This was made known at a press conference in
The new platform, Abdulrahman explained, will enable farmers to place their commodities at an NCX-accredited warehouse in different parts of the country and will be issued an electronic receipt stating details such as commodity type, quality and quantity, owner and other relevant information. The depositor will have the choice of using the receipt as collateral to obtain bank loans or for trading on the exchange. Another option is to keep such commodities in the warehouse until their prices stabilize or appreciate.
Apart from ensuring liquidity on the exchange, Abdulrahman stated that the initiative will encourage the provision of standard storage facilities for operators in the agricultural value chain and make the warehouse receipts a prime tool of trade while facilitating access to finance.
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