Warehouse Receipt Finance for Farmers – A Glimpse

Authors: Nachiket Mor & Kshama Fernandes.
Publication: Commodity Insights Yearbook. 2009

Abstract: While warehouse receipt (WR) finance has been in existence in India for a long time, and traders and large farmers do benefit by availing of the mechanism, small and marginal farmers have been virtually left out of it. This paper discusses the advantages and disadvantages of WR financing in India from small farmers’ point of view, while citing examples of how this mechanism has been used globally. It also lays stress on some key requirements for implementing a successful WR finance programme, concluding with a brief on IFMR Trust’s agricultural commodity pilot in Gujarat.

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