Conducting a Workshop on Implementation of the Warehouse Receipt Financing System
Nay Pyi Taw, June 30th
Workshop on implementation of the Warehouse Receipt Financing System (WRFS) was held by the Ministry of Commerce in collaboration with the Myanmar Rice Federation (MRF) at the Ministry of Commerce in Nay Pyi Taw on 30 th June 2023.
At the workshop, Deputy Minister for the Ministry of Commerce, U Nyunt Aung delivered the opening speech and mentioned that the workshop is organized to develop the Warehouse Receipt Financing System, one of the outcomes of Myanmar Rice Conference 2022, with an aim to enhance the socio-economic development of small holder farmers and to reduce the postharvest losses. WRFS is a system that will allow farmers to get loans from banks by using the certificate of warehouse receipt by depositing crops in storage warehouses as collateral. In this system, farmers will play as the owners of crops, the warehouse owners as the persons who issue the warehouse certificate, private and public banks as lenders who issue loans based on warehouse receipt and the government departmental organizations as regulatory bodies. By implementing this system, it will be possible to prevent the decrease in profits, remedy the losses of the farmers and also contribute to the stability of rice prices due to the decrease in the price of rice during harvesting. Moreover, it will help to enhance the export of good quality commodities through the development of a warehouse system, contributing to the economic development of the nation. Therefore, it is needed to implement this system in the coordination between public and private sectors in a harmonious manner. On the other hand, the Ministry is drafting the Rice Law and it is expected to promulgate soon, in which the provisions that administer the procedures for post-harvest handling are included.
The agenda of the workshop includes the sessions of presentation and panel discussion, in which the participants discussed the required policies and procedures for the implementation of the Warehouse Receipt Financing System in detail and achieved the way forward.
Vice Chairman for Central Bank of Myanmar, Dr. Lin Aung, officials from the related Ministries and representatives from the private sector participated at the workshop.