Challenging times ahead for agri warehousing, collateral management cos

Liquidity crisis hit expansion in this sector, banks focus on large corporate to meet priority sector lending target

The warehousing and collateral management services are passing through consolidation due to government’s aggressive procurement of foodgrains and tightening of liquidity amid fear of default.

Many private single warehouse keepers, therefore, have less than 50 per cent of occupancy and hence, turning the business unviable. Consequently, single warehouses under small and medium enterprises (SMEs) and micro, small and medium enterprises (MSMEs) have put their units on block for acquisition.

Thus, agri warehousing and collateral management services sector is facing the worst challenging times since its existence. Banks have started focusing on large corporate in food processing business, seed and fertilizer