Origo Commodities’ tie-up with NABARD to provide Warehouse Receipt Financing
A collaboration made between the Origo Commodities and the NABARD will be providing a ‘warehouse receipt financing’ to the farmers of Andhra Pradesh and Telangana, as per reports provided by the former, Origo collateral management firm.
The tie up between the collateral management firm, Origo Commodities and the NABARD aimed at providing Telangana and Andhra Pradesh farmers with ‘warehouse receipt financing’ will enable them to deposit their crops at a warehouse nearest to their own farms and in return pledge financing from banks. The estimated value for the financing will be approximately 70-75% of the commodity value deposited.
Where shall it be implemented?This joint initiative undertaken by the 2 organisations will be providing services to over 100 warehouses that are managed across the various parts Andhra Pradesh and Telangana by the Origo Commodities and also other warehouses belonging to the Primary Agriculture Co-operative Societies (PACS).
Benefits of the tie-up: It is believed that such an MOU (Memorandum of Understanding) between the two organisations can help farmers a lot. Chief General Manager of NABARD at Telangana and Andhra Pradesh, Jiji Mammen commended the collaboration, saying that the farmers have much to benefit from this.
- It will enable them to get the right price for their crops.
- Farmers will have the option of selling their produce at the right time.
- They will gain during the post-harvest period by getting loans at the rate of 7 per cent per annum with interest subvention. This will be possible as a result of theaccreditation of the Warehouse Development and Regulatory Authority (WRDA).
Director of Origo Commodities, Mr. Sunoor Kaul believes that the key objective of such measures is to ensure that rural infrastructure is made accessible to all farmers after the harvesting season. Various multiple integrates marketing platforms as well as storage facilities shall be provided for the farmers by the company during this period. Storage facilities will help them sustain the activities of the PACs and FPOs.
Creating awareness of the project and reaching out to the farmers is necessary for the successful implementation of the plan. NABARD and Origo Commodities plan to take measures in spreading the message among the PACs and farmers on Negotiable Warehouse Receipts and also measures that can avoid “distress sale” during the time of harvest.
Source: The Economic Times
collateral management firm, NABARD, Origo Commodities, PACS, Primary Agriculture Co-operative Societies, Warehouse Development and Regulatory Authority, WRDA
