Warehouse Receipts Financing (A)

Code :FCF0029

Year :

Industry : -

Region : Asia

Teaching Note:Available

Structured Assignment :Not Available

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INTRODUCTION: Manjeet Singh (Manjeet), a wheat farmer in Govindpur village in Punjab, India, had a small piece (approx. 10 acres ) of cultivable land , with good yield per hectare, thanks to the HYV seeds (PBW 660 quality good for chapati-making) that he used. Manjeet sold his surplus crop in the mandi even if the prices were not attractive because he had to pay back the loan he had taken from the local moneylender for the seeds and fertilizers. He had no option but to rely on moneylenders as he was not sure of other formal sources of agricultural credit like banks, cooperatives, etc. Storing his crop in a certified warehouse for selling at attractive prices in the future was difficult too, as the nearest warehouse was far away from Govindpur. And Manjeet was not the only one facing issues such as accessibility to agricultural credit, storage availability, and logistics. Most farmers in his village had to grapple with the same challenges..

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