Role of Warehousing

♤ Scientific storage: The product is protected against quantitative and qualitative losses by the use of such methods of preservation as are necessary.

♤ Financing: Warehouses meet the financial needs of the person who stores the product. Nationalized banks advance credit on the security of the warehouse receipt issued for the stored products to the extent of 75 to 80% of their value.

♤ Price Stabilization: Warehouses help in price stabilization of agricultural commodities by checking the tendency to making post-harvest sales among the farmers.

♤ Market Intelligence: Warehouses also offer the facility of market information to persons who hold their produce in them.