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Collateral Management

Lack of awareness and poor access to credit are the biggest constraints due to which farmers are unable to make right choices about selling their produce. Liquidity issues along with limited information on market price trends, vagaries of the monsoon and inadequate storage facilities contribute to relatively low price realisation for farmers.

Our collateral management services transform commodities into valid collateral for accessing credit and create a medium for producers to create immediate liquidity post-harvest, without resorting to distress sales.

By using warehouse receipt financing, farmers are able to access working capital at relatively low cost, unlocking the value of the commodities they produce.

Our scientific commodity testing, certification, storage, preservation and monitoring services unlock and secure the real value of the commodity as a lendable asset.

A number of financial institutions partner with us to offer loans against warehouse receipts issued by us.

The result is lower-cost structured financing that is more viable for commodity owners as it aligns repayment schedules to actual usage of stock.

This credit system contributes greatly in improving farm incomes and it can help smoothen domestic prices by providing an instrument for spreading commodity sales throughout the crop cycle.

We offer this solution to farmers, processors and traders across our warehouse network.