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PNB Ties Up with Origo Commodities on 8 September for providing financial assistance to farmers & MSMEs

ITVoice News: Punjab National Bank and Origo Commodities have signed an agreement on 8 September for providing financial assistance to farmers and MSMEs against warehouse receipts. Origo Commodities India Pvt Ltd is into post-harvest solutions and warehouse management services.

download (41)Two of them have entered into a Memorandum of Understanding (MoU) for warehouse receipt financing and is aiming to disburse 5 billion this fiscal year. It has been signed on a pan-India basis, but there would be significant emphasis over Southern India.

Origo Commodities mentioned in a statement, โ€œUnder this MoU, PNB, through warehouse receipts issued by Origo, will cater to the needs of MSMEs and farmers by providing financing against a pledge of agricultural commodities.โ€

It further added, โ€œBoth MSMEs and farmers are expected to benefit greatly from this association as Origo and PNB target a disbursement of over Rs. 500 crore in the current financial year under this tie up.โ€

Commenting upon the newly made association, Origo Commodities Director Mayank Dhanuka mentioned that the association with PNB would help the company reach wider and diversified markets and play a significant role in transforming the rural supply chains.

Origo currently has over three hundred warehouses into operation and more than 3.5 million tonnes of commodities with value of $1.5 billion under management. It offers services like commodity handling, collateral management and procurement services to farmers, processors, producers and corporate houses.

SS Bhatia, GM, MSME, PNB told the business line, โ€œThis initiative would help change the dynamics of commodity supply chains at the farmer level by creating the opportunity for farmers to fetch a higher price for their produce and protect them from the hassles of distress selling.โ€

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