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Warehousing and Warehouse Receipts

Scientific warehouses let farmers and traders store grain, pulses and oilseeds safely and borrow against electronic negotiable warehouse receipts (e-NWRs).

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Overview

Scientific warehouses let farmers and traders store grain, pulses and oilseeds safely and borrow against electronic negotiable warehouse receipts (e-NWRs).

How It Works in Practice

Warehouse receipts let a farmer store produce after harvest, take a bank loan against it, and sell later when prices are better, instead of selling in a glut. Electronic receipts registered with WDRA can be transferred and pledged easily.

Rules and Support

The Warehousing Development and Regulatory Authority (WDRA) registers warehouses and regulates e-NWRs, which banks accept as collateral.

What It Means for Farmers and Traders

Commodity exchanges use accredited warehouses for delivery, and procurement agencies store grain in public and private warehouses and steel silos. Private warehousing companies also offer quality testing and collateral management for banks.

Companies, Bodies and Schemes

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