Warehouse Receipts: Facilitating Credit and Commodity Markets
8 Pages Posted: 15 Jan 2007
Date Written: February 2000
The lack of access to credit is a severe constraint for many farmers. Warehouse receipts are an important and effective tool for creating liquidity and easing access to agriculture credit. Such schemes also offer additional benefits such as providing storage to smoothe the supply and prices in the market, improving grower incomes, and reducing food losses. The paper describes the steps of interaction involved in a warehouse receipt system, sets out the essential questions to be asked regarding the critical conditions for its success and illustrates the roles of the key actors in setting up and running such a system.
Keywords: Warehouse receipts, inventory credit, agriculture, commodity markets, credit, banks, guarantees, insurance, storage, developing countries
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