National Bank for Agriculture and Rural Development (Nabard) and Origo Commodities, a collateral management firm, have entered into a Memorandum of Understanding (MoU) to support farmers in Andhra Pradesh and Telangana to realize better pricing for their harvest.
This will be done by providing them a facility for pledging their produce under Negotiable Warehouse Receipt financing. Origo allows farmers to make deposits of their produce in its warehouses and obtain pledge financing.
“This MoU is going to help farmers to a great extent by realising the right price by offering them options to sell their produce at the right time. The initiative also focuses on Warehousing Development and Regulatory Authority (WDRA) accreditation so that farmers can benefit from post-harvest loans at 7% p.a. with interest subvention,’’ Jiji Mammen, Chief General Manager, Andhra Pradesh and Telangana Regional Office, Nabard said on Monday.
The joint would enable farmers to use the warehousing infrastructure of Primary Agriculture Co-operative Societies (PACS) and also more than 100 warehouses managed by Origo Commodities across Andhra Pradesh and Telangana.
Sunoor Kaul, Director, Origo Commodities said: ``The initiative will yield significant benefits for farmers in Telangana and Andhra Pradesh. The key to success will be to make rural infrastructure accessible to farmers on the post-harvest side.’’
Origo Commodities will also extend its support in creating multiple integrated marketing platforms and storage infrastructure to sustain the activities of PACS and FPOs on post-harvest side, he added.