Cooperatives and Promotion of Warehouse Receipt Systems Commodity Collateralisation

Abstract

The on-going research study on warehouse receipt system (WRS) will come out with a book purposefully authored to surface the knowledge and the understanding of the newly established Warehouse Receipt System (WRS), its mode of operation and its potential benefits to the users. The study is carried out at the time when the existing literature does not comprehensively surface the development and practical state (problems, mode of operation, receptivity, dynamism and prospects) of the WRS and its on-going institutionalization strategies. The proposed book, in sincere limelight, will provoke the attention of the intelligentsia, Government technocrats, financial institutions, commerce and trade chambers, rural development promoters and local member based agro-marketing enterprises, to direct their concern to jointly promote new development initiatives in creating a practical, dynamic and effective WRS for the progress of rural farmers and the nation at large. The objective of this research study is to determine the extent of the WRS capability to providing potential benefits to rural agro-marketing beneficiaries to determine how practical, dynamic and effective is the WRS, and also, to determine its receptivity and effectiveness in promoting agro-marketing economy. Basing on the above, the research study stands to hypothesize that the potential benefits from commodity production and marketing gainable by agro-marketing beneficiaries, could be jeopardized, limited and frustrated by (i) weak and/or inappropriately structured component pillars of the WRS, (ii) unmatched interest by various WRS key actors, and (iii) lack of appropriate technical training and effective sensitization to WRS key actors and rural stakeholders. The study further hypothesizes that successful establishment and operationalisation of the WRS could be a potential mechanism to cause and to effect disintegration of rural agro-marketing cooperatives. On the mythological approach, seven regionals have been selected for research servery. The study will precisely, posit an opening for new initiatives to providing a sustainable agro marketing system for availing easy access to commodity trade finance needed by local member-based agro- marketing enterprises and by small/medium scale farmers and traders. In effect, the study is in quest to mobilise the brain resources from the intelligentsia, Government technocrats and rural development promoters, in order that their contribution be an input to the on-going development process of institutionalizing a dynamic and effective WRS. Definitely, the study is expected to come out with recommendations on the application and implications of Government policy, legal and technocratic instruments and on improving the operationalisation strategies in an effort to make the WRS truly practical, dynamic and effective, to solving agro-marketing problems. The study output is placed to be most beneficial to small holder farmers and their agro-marketing enterprises and other key players in the WRS, and also to Government technocrats, rural development promoters, the academic and research community, and all stakeholders of the general public