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The micro warehouses at village level is a low cost format. At the time of accepting goods in the warehouses, the company checks the quality and weight and issues a warehouse receipt certifying the weight, grade and quality. Based on this data, the company is able to negotiate with the buyers to discover the highest possible price. In this manner, the micro warehouse network helps the company to accomplish procurement as well as transaction execution.

On the other hand, farmers using such micro-medium warehouses have experienced themselves that through scientific warehousing, the quality of food grains can be maintained and moisture, fungus, broken, shriven, etc. can be controlled. This translates into higher price realization and low wastage.