warehouse receipt

A warehouse receipt system (WRS) enables farmers to deposit storable goods (usually grains or coffee) in exchange for a warehouse receipt (WR). A WR is a document issued by warehouse operators as evidence that specified commodities of stated quantity and quality have been deposited at a particular location. Usually prices slump right after harvesting time. By deciding to sell the goods at a later time, when prices have picked up, the depositor can avoid price risk.

Commodity Marketing

A network of communication and distribution between farmers and market institutes where raw and primary material or other products are exchanged.