Step by step on borrowing against a warehouse receipt to avoid selling cheap right after harvest.
How to get a warehouse receipt loan against my stored produce?
PPankaj Sahu6 महीने पहले · 190 व्यू
3 जवाब
🌾Farmer.in Krishi Teamविशेषज्ञ ✓6 महीने पहले
A warehouse receipt loan lets you store your produce in a registered warehouse, get a receipt for it, and borrow against that receipt from a bank, so you do not have to sell in distress when prices are low right after harvest. The steps are: store your produce in a WDRA registered warehouse (WDRA is the Warehousing Development and Regulatory Authority), get them to grade and weigh it and issue an electronic Negotiable Warehouse Receipt (e-NWR), then take that e-NWR to a bank that offers pledge finance. The bank lends a percentage of the value, commonly a large share but with a margin kept aside, and holds the receipt as security. When you sell later at a better price, you repay the loan and release the produce. You will pay storage charges plus loan interest, so the gain only works if the expected price rise beats those costs. Keep your KYC, the e-NWR and bank account ready. Verify the current lending percentage, interest rate and any interest subvention with your bank, and the registered warehouse list on the WDRA portal.
VVishal Kale5 महीने पहले
I used this for my soybean last year. The key was choosing a WDRA registered warehouse, otherwise the bank would not accept the receipt. Storing and pledging took a few visits but it stopped me from selling at the bottom.
HHariom Gupta5 महीने पहले
Remember to budget the storage rent plus interest. If you expect prices to climb only a little, the costs can eat the gain. It worked for me because chana usually firms up a few months after harvest.