MUMBAI (Commodity Online): Shree Shubham Logistics Ltd, a subsidiary of Kalpataru Power Transmission Ltd has signed a Memorandum of Understanding (MoU) with Development Credit Bank, facilitating post harvest credit facilities for farmers against warehouse receipts.

SSLL, managing a complete commodity value chain at its own Agri Logistics Parks at 10 locations in Rajasthan and Gujarat and expanding its footprint by setting up 17 ALPs in next 1-2 years in the state of Madhya Pradesh and Maharashtra, has ambitious plans to develop 41 ALPS across the country.
Explore Commodity Online Mobile Services

As per the arrangement, Shree Shubham Logistics Ltd, providing end-to-end solutions to all the commodity stake holders in the agricultural and non-agricultural segment with a pan-India presence, will provide collateral management to DCB for extending post-harvest credit facilities to farmers, Agri enterprises and processors.

“We are pleased to sign the agreement with Development Credit Bank. SSLL and DCB will jointly work to provide liquidity to farmers against their produce and thereby enable them to time their sale for optimal returns. We see warehouse receipt financing as a great opportunity and we will be an aggressive player in this business”, said Bafna of Shri Shubham Logistics Ltd said.

”Our services coupled with the bank’s good network will provide financial flexibility to farmers. It will reduce the seasonal price fluctuation and distress sales during the crop harvest season”, Bafna said.

Commenting on the business tie up Narendranath Mishra, Head - Agri, Micro Finance & Rural Banking DCB said, “This tie-up between DCB and SSLL will focus on the producers at the start of the supply chain. Farmers can secure post harvest credit facilities from DCB so that they do not have to resort to distress selling of their produce”.

Mishra said, “The tie-up will provide an opportunity to the bank to extend finance against warehouse receipts by utilizing collateral management services from SSLL”.

This is yet another endeavour of SSLL to help the agriculture sector by bridging the gap between producer and banks by providing collateral management services, thereby, assisting the banks, as well as the farmers and other key stake holders in the commodity sector. (Courtesy: IndiaPRWire)