MRF invites EOI from warehouse owners to join Receipt Financing

The Myanmar Rice Federation (MRF) has invited applications from interested warehouse owners to participate in the Warehouse Receipt Financing System (WRFS).

Under the guidance of the Ministry of Commerce (MOC), the MRF has initiated the WRFS to help solve the issues faced by farmers such as financing needs at harvest time, inevitable sales at any prevailing prices due to difficulties in drying and storage, and similar problems faced by seed producers who have to reluctantly sell the crops as grains for the lack of storage facility until the season when seeds are needed.

The Task Force for the WRFS led by MOC deputy minister was formed and the working group has started drafting regulations and standard operating procedure (SOP).
Interested warehouse owners can fill and submit their Expression of Interest (EOI) proposals to the MRF, it said.

The basic requirements for participation in the WRFS are ownership of the warehouse, fire insurance, protective measures against the entry of animals like chickens and birds, and compliance with the instructions of respective departments to prevent pest diseases during storage.

It also requires systematic storage to avoid waste, good access roads to the warehouse and sufficient drying equipment.

To be eligible for the EOI, the warehouse must be registered with Myanmar Rice Online (MyRO) and comply with the regulations determined by the MOC from time to time, it stated.

“The Warehouse Receipt Financing System (WRFS) is convenient. It will be of great benefit to farmers. But, the market for farmers’ crops is not fixed and it depends only on the market. This year, the trend is up. There is no problem. It is fine for seed producers. In any case, it is profitable for them. We welcome such a system,” said an official from the Myanmar Rice Millers Association.

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