Assessment of Effectiveness of Warehouse Receipt System in Cashewnut Marketing in Tandahimba District

The intention of the study was to assess the effectiveness of warehouse receipt system (WRS) in cashewnut marketing in Tandahimba district. Field data were collected from May to July 2013. The study used both primary and secondary data and they were analyzed using SPSS computer program. The study found that WRS had brought some small improvement in farmers’ income. It was shown that what farmers were getting after introduction of WRS in cashewnut marketing was slightly higher than before. This was achieved by enabling farmers to get better prices for their produce and gain access to credit from commercial banks. It was also found that farmers were paid in installment basis although majority of them did not like the mode since it associated with loss of money and time on frequently chasing for their payments. It was also agreed that WRS was protecting farmers against price fluctuation. When prices fell warehouse(s) used to stock RCN till the time when prices go high and sell at better prices for the farmers to set high income. Lastly the study found that market constraint experienced by farmers due to introduction of WRS were minimum price setting, lack of transparency in the system, improper measurements of the RCN, and lack of sufficient storage facilities in warehouse. The study recommends that farmers should continue using WRS since the system is effective at improving their household incomes in the near future. They should be patient and pay more attention to the quality of their produce