KANCHIKisan AdvaNcementthrough CasHless Innovation

Delhi5th Floor, B-35Kiwanis BhawanQutab Institutional AreaNew Delhi 110016Tel: +91 11 41660681

Website: www.cdfi.in | Email: info@cdfi.in

Institute for Financial Management and Research, ChennaiAU

G/2

018

BengaluruNo. 135/52nd Floor, 15th CrossJ. P. Nagar, 3rd PhaseBengaluru 560078Tel: +91 80 26596222

CDFI @indiaCDFI @dev.CDFI Centre For Digital Financial InclusionCDFI/IFMR

CDFI in collaboration with National Agro Foundation & Flexicode Technologies has developed a solution, KANCHI that digitizes the operations of FPOs and digitally captures business / �nancial transactions. Financial transactions arising on account of such organized economic activity, when enabled through bank accounts in formal �nancial institutions, keep the individual farmer’s account active and effectively links him / her to a �nancial institution.

KANCHI is a web and mobile based platform digitizing typical activities of an FPO such as input / output aggregation, milk collection, farm equipment leasing, lending and repayment and market linkage. KANCHI supports digital payments and seeks to throw light on rural households’ income generation capabilities and their credit worthiness. It captures FPO’s and individual farmer’s lending and repayment information. Financial Institutions can use this information to provide credit to these farmers based on their loan repayment capabilities and behavior.

KANCHI – An Overview

KANCHI Projects

Digital transformation of 40 FPOs in

Rajasthan

Pilot withAavin – 10 milk

collection centres

Digital transformation of 20 FPOs under Bihar Agriculture Growth and Reform Initiative (BAGRI) in partnership with DFID, UK

Digital transformation of 2 FPOs in collaboration with Assam government

Digital transformation of 14 FPOs

No. of Farmers on-boarded: 10562

Loans worth INR 7.3 mn to 173 farmersand their repayments getting tracked

752 milk farmers received paymentsworth INR 7.3 mn

State of small and marginal farmers in India

In 2012-13, avg. annual income

of a farmer household was

$ 1,151

Avg. income received by small farmers were not much higher than the minimum wages in

agri stipulated by state govts.

One fifthof farmer

households had income below poverty line

53% farm households,

who operated less than 0.65 ha of land holdings, were below

poverty line

Farmers with less than 2 hectare of land holdings are categorised as Small and Marginal.

Farmer Producer Organisation (FPO)FPO is a group of small and marginal farmers coming together based on the principle of equal membershipand shareholding to have access to investments, technological advancements and ef�cient inputs and markets.

Small and marginal farmer households

Farmer households have thelowest per capita income in the country

85%Avg. farm size

0.6haIndian population part of these households

50%

Farmer Producer Organization

Farmer Interest Groups (FIGs)

Small and Marginal Farmers

50 FIGs from an FPO

15-20 farmers from a FIG

Individual farmers with specific interest/needs

Source: News Articles

KANCHIKisan AdvaNcementthrough CasHless Innovation

Delhi5th Floor, B-35Kiwanis BhawanQutab Institutional AreaNew Delhi 110016Tel: +91 11 41660681

Website: www.cdfi.in | Email: info@cdfi.in

Institute for Financial Management and Research, ChennaiAU

G/2

018

BengaluruNo. 135/52nd Floor, 15th CrossJ. P. Nagar, 3rd PhaseBengaluru 560078Tel: +91 80 26596222

CDFI @indiaCDFI @dev.CDFI Centre For Digital Financial InclusionCDFI/IFMR

CDFI in collaboration with National Agro Foundation & Flexicode Technologies has developed a solution, KANCHI that digitizes the operations of FPOs and digitally captures business / �nancial transactions. Financial transactions arising on account of such organized economic activity, when enabled through bank accounts in formal �nancial institutions, keep the individual farmer’s account active and effectively links him / her to a �nancial institution.

KANCHI is a web and mobile based platform digitizing typical activities of an FPO such as input / output aggregation, milk collection, farm equipment leasing, lending and repayment and market linkage. KANCHI supports digital payments and seeks to throw light on rural households’ income generation capabilities and their credit worthiness. It captures FPO’s and individual farmer’s lending and repayment information. Financial Institutions can use this information to provide credit to these farmers based on their loan repayment capabilities and behavior.

KANCHI – An Overview

KANCHI Projects

Digital transformation of 40 FPOs in

Rajasthan

Pilot withAavin – 10 milk

collection centres

Digital transformation of 20 FPOs under Bihar Agriculture Growth and Reform Initiative (BAGRI) in partnership with DFID, UK

Digital transformation of 2 FPOs in collaboration with Assam government

Digital transformation of 14 FPOs

No. of Farmers on-boarded: 10562

Loans worth INR 7.3 mn to 173 farmersand their repayments getting tracked

752 milk farmers received paymentsworth INR 7.3 mn

State of small and marginal farmers in India

In 2012-13, avg. annual income

of a farmer household was

$ 1,151

Avg. income received by small farmers were not much higher than the minimum wages in

agri stipulated by state govts.

One fifthof farmer

households had income below poverty line

53% farm households,

who operated less than 0.65 ha of land holdings, were below

poverty line

Farmers with less than 2 hectare of land holdings are categorised as Small and Marginal.

Farmer Producer Organisation (FPO)FPO is a group of small and marginal farmers coming together based on the principle of equal membershipand shareholding to have access to investments, technological advancements and ef�cient inputs and markets.

Small and marginal farmer households

Farmer households have thelowest per capita income in the country

85%Avg. farm size

0.6haIndian population part of these households

50%

Farmer Producer Organization

Farmer Interest Groups (FIGs)

Small and Marginal Farmers

50 FIGs form an FPO

15-20 farmers form a FIG

Individual farmers with specific interest/needs

Source: News Articles

• FPO can showcase their produce online to buyers in local, national and international markets

• Farmers get best price for their produce

• Buyers get to choose from multiple sellers based on their requirement

• FPO has the facility to show produce traceability

E-commerce solution to directly sell the produce to the buyers

MarketAccess

Sorting, grading, processing and inventory management

Warehousing& Processing

• FPO can record segregation of producebetween seeds and grains

• FPO can maintain separate inventoryof raw material, work in progress and �nished goods

• FPO gets the complete track of conversion losses during sorting, grading and other value addition processes

• FPO can provide detailed description of product’s quality and quantity parameter e.g. weight, packaging date etc.

• FPO can maintain complete traceability of produce

• FPO can generate invoices and issue receipts

• Farmer can raise request for FPOto schedule produce pickup

• Multiple modes of payments enabled (including cashless)

• Supports collection of various typeof perishable/non-perishable produce

• Complete transparency to farmers in terms of produce quantity, quality and price

• FPO can capture future yield projections enablingthem to get into forward contracts with big buyers

Mobile based solutionfor transparent and efficient collection of different types of farm produce

ProduceAggregation

Mobile App for leasing farm equipment through ‘pay and use’ model

FarmEquipment

Leasing

Farm

• Brings together farm equipment providers and farmers using a simple mobile app

• Farmers can lease required equipment from multiple providers

• Farmers get timely access to different types of farm equipment and implements

• Equipment providers can track their equipment, generate digital invoices and receive payments directly in their bank account

• Cashless payment options are also availableto the farmer

• Computerised inventory management

• FPOs can easily add and modify new product categories

• Data and reports can be generated digitally

• Cashless payment options for the farmers

• Purchases made by farmers are captured to augment their �nancial transaction history

Inventory management, invoicing and payment solution

InputCenter

• Farmer gets a digitally printed sharecerti�cate in local language

• FPO gets real time view of its revenue and expenditure

• FPO can maintain and generate �nancial reportsfor timely statutory compliance

• FPO saves time and resources in managing �nancialand �duciary activities

• FPO is able to make timely and transparent disbursement of dividend to member farmer in her bank account

Provides services such asshare certificate issuance,dividend management andgeneration of financialstatements for RoC compliance

FarmerInvestorServices

Farmer

KANCHI is a modular product where each module manages specific FPO operation.All modules work in tandem with each other but can work independently based on the requirement

FPOOPERATIONS

InputCenter

MarketAccess

Loan and Repayment

System

FarmEquipment

Leasing

ProduceAggregation

Milk Aggregationand Sales

Warehousingand Processing

Provides services such as share certificate issuance, dividend management and

generation of financial statements for RoC

compliance

FarmerInvestorServices

Collection andmaintenance offarmer’s profile

FarmerDataRepository

FPOSETUP

KANCHIModules

• Enables FPO to create and �oat customised loan schemes for farmers

• On approval, loan amount is disbursed directly into farmer’s bank account

• Regular notices and alerts are sent to farmers for ensuring timely repayments

• Loan repayment by farmer is captured to build her credit pro�le

Manages all internal lending operations of an FPO

Loan and Repayment

System

• Milk quality is directly captured from milk analyser saving aggregator’s time and effort

• Farmer gets payment directly into her bank account

• Milk farmer gets SMS stating quantity, quality and price of milk sold

• Chilling plant can have a real time view of type, quality and quantity of milk available

• Farmer’s milk based income is recorded enabling her to access institutional credit

• Aggregator is relieved from maintaining physical registers

Mobile app and web portal that digitizes the entire milk aggregation process

MilkAggregation

and Sales

• FPO can showcase their produce online to buyers in local, national and international markets

• Farmers get best price for their produce

• Buyers get to choose from multiple sellers based on their requirement

• FPO has the facility to show produce traceability

E-commerce solution to directly sell the produce to the buyers

MarketAccess

Sorting, grading, processing and inventory management

Warehousing& Processing

• FPO can record segregation of producebetween seeds and grains

• FPO can maintain separate inventoryof raw material, work in progress and �nished goods

• FPO gets the complete track of conversion losses during sorting, grading and other value addition processes

• FPO can provide detailed description of product’s quality and quantity parameter e.g. weight, packaging date etc.

• FPO can maintain complete traceability of produce

• FPO can generate invoices and issue receipts

• Farmer can raise request for FPOto schedule produce pickup

• Multiple modes of payments enabled (including cashless)

• Supports collection of various typeof perishable/non-perishable produce

• Complete transparency to farmers in terms of produce quantity, quality and price

• FPO can capture future yield projections enablingthem to get into forward contracts with big buyers

Mobile based solutionfor transparent and efficient collection of different types of farm produce

ProduceAggregation

Mobile App for leasing farm equipment through ‘pay and use’ model

FarmEquipment

Leasing

Farm

• Brings together farm equipment providers and farmers using a simple mobile app

• Farmers can lease required equipment from multiple providers

• Farmers get timely access to different types of farm equipment and implements

• Equipment providers can track their equipment, generate digital invoices and receive payments directly in their bank account

• Cashless payment options are also availableto the farmer

• Computerised inventory management

• FPOs can easily add and modify new product categories

• Data and reports can be generated digitally

• Cashless payment options for the farmers

• Purchases made by farmers are captured to augment their �nancial transaction history

Inventory management, invoicing and payment solution

InputCenter

• Farmer gets a digitally printed sharecerti�cate in local language

• FPO gets real time view of its revenue and expenditure

• FPO can maintain and generate �nancial reportsfor timely statutory compliance

• FPO saves time and resources in managing �nancialand �duciary activities

• FPO is able to make timely and transparent disbursement of dividend to member farmer in her bank account

Provides services such asshare certificate issuance,dividend management andgeneration of financialstatements for RoC compliance

FarmerInvestorServices

Farmer

KANCHI is a modular product where each module manages specific FPO operation.All modules work in tandem with each other but can work independently based on the requirement

FPOOPERATIONS

InputCenter

MarketAccess

Loan and Repayment

System

FarmEquipment

Leasing

ProduceAggregation

Milk Aggregationand Sales

Warehousingand Processing

Provides services such as share certificate issuance, dividend management and

generation of financial statements for RoC

compliance

FarmerInvestorServices

Collection andmaintenance offarmer’s profile

FarmerDataRepository

FPOSETUP

KANCHIModules

• Enables FPO to create and �oat customised loan schemes for farmers

• On approval, loan amount is disbursed directly into farmer’s bank account

• Regular notices and alerts are sent to farmers for ensuring timely repayments

• Loan repayment by farmer is captured to build her credit pro�le

Manages all internal lending operations of an FPO

Loan and Repayment

System

• Milk quality is directly captured from milk analyser saving aggregator’s time and effort

• Farmer gets payment directly into her bank account

• Milk farmer gets SMS stating quantity, quality and price of milk sold

• Chilling plant can have a real time view of type, quality and quantity of milk available

• Farmer’s milk based income is recorded enabling her to access institutional credit

• Aggregator is relieved from maintaining physical registers

Mobile app and web portal that digitizes the entire milk aggregation process

MilkAggregation

and Sales

• FPO can showcase their produce online to buyers in local, national and international markets

• Farmers get best price for their produce

• Buyers get to choose from multiple sellers based on their requirement

• FPO has the facility to show produce traceability

E-commerce solution to directly sell the produce to the buyers

MarketAccess

Sorting, grading, processing and inventory management

Warehousing& Processing

• FPO can record segregation of producebetween seeds and grains

• FPO can maintain separate inventoryof raw material, work in progress and �nished goods

• FPO gets the complete track of conversion losses during sorting, grading and other value addition processes

• FPO can provide detailed description of product’s quality and quantity parameter e.g. weight, packaging date etc.

• FPO can maintain complete traceability of produce

• FPO can generate invoices and issue receipts

• Farmer can raise request for FPOto schedule produce pickup

• Multiple modes of payments enabled (including cashless)

• Supports collection of various typeof perishable/non-perishable produce

• Complete transparency to farmers in terms of produce quantity, quality and price

• FPO can capture future yield projections enablingthem to get into forward contracts with big buyers

Mobile based solutionfor transparent and efficient collection of different types of farm produce

ProduceAggregation

Mobile App for leasing farm equipment through ‘pay and use’ model

FarmEquipment

Leasing

Farm

• Brings together farm equipment providers and farmers using a simple mobile app

• Farmers can lease required equipment from multiple providers

• Farmers get timely access to different types of farm equipment and implements

• Equipment providers can track their equipment, generate digital invoices and receive payments directly in their bank account

• Cashless payment options are also availableto the farmer

• Computerised inventory management

• FPOs can easily add and modify new product categories

• Data and reports can be generated digitally

• Cashless payment options for the farmers

• Purchases made by farmers are captured to augment their �nancial transaction history

Inventory management, invoicing and payment solution

InputCenter

• Farmer gets a digitally printed sharecerti�cate in local language

• FPO gets real time view of its revenue and expenditure

• FPO can maintain and generate �nancial reportsfor timely statutory compliance

• FPO saves time and resources in managing �nancialand �duciary activities

• FPO is able to make timely and transparent disbursement of dividend to member farmer in her bank account

Provides services such asshare certificate issuance,dividend management andgeneration of financialstatements for RoC compliance

FarmerInvestorServices

Farmer

KANCHI is a modular product where each module manages specific FPO operation.All modules work in tandem with each other but can work independently based on the requirement

FPOOPERATIONS

InputCenter

MarketAccess

Loan and Repayment

System

FarmEquipment

Leasing

ProduceAggregation

Milk Aggregationand Sales

Warehousingand Processing

Provides services such as share certificate issuance, dividend management and

generation of financial statements for RoC

compliance

FarmerInvestorServices

Collection andmaintenance offarmer’s profile

FarmerDataRepository

FPOSETUP

KANCHIModules

• Enables FPO to create and �oat customised loan schemes for farmers

• On approval, loan amount is disbursed directly into farmer’s bank account

• Regular notices and alerts are sent to farmers for ensuring timely repayments

• Loan repayment by farmer is captured to build her credit pro�le

Manages all internal lending operations of an FPO

Loan and Repayment

System

• Milk quality is directly captured from milk analyser saving aggregator’s time and effort

• Farmer gets payment directly into her bank account

• Milk farmer gets SMS stating quantity, quality and price of milk sold

• Chilling plant can have a real time view of type, quality and quantity of milk available

• Farmer’s milk based income is recorded enabling her to access institutional credit

• Aggregator is relieved from maintaining physical registers

Mobile app and web portal that digitizes the entire milk aggregation process

MilkAggregation

and Sales

KANCHIKisan AdvaNcementthrough CasHless Innovation

Delhi5th Floor, B-35Kiwanis BhawanQutab Institutional AreaNew Delhi 110016Tel: +91 11 41660681

Website: www.cdfi.in | Email: info@cdfi.in

Institute for Financial Management and Research, ChennaiAU

G/2

018

BengaluruNo. 135/52nd Floor, 15th CrossJ. P. Nagar, 3rd PhaseBengaluru 560078Tel: +91 80 26596222

CDFI @indiaCDFI @dev.CDFI Centre For Digital Financial InclusionCDFI/IFMR

CDFI in collaboration with National Agro Foundation & Flexicode Technologies has developed a solution, KANCHI that digitizes the operations of FPOs and digitally captures business / �nancial transactions. Financial transactions arising on account of such organized economic activity, when enabled through bank accounts in formal �nancial institutions, keep the individual farmer’s account active and effectively links him / her to a �nancial institution.

KANCHI is a web and mobile based platform digitizing typical activities of an FPO such as input / output aggregation, milk collection, farm equipment leasing, lending and repayment and market linkage. KANCHI supports digital payments and seeks to throw light on rural households’ income generation capabilities and their credit worthiness. It captures FPO’s and individual farmer’s lending and repayment information. Financial Institutions can use this information to provide credit to these farmers based on their loan repayment capabilities and behavior.

KANCHI – An Overview

KANCHI Projects

Digital transformation of 40 FPOs in

Rajasthan

Pilot withAavin – 10 milk

collection centres

Digital transformation of 20 FPOs under Bihar Agriculture Growth and Reform Initiative (BAGRI) in partnership with DFID, UK

Digital transformation of 2 FPOs in collaboration with Assam government

Digital transformation of 14 FPOs

No. of Farmers on-boarded: 10562

Loans worth INR 7.3 mn to 173 farmersand their repayments getting tracked

752 milk farmers received paymentsworth INR 7.3 mn

State of small and marginal farmers in India

In 2012-13, avg. annual income

of a farmer household was

$ 1,151

Avg. income received by small farmers were not much higher than the minimum wages in

agri stipulated by state govts.

One fifthof farmer

households had income below poverty line

53% farm households,

who operated less than 0.65 ha of land holdings, were below

poverty line

Farmers with less than 2 hectare of land holdings are categorised as Small and Marginal.

Farmer Producer Organisation (FPO)FPO is a group of small and marginal farmers coming together based on the principle of equal membershipand shareholding to have access to investments, technological advancements and ef�cient inputs and markets.

Small and marginal farmer households

Farmer households have thelowest per capita income in the country

85%Avg. farm size

0.6haIndian population part of these households

50%

Farmer Producer Organization

Farmer Interest Groups (FIGs)

Small and Marginal Farmers

50 FIGs from an FPO

15-20 farmers from a FIG

Individual farmers with specific interest/needs

Source: News Articles