Origo Commodities signs MoU with SBI
Origo Commodities India Pvt. Ltd., a leading commodities Company, has tied up with State Bank of India to offer post-harvest credit facility to farmers all across India. Aimed at empowering farmers to avail of fair price discovery of their produce through affordable finance, scientific storage facilities, Origo is set to reach out to over 1 lakh farmers across the country.
On the occasion of signing the MoU, Mr. Krishna Mohan Trivedi Chief General Manager (Rural Business) State Bank of India, Corporate Office, Mumbai said,
“Our Bank is focusing on financing farmers by way of pledge of their stocks of Agri commodities under its Produce Marketing Loan Scheme. To encourage the farmers to avail these loans with the objective to avoid distress sale of their produce at the time of harvest, Bank is offering Competitive Interest Rates, Waiver of Processing Fee, Relaxations in Margin and NIL Collateral Security for loans upto Rs.50 Lac. Bank is arranging Meets of Farmers, Godown Owners, Collateral Managers and its field staff to create awareness about Warehouse Receipt Financing”.
Speaking about the tie up, Sunoor Kaul, Director, Origo Commodities, said,“ We are pleased to tie up with State Bank of India to reach out to farmers to ensure they understand and avail short-term finance against the warehouse receipts. Through the years and our work, we have seen farmers earn close to 15-20% more on their produce by avoiding distress sale, and having a say in terms of when is the right time for them to sell their produce.”
Warehouse receipt financing is an essential financial tool for farmers to avail loans by storing crops in warehouses. According to Origo Commodities statistics, this segment is expected to grow up to Rs. 1 lakh crore in the next five years, given the growing awareness amongst farmers in this regard. Today it is a Rs. 35,000 crore business, from a Rs. 5,000 crore a decade ago. The average ticket size of financing that farmers take has been between Rs. 1 lakh to Rs. 3 lakhs.
Having begun operations in 2010, Origo Commodities currently manages 35 lakh tonne of agricultural produce across 15 states in 500 warehouses with total assets under management worth Rs. 8,500 crore.
Origo Commodities is a complete post-harvest management solution provider, as well as an implementation agency mandated by NABARD to promote Negotiable Warehouse Receipts (NWR) at farmers’ level through Primary Agricultural Cooperative Societies (PACs) and co-operative banks.