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Institute of Agribusiness Management, ANGRAU-S.V. Agricultural College, Tirupati-517 502.
This study assessed the economic impact of Warehouse Receipt Finance (WHRF) on red chilli farmers in the Guntur district of Andhra Pradesh and identified the key constraints hindering its adoption. A purposive cum random sampling method was employed to select 144 farmers and were categorized into non-users, cold storage users and WHRF users. Primary data was collected for the agricultural year 2024–25, covering aspects such as cultivation costs, yield, storage expenses, credit access and net returns. The findings revealed that WHRF users achieved significantly higher average selling prices (₹11,857.41/ quintal) and net returns (₹3,025.93/quintal) compared to non-users and cold storage users. The Benefit-Cost Ratio was also highest among WHRF users (1.34), indicating superior profitability. Constraints affecting WHRF adoption were analysed using the Garrett Ranking Technique. The most critical issues identified were insufficient quantum of finance, high interest rates from informal lenders and high warehouse storage costs. Procedural delays, inadequate storage infrastructure and lack of institutional support also emerged as notable barriers. The study concluded that while WHRF offered substantial economic benefits, its wider adoption depends on improved financial, institutional and infrastructural support for smallholder farmers.
KEYWORDS: Benefit-cost ratio, profitability, institutional support, red chilli and warehouse receipt finance.