To address the food security challenges of
Under the project, farmers will be able to store their product in international standard silo storage facilities and obtain commodity-based financing against this inventory, which acts as a collateral for the banking institution.
Typically, farmers face immense pressure at harvest time to sell their crop at unfavorable prices due to limited quality storage options and urgent need for cash to invest in the next crop cycle. Traditional grain storage methods expose the product to quality degradation and potential infestations, which severely depletes or completely erodes its value. As a result, farmers and the agricultural sector of
By providing farmers a facility to store their produce safely and sell it at a time and rate of their choice, the warehouse receipt financing project will empower farmers through better economic outcomes and provide them sufficient cashflow to meet their expenses.
In a joint statement,
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