1. NEGOTIABLE WAREHOUSE
RECEIPT –A NEW WAY TO
ASSURE FARMERS’
PROSPERITY IN INDIA
Santosh Kumar Sahu
Agri-Professional from Gujarat
Santosh.sa@ncmsl.com
9879443405

2. EXISTING WAREHOUSE RECEIPT
SYSTEM
THE WAREHOUSING RECEIPTS AT PRESENT DO NOT ENJOY THE
FIDUCIARY TRUST OF DEPOSITORS AND BANKS, AS THERE IS FEAR
OF NOT BEING ABLE TO RECOVER THE LOANS IN EVENTS, SUCH AS
FRAUD, OR MIS-MANAGEMENT ON BEHALF OF THE WAREHOUSE
OR INSOLVENCY OF DEPOSITOR.
THE AVAILABLE LEGAL REMEDIES ARE ALSO TIME CONSUMING
AND INADEQUATE. FURTHER, THE FORMAT OF WAREHOUSE
RECEIPTS USED IN THE COUNTRY IS NOT UNIFORM.
HENCE, THERE ARE IMPEDIMENTS IN THE NEGOTIABILITY OF
WAREHOUSE RECEIPTS CREATING DIFFICULTIES TO THE FARMERS
AND OTHER DEPOSITORS OF GOODS.

3. REGULATIONS OF WAREHOUSE
RECEIPTS
The negotiable instrument is a promise to pay or an order to pay
money while a document of title calls for delivery by a bailee
(warehouseman) of certain particular goods. It is better to keep this
thought in mind that a warehouse receipt is a document of title not a
negotiable instrument and that there is a separate body of law
governing each.
If at all, WHR becomes negotiable, it will pass greater freedom from
hand to hand chiefly by the reason of the fact that the transferee
thereof does not need to notify the bailee (warehouseman) of his
acquisition of title while a transferee of an assignable document of title
(WHR) acquires no rights against the bailee except by giving notice.
By assigning negotiability on WHR will not provide the document with a
status of "negotiable instrument" but can be referred as a "negotiable
document of title". It is going to take a while before the cloud of
confusion is removed and we see a clear blue sky on the commodity
horizon in India

4. ADVANTAGES OF NWR
Protection to the Farmers against the risk of distress Sale.
Instant Credit against negotiable Warehouse Receipt, increase the
liquidity in the rural areas and thereby farmers upliftment
Banks/Financial Institution will have better lending condition as cost
of capital is reduced and the process is very much comfortable.
APMC Registered Warehouse linked to SPOT market will reduce the
intermediaries , avail PAN India Price Information . So Maximizing
Farmers Sale Realization.
Safe Lodging of Commodities , so Farmers are ensured subject to
any damage/risks/losses of commodities and quantitative terms.
Ensure higher quantitative and qualitative storage and so better price
realization for the same commodities.
Efficient and Short Supply Chain Management .

5. BENEFITS TO FARMERS
1. EASY AVAILABILITY OF LOANS FROM BANKS.
2. REAL & EFFECTIVE RECOURSE & INSTRUMENT TO AVOID
DISTRESS SALE.
3. PROPER GRADING OF THE STOCKS RESULTING IN BETTER
UNDERSTANDING & INCREASED REALIZATION OF THE VALUE.
4. INCREASED CONFIDENCE DUE TO WELL LAID ACCOUNTABILITY
& PENALTY CLAUSES FOR ALL SERVICE PROVIDERS.
5. QUICK & EFFECTIVE LOSS COMPENSATION & DISPUTE
SETTLEMENTS

6. Thank you.
6
For Warehouse Receipt Finance as well as want to lease
out your rural godowns for NWR purpose for
Help & Support for Gujarat State in any District , please
contact
Mr. Santosh Kumar Sahu
sahubabu@gmail.com
9879443405
2/9/2013