Case study of Kisan Mitra Group, Latur, Maharashtra, India

Warehouse receipt financing (WRF) can address challenges like access to credit for farmers, inefficiency in agricultural marketing, post-harvest losses and exclusion of farmers from mainstream supply chain. However, studies indicate that farmers are excluded from WRF across developing countries. Their exclusion is due to some constraints in existing WRF mechanism. These constraints are high transaction cost and perceived risk of losing existing buyers. A case study from Latur, Maharashtra is presented and analysed to look into how these challenges are addressed in its farmer friendly WRF mechanism. Findings extend WRF literature with a “one stop solution” WRF mechanism for farmers.