PTI Joint venture to offer farmers in AP, Telangana warehouse receipt financing
New Delhi, Nov 10: (Source: The Hindu Businessline)
Collateral management firm Origo Commodities today said it has tied up with Nabard to provide ‘warehouse receipt financing’ to farmers in Andhra Pradesh and Telangana. Under this facility, farmers are allowed to deposit the crop at a warehouse closest to their farms and obtain pledge financing from banks to the extent of 70-75 per cent of the value of the commodity.
The joint initiative will enable farmers to use the warehousing infrastructure of Primary Agriculture Co-operative Societies (PACS) and also more than 100 warehouses managed by Origo Commodities across Andhra Pradesh and Telangana.
“This memorandum of understanding (MoU) is going to help farmers to a great extent by realising the right price by offering them options to sell their produce at the right time,” Nabard Chief General Manager at the Andhra Pradesh and Telangana Regional Office, Jiji Mammen, said in a statement.
The initiative also focuses on Warehousing Development and Regulatory Authority (WDRA) accreditation so that farmers can benefit from post-harvest loans at 7 per cent per annum with interest subvention, he added.
Origo Commodities Director Sunoor Kaul said since the key to success will be to ensure rural infrastructure accessible to farmers during the post-harvest period, the company will extend support in creating multiple integrated marketing platforms and storage facilities to sustain the activities of PACs and FPOs.
Under the MoU, Nabard and Origo Commodities will be creating awareness among PACs and farmers on Negotiable Warehouse Receipts and measures to avoid “distress sale” at the time of harvest, the company added. (Source: The Hindu Businessline)