B1.2 Warehouse Receipts Development

the help of MSWC. MSWC will give one officer of the rank of Deputy/Assistant  Manager to work on PIU MSAMB. MSWC being State Govt Corporation it will implement  its program. PIU MSAMB will only oversee the same. Whereas program of APMCs will be implemented by PIU MSAMB, the procurements relating to MSWC will be the responsibility of PIU MSAMB. The MSWC is a profitable5  Government Corporation with 800 godowns in Maharashtra and a track record of innovation, dynamism and partnerships with the private sector.  Its storage capacity in the state is around 1.2 million tonnes, of which up to 40% is available to farmers to store their grains at a lower charge than for the trade.  A partnership has been created so that under the MACP the State’s grain farmers can benefit from the package of financial instruments and scientific storage that MSWC and the APMC is developing with the Banks  and  the  Commodity  Exchanges.  Currently  farmers  have the APMCs  as the sole marketing  route  for  their  marketable  surplus  of  grains.    This  has  high  costs,  limits  the producers’  abilit y  to  time  the  sales  to  benefit  from  seasonal  changes  in  price  as  trading behaviour  is  often  opaque.     Additionally,   farmers  are  often  forced  to  sell  at  the  least advantageous time, because of the need to pay back loans.

22. The planned intervention provides farmer with the choice of other marketing channels, which are  lower  in cost,  transparent  in  processes,  prices  and  quality  assessment,  provide  assured payment and which enable farmers to store produce and take advantage of warehouse credit, futures markets and electronic spot exchanges.

23. Producers, individually or via Producers Groups (PG) and Associations will need to be able to deliver  to  the  40  MSWC  and  40  APMC  godowns  a  single  quality  commodity.  For  spot exchange  lot size is around  1 bag. This will involve  grading and cleaning, some field level quality