The Myanmar subsidiary of agri-logistics Company Sohan Lal Commodity Management (SLCM) based in Delhi has received a loan worth $3 million from the IFC (International Finance Corporation) to expand its warehousing services in the Southeast Asian country, according to a press statement.
The statement issued by IFC said, “In Myanmar, in spite of poor storage conditions, farmers are often compelled to store harvested products to sell later that leads to substantial losses - presently estimated at around 20%. International Finance Corporation’s investment will help the firm bring sophisticated warehousing & allied services to Myanmar”. The investment will not only help growers store higher volumes but will also reduce losses caused by infestation or excess humidity.
SLCM Group CEO, Sandeep Sabharwal said, “We have replicated our best practices as well as expertise in agriculture warehousing sector in Myanmar. In the past 5 years, we have been able to cut post-harvest losses to 0.5% in the country, therefore helping every player in the farm-to-market chain. We intend to make use of the capital to further scale up our operations”.
IFC Manager for Myanmar & Thailand, Vikram Kumar said, “Myanmar’s agricultural sector is a key pillar of the economy that provides employment to about 53% of the labour force. Further, developing this segment is key to helping people come out of poverty. A World Bank research has shown that growth in the agricultural sector was directly responsible for at least 46% of the decrease in poverty between 2005 and 2015”.
SLCM Group that claims to run a technology-enabled network of more than 3,352 warehouses along with 19 cold storages all over India will use the investment to scale up its operations & expand its presence in the neighboring country. The investment is also expected to draw more banks and collateral managers to engage in business of commodity-backed financing. IFC, since 2013 has invested over $1.3 billion in Myanmar.
