Origo Commodities inks MoU with Canara Bank

New Delhi: Canara Bank today said it has entered into an agreement with post-harvest management services company Origo Commodities India to support farmers with Warehouse Receipt Financing across the country.

Warehouse Receipt Financing is a tool that enables farmers to avail financing and avoid distress sale of their produce.

"The MoU between Canara Bank and Origo Commodities will focus across multiple states including Karnataka, Telangana, Andhra Pradesh, Tamil Nadu and Maharashtra among others," Origo Commodities said in a statement.

Speaking on the partnership Canara Bank General Manager S Ramesh said, "Given the importance of produce loan financing, this MOU will go a long way in helping the farmer clientele of Canara Bank.

"The MoU will be win-win situation for all the parties, and allowfarmers to take benefit of the produce loan scheme to improve yields and better their living standards."

Ramesh also added that the bank is targeting more than Rs 1,000 crore business under?warehouse receipt financing in the coming season.

Commenting on the tie-up, Origo Commodities Director Mayank Dhanuka said, "The association with Canara Bank will be key to target?under penetrated villages and leverage Origo's infrastructure to provide the best possible support to Farmers in the coming season."

Origo Commodities has presence across 15 states and currently operates over 300 warehouses and has over 3.5 million tonnes of commodities with value of USD 1.5 billion under management.

Its services include commodity handling, collateral management and procurement services to farmers, producers, processors and corporate houses.