"Tech advancements continue to transform the agri sector''
“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.”