Five minutes. That’s how long it takes for a farmer to get a loan approved after walking into one of Arya.ag’s warehouses. That’s faster than a quick commerce order in some of the fastest Indian cities. A grain farmer arrives with freshly harvested grains, the produce is weighed, AI-enabled scanners assess its quality, and within minutes, a loan worth 60-75% of its value is credited to the farmer's bank account. There’s no paperwork, and no weeks worth of waiting.
The grain stays safely in storage, giving the farmer the freedom to sell later, when market prices improve rather than immediately after harvest.
Arya.ag is one example of a broader shift taking place across India's credit ecosystem for agriculture and allied activities. India's agricultural credit has expanded significantly in recent years, highlighting the rising demand for capital across the rural economy. While scheduled commercial banks continue to account for the majority of agricultural lending; NBFCs, fintechs, and embedded finance platforms are increasingly addressing financing needs across agriculture and allied sectors by developing products tailored to specific value chains and business models.
As the agrifood economy has become more specialized, so have its capital needs. The financing needs of the sector now extend far beyond seasonal crop loans. Farmers increasingly require capital not only to purchase inputs, but also to store produce after harvest, invest in mechanization, diversify into allied activities such as dairy and fisheries, and manage cash flows throughout the year. At the same time, Farmer Producer Organizations (FPOs), warehouses, processors, exporters, agri-input retailers, and logistics providers require working capital to procure produce, finance inventory, bridge receivables, and keep agricultural supply chains moving. Rather than replacing banks, the emerging non bank institutions expand the reach of formal finance by serving financing needs that require greater speed, flexibility, or specialized underwriting.
A farmer benefits when an FPO has the capital to aggregate produce, when a processor can purchase immediately after harvest, when a warehouse can finance stored grain, or when an exporter has the liquidity to fulfill an order. Increasingly, the efficiency of agricultural markets depends on capital flowing seamlessly across the entire value chain.
Arya's model is a great example of how non bank credit benefits multiple touchpoints in the agrifood ecosystem. Warehouse receipt allows produce to be stored instead of sold immediately, giving farmers greater flexibility over when they sell. Working capital reaches the farmer when it is needed most, while warehouses remain utilized, processors gain more reliable procurement, and banks are able to participate through lending partnerships. A single financing product improves outcomes across multiple participants in the agricultural value chain.
This is why non-bank credit has become increasingly important to India's agrifood economy. Its role is to broaden the financial system's ability to serve an increasingly complex and interconnected sector.
As agriculture evolves from a production-centric industry into an integrated agrifood economy, financing cultivation alone is no longer enough. The next phase of agricultural growth will depend on financing every stage of value creation: from the purchase of inputs to the movement of food from farm to consumer. Banks will remain central to that journey, while NBFCs and inclusive fintechs are emerging as the connective link that makes the entire ecosystem more efficient, resilient, and inclusive.
A farmer benefits when an FPO has the capital to aggregate produce, when a processor can purchase immediately after harvest, when a warehouse can finance stored grain, or when an exporter has the liquidity to fulfill an order. Increasingly, the efficiency of agricultural markets depends on capital flowing seamlessly across the entire value chain.
(Writer is Managing Partner, Omnivore)