The start of the implementation of contract farming of wheat on the platform of financial management of the supply chain
According to the financial news report Farshid Farrokhnejad, the CEO of the Bank of Agriculture, referring to the agency of the Bank of Agriculture in the guaranteed purchase of more than 7.2 million tons of wheat worth about 830 thousand billion Rials from farmers in the current crop year and the payment of billions of Rials in facilities For the purchase of agricultural inputs, he emphasized the importance of replacing new instruments of accrual and credit financing instead of traditional and cash methods and said: in the form of contract farming on the platform of supply chain management, the farmer can get the inputs and services he needs to provide a credit statement without paying cash from the relevant organizations, and after harvesting the product and handing it over to the government, these costs will be deducted from the guaranteed purchase funds of the product.
He added: Following the successful experiences of contract farming in the past years, in line with the policies of the Ministry of Agricultural Jihad and based on the roadmap and guidelines of the Central Bank, this year the Bank of Agriculture will implement contract farming of wheat and chain financing on the basis of the management platform. The supply chain has put on the agenda with a credit approach and using new accrual tools such as producer credit certificate (GAM), wallet and credit card, Riyal credit opening and guarantee.
Farrukh Nejad stated: The proposed financing model of the Agricultural Bank for contract farming is done on credit and with the least reliance on cash resources, and through the circulation of credit, it can be an effective solution to compensate for the lack of financial resources of banks to support the sector. agriculture and also a great contribution to the country’s food security by increasing the stability of input supply.
He pointed out: In this method, paper contracts and face-to-face referrals are reduced to a great extent, and service and input invoices are created electronically and settled by the bank from the allocated credit.
The CEO of the Agricultural Bank stated that currently the services offered on the platform include product insurance and fertilizer purchase, which are done in coordination with the State Trading Company, the Agricultural Support Services Company and the Agricultural Insurance Fund, and said: It is expected that in the year In the future, the purchase of all raw materials and inputs and the provision of all required services, including the purchase of pesticides, conducting soil tests, mechanization services, plant medicine services, purchasing certified seeds, educational, technical, developmental, knowledge-based, research services, etc. be done on this platform.