B1.2 Warehouse Receipts Development

 stored  produce  and  improved  knowledge  on  price  risk management  allows farmers and farmers’ organizations to obtain better price realization for their produce.

4.   In addition, trading through Electronic Commodity Exchange provides an alternative marketing channel,  which  increases  potential  for better  price  realization.  With  the  amendment  of the APMC Act in Maharashtra, establishment of Electronic Spot Markets that allow online trading trough electronic  commodity exchanges  (outside  APMCs and across state boundaries)  have become possible. The National Commodity and Derivative Exchange Limited (NCDEX), the Multi Commodity Exchange Limited (MCX), and National Spot Exchange Limited (NSEL), three national  commodities  exchanges,  are in process  of setting up systems  that make this feasible in Maharashtra. Hence, the project proposes:

i.      To build capacity of farmers on price risk management for Cereals and Pulses PAs, and the associated PGs,

ii.      To  support  a  pilot  activity  that  will  provide  access  to  trading  through  Commodity Exchanges for farmers, and,

iii.      In parallel, work in partnership  with the MSWC to support the emergence  of this new trading conduit through capacity building, upgrading of Godowns and facilitating access to trading screens.

5.   MSWC  has more than 800  warehouses  with  around  12  lakh tonnes  of storage capacity.  In agricultural  producing  areas  utilisation  of storage  capacity  of  godowns  is more  than  75%. Overall utilisation of MSWC’s warehouse capacity is 89%. Finance against warehouse receipts of MSWC  provided  by banks  was  Rs.  184.59  crore.  The  negotiable  receipt  credit  against warehouse receipts of MSWC is increasing every year. Initially 40 godowns of MSWC have been identified  for warehouse  receipt scheme programme.  MSWC has already entered  in to agreement with NCDEX Spot , and, tie up between NCDEX Spot and the Banks for Warehouse Receipts Scheme through MSWC has been done.

II. Outcome and Output Monitoring Indicators

6. The details of Outcomes & Output Monitoring Indicators have been given in the table below:

Outcomes Expected

Dept/Cell: 
ATMA