In order to address the food security challenges, massive investments in agricultural infrastructure, production trade and processing is taking place across the world. Warehouse receipt financing can play a pivotal role to protect the farmer’s compulsion to sell their product immediately after harvest and collateralized commodity transaction stands itself security for the loan.
The commodities are stored in a licensed warehouse that issues a receipt proving that the commodities are physically placed in the warehouse. This receipt forms the basis of the financing.
In the first instance, the Red Chilli farmers of Kunri area under the ZTBL Samaro Branch of Mirpurkhas zone are being facilitated by providing financing for their working capital requirements through this scheme.
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