Trade Facilitation
Through Procurement and Trade Facilitation, we source non-perishable agricultural commodities of desired quality and price for our customers, including millers, processors, and corporates. We have warehouses across 16 states in India as of June 30, 2024, which are also used as procurement and delivery centres.
Based on customer orders, we procure agricultural commodities on a ‘back-to-back’ basis, wherein we place an order with the suppliers only upon receipt of the customer’s confirmation on the quantity and price from our supplier network, including traders, FPOs and farmers. Aggregation is done at a ‘StarAgri’ warehouse chosen by the customer, and we charge a procurement fee based on the value of the commodity and the quantity procured. We do not profit from or incur losses due to commodity price fluctuations.
Benefits of Trade Facilitation for Buyers:
Cost Optimization: Buyers can avoid upfront bulk payments by paying for goods only when needed.
Convenient Storage Solutions: The company stores the goods in its own warehouse, eliminating the need for buyers to invest in warehousing infrastructure.
Minimized Risks: Buyers are shielded from risks associated with stock deterioration, theft, or damage as the company ensures proper storage and security.
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