TURNING WAREHOUSES INTO CREDIT SUPPORT ENTITIES – VISION, OBSTACLES AND THE WAY FORWARD PRESENTATION BY C.T.THOMAS REGIONAL MANAGER, CENTRAL WAREHOUSING CORPORATION, MUMBAI

EVOLUTION OF WAREHOUSING  ROYAL COMMISSION ON AGRICULTURE,  RURAL BANKING INQUIRY COMMITTEE,  RURAL CREDIT SURVEY COMMITTEE, 1954.

ORIGIN OF PUBLIC WAREHOUSING IN INDIA  PUBLIC WAREHOUSING IN INDIA EVOLVED AS A MEANS FOR FACILITATING MARKETING OF AGRICULTURE PRODUCE.  AVOIDANCE OF POST HARVEST LOSSES.  INTRODUCTION OF GRADE SPECIFICATIONS.  INTRODUCTION OF WAREHOUSE RECEIPT AS A NEGOTIABLE INSTRUMENT.  NATIONAL CO-OPERATIVE DEVELOPMENT AND WAREHOUSING BOARD,  CENTRAL WAREHOUSING CORPORATION & STATE WAREHOUSING CORPORATIONS, 1957.

PUBLIC WAREHOUSES TODAY  NETWORK OF SCIENTIFICALLY CONSTRUCTED WAREHOUSES THROUGHOUT THE COUNTRY.  GRADE SPECIFICATIONS FOR OVER 400 COMMODITIES.  WAREHOUSE RECEIPT AS A WIDELY ACCEPTED INSTRUMENT FOR FACILITATING CREDIT AGAINST WAREHOUSED STOCKS.  COMPREHENSIVE POST HARVEST CARE FOR AVOIDING DETERIORATION IN QUALITY.  FACILITIES FOR EXTENSION ACTIVITIES WITH GOOD RURAL NETWORKS.

WAREHOUSES AS CREDIT SUPPORT ENTITIES – THE VISION.  CUSTOMER BASE DOCUMENTED & LINKED BY EXTENSION NETWORK.  WIDER DISTRIBUTION OF INFRASTRUCTURE FOR COVERING ALL MAJOR PRODUCTION, TRADE & CONSUMPTION CENTRES.  WEIGHT AND PACKAGING STANDARDISED.  UNIFORM GRADE SPECIFICATIONS COVERING ALL COMMODITIES.  STANDARDISED PRACTICES FOR ACCEPTANCE OF GOODS, STORAGE PRACTICES AND UPKEEP OF QUALITY.  CO-ORDINATION WITH FINANCING INSTITUTIONS FOR FACILITATING SINGLE WINDOW CLEARANCE.  COMPUTERISED TRANSACTIONS.

OBSTACLES IN POPULARISATION OF WAREHOUSE BASED FINANCING  LIMITED NEGOTIABILITY OF WAREHOUSE RECEIPT AS A NEGOTIABLE INSTRUMENT.  INADEQUACY OF INFRASTRUCTURE.  INADEQUACY OF TRAINED PERSONNEL FOR MANNING WAREHOUSES AND FOR EXTENSION ACTIVITIES.  GRADE SPECIFICATIONS TO BE POPULARISED.  INADEQUACIES IN WEIGHING, PACKING, HANDLING AND TRANSPORTATION OF GOODS.  NON-OBSERVANCE OF STANDARD PRACTICES IN QUALITY CONTROL.

WAY FORWARD  REGULARISATION OF WAREHOUSING ACTIVITIES BY A CENTRAL AGENCY.  LEGAL STATUS TO WAREHOUSE RECEIPTS AS NEGOTIABLE INSTRUMENTS.  DEMATERIALISATION OF WAREHOUSE RECEIPTS.  PRIVATE SECTOR INVESTMENT IN WAREHOUSING.  UNIFORM POLICIES FOR QUALITY CONTROL AND GRADE SPECIFICATIONS.

 THANK YOU