A warehouse receipt not only doubles as collateral for commercial borrowing for commodity futures trading, but also lends itself to trading as a negotiable instrument. Such sound and viable warehouse receipts system as a marketing tool is relevant for the healthy development of both spot and futures markets. As part of continuing endeavour to strengthen the Indian commodity markets, the seminar will be jointly organised by UNCTAD, FMC and select commodity exchanges.

According to the FMC, the country's agriculture production in recent years, has recorded a new high of 200 million tonnes. The government is committed to encourage free trade inagricultural produce. Also, in the recent years, the marketing environment for farm goods has markedly improved with the removal of several restrictions -- physical and monetary as also on storage and movement on a large number of commodities.

Significantly the government is committed to the revival of futures trading, to widen its scope and to strengthen the commodity exchanges and the regulatory agency.

The World Bank and the UNCTAD in their evaluation report observed that commodity futures market in India were equipped to support price risk management. Finance has always been a critical input for the success of the farming sector as well as for the commodity trade.

In the current context of liberalised trade, easy access to finance through the developments/ promotion of techniques of structured financing for the commodity sector has assumed importance as never before. Structured finance can make funds available at more favourable terms than traditional methods.

Equally important isinfrastructure -- specifically, warehousing and its management -- as a marketing input. A sound warehousing system and certification of quality should be an integral part of any marketing plan.