Setting store on warehouse receipts -Rajalakshmi Nirmal
-The Hindu Business Line
If regulation turns supportive and the RBI mandates banks to lend against the electronic negotiable warehouse receipts (eNWRs), they may soon take off
Two weeks ago, I was in Suryapet district of Telangana. Here’s a short story of an English-speaking farmer from there, who greeted me with “good afternoon’ as I wished “namaskaram”.
Venkateshwara Rao hails from Chinna Nemila village in Maddirala tehsil. He has a five-acre land on which he cultivates paddy, the samba mahsuri variety. He has studied till class 10th. Every year, he stores a good portion of the harvest to sell after 10-12 months. Aged samba mahsuriearns a better price. But a good portion of the stored grain get damp during rains and also eaten by rodents.
Then, a friend introduced Rao to the Central Warehousing Corporation (CWC), a public warehouse operator. For the past two years, Rao has been a happy man. He stores his produce in a CWC warehouse and remains worry-free. He spends money on transporting the paddy from his farm to the godown. But it still makes sense, he said, as he saves at least 5-6 kg per bag (of 65 kg), which would have otherwise been lost to rodents.
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Tagged with: Cdsl Cwc Central Depository Services Ltd Central Warehousing Corporation Ncdex Nerl National Commodity And Derivatives Exchange National E-repository Ltd Wdra Warehouse Development And Regulation Authority Enwrs Electronic Negotiable Warehouse Receipts