B1.2 Warehouse Receipts Development

assessment  (e.g.  moisture  content),  bagging,  weighing  and  the  delivery  of produce within a narrow weight range.   The product is assayed at the godown to verify quality (at Rs 500 per lot) and provided with a lot number.  A choice can then be made as whether to sell the produce on the spot market on the same day, or to store the produce.  In this case the decision needs to be made on whether  to take advantage  of warehouse  credit scheme  available  and whether  to  lock the  sales  lot  into  a futures  contract  at an assured  price.  Lot size  whether decided.

24. Three days after the sale is made, the buyer electronically transfers the payment to confirm the sequence  of nos. in received  chapter  structure  NCDEX  Spot account.   Here deductions  are made:

i)   To MSWC, for storing the produce (at Rs 20 / MT / month) and assaying the product (at Rs 500 per lot) and handling (at Rs 1.50 per 50 kg bag) , ii)  For NCDEX  Spot (at 0.1% of the value of the sale),

iii) To MSAMB / APMC (at 1% of value of sale, plus another 0.05% for supervision), and, if applicable, interest on the warehouse credit (at about 1% per month of the loan).

25. The information  given in table in the chapter  on FCSC, under  the para ‘Estimated  Farmer Returns’, shows that the farmer will get extra return of 5.2%, 9.0% and 16.30% if the produce is sold in APMC as graded; same day spot sale and sale after 3 months after taking advantage of Warehouse Receipt Credit Scheme, respectively.

26. The information in the table mentioned above provides an estimate of the potential additional returns that farmers can obtain by using the FCSC for their producer association to grade, clean and pack grain and to facilitate marketing through the APMCs, the Spot Market at MSWCs facilities,