Agriculture

Origo signs MoU with Odisha for post-harvest solutions

Origo Commodities currently operates over 350 warehouses and has over 3.5 million tonnes of commodities with value of $1.5 billion under management. rn
Origo signs MoU with Odisha for post-harvest solutions

Origo Commodities, a leading post harvest and warehousing solutions company, has signed a Memorandum of Understanding (MoU) with the Government of Odisha to provide Preservation, Maintenance and Security services for foodgrains at various locations in the state. For the first time ever, the Government of Odisha has outsourced warehousing facilities of this magnitude to a private organization.

Commenting on the tie up, Niranjan Nayak, MD, Odisha State Civil Supplies Corporation Limited/Odisha State Warehousing Corporation, said, “We have signed a MoU with Origo Commodities for nearly 1.10 lakh MT capacity to manage, as we were impressed how they manage their warehouses, especially the cleanliness, stacking and overall maintenance of stocks at godowns.”

“With Origo’s assistance, we aim to increase the quality of stocks at our godowns and make sure that they are at par with FCI standards. We shall soon extend this model to other commodities as well and encourage private depositors to use our space. This will be a win-win proposition for farmers as well as the corporation,” he added.

“ Along with Origo, we will undertake awareness building measures in rural areas and draw up inventories in procuring commodities like onions, mango, moong and others. Origo can also pitch in procurement of paddy, especially maintaining stocks in small sized godowns being built up in Orissa for PACs. This will help us break the stranglehold of rice millers here,” Nayak said.

About this tie up, Mayank Dhanuka, Director, Origo Commodities said, “With this initiative, we hope to add significant value to the efforts of the Odisha government in ensuring proper and scientific storage of MSP procured food grains.”

Earlier, the company announced that in collaboration with National Bank for Agriculture and Rural Development (NABARD), it will open 200 Farmer Producer OrganizationsFPOs (FPOs) by next year. Origo Commodities is working towards helping farmers overcome challenges in investment, technology and market hurdles by setting up these FPOs.

Having begun its journey in agricultural services in 2010, Origo today is working with, and for farmers by setting up approximately 100 FPOs across Maharashtra, Rajasthan, Andhra Pradesh, Telangana and Karnataka, in the current fiscal year.

Sunoor Kaul, Director, Origo Commodities said, “The initiative will yield significant benefits for farmers, in terms of better input purchases and aggregation of produce for buyers.

“With these FPOs our goal is to traverse more than 0.5 million farmers over the next three years and support them with required technology, strategic marketing tools, infrastructure and other associated services to ensure enhanced benefits for them,” he added.

Origo Commodities has also signed a Memorandum of Understanding with NABARD to help support farmers and Primary Agriculture Co-operative Societies (PACS) in Maharashtra to realize better prices and improve market linkages. The Satara District Central Co-operative Bank Ltd. will be associated in the Project and extend financial assistance wherever PACS are needed.

Origo Commodities’ strategic Market Linkages Programs helps farmers to reach that extra mile and connects them directly with processors, thereby enhancing the efficiency of the rural supply chains and thus transforming the commodity markets into real seller’s (Producer) markets.

Origo’s diversified product-fold comprises warehousing services, certification, financing, procurement, technology and marketing which forms an end to end supply chain solutions for agro commodities. The company said that creating as many FPOs as possible is the quick way to help farmers by bringing them under a common group of common interests to understand their needs and support with required services. It would further strengthen the entire ecosystem with key development strategies aimed at farmers’ growth.
Origo Commodities, Agri Supply Chain Solutions Company, in collaboration with National Bank for Agriculture and Rural Development (NABARD) has announced opening of 200 Farmer Producer OrganizationsFPOs (FPOs) by next year. Origo Commodities is working towards helping farmers overcome challenges in investment, technology and market hurdles by setting up these FPOs.

Having begun its journey in agricultural services in 2010, Origo today is working with, and for farmers by setting up approximately 100 FPOs across Maharashtra, Rajasthan, Andhra Pradesh, Telangana and Karnataka, in the current fiscal year.

Sunoor Kaul, Director, Origo Commodities said, “The initiative will yield significant benefits for farmers, in terms of better input purchases and aggregation of produce for buyers. Seven FPOs will be operational in Telangana, Andhra Pradesh and Rajasthan.”

“ With these FPOs our goal is to traverse more than 0.5 million farmers over the next three years and support them with required technology, strategic marketing tools, infrastructure and other associated services to ensure enhanced benefits for them,” he added.

Origo Commodities is assisting farmers in achieving higher profitability through FPOs in major aspects of agri-business for farmers including access to better inputs, technology, procurement, storage, post harvest credit support, value addition and logistics. To strengthen this initiative, Origo plans to increase development of FPOs across the country two-fold that is from 100 to 200 by next year. For this, Origo is chipping in its own funds and is also taking help from NABARD.

Origo Commodities has also signed a Memorandum of Understanding with NABARD to help support farmers and Primary Agriculture Co-operative Societies (PACS) in Maharashtra to realize better prices and improve market linkages. The Satara District Central Co-operative Bank Ltd. will be associated in the Project and extend financial assistance wherever PACS are needed.

About the MoU, US Saha, Chief General Manager of Maharashtra Regional Office of NABARD, said, “We are taking a key initiative in the state of Maharashtra in Satara District. We are hopeful that over the next six months we would create greater awareness amongst farmers and PACS to help them in the upcoming season.”

“ We see great potential of Warehouse Receipt Financing across the state as they benefit farmers a great deal. This initiative would reach out to 20 PACS and around 15,000 farmers directly,” he added.

NABARD has been involved in promoting PACS to act in diversified business so as to help farmers in inputs/outputs, marketing etc. NABARD has also financed PSUs and Private Entreprenuers as well for creating godown/warehouse infrastructure for reducing storage losses and for farmers benefit.

“After the huge success of our projects in Andhra Pradesh and Telangana in the first phase, we have launched this second phase along with NABARD in Maharashtra. We aim to provide financing benefits to as many farmers as possible through Warehouse Receipt Financing, this ensuring that they get ‘fair market value’ for all their hard work,” Kaul said.

Negotiable Warehouse Receipt (NWR) financing is an important tool that farmers can utilize to avoid distress sale of their produce and one that helps them to realise the actual market price. Through Warehouse Receipt Financing, farmers are allowed to make deposits at a warehouse close to their farm and obtain pledge financing to the extent of 70-75 per cent of the value of the commodity. This value helps them to manage their interim cash requirements.

Origo Commodities’ strategic Market Linkages Programs helps farmers to reach that extra mile and connects them directly with processors, thereby enhancing the efficiency of the rural supply chains and thus transforming the commodity markets into real seller’s (Producer) markets.

Origo’s diversified product-fold comprises warehousing services, certification, financing, procurement, technology and marketing which forms an end to end supply chain solutions for agro commodities. The company said that creating as many FPOs as possible is the quick way to help farmers by bringing them under a common group of common interests to understand their needs and support with required services. It would further strengthen the entire ecosystem with key development strategies aimed at farmers’ growth.

Origo Commodities currently operates over 350 warehouses and has over 3.5 million tonnes of commodities with value of $1.5 billion under management.

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