Ministry of Agriculture, Forestry and Water Management has prepared a Draft Law on Public Warehouses for Agricultural Products that incorporates all internationally recognized and proven principles of commodity-based financing, taking into consideration all the specifics of the Serbian legal and agricultural products market systems.
The Draft Law has been accepted by the Government of Serbia on September 11, 2008 and is now pending adoption by the Serbian Parliament. The Law on Public Warehouses for Agricultural Products represents an important part of market-oriented development activities that aim to introduce a new market infrastructure for agricultural commodities in Serbia.
Through our Agribusiness Project, we have and will continue to carry out activities to complement the efforts of the Ministry of Agriculture, Forestry and Water Management. In addition, we will also continue providing technical and financial assistance to Serbian producers, agricultural cooperatives and associations to help them improve productivity, expand value-added agricultural processing, remove export constraints, acquire necessary certification and standards and access new markets globally. (Michael Harvey, USAID Mission Director)
The main objectives of the conferences were to present Serbia’s Warehouse Receipt legislation, related programs, international experience in Warehouse Receipt System development in the region and the main features of the future Warehouse Receipt System in Serbia. This opportunity was also used to introduce the major structural components needed for the implementation of the Warehouse Receipts System in Serbia and the relevant international experience of financial institutions involved in commodity based financing.
The conference provided an opportunity for relevant representatives of government regulatory institutions, public warehouse operators, financial and banking sector, producers, processors and traders to become acquainted with the Warehouse Receipt System to be established in Serbia.
The USAID Agribusiness Project is currently working with the Ministry on the development of relevant by-laws that will enable structuring of an efficient Warehouse Receipts System upon the adoption of the Law by the Serbian Parliament. Subsequent assistance to be provided will focus on assisting the Ministry, relevant institutions and regulatory bodies with the implementation of the Law.
AN EFFICIENT WAREHOUSE RECEIPT SYSTEM SHOULD PROVIDE
• Uniform and well regulated system of commodity storage.
• Protection of depositors, ensuring the quality and quantity of deposited commodities.
• A foundation for the use of warehouse receipts, which are treated as official certificates of ownership over commodities and can be used for obtaining short-term loans.
• Improvement of whole market infrastructure of agricultural products
• Encourages foreign investments.
• A necessary foundation for the development of financial derivatives market.
