B1.2 Warehouse Receipts Development

2 tonnes for cleaning / grading the grain through the FCSC (Food  grain)  / PA, with  half  for  immediate  sale  in local market  / APMC  and  half  for warehouse credit.

iv) Over a period of time the producers will increase their volumes marketed through the FCSC to some 70% of output (i.e. 1,12,000 tonnes in total) and of this amount 70% (i.e. 78,000 tonnes in total) will take advantage of warehouse credit.

v)  The average value of product stored, at the time of storage will be Rs 1500 per quintal, of which 75% of the value is provided in warehouse credit.   The average sale price of stored product is Rs 1700 per quintal.

III. Policy and Regulatory Environment:

8. The policy and regulatory environment is as follows:

i)   The regulation regarding accreditation of warehouses to spot exchanges and credit against warehouse receipt is already in place,

ii)  The agreement between MSWC and NCDEX spot  has already been signed. This agreement provides  for  quality  standards  of  acceptable  produce,  price  determination  mechanism, payment mechanism, delivery responsibility, and dispute settlement arrangements,

iii) Tie up between MSWC and Union Bank of India has been done. Manual of instructions in respect of operationalization of Warehouse Receipt Instrument will be prepared in Marathi by MSWC and circulated amongst the farmers and other stakeholders, covering such issues so that the component is well received by the farmers.

iv) Warehouse  Act  provides  for  getting  credit  against  warehouse  receipt  from  the  banks. Besides this MSWC has entered into MoU with Union Bank of India for providing credit to the farmers against the produce of the farmers kept in warehouse. Union Bank of India has branches at 29 locations where MSWC godowns are located. At remaining 11 places Union Bank of India does not have their own branches. To facilitate availability of credit against warehouse receipt to the farmer,