Post-harvest agritech firm Arya has entered into a strategic partnership with Canara Bank for collateral management and warehousing services. The objective is to support and extend finance to farmers, farmer producer organisations (FPOs), processors and various depositors stocking their produce in warehouses managed by Arya.
An agreement was signed between Anand Chandra, Executive Director, Arya, and M Paramasivam, General Manager, Priority Credit Wing, Canara Bank.
“Our goal has always been to create an integrated platform that offers everything in an agriculture supply chain, but rural lending has been one big obstacle for us as an industry. Through this partnership, we will be able to give zero paperwork, instant credits, robust solutions and much more to our farmers, FPOs, processors and depositors,” said Prasanna Rao, Co-Founder and CEO of Arya, in a statement.
Canara Bank will be able to leverage Arya’s reach to over 350,000 farmers through the 450 FPOs the latter works with.
“We partnered with Arya to meet the needs of a rapidly changing industry and a diverse borrower base, while also repositioning ourselves in an aggressive lending environment,” said Paramasivam.
As a collateral manager, Arya shall facilitate post-harvest credit for the bank through its digital platform across its network of 4,000 warehouses covering more than 3 million tonnes of agriculture commodities, especially in primary and secondary near-farm markets.