Sohan Lal Commodity Management (SLCM), a post-harvest service provider for agricultural commodities, has signed an agreement with the Tamil Nadu Foodgrains Marketing Yard (TNFMY) to provide finance against commodities stored in the latter’s warehouses.

TNMFY is a unique product that aims to provide the necessary infrastructure for cereals, pulses, and staples for milling clusters in and around Madurai, a press release issued by SLCM said.

Traders and processors can store their produce in the TNMFY warehouses and apply for finance under warehouse receipts, commonly known as pledge financing.

“Most of the TNFMY warehouse depositors are customers of banks which have a tie-up with SLCM as their ‘empanelled collateral manager’. As a result, SLCM will be instrumental in smooth processing and easy facilitation of funds for the depositors,” the release said.

The statement quoted SLCM Group Chief Executive Officer Sandeep Sabharwal as saying that the agreement with the Tamil Nadu body is a major step towards promoting the ease of financial inclusion for agri traders and processors.

Sabharwal said its relations with six leading private and public sector banks will help those depositing commodities in warehouses.

SLCM will monitor the crops and produce stored by individuals using its proprietary solution “AgriReach” which allows real-time monitoring and management of crops through its cutting edge technology of surveillance “Agri Suraksha”.

“AgriReach” which helps monitoring produce round-the-clock through mobile phones, can also help experts to maintain the quality of the stored crop, it said.

The statement said, SLCM — set up in 2009 — can help in establishing industry-standard warehouse operations anywhere across the country within 24 hours.

TNFMY is headed by S Rethinavelu, also the senior president of Tamil Nadu Chamber of Commerce & Industry, Madurai.

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