Proclamation to Provide for a Warehouse Receipts System (No. 372/2003).

This Proclamation introduces a system of bailing of agricultural goods that enables a farmer whenever supply exceed demand to deliver his or her products to the warehouse upon receipt of document of title to the products and to reclaim his or her products. The bailor shall be entitled to transfer his or her rights over the stored products to any buyer by simple delivery of the receipt. “Agricultural Product” means a product as may, from time to time be determined as an agricultural product by the Ministry or its designate. The Proclamation also provides with respect to warehousing of goods.
The Proclamation shall have the following objectives: a) to enable any person store his goods and in particular standardized agricultural products in warehouses and borrow money upon delivery of the warehouse receipt as collateral; b) to establish a valid contract between the bailee and the bailor and to properly direct and administer the system: and c) to create organized and efficient marketing system for agricultural products. Warehouse receipts may be issued by cooperatives and private companies registered and licensed to undertake warehousing business. The Proclamation also sets out rights and obligations of warehouse operators and provides with respect to negotiation of warehouse receipts and resolution of disputes.