Agribusinesses in India are shifting from traditional methods to structured, commercial models. However, this evolution comes with financial challenges that demand proactive and strategic planning. Agri finance plays a pivotal role in this transformation—enabling farmers, FPOs, and agri-entrepreneurs to navigate volatility, bridge credit gaps, and unlock long-term growth.
Credit to the agriculture sector by commercial banks and regional rural banks is likely to cross Rs 31.5 lakh crore, a new record, in FY26 due to an increased formalisation of the rural credit structure, a senior official with NABARD said. In FY25, commercial banks, cooperatives and regional rural banks had disbursed over Rs 28.98 lakh crore, out of which around 60% was towards short-term crop loans and the rest was towards investment loans in agriculture and allied sectors.
Why Agri Finance Planning Is Crucial in Agribusiness?
Despite agriculture contributing over 18% to India’s GDP, the sector faces a formal credit shortfall due to several reasons. This credit gap often forces agribusinesses to rely on informal sources, making them vulnerable to debt cycles and missed growth opportunities.
How can financial planning and agri finance make a difference?
- Efficient Capital Allocation: From seeds and fertilisers to irrigation and machinery, managing input costs requires precise budgeting. Strategic finance ensures that resources are allocated wisely without overextending financial leverage.
- Seasonal Cash Flow Management: While agri revenues are seasonal, expenses are continuous. Tools like working capital loans, invoice discounting, and warehouse receipt finance help maintain liquidity throughout the crop cycle.
- Risk Mitigation: Agri businesses face climate risks, pest infestations, and price shocks. Financial planning enables the implementation of contingencies, insurance coverage, and inventory holding strategies to mitigate such uncertainties.
- Enabling Scale and Modernization: With proper financial insights, agribusinesses can confidently invest in solar energy, food processing, or logistics infrastructure—paving the way for increased productivity and sustainability.
Agriwise: The New-Age Agri Finance Partner
Agriwise is an agri-fintech NBFC offering a comprehensive suite of financial products tailored specifically for the agricultural and allied sectors. Here’s how they’re reshaping agri finance in India:
1. Secured Business Loan (Loan Against Property – LAP): Ideal for agri-MSMEs, this loan product allows entrepreneurs to unlock the value of their property for business development and expansion.
- Loan amount: INR 5 lakhs to 5 crores
- Tenure: Up to 15 years
- Collateral: Residential, commercial, or industrial property
- Benefits: Balance transfer, top-up facility, and attractive interest rates
2. Warehouse Receipt Finance: This short-term working capital loan enables farmers, traders, and processors to access credit against stored agri produce in professional warehouses.
- Loan amount: Up to INR 10 crores
- LTV: Up to 75% of commodity value
- Network: Extensive pan-India warehouse coverage
3. Invoice Bill Discounting (Supply Chain Finance): Convert receivables into instant cash flow with this invoice financing solution, critical for smooth supply chain operations.
- Loan amount: Up to INR 10 crores
- LTV: 100% of invoice value
- Credit tenure: 90 days
- Target segments: Agri & Allied, FMCG, Pharma
4. Farmer Financing: Designed for individual farmers and Farmer Producer Organisations (FPOs), this product provides funding for critical inputs such as seeds, fertilisers, and pesticides.
- Custom loan amounts based on crop type
- Fast disbursal for timely input procurement
- Support for sustainable farming initiatives
5. Solar Financing: Agriwise supports green transformation with loans for solar energy systems—ideal for farms, agri units, and MSMEs.
- Without collateral: Up to INR 7.5 lakhs for 60 months
- With collateral: Up to INR 25 lakhs for 84 months
- Mounting types: Roof, ground, or shed-mounted systems
Conclusion
Smart financial planning is a necessity for success in modern agribusiness. As India’s agriculture moves toward becoming a high-growth, tech-enabled sector, financial planning will define who thrives and who merely survives. It’s not just about access to credit—it’s about strategic use of that credit, guided by risk awareness and future vision.
Agriwise exemplifies the future of agri-financing. By offering specialised products that cater to the entire value chain—from small farmers to large-scale processors—it empowers agribusinesses to plan better, invest smarter, and grow sustainably.
