.
Policy Confidence: By carving out a loan target for eNWRs, the government is effectively wanting digital receipts and warehouse-linked finance to be mainstream. NERL stands to gain credibility and more partnerships with agri-fintechs, banks, and exchanges.

NeRL's Initiatives With e-KUN Marketplace and Credit Guarantee Scheme

NeRL has launched credit initiatives like e-Kisan Upaj Nidhi (e-KUN) marketplace and a Credit Guarantee Scheme. Farmers can list their produce digitally through the e-KUN and access credit easily. On the other hand, the Credit Guarantee Scheme give security to the financial institutions with additional security, encouraging their participation in the e-NWR loan process.

NeRL's Business Is Scalable With Every Warehouse In India

As more warehouses adopt the eNWRs, each ton of produce can now become a financial asset. This growing pool of digital ownership and collateral can be used to provide credit, directly benefiting both farmers and financial institutions. This way can grab a significant share of the agri-fintech market with increased digital adoption in the country.

Should You Invest In NeRL?

The NeRL unlisted share price has jumped from Rs 47 per share to Rs 67 per share in just 3 weeks of September. With government backing, increasing adoption and limited competition, NeRL can be the next big Agri-Fintech player after NCDEX. Investors must research and analyse carefully before investing in NeRL Unlisted Shares.