Government Control on Storage
The storage facilities should be regulated through the state laws. Such regulation is essential in the public interest. If laws regulating the storage exist in the country, the consu-mers will be protected from the unscrupulous individuals. Moreover, they will guarantee the integrity of warehouse receipts. In most of the industrially and commercially advanced countries necessary Acts prevail for the control of the functions of storage.
For example, there is one Act in the USA known as the United States Warehouse Act,1916.This Act provides for the licensing and the bonding of the public warehouses storing certain agricultural commodities under conditions intended to establish the integrity of warehouse receipts and to make these receipts generally acceptable as security for loans.
Government control of storage is necessary to establish a uniform system of warehousing concerning farm products. When the products like cotton, grain, wool and tobacco are stored under a uniform system, it facilitates their financing while in storage through warehouse receipts of of acceptable quality. The uniform system of warehousing also reduces marketing costs.
Need for Licensed Warehousing In Bangladesh
It has been suggested frequently that the system of licensed warehousing should be introduced for the benefit of the traders engaged in jute business. 22% among the beparis and farias do not find any necessity for licensed warehouses, 44% think that such storage facilities may be useful to them at times. Only 23% are of the view that they would be definitely useful to them. The intermediaries who found the system of licensed warehousing as a useful possibility, however, attached the following important conditions to their opinion.
(a) The warehouse should have arrangements for making sales on the spot.
(b) There should be some arrangements for advancing money against the receipt either by the warehouse operator or by an agency attached to it.
(c) The warehouse owner should store the traders’ jute carefully so that it does not deteriorate in quality.
(d) There should not be any delay and red tape in receiving and making delivery of stock and there should not be corrupt practices like taking bribe from people.
(e) There should not be any mixing of their jute with other people’s jute, in that case they might lose.
(f) Such warehousing would be helpful if they could sell without the intermediary of the aratdars and if the grade was certified by the Government. so that it is accepted by all.