India’s agricultural sector is the backbone of the national economy. In FY 2023-24, it contributed 17.7% to the country’s Gross Value Added (GVA) and employed nearly half the nation’s working population.
Despite having such a large contribution to the economy, Indian farmers continue to struggle, particularly after the harvest season. Unpredictable monsoons, changing market prices, and limited access to institutional credit often leave them with little choice but to sell their produce quickly, even at low prices.
In order to overcome these challenges, the Government of India launched the Credit Guarantee Scheme for e-NWR Based Pledge Financing (CGS-NPF) on 16 December 2024. Budgeted at ₹1,000 crore, this Central Sector Scheme is managed by the Department of Food and Public Distribution (DFPD). It is set to operate from FY 2024-25 until the end of the 16th Finance Commission cycle in 2030-31.