Arya, a post-harvest agritech start-up has collaborated with Canara Bank to provide collateral management and warehousing services. The aim is to assist and fund producers, farmer producer organisations (FPOs), processors, and other depositors who store their produce in Arya-managed warehouses.
Anand Chandra, Arya's Executive Director, and M Paramasivam, Canara Bank's General Manager, Priority Credit Wing, signed an agreement.
‘Our goal has always been to develop an interconnected network that covers the entire agriculture supply chain, but rural lending has been a major roadblock for us as a business. We will be able to offer our producers, FPOs, processors, and depositors zero paperwork, instant credits, comprehensive solutions, and much more as a result of this partnership,’ said Prasanna Rao, Co-Founder and CEO of Arya, in a tweet.
Via the 450 FPOs that Arya deals with, Canara Bank will be able to tap into Arya's network of over 350,000 farmers.
‘We collaborated with Arya to address the needs of a rapidly evolving market and a diverse borrower base, as well as to reposition ourselves in an aggressive lending environment,’ Paramasivam clarified.
As a collateral manager, Arya will support the bank with post-harvest credit through its digital network, which will cover more than 3 million tonnes of agriculture commodities through 4,000 warehouses, mainly in primary and secondary near-farm markets.
