Bank lending to priority sector including agriculture may have witnessed a de-growth in the last couple of years; but agricultural NBFCs (non-banking financial companies) are betting big on warehouse receipt and other agri-financing options.
Agricultural NBFCs cater to the entire value chain including farmers, traders, small agro-processing units and joint liability groups. Many of these NBFCs were floated by agri-marketing or warehousing companies, primarily to service their existing clients.
According to industry experts, banks and NBFCs put together have lent close to ?35,000 crore against warehouse receipts till date. The industry is projected to grow to ?1 lakh crore by 2020. “This segment is growing exponentially and the introduction of GST will further enhance the potential for overall growth,” Sandeep Sabharwal, CEO, Sohan Lal Commodity Management (SLCM) Group, told BusinessLine.....Read more
Source web page:Hindu Business Line