- Definition: A document proving ownership of a commodity stored in a recognized warehouse.
- Facilitating Agricultural Marketing:
- Negotiable Warehouse Receipts (NWRs): Allow transfer of ownership without physical delivery.
- Farmers get an officially recognized receipt.
- Can take loan from bank against the receipt (Warehouse Receipt Finance).
- Can sell produce to a third person by endorsing the receipt.
- Electronic NWRs (e-NWRs) prevent tempering, mutilation, multiple financing.
- Facilitate smooth trading on commodity exchanges, e-NAM, other platforms.
- Save logistics expenditure as stocks can be traded without physical movement.
- Help farmers realize better price for their produce.