Working of Warehouses

♤ Acts: The warehouses (CWC and SWCs) work under the respective Warehousing Acts passed by the Central or State Govt.

♤ Eligibility: Any person may store notified commodities in a warehouse on agreeing to pay the specified charges.

♤ Warehouse Receipt (Warrant): This is receipt/warrant issued by the warehouse manager/owner to the person storing his produce with them. This receipt mentions the name and location of the warehouse, the date of issue, a description of the commodities, including the grade, weight and approximate value of the produce based on the present prices.

♤ Use of Chemicals: The produce accepted at the warehouse is preserved scientifically and protected against rodents, insects and pests and other infestations. Periodical dusting and fumigation are done at the cost of the warehouse in order to preserve the goods.

♤ Financing: The warehouse receipt serves as a collateral security for the purpose of getting credit.

♤ Delivery of produce: The warehouse receipt has to be surrendered to the warehouse owner before the withdrawal of the goods. The holder may take delivery of a part of the total produce stored after paying the storage charges.