Farmers to reap big from warehouse receipt system in reforms

Agriculture Cabinet Secretary Peter Munya (right) with Trans Nzoia Governor Patrick Khaemba at the launch of the new system in Kitale yesterday. [Peter Ochieng, Standard]

Cereals producers who wish to store their produce until market prices are right have received a major boost following the launch of a Warehousing Receipt System (WRS) in Kitale yesterday.

WRS is a process where producers or dealers deposit their commodities in certified warehouses and are issued with a warehouse receipt as proof of ownership.

The system is expected to help farmers address the perennial problem of post-harvest losses as well as give them the option of using the receipts issued as collateral to secure credit facilities from financial institutions. It will also curb value chain inefficiencies, increase earnings for farmers, traders and service providers in the agricultural value chain in the region, which is one of the leading cereals producing regions in the country.

Agriculture Cabinet Secretary Peter Munya said the launch of the system is part of reforms by the government to kick out cartels in the agriculture sector to boost farmers’ earnings.

"The WRS is part of the reforms we are undertaking in the sector to ensure we eliminate cartels in the agricultural sector and allow farmers to enjoy earning from the activities,” said Munya during the launch at the National Cereals and Produce Board (NCPB) depot in Kitale, Trans Nzoia County.

The CS said the WRS Council would certify 60 stores across the country as part of a programme to improve food standards. Munya said NCPB stores in Kitale, Meru, Nakuru, Nairobi, and Eldoret have already received the council’s certification, with 12 more in the process of receiving the same.

The CS said the system will help farmers secure credit from banks to buy farm inputs. “Apart from helping the farmers get credit facility from banks, a farmer can use the receipt to secure farm inputs,” he said.

Munya noted that the system will help lock out middlemen who have been benefiting at the expense of farmers. “Farmers have been selling their produce at a throwaway price because of lack of storage facilities and lack of good market. We want farmers to enjoy farming,” he said.