Majaliwa orders use of WRS to benefit sesame farmers
What you need to know:
Under a WRS, a warehouse receipt (WR) is issued to a named depositor (who may be a farmer, farmer group, processor or trader) as evidence that he or she has deposited a specified commodity, of stated quantity and quality, at a specified location.
The holder of the receipt may pledge it to a lender (with the stored commodity being the collateral for a loan) or transfer it to a buyer (by way of a sale). The warehouse operator or collateral manager, who has custody of the stocks, guarantees delivery against the receipt, and should be able to make good any value lost through theft, fire or other catastrophes.
