Why does Commodity Trade Finance Look Like an Attractive Bet for Financial Institutions?

Sunoor Kaul is the Co-Founder and Director of Origo Commodities, India’s fastest growing agri-technology company. It provides end-to-end supply chain and financing solutions to the agricultural sector, thereby, streamlining commodity procurement, storage and facilitation of trade. In his capacity as the Director of Origo, Sunoor manages the Trade Finance vertical of the business, while also overseeing the technology aspects related to Trade Finance as well.   The Agri market contributes significantly to India’s GDP, making it a critical component of the country’s economy. Also, a large portion of the country’s population — which is 20% of the world’s population — depends on the sector for its livelihood directly or indirectly. India is one of the largest agriculture producers globally and stands third after the US and China. The Indian Agri sector offers tremendous growth opportunities, particularly with the population increasing rapidly and driving the demand for commodities. Farmers and traders are now turning to high-tech solutions to meet the country’s diverse food requirements. There have also been various changes in the commodities sector, growth in contract farming, financing, increased warehousing, etc., over the years. On the other hand, commodities as an underlying asset can bring in high return on investment … Continue reading Why does Commodity Trade Finance Look Like an Attractive Bet for Financial Institutions?