The Hindu Business Line : NCDEX chief moots improved warehousing to boost farm income

Warehousing system should be strengthened to give farmers better access to the financial system, said Mr P.H. Ravikumar, Chief Executive Officer, NCDEX.

On the sidelines of a symposium on farm credit for inclusive growth held here recently, he told reporters that the country's warehousing capacity for farm produce stood at 9 lakh tonnes. There was a need to create a further 9 lakh tonnes capacity, he said, adding that this would require an investment of about Rs 75 crore, excluding the cost of land.

Stating that the presence of a chain of warehouses would help prevent distress sale, he said the problems faced currently included fewer numbers of quality warehouses, poor access for farmers, absence of scientific storage facilities, poor IT/telecom connectivity, absence of scientific grading facilities, incidents of fraudulent warehouse receipts and high storage costs.

Calling for improvements in grading and standardisation of agro commodities in India, he pointed out that through the exchanges farmers could be encouraged to grow a particular variety of crop of pre-determined quality.

"This will also prevent farmers from being cheated on the grounds of quality at the mandis," he said.

He wanted the government to revamp the Warehouse Act, bring warehouse receipts under the ambit of the Depository Act, encourage private entrepreneurs to establish modern warehouses, provide incentives to traders and farmers to use such warehouses, and revise the assaying standards to bring them on par with global standards.

Mr S.K. Mitra, Executive Director, Nabard, delivering the concluding remarks at the symposium, said that in addition to agricultural credit the farm sector called for urgent inputs in the areas of technology, marketing and infrastructure.

Calling for strong coordination between farmers clubs and KVKs (Krishi Vigyan Kendras) in the districts, he said there are currently more than 18,000 farmers clubs, which may grow to about 1 lakh in two to three years. Banks should also set up farmer training centres like the ones established by Punjab National Bank and some other banks, he said. He wanted the commercial banking system to develop an `extra mile' approach in interfacing with rural people. The commodity exchanges as well as the insurance system too need to adopt this extra mile approach for risk mitigation at the farmer level, he said.

In the area of infrastructure development, he called for a long-term (5-10 years) policy for RIDF funding to bring in greater efficiency.

Pointing out that the SHG model had been one of the largest financial inclusive programmes in India, he said this movement needs to be strengthened.

More Stories on : Storage | Commodity Exchanges | Maharashtra

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page