Why Agri Financial Services Are Essential
The agricultural value chain involves more than just cultivation and harvesting. From procurement to storage to processing to distribution, every part of the value chain depends on getting financial support on time and handling commodities correctly. That’s why Agri Financial Services play an important role in this process, providing the connection between financing and successfully managed agricultural operations.
At SLCM, we achieve this by using a comprehensive approach that combines services of scientific warehousing with collateral management, commodity management, financing and providing services of procurement, transportation, processing and distribution. By combining all these services into one structure, we create a system that allows moving and maintaining the commodities in the agricultural value chain.
SLCM's Integrated Approach to Agri Financial Services
At SLCM, Agri Financial Services are part of an integrated agri value chain rather than a standalone offering. We have developed our service as a combination of various processes, robust SOPs, taking advantage of warehousing science, commodity management, collateral management, and agriculture financing.
Agri financing is closely related to secure storage, receipt management, and organization of commodity management processes. The approach we are employing in our work allows one to make sure that the process of commodity management is organized, and the financing needs are fulfilled at any stage of the chain.
How Kissandhan Supports Agri Financial Services
Kissandhan is a Non-Banking Financial Company regulated by the Reserve Bank of India and is part of the SLCM Group. It serves the agricultural sector by providing financing solutions using the agricultural commodities stored in approved warehouses as collateral.
Kissandhan’s goal is to enable its customers to improve the agricultural supply chain through competitive financing solutions designed for farmers and agricultural businesses. The commodity-backed financing offered here collaborates with the competency in warehousing and commodity management within the SLCM Group to complete the financing cycle of operations.
Commodity-Backed Financing Through Collateral Management
One of the core services of SLCM is its Collateral Management, which leads to effective financing of agriculture. The commodities stored at SLCM warehouses serve as the collateral to Storage Receipt Financing.
The services offered by us include warehouse receipt management, monitoring of commodities, audit, provision of security services, and commodity quality management. These services ensure proper management of commodities throughout the storage period. Thus, Agri Financial Services is assisted with proper collateral management, which provides transparency and consistency in commodity-backed financing.
Risk Management and Quality Assurance Support Agri Financial Services
In addition to storage, commodity management also plays a key role in ensuring reliable financing. Under SLCM’s Agri Financial Services, commodities are monitored to ensure their quality and state of condition.
Through its various services, SLCM provides insurance support, commodity inspections, warehouse surveillance, internal audits, and quality testing. The risk management system uses Standard Operating Procedures; and includes audit inspections, and methodologies supported by using SAP technology, and real-time reporting.
Quality testing services also consist of AI/ML powered commodity check & real-time reporting, moisture relevance tests, fumigation inspections, physical inspections, and state of health assessments of commodities. Other activities include the use of NABL-accredited Analytical Central Laboratory for quality testing using sophisticated analytical devices.
Integrated Agri Financial Services for the Agricultural Value Chain
At SLCM, we use an integrated approach toward agricultural financing that incorporates scientific warehousing, collateral management, quality assurance, and risk management in agriculture. These connected services enhance agricultural finance services by connecting funding to the secure storage of commodities and managing commodities properly. This strategy is part of our integrated agri value chain and it provides assistance in movement and management of goods through different stages of agriculture. If you are in search of complete solutions combining financing and managing commodities, you can rely on SLCM in order to provide help with your business needs. Connect with us today!
What does the term Agri Financial Services refer to?
Agri Financial Services are connected to the agricultural finance sector and in addition, scientific warehousing, management of collateral, and management of commodities.
How does SLCM help in agricultural financing?
SLCM is involved in agricultural financing by means of scientific warehousing, management of collateral, financing through warehouse receipts, and management of commodities.
What does Collateral Management do at SLCM?
The Collateral Management function is responsible for enabling financing in terms of warehouse receipts, commodity monitoring, auditing, security, and management of the quality of commodity.
How does SLCM ensure the quality of commodities?
SLCM ensures the quality of the commodity by providing insurance support, inspection of commodities, monitoring of warehouses and performing internal audits and testing of quality.
Why does SLCM opt for financing integrated with warehousing?
SLCM goes for financing linked to scientific warehousing and collateral management as well as management of commodities in order to aid the agricultural value chain.
