WHEREAS, it has been necessary to introduce a system that enables the farmer whenever supply exceeds demand to deliver his products to the warehouseman upon receipt of a document of title to the products and to reclaim his products;
WHEREAS, the producer benefits from such a system, which constitutes a valid contract between the bailee and the bailor, which entitles the latter to transfer his rights over the stored products to any buyer by simple delivery of the receipt;
WHEREAS, the system enables the bailor to borrow money from banks or similar lending institutions upon offering the warehouse receipt as collateral;
WHEREAS, the system insulates the producer from price shocks; promotes efficient marketing of standardized agricultural products and financial activities;
NOW, THEREFORE, in accordance with Article 55(1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows:
