Origo Commodities, which is into post-harvest management services, today said it has signed an agreement with the Punjab National Bank for providing finances to farmers and MSMEs against warehouse receipts, as reported by PTI.
Punjab National Bank has entered into a Memorandum of Understanding (MoU) with Origo Commodities India Pvt Ltd for warehouse receipt financing and is targeting to disburse Rs 500 crore this fiscal.
“Under this MoU, PNB, through warehouse receipts issued by Origo, will cater to the needs of MSMEs and farmers by providing financing against a pledge of agricultural commodities,” Origo Commodities said in a statement.
“Both MSMEs and farmers are expected to benefit greatly from this association as Origo and PNB target a disbursement of over Rs. 500 crore in the current financial year under this tie up,” it added.
The MoU has been signed on a pan-India basis, but there would be a significant focus in southern India.
Origo Commodities is a post-harvest solutions and warehouse management services company in India. It currently operates 300+ warehouses and has over 3.5 million tonnes of commodities with value of $1.5 billion under management.
Its services include commodity handling, collateral management and procurement services to farmers, producers, processors and corporate houses.
“This initiative would help change the dynamics of commodity supply chains at the farmer level by creating the opportunity for farmers to fetch a higher price for their produce and protect them from the hassles of distress selling,” said, SS Bhatia, GM, MSME, PNB.
MSME financing would help create agriculture and allied infrastructure at rural level and would support farmers and MSME entrepreneurs, he added.
Commenting on the tie-up, Origo Commodities Director Mayank Dhanuka said the association with PNB would help the company reach wider and diversified markets and play a significant role in transforming the rural supply chains.