Warehouse receipt financing- system to enhance coconut and rice industries in Western districts of Tamil Nadu

• Main Authors: Indhumathi, V., Priya, P. Vidhya, Sundaresalingam, P.
• Format: Conference Proceeding
• Language: English
• Subjects: Business cycles; Coconut oil; Financing; Food processing industry; Profitability; Safety; Warehouses
• ISSN: 0094-243X; 1551-7616
• DOI: 10.1063/5.0068606

In India, the coconut and rice sectors play a vital role in production in the agricultural economy. Though food processing industries are evolving rapidly, these sectors face the problem of lack of funds to do their businesses, inefficiencies in the marketing chain, especially in price mechanism. Finance is also very essential in any business cycle. The paper attempts to study the effectiveness of warehouse receipt financing based on the analysis using the primary data collected equally from the registered businessmen in the coconut and rice industries via Coconut Oil and Rice Mill Associations in the selected location of Tiruppur and Erode Districts of Tamil Nadu. Warehouse Receipt Financing can also be used to have continuity in production, price, and ensure food security. The study also focused on the provision of facilitation that is provided by the warehouses to ensure the quality and safety of goods stored, the main motive behind storing the goods in the warehouses. As a result, almost the majority of the business is using the warehouse receipt financing effectively by regularly storing the stocks in the warehouses. These goods are stored with the motives of speculative followed by transactive and they are also gratified with the facilitation provided in the warehouses. WRS helps the coconut and rice sectors in the selected region to augment profitability without compromising the quality and safety of the goods stored.