Key to the success of the eWHR regime is widespread investment in near farm storages and agri warehouses which will participate in the regime. All of the facilities which have applied to Naymat for accreditation to date are mills given that the majority of Pakistan’s silo capacity lies within them. Many private sector players have expressed an interest in evaluating the business model for stand-alone agri-warehouses which would participate in the eWHR regime. In order to promote investment in agri warehousing and give comfort to those evaluating the business model, PAC convinced USAID to fund a feasibility study for stand-alone agri warehousing businesses which would participate in the eWHR regime. The USAID feasibility study which PAC is participating in is currently in its completion stages with results forthcoming.
Ninety percent of Pakistan’s farmers are smallholders who own less than 12.5 acres of land. For small farmers who cannot deposit at least 10 tons of commodity in an accredited warehouse, the economics of participating in the eWHR regime become challenging. Thus, PAC has designed business models for village aggregation centers which will be piloted in the coming fiscal year. In the village aggregation model, near farm entrepreneurs/organizations would provide aggregation services to small farmers and facilitate their participation in the eWHR regime.
