Warehouse Receipt System in Uganda

Warehouse receipt financing has proven to provide effective solutions to agricultural production and market risks. This policy brief presents a background information to agricultural sector risks in Uganda, the existing warehouse receipt systems, contributions to agricultural risk management, and recommendations for improving WRS effectiveness.

Two main forms of warehouse receipt systems exist in Uganda: the unregulated private and the regulated public warehousing systems. These schemes have proved beneficial in increasing access to finance, reducing commodity price risk and post-harvest losses. However, their effectiveness  is constrained by risks of double pledging, the lack of compliance with the quality standards, and the limited reach to farmers in rural Uganda. To improve the systems, this policy brief recommends government to support training for warehousing agents, improves procedures for commodity quality standards, and reform the regulatory body for warehousing.