At the Bharat Agriculture Conclave 2026, Atul Chhura, Chief Business Officer of Star Agribazaar Technology Private Limited, outlined a transformative vision for farmer loans in India. Chhura emphasized how technology, particularly the concept of a 'farm score,' could significantly improve farmers' access to formal credit and help them achieve better prices for their produce.
Digital Warehouses Streamline Post-Harvest Sales
Star Agribazaar has been active in agricultural commodity storage for two decades, offering digital warehouse platforms where farmers can deposit their harvest instead of rushing to sell it immediately at a mandi. This system allows farmers to store produce, obtain loans using warehouse receipts as collateral, and sell when market conditions are favorable.
However, Chhura noted a surprising trend: despite continuous efforts, these facilities are predominantly utilized by traders and processors, with very few farmers taking advantage. He highlighted the efficiency of the digital process, stating, "From issuing warehouse receipts and sending them to banks to completing the farmer's KYC, opening a loan account and disbursing the loan, the entire process can now be completed in just 24 hours." The same platform also facilitates the sale of stored produce, loan repayment from proceeds, and transfer of the remaining amount to the farmer.
AgriStack: A Foundation for Digital Assessment
A major government initiative, AgriStack, is central to Chhura's vision. Developed over six years, AgriStack integrates three critical components: Farmer ID, Farm ID, and Crop ID. This digital framework aims to enable farmers to apply for loans via mobile applications, while lending institutions can access comprehensive data about the farmer and their land.
Lenders would be able to ascertain land location, historical crop cultivation, current crops, estimated cultivation costs, and projected earnings. Chhura confirmed that the digital framework for such a system is already in place, with ongoing efforts to digitize land records and create Farmer IDs to enhance accessibility.
Introducing the 'Farm Score' for Loan Eligibility
Chhura proposed a groundbreaking idea: a 'farm score' for farmers, akin to the CIBIL score used for individual credit assessments. This score would evaluate a farmer's experience with a particular farm, expected crop yield, cultivation costs, and potential earnings. "Today, when an individual approaches a bank for a loan, the bank evaluates their CIBIL score. Similarly, when a farmer approaches a bank for a loan, there should be a farm score," Chhura explained.
Such a system would allow banks to extend working capital loans based on actual agricultural activities, moving beyond the limitations of the existing Kisan Credit Card (KCC) framework.
Making Credit More Affordable
The ultimate goal of these technological advancements is to make formal credit significantly more affordable for farmers. Chhura pointed out that farmers often resort to informal market loans with exorbitant interest rates of 20-22%.
He believes that the integration of AgriStack, other government digital initiatives, and technology-driven companies like Star Agribazaar could drastically reduce these rates, making loans available at a much more manageable 7-8%. This collaborative effort promises to simplify access to affordable loans for farmers in the coming years.