Prices are low at harvest when everyone sells. Is it worth storing my crop in a warehouse and selling a few months later for a better rate?
3 जवाब
Storing to sell later can pay off because prices are usually lowest at peak harvest when supply floods the market, and often recover later. To do this you can store in a registered warehouse, and against the stored stock you can often get a warehouse receipt that lets you take a pledge loan, so you get some cash now without selling at the low. Before deciding, weigh the storage and warehouse charges, the loan interest if you pledge, any quality or weight loss in storage, and the price you actually expect later, since not every crop rises enough to cover these costs and some perishables cannot be held at all. Crops that store well and have a seasonal price recovery are the best candidates. A safer middle path is to sell part at harvest for immediate needs and hold part. Confirm warehouse charges and the pledge loan terms with your nearest registered warehouse or bank before committing.
I used a warehouse receipt loan once. Got cash at harvest without dumping my grain at the bottom price, sold three months later when rates rose. The interest was worth it that year.
Just remember some years the price does not rise much and storage cost eats the gain. Do not hold everything blindly.