The Myanmar Rice Federation (MRF) announced on October 5 its initiative to develop a warehouse receipt system aimed at reducing post-harvest losses and improving incomes for paddy farmers. The federation outlined plans to launch the program during the peak paddy harvest season in November and December.

During harvest periods, a surplus in supply often causes a drop in paddy prices, resulting in reduced earnings for farmers. In contrast, storage and later sales benefit traders, millers, and warehouse operators. The proposed warehouse receipt system is designed to address this imbalance by enabling farmers to store their crops in approved warehouses rather than selling immediately at low prices.

Under the system, farmers would deposit their paddy in designated warehouses where a third-party expert would assess and verify both quality and quantity. The expert would then issue a warehouse receipt, which serves not only as proof of storage but also as collateral for obtaining short-term loans. This financing arrangement would allow farmers to access funds during the storage period and repay the loans after selling their crops at more favorable prices.

MRF intends to select warehouses from the existing pool of 5,886 registered facilities under the MyRO system, focusing on those equipped with drying machines and meeting other operational criteria. To support the system’s success, the federation is inviting partners throughout October 2026 to take part in the program. These include warehouse operators that comply with the necessary standards, third-party organizations to conduct quality and quantity assessments and monitor stored crops, banks to provide loans with terms of six to nine months and reasonable interest rates using warehouse receipts as collateral, and insurance firms to offer guarantee services.

Research cited by MRF indicates the warehouse receipt system could reduce losses caused by improper storage, improve crop quality, and help farmers maintain better market positioning during adverse weather conditions. Additionally, the initiative is expected to create employment opportunities and enhance access to market information for rural communities.

MRF has also encouraged farmers to organize into groups or cooperatives for collective storage, noting that cooperative action tends to be more effective than individual deposits. The federation has offered support to those interested in forming such groups, aiming to strengthen the program’s overall impact on the agricultural sector.