Lack of awareness and poor access to credit are the biggest constraints due to which farmers are unable to make right choices about selling their farm produces. Liquidity issues and limited information on market real price trends, vagaries of the monsoon and inadequate storage facilities contribute to relatively low price realization for farmers. Our collateral management services transform agro commodities into valid collateral for accessing credit and create a medium for farmers to create immediate liquidity post-harvest, without resorting to distress sales.
By using warehouse receipt financing, farmers are able to access working capital at relatively low cost, unlocking the value of the commodities they produce. Our scientific commodity testing, certification, storage, preservation and monitoring services unlock and secure the real value of the commodity as a lendable asset.
A number of financial institutions partner with us to offer loans against warehouse receipts issued by us or on behalf of third-party/associates. The result is lower-cost structured financing that is more viable for farmers as it aligns repayment schedules to actual usage of stock.
This credit system contributes greatly in improving farm incomes and it can help domestic prices by providing an instrument for spreading commodity sales throughout the crop cycle. We offer this solution to our permanent farmers, processors and local traders across our procurement network.
Traditionally, warehouses in India were broadly classified into public, bonded, government and co-operative warehouses.
Bahuvida Limited is establishing an end-to-end supply chain network by creating Private Mandi's/Agricultural Market Yard's to provide warehousing, handling and transportation services across the nation.