Synopsis
The Arya-Canara Bank partnership aims to support and extend finance to farmers as well as give them access to warehouses managed by the agritech startup across India.
Kolkata:Arya, a post-harvest agriculture technology startup, has entered into a strategic partnership with
Canara Bank for collateral management and warehousing services to help farmers with effective market linkage.
The partnership aims to support and extend finance to farmers, Farmer Producer Organisations, processors, and various depositors stocking their agri-produce in warehouses managed by Arya pan India.
While all lenders—public or private—are required to follow the
Reserve Bank of India’s priority sector lending guidelines, they look for efficient mechanisms to reach farmers, especially small holders. Many banks fall short in meeting these targets in the absence of these mechanisms. Canara Bank, through this strategic association with Arya, will be able to leverage the extensive network of the agritech startup to reach more than 350,000 farmers through the 450 FPOs it works with. As a collateral manager, Arya will facilitate post-harvest credit for the lender through its digital platform across its network of 4,000 warehouses covering more than 3.0 million tonnes of agriculture commodities, especially in primary and secondary near-farm markets.