Warehouse Receipt System
What is a Ghana Grains Council (GGC) Warehouse Receipt?
‘’ A document in Electronic form issued by a GGC licensed warehouse Operator certifying the quantity and quality of a specified grain (maize, rice, soya, etc) placed by a named depositor (farmer, trader, food processor, financial institution, etc.) into a secured storage operated by the warehouse operator.
What information do you expect to see on a GGC Warehouse Receipt?
– Location Of The Warehouse
– Grain Type
– Date Deposited
– Name Of Depositor
What are the types of Warehouse Receipt?
1. Negotiable Instrument and;
2. Non-negotiable Instrument
What are the Characteristics of the Instruments?
1. Negotiable Instrument
2. Can be transferred or sold
3. Has legal protection against claims by previous owners
4. ‘’ bank note concept ‘’
5. Non-negotiable Instrument
• Cannot be transferred or sold
• Sale of the grain requires cancellation and re-issue
GGC Warehouse Receipt is a Negotiable Instrument
What is a GGC Warehouse Receipts used for?
TWO KEY USES
1. Trading Instrument
• Allows transfer of ownership without physical delivery
• Quantity and quality certification allows producer of grains to differentiate his produce and be rewarded with a price premium.
2. Financing Instrument
• Farmers, traders and millers can raise finance against their commodity deposits
• Increase liquidity in the agricultural market
• Draw in more private sector capital, and saves public sector financing of the grain industry
Opportunities Presented by GGC Warehouse Receipting
• Grain producers (including small grain farmers ) receive a price premium for producing quality grains
• Aggregate grains in secure and accessible sites
• Allow small farmers to become commercial through quality and quantity certification
• Grains can be store in planned, grain specific and tailored warehouses to reduce post harvest losses due to poor storage
• Grains can be weighed before sold so producers are not cheated on weight (and volume?)
• Grain producers can take advantage of price rises during the low supply season
• Grain producer isolation to only farm gate buyers can be removed
• Grain producers ( including small holders ) can access national and regional markets at a lower cost ( receipts all convened at Central Depository )
• Grain producers has chance of raising short term finance with stored commodity
• Farmer becomes a Price- setter instead of price -taker
• Prepare the grain industry for a commodity exchange
Where is GGC now?
Rules and Regulations governing warehouse Receipts ready
12 Warehouses awaiting Licensing
Electronic Platform for issuing Electronic warehouse receipts procured and awaiting implementation? PROCESS ON-GOING
Sensitization programmes in progress (small farmers, traders, processors, input providers, banks/financial institutions)
Consultation with various steering groups working on warehouse receipting/commodity exchange law in progress