NEW DELHI, 29 October 2025: Arya.ag, an integrated grain commerce platform, has partnered with South Indian Bank to expand access to warehouse receipt financing across 425 agricultural districts.
The collaboration, announced under a Business Correspondent model, targets smallholder farmers, Farmer Producer Organisations (FPOs), and agri-enterprises that remain underserved by the formal credit system.
Industry estimates suggest that more than 60% of smallholder farmers still operate without institutional finance. A large portion of post-harvest loan demand, pegged at over INR 1.4 lakh crore, remains unmet as lenders often hesitate to back producers lacking conventional collateral. Rural traders too face working capital constraints through crop cycles.
Arya.ag’s Co-founder and Executive Director Anand Chandra said the platform converts stored commodities into digital assets, enabling transparent storage, finance, and sale. “South Indian Bank’s strong institutional commitment and expansive reach make them a natural partner as we work to bring responsible, risk-mitigated credit closer to India’s remote agricultural districts,” he said, adding that the partnership aims to facilitate over INR 250 crore in credit.
Arya.ag operates more than 11,000 digitised warehouses offering storage, aggregation, market linkage, and embedded finance. The tie-up will allow farmers to access loans against stored produce, helping them avoid distress sales immediately after harvest.
Senthil Kumar, Senior General Manager and Head – Credit at South Indian Bank, said the alliance opens new formal credit channels. “Farmers can now leverage Arya.ag’s data-rich and digitized warehousing solutions to store their produce and sell it at an opportune time to maximize earnings,” he said. The bank expects the effort to pull underserved groups into organised finance.
The warehouse-receipt model shifts lending risk from borrower credentials to the insured value and condition of the commodity. Arya.ag reports zero NPAs on more than USD 1.54 billion in credit facilitated last fiscal through co-lending and correspondent partnerships. The company now serves 8 lakh farmers and 1,600 FPOs, many in climate-vulnerable regions.
The initiative aligns with national goals to strengthen agri-infrastructure, expand financial inclusion, and promote climate-resilient food systems.
