According to the Grains, Legumes and Oil Seeds Licensed Warehouses Regulation published by the Ministry of Trade.
What is a Licensed Warehouse?
These are the facilities that provide the services of storing agricultural products in healthy conditions and storing them for commercial purposes.
What are Licensed Warehousing Services?
Services such as weighing, unloading, loading, transporting, transporting, storing and storing the products accepted to the licensed warehouse, repairing the product packaging, removing the product from the warehouse.
It is the determination of the class and quality of agricultural products suitable for storage in warehouses by authorized laboratories. These products are cereals, legumes, oilseeds, cotton, hazelnuts, olive oil, dried apricots and pistachios. Licensed warehousing ensures that these products are stored in healthy environments with modern and technological infrastructure. The Law No. 5300 on Licensed Warehousing of Agricultural Products, which aims to store the products and trade these products through issued warehouse receipts, was published in the Official Gazette on 17/02/2005 and entered into force. There are many reasons why the licensed warehousing system is preferred;
- With the licensed warehousing system, it is aimed to prevent falling prices due to the increase in the supply of agricultural products during harvest periods and to provide a balance in the market.
- Farmers using the licensed warehousing system obtain loans and financing from banks through the warehouse receipts they receive in return for their stored products.
- Trade in agricultural products is carried out on the basis of standards recognised by everyone, encouraging quality production and creating a safe market environment.
- Agricultural products are recorded with the licensed warehousing system.
- The licenced warehousing system ensures a more successful agrarian reform and increases private sector participation in the trade of agricultural products.
- It is aimed to minimise state intervention in the production and pricing of agricultural products and to move away from interventions that disrupt the free market and price formation.
- A new investment instrument is offered to investors.
- In addition to protecting the producers, traders and industrialists engaged in product trade are provided with products whose quality is determined by authorised laboratories and whose price stability is ensured.
- Agricultural trade is carried out through direct warehouse receipts or electronic warehouse receipts.
- It is planned to introduce futures and options markets in agricultural products.
- Licensed warehousing creates new business areas for the banking and insurance sectors.
- It aimed to play an important role and have a share in the trade of agricultural products in the Middle East, Balkans, Turkic Republics, and Asia.
