It aims to extend finance to farmers, FPOs, processors, and various depositors stocking their agri-produce in warehouses
Arya, India’s leading post-harvest Agritech Company entered into a strategic partnership with Canara Bank for collateral management and warehousing services to help farmers with effective market linkage today. The agreement was signed between Anand Chandra, Executive Director, and M Paramasivam, General Manager, Priority Credit Wing, Canara Bank.
The objective of the partnership is to support and extend finance to farmers, Farmer Producer Organisations (FPOs), processors, and various depositors stocking their agri-produce in warehouses managed by Arya pan India.
Talking about this partnership, Prasanna Rao, Co-Founder & CEO of Arya, said, “We feel extremely proud of this alliance. It has happened at the right time. Through this partnership, we are not only trying to focus on getting profit for farmers based on the quantity but also on the quality of grains they produce. Our goal has always been to create an integrated platform that offers everything in an agriculture supply chain but rural lending has been one big obstacle for us as an industry and through this partnership, we will be able to give zero paperwork, instant credits, robust solutions, and much more to our farmers, FPOs, processors, and depositors.”
M Paramasivam, General Manager, Priority Credit Wing, Head office Canara Bank said, “Arya is taking the right steps in innovation and it was also partly because of their vision that helped us establish more efficient operations for the end-users. We trust that this relationship will continue to evolve as we accelerate our transformation to meet the credit and financial needs of farmers, FPOs, and processors across the country.”
The partnership will have a huge impact on the current financing situation of agriculture businesses. While all banks are required to follow the Priority Sector Lending guidelines of the RBI, they look for efficient mechanisms to reach farmers, especially smallholders. Many banks fall short in meeting these targets in the absence of these mechanisms. Through this strategic association with Arya, Canara Bank will be able to leverage the extensive reach of Arya to over 350,000 farmers through the 450 FPOs it works with.
As a collateral manager, Arya shall facilitate post-harvest credit for the Bank through its digital platform across its network of 4000 warehouses covering more than 3.0 million tonnes of agriculture commodities, especially in primary and secondary near-farm markets.