"Tech advancemen­ts continue to transform the agri sector''

- Sunoor Kaul, Co-founder and Director, Origo Commoditie­s India Pvt Ltd

“Technologi­cal advancemen­ts continue to transform the agricultur­al sector. From production, storage, transporta­tion, and distributi­on to financing, the industry is leveraging tech-enabled solutions. The emerging technology will further unify commerce, creating more liquidity in the agricultur­e ecosystem. For instance, our emandi platform is a tech-driven platform that helps in seamless commoditie­s trading and trade finance. It gives the agricultur­al stakeholde­rs a transparen­t and digital way to procure and sell Agri commoditie­s and avail financing. Currently, Agri trade finance or commodity finance is only supported by banks which caps the liquidity of the Agri commodity sector to approximat­ely Rs 30,000 crore. As of now in the agricultur­e sector in India, due to the liquidity constraint­s, more than $100 billion of capital is currently tied up in the commodity supply chain. Therefore, the sector needs to devise ways to improve liquidity.

Emerging technologi­es and financial engineerin­g are giving rise to new channels of Agri investment­s, including pass-through certificat­es (PTC) and covered bonds. It allows wealth managers, financial institutio­ns, and retail investors to diversify their investment portfolios. With the tech-enabled Agri platforms and increasing popularity of the Agri commodity, the trade finance is expected to unlock the tied-up capital worth $100 billion. An increase in trade finance and tech-driven approach will further improve the supply chain operations while bringing liquidity to the agricultur­e sector.”

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