Designing Warehouse Receipt Financing Product, India
MicroSave, assisted AMPL (MFI operating in Odisha state of India) to identify the need for warehouse receipt financing (WRF) for small and marginal farmers in the districts of Sambalpur and Kandhamal. MicroSave conducted a detailed review of the proposed WRF for AMPL and presented the potential models for the warehouse financing product. Through this intervention, MicroSave seeks to address the issue of distress selling of turmeric and chilli by small farmers to local traders immediately after the harvest due to poor storage facilities and lack of financing options. In addition, other key considerations for implementation of a robust WRF product were also assessed.