Origo Commodities, SBI tie up to provide post-harvest credit to farmers

Origo Commodities India on Monday said it has tied up with the State Bank of India (SBI) to offer post-harvest credit facility to farmers across the country against warehouse receipts.

Origo Commodities, which provides post-harvest management solution, at present manages 35 lakh tonnes of agricultural produce across 15 states in 500 warehouses.

"We are pleased to tie-up with the State Bank of India (SBI) to reach out to farmers to ensure they understand and avail short-term finance against the warehouse receipts," Origo Commodities Director Sunoor  Kaul said.

"Through the years and our work, we have seen farmers earn close to 15-20% more on their produce by avoiding distress sale," Kaul said.

Origo Commodities is an implementation agency mandated by the National Bank for Agriculture and Rural Development (NABARD) to promote Negotiable Warehouse Receipts (NWR) at farmers' level through Primary Agricultural Cooperative Societies (PACS) and co-operative banks.

Warehouse receipt financing is an essential financial tool for farmers to avail loans by storing crops in warehouses.

The company said that this segment is expected to grow up to Rs 1 lakh crore in the next five years from its present Rs 35,000 crore business.