Agricultural Economics Research Review
Year : 2012, Volume : 25, Issue : conf
First page : ( 563) Last page : ( 563)
Print ISSN : 0971-3441. Online ISSN : 0974-0279.

Economic Performance of Warehousing Service, Constraints Faced by Agri-Warehouses in Maharashtra and Scope for Negotiable Warehouse Receipts Credit in India^†

Rangasamy N.

National Institute of Agricultural Marketing, Jaipur-302 033, Rajasthan

Online published on 9 October, 2012.

Abstract

The study has analysed the economic performance of Maharashtra State Warehousing Corporation (MSWC) by simple tabular analysis method. The study has found that net profit before tax of MSWC increased continuously from 1754 lakh to 3526 lakh (50.24% increase) during the past six years (2005–2010). The capacity utilization ranged between 74 and 79 per cent during this period. The financial analysis ratios, viz. gross profit to turnover (32.63%), net profit to total turnover (27.99%)), net profit after tax to total turnover (18.46%) were positive, return on capital employed was 10.32 per cent and current ratio was 1.42:1. All these economic performance indicators and financial ratios show a significant economic performance and positive signs of agri-warehousing in Maharashtra. On the other hand, the warehouses are facing lot of constraints in their operations. The market potential for warehouse receipt financing in India has been estimated at 19000 crore and also negotiable warehouse receipt financing is facing few challenges in India. Hence, the study has suggested that training and awareness programs should be conducted for farmers, warehouse managers and supporting staff.

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Keywords

Agri-warehouses, constraints, economic performance, negotiable warehouse receipts finance, Maharashtra State Warehousing Corporation.

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