National Collateral Management Services Limited (NCML) is the country’s leading organization providing a host of services along the entire agriculture supply chain in the commodity space. Through pan India presence, NCML provides commodity handling and risk management services to clients across the country.
Context of the Organization
NCML manages risks in pre-harvest as well as post-harvest agriculture operations. Through agro-testing services and crop and weather intelligence services NCML helps in risk mitigation in the pre-harvest chain. NCML provides a bouquet of post-harvest risk management solutions. NCML carries out procurement operations to ensure fair prices to both farmer and the market. NCML strength is strong connect with producers directly. It has helped in sourcing commodity from farmer door-step by setting up of farm gate procurement centers for Government and multiple private sector entities.
Storage & Preservation
NCML offers modern, scientific and IT enabled storage and preservation services for the entire range of commodities. Their 800+ warehouses spread across the country issue credible and reliable warehouse receipts. The Company has also set up its own warehouse complexes in 12 States across the country. The warehouses are accredited by the National Commodity and Derivatives Exchange (NCDEX) for accepting physical deliveries of commodities traded in the commodity futures market. Warehouses are also getting accredited to the Warehousing Development and Regulation Authority for issue of negotiable warehouse receipts.
NCML warehouses are manned by qualified and professional staff. Each of their warehouses serves as a commodity multi link point providing a package of services, including dematerialization and materialization of physical stocks of commodities, testing & certification, and funding against warehouse receipts. NCML is present in 19 states and deal with as many as 53 agricultural commodities. NCML’s warehouses are connected to a centralized database which enables them to meet all the requirements of clients, across India, including an on-line MIS.
Procurement and Supply Chain
NCML’s procurement and supply chain team consist of agri-professionals with experience in handling agricultural commodities in various parts of the country and They offer end to end procurement and related supply chain services to bulk consumers and large end users. NCML was the first private procurement agency engaged by the Government of India to procure commodities under Minimum Support Price (MSP) operations. Many small and large entities have found it convenient to utilize their composite services of sourcing, warehousing and quality verification under a single roof.
NCML has been a pioneer in providing collateral management services to banks. These services have assisted industries, traders and farmers in financing their capital requirement at various stages of the supply chain ranging from pre-harvesting to the marketing and export stages. NCML also offer premium services for working capital financing in commodity-based industries, especially agro-based industries. NCML also provides warehouse receipt financing for commodities stored in its warehouses. NCML services cover structured trade finance products, stock audits, monitoring and inspection at diverse locations across the country.
Market Intelligence & Advisory Services
NCML provide incisive market intelligence on the entire range of commodities traded in the country. NCML analyze complex market dynamics in terms of technical, fundamental and econometrics analysis. NCML’s pragmatic solutions based on assessment of existing resources, identification of problems and critical evaluation of various alternatives distinguish them from peers and other market players in the country. NCML’s market intelligence division works with specialized teams in the following areas to provide client specific solutions:
- Price intelligence
- Commodity intelligence
- Trade intelligence
NCML also provide advisory and consultancy services along the entire agricultural supply chain. NCML have been providing advisory services to the government of India and technical consultancy to government agencies like STC and FCI.
Weather and Crop Intelligence
NCML provide Crop risk management solutions in pre-harvest domain. They have installed over 4000+ AWS (Automatic Weather Stations) across 18 states across the country. NCML’s data is used for facilitating settlement of crop insurance schemes. In addition, They provide other value-added services as crop loss assessment, Crop cutting experiment Monitoring etc to crop insurance sector in India. Further NCML is using Remote sensing (Satellite) technologies, IOT and data analytics for crop advisory services and crop production forecasting for mitigating commodity risk.
Some services offered by division are:
- Weather Services
- Crop Acreage estimates (Remote sensing / satellites)
- Crop Monitoring and Production forecasting (Field +Satellites + Models)
- Production estimates
- Loss Assessment Services (Field /Satellites)
- Crop surveys & Crop Cutting Experiment Monitoring services
- Weather & Crop advisory services
Testing and Certification
NCML-CommGrade provides wide array of services to cater to the needs of different stake holders in the food, agriculture and commodity sector. A network of pan-India laboratories has been established. The laboratory complies with ISO/IEC 17025:2005 requirements and is accredited by NABL. It is also recognized by FSSAI, Bureau of Indian Standards and Department of Marketing and Inspections, Government of India. Services are also provided to food and agri-commodity exporters as per the importing countries’ requirement. Lab is also recognized by Agriculture and Processed Food Export Development Agency and Export Inspection Council. NCML-CommGrade Services include:
- Food Quality and Safety for Domestic and Imported Food as per FSSAI, BIS, AgMark
- Food Testing for Exports as per APEDA, EIC
- Agro- testing Services including soil and water testing, futures & spot exchange, Collateral Managers, Food & Civil Supplies Agencies, Warehousing Corporations, etc.
- Survey and Inspection Services – Port & Inland based for Agri-commodities, Fertilizers & Chemicals; Rake movement, Container stuffing, Procurement and food hygiene and vendor audits.
- Knowledge services – Trainings for field operations, food handlers, analytical testing and consultancy for various food processing industries.
NCML Finance Private Limited (NFin) is an RBI registered Non-Banking Finance Company (NBFC) with focus on rural and agri-business finance. It is a major player in the field of Warehouse Receipt Finance (WRF) and also offers other financing products, such as Home Loan, Loan Against Property, Invoice Discounting and Demat Commodity Finance. NCML Finance is a wholly owned subsidiary of National Collateral Management Services Limited (NCML).
Leveraging the extensive reach of NCML, the company serves farmers and commodity market participants including warehouse owners, cold storages and other stakeholders in the agri value chain and rural domain.
- Warehouse Receipt Finance (WRF)
Target Customers: FPO’s, Farmers, Processors, Millers, Traders & Commission Agents
- Fair commodity pricing
- Calculate best offering basis
- Commodity variety/grade differences,
- Location specific commodity prices.
- Convenient and Easy Loan processing
- Loan Disbursal in single/multiple tranches as per need.
- Disbursement within 4 hours for warehouse receipts generated (by 2 pm)
- Multipurpose Secured Loans (MPSL)
Target Customers: Small Enterprises linked to semi-formal economy like Traders, Food Processors, Millers, Warehouse Owners, Farm Equipment Dealers, Pesticide & Fertilizer traders, Farmers with alternate source of income.
- Multiple property comfort
- Warehouse, Commercial & residential mix
- Higher LTV
- Convenient Loan processing
- Understanding informal nature of Business to arrive at eligibility
- Multipurpose usage of loan
NFin has simplified the processing of loans by using a digital lending platform, reducing the turnaround time. On this unique risk-based technology platform, the loan values are appraised and margins are calculated on a real time basis to assess variety, grade, mandi trade and volatility in the commodity prices.
Commodity market participants and banks have been voicing the need for online disposal and trading services, which are integrated with NCML’s present bouquet of services. NMPL (NCML MktYard Private Limited) which is a wholly owned subsidiary of NCML, has designed and developed MktYard.com as a response to this emerging market need. Leveraging NCML’s pan India network and client-base, MktYard.com is equipped with state of the art IT solutions that would help commodity market participants to buy or sell commodities without hassle. This e-market platform has been developed by using a decade of physical market experience, domain expertise of commodity business and commodity risk management, and the latest technology tools. The trading platform that takes care of price discovery, price risk and trade settlement. This directly connects clients and their stocks in warehouses and collateral management locations through the e-market link. This solution completes the full cycle of procurement via reverse-auction or e-procurement, trading of stocks via forward auctions, and transforms the market dynamics with a click of the button.