Sohan Lal Commodity Management (SLCM) has emerged as a crucial player in the agricultural sector, providing a range of solutions that span the entire post-harvest value chain. From warehousing and collateral management to financing and quality testing, SLCM has significantly contributed to the modernization and efficiency of India's agrarian economy.

Sohan Lal Commodity Management Pvt. Ltd. (SLCM) Group, founded by Mr. Sandeep Sabharwal in 2009, is a leading organization in Agriculture Supply Chain, dedicated to inclusive and holistic development. The founder Sandeep Sabharwal, whose vision was to address the inefficiencies and wastage prevalent in the agricultural supply chain. India's agricultural sector, though vast and critical to the country's economy, has historically suffered from inadequate infrastructure, poor storage facilities, and a lack of access to credit. SLCM aims to bridge these gaps by offering integrated solutions that enhance productivity, reduce wastage, and ensure better returns for farmers.

With a network of approximately 16,646 warehouses with an Area of – 303.64  Milllion Sq Feet handling a daily Asset Under Management of 10,928.82 Crores (as on 30th June 2024), SLCM impacts the livelihoods of over five crore people and directly employs around 4500 plus people currently. The company's success can be attributed to its commitment to innovation and technology, as well as its divisional approach that focuses on logistics, digital solutions, procurement, and finance.

In continuation to its R&D, in the year 2021, Agri Reach scope was enhanced by adding a feature on quality check of crops, where users can click and post a picture of crops or grains to generate a detailed report on type and quality. This new feature has achieved a major milestone by receiving NABL accreditation for testing Wheat, making it the first in the world to do so. Using the app, the company has facilitated around 2,07,804 inspections accounting to 8.93  Mn metric Tonnes of food grains across 21states. To further enhance quality assurance, SLCM also operates a Central Analytical Laboratory, a NABL-accredited facility that ensures accurate testing and reduced turnaround time with the results being accepted in multiple countries.

Increasing its digital footprint while amalgamating its physical reach, the company in 2022 launched a listing platform that brings together all stakeholders in agriculture, fostering transparency and collaboration. SLCM aims to create an all-inclusive “Phygital” ecosystem by integrating physical centers with digitization. Currently, the platform has over 1 lakh listings and the goal is to increase this to 500,000+ by the end of the financial year.

Its commitment to the security of Collateral is evident through its other unique offering, “Agri Suraksha”, a remote surveillance system using solar-powered CCTVs to monitor warehouses day and night. This proactive measure significantly reduces malpractices at no cost to customers.

The financial wing of SLCM is a RBI regulated NBFC called Kissandhan, and it encompasses various products and services. For example, Commodity Based Finance (CBF) offers loans against a myriad of commodities across the country with no restrictions on location, type or quality. Business Correspondent Partnerships help farmers at remote locations access funding, thereby increasing their purchasing power and ensuring a vibrant economic ethos. SLCM, through Kissandhan, lends to Farmer Producer Organisation- a legal entity designed to augment the farmer’s collective bargaining power. These loans (both input and output) to FPOs help increase the income of farmers and ensure economic growth. To strengthen the supply chain, the platform also offers Invoice Discounting Facility, thus ensuring a steady cash flow as buyers get paid before the due date. In addition to these, the company also offers OD facilities to Agri Enterprises, MSMEs, arthias, and traders.

Considering the wide range of products Kissandhan offers, it is not surprising that the platform has made a huge impact on the sector, with a cumulative disbursement of INR 2927.52 Cr, as of June 2024. It has boarded 36,839 clients, engaged with 107 FPOs, and empanelled 36,444 women loan beneficiaries, among other achievements. Consequently, it has transformed the lives of over – 7,00,647  farmers and helped them sustain themselves economically. 

Beyond India, SLCM has expanded into the Myanmar market, making it the sole Indian Agri-logistics player with an overseas presence. Managing a network of 316 industrial zones and 9.22 Mn sq ft of area, SLCM handles 1443 commodities (both Agri and Non Agri) with a throughput of 11.88 Million Metric Tonnes.

SLCM has received over 50 National and International awards and recognitions in various categories, including commodity warehousing services, financing, and agricultural technology applications. The company's employee-first approach has earned it prestigious accolades, such as Times Ascent's 'Dream Companies to Work For' and ET Now's 'Rise With India Dream Companies to Work For.'

Impact on the Agricultural Sector

SLCM's contributions have had a profound impact on India's agricultural landscape:

Reduction in Post-Harvest Losses: By providing state-of-the-art storage facilities and scientific management practices, SLCM has significantly reduced post-harvest losses, which have historically been a major issue in India.

Financial Inclusion: The provision of collateral management and financing services has facilitated the inclusion of a significant number of farmers into the formal banking sector, allowing them to get loans at favorable interest rates.

Quality Assurance: Through meticulous quality testing and standardization, SLCM has facilitated Indian farmers in achieving compliance with international quality standards, hence creating avenues for export and accessing new markets.

Technological Integration: The integration of digital tools has revolutionized the agricultural supply chain, enhancing its transparency and efficiency.

Challenges and Potential Opportunities Ahead

SLCM has made notable progress, but it still encounters obstacles like as volatile commodity prices, regulatory modifications, and climatic uncertainty. Nevertheless, the company's inventive strategy and dedication to achieving high standards place it in a favorable position to overcome these obstacles.

In the future, SLCM intends to broaden its presence, both domestically and globally. SLCM is positioned to have a crucial impact on the future of agriculture, with a strong emphasis on sustainability, technological integration, and empowering farmers.

Sohan Lal Commodity Management is a leading example of innovation and effectiveness in India's agricultural industry. SLCM has revolutionized the management and financing of agricultural commodities in India by addressing important deficiencies in the supply chain and offering comprehensive solutions. As the corporation expands and develops, its influence on the agrarian sector is expected to have an even greater effect, ushering in a new period of wealth and sustainability for Indian agriculture.