ITVoice News: Punjab National Bank and Origo Commodities have signed an agreement on 8 September for providing financial assistance to farmers and MSMEs against warehouse receipts. Origo Commodities India Pvt Ltd is into post-harvest solutions and warehouse management services.
Two of them have entered into a Memorandum of Understanding (MoU) for warehouse receipt financing and is aiming to disburse 5 billion this fiscal year. It has been signed on a pan-India basis, but there would be significant emphasis over Southern India.
Origo Commodities mentioned in a statement, “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.”
It further added, “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.”
Commenting upon the newly made association, Origo Commodities Director Mayank Dhanuka mentioned that the association with PNB would help the company reach wider and diversified markets and play a significant role in transforming the rural supply chains.
Origo currently has over three hundred warehouses into operation and more than 3.5 million tonnes of commodities with value of $1.5 billion under management. It offers services like commodity handling, collateral management and procurement services to farmers, processors, producers and corporate houses.
SS Bhatia, GM, MSME, PNB told the business line, “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.”
