Electronic warehouse receipts registry as a step from paper to electronic warehouse receipts

Abstract

The aim of this paper is to determine the economic viability of the electronic warehouse receipt registry introduction, as a step toward electronic warehouse receipts. Both forms of warehouse receipt paper and electronic exist in practice, but paper warehouse receipts are more widespread. In this paper, the dematerialization process is analysed in two steps. The first step is the dematerialization of warehouse receipt registry, with warehouse receipts still in paper form. The second step is the introduction of electronic warehouse receipts themselves. Dematerialization of warehouse receipts is more complex than that for financial securities, because of the individual characteristics of each warehouse receipt. As a consequence, electronic warehouse receipts are in place for only to a handful of commodities, namely cotton and a few grains. Nevertheless, the movement towards the electronic warehouse receipt, which began several decades ago with financial securities, is now taking hold in the agricultural sector. In this paper is analysed Serbian electronic registry, since the Serbia is first country in EU with electronic warehouse receipts registry donated by FAO. Performed analysis shows the considerable impact of electronic warehouse receipts registry establishment on enhancing the security of the system of public warehouses, and on advancing the trade with warehouse receipt.

Limitations and opportunities for funding agriculture and rural development in the Republic of Serbia

“…The public warehouse system, for example, up to 2013, was selves sustainable with 18 licensed public warehouses and estimate from the Indemnity fund is that total amount of loans against warehouses receipts up to the end of 2013 was 50.000.000 Euros, with interest rates 25% lower compared to regular loans. Accordingly, some recommendations for improvement are: changes of Law on the public warehouses (especially important requirements for all grain warehouses whose providing storing service for third parties to be mandatory licensed as a public warehouses); establishment of the inspection service for public warehouse within the Ministry of Agriculture, Forestry and Water Economy (in practice, it is very important part of the public warehouse system, but this service is not established so far); arrangements with Commodity directorate reserve to recognize public warehouse automatically as authorized Commodity directorate reserve's warehouses; to introduce public warehouse electronic registry, donated in 2009, because by FAO (Kovačević, et al, 2016), electronic database has huge effect on system reliability, interest rates and number of banks involved in the lending against warehouse receipts.…”

Financing agribusiness: Insurance coverage as protection against credit risk of warehouse receipt collateral

“…On the other hand, the warehouses that wish to provide services of licensed warehouses and issue warehouse receipts often do not meet the bank requirements. (Kovačević et al, 2016) Under such conditions, the risk of proper storage and preservation of quality and quantity of the stored agricultural products is too high for financial institutions and banks to accept the warehouse receipt as collateral for loans they grant. P 2017 (64) 2 (467-482)…”

Crop receipts as alternative financial instruments

“…There are other terms used for crops receipts, such as future crop receipts, pre-harvest financing instruments and agrarian receipts. Crop contracts are often named pre-harvest financing instruments because future crops during the production process are pledged, whereas warehouse receipts are named post-harvest financial instruments where stored commodities are serving as loan collateral (Kovačević et al, 2016;Miranda et al, 2019).…”