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StarAgri inks pact with IDBI Bank
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Wednesday, 28 October, 2026, 08 : 00 AM [IST]
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Our Bureau, Mumbai
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StarAgri, has signed an agreement with IDBI Bank, one of India’s leading financial institutions to provide collateral management services in the agriculture sector. The partnership will facilitate access to credit for farmers, traders, processors and other stakeholders across the agricultural value chain who store their produce in StarAgri-managed warehouses.
Under the arrangement, farmers, traders, processors and allied agri-players can store their agricultural commodities in StarAgri’s warehouses and obtain warehouse receipts against their deposited produce. IDBI Bank can then extend finance against these receipts, enabling borrowers to access credit without having to sell their produce immediately to meet their financial requirements.
IDBI Bank is targeting lending of 2000 crore with StarAgri in this segment, with StarAgri serving as a key partner in expanding the reach of warehouse receipt-based finance. The partnership will support the bank’s efforts to extend agricultural credit to a wider base of stakeholders while contributing to its priority sector lending objectives.
Warehouse receipt-based finance provides a mechanism for stakeholders across the agricultural value chain to access working capital against stored commodities. It can help farmers avoid distress sales at harvest time while enabling traders and processors to manage their working capital requirements. The arrangement also provides banks with a structured low-risk and one of the safest lending mechanisms backed by commodities held in managed warehouses. It additionally helps banks meet their priority sector lending goals.
Over the years, StarAgri has facilitated more than Rs 3 lakh crore in warehouse receipt-based finance, with negligible non-performing assets. As a pioneer in collateral management and warehouse receipt-based financing, the company has played a significant role in developing this category and strengthening the institutional framework for agricultural commodity-backed lending.
Commenting on the milestone, Amith Agarwal, CEO & Director, StarAgri, said, “It is a matter of great pride and recognition to have IDBI Bank partner with us for their collateral management services to support agricultural finance. Through this partnership, we’ll extend the bank’s exemplary services to the farmers and agripreneurs across our pan-India network. This agreement is a key step towards achieving our vision of connecting with farmers directly while ensuring efficiency and traceability across the agri-value chain.”
StarAgri operates one of India’s largest warehousing networks and provides integrated solutions across the agricultural value chain. Its services include warehousing and collateral management, a digital marketplace, digital farm mapping and agri-finance solutions. Through its network and technology-led services, the company aims to improve access to markets, storage and finance for agricultural stakeholders across the country.
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