Upload
cta
View
224
Download
1
Tags:
Embed Size (px)
DESCRIPTION
Presentation Fin4Ag S22 by B. L. Parthasarathy
Citation preview
Agri Value Chain - BASIX
Fin4ag ConferenceNairobi, 16th. July 2014
1
The BASIX Mission…..
To promote a large number of sustainable livelihoods, including for the rural poor and women, through the provision of financial services and technical assistance in an integrated manner
BASIX will strive to yield a competitive rate of return to its investors so as to be able to access mainstream capital and human resources on a continuous basis.
Evolution of Financial Structure
Soft Loans from Donors & Development Banks(GTB, CIDA-DID, CordAid, SIDBI, ICICI, HDFC)
1996-98 Grants and Soft Loans from Donors (Sir Ratan Tata Trust, Ford Foundation, Swiss Agency for Development Cooperation)
1998-2000
2001
2001 onwards
2007-08
Equity Investment(IFC, Shore Bank, Hivos Triodos, ICICI and HDFC)
Loans from Commercial Banks(ICICI Bank, HDFC Bank, ABN Amro, ING Vysya)
Mainstream Equity
Context..
Indian Market Research Bureau
(IMRB) impact assessment study
(2001) on credit customers revealed that
– 52% showed increase in the income
– 25 % reported no change in the income levels
– 23% reported decline in their income levels
Review of BASIX Work
The reasons
• Low Productivity
• Un-managed Risk
• Low Price Realization / Access to Market.
Credit is necessary but not a sufficient condition for
livelihood promotion
BASIX framework
BASIX utilizes financial, human and intellectual capital to work towards brining equality of opportunity and social justice
Collaborative PolygonWe propose collaborating with players having domain expertise to provide
………Financial Services
Linkages with Banks & MFI’s Training & Extension
Agril Universities, Ag. Research Stations, Agril Departments,
Digital Green, Agriwatch,
Institutions
NGO’s, village govt. & other village level community Institutions
Service Providers
Artificial Insemination, Vaccination, Soil testing,
Insurance
Output Market
Linkages to organised buyers, processors etc..
Input Supply
Agri Input companies, wholesalers', dealers,
Enhance competencies, Reduce transaction costs and Reduce risk for farmers by integrating all services
FARMERS
The task is too complex for any single actor. Hence there is a need for multilateral partnerships or “Collaborative Polygon”. However, it is useful for one actor to be the anchor, who understands both development & finance markets for the Collaborative Polygon to work.BASIX tries to play that role.
BASIX Approaches in Agri Value Chain
Identify the Sub Sector / Value Chain
Undertake ActionResearch / Study • Livelihood Profiling• No of HH’s engaged• Economic contribution from that subsector• Strengths and Weaknesses
Identify & Address the Bottlenecks • Establish collaboration• Develop successful intervention on revenue model
Scaling up Phase• Scale up the intervention • Undertake impact assessment• Improve the design
Enterprises/ Commercial Farmers
Direct LoansJoint Liability Groups / Farmers Producer Organizations
Farmers Producer Organizations
Micro-Enterprises/ Small Farmers
Marginal Producers
Market Segment
Method
8
Credit Delivery Channel
Farmers’ Producers’ organization (FPO)
Cereals /Vegetable / Pulse growers
Farmers Interest Group (FIG)
Farmers Interest Group (FIG)
Farmers Interest Group
(FIG)
Cluster Committee Cluster Committee
BLOCK
FPO
DISTRICT
• One FIG = 10-20 Farmers.• One village = 1- 4 FIG (15 to 60 Farmers)• One FPO = 15-20 Villages (45-60 FIG with 600 to 1200 farmers).
Package of Services to Crop customers• Productivity
Enhancement through Package of Practices – Soil testing, Vermicompost
and Integrated Nutrient Management
• Risk Mitigation– Seed treatment, Stem
application, Integrated Pest Management
• Local Value Addition– Semi-processing (e.g.
ginning of cotton, shelling of groundnut pods)
• Alternate Market Linkages for better prices (Super Spinning Mills, NCDEX)
• Establishing/strengthening farmers’ cooperatives for input/output marketing
Enhanced Production in Cotton
Linked with Market
Livelihood
Financial Services
Cotton crop technical Services
Institutional Development
Services
Farmers
Ginning
BASIX – Cotton Value Chain
Lint
Pressing unit-
Conversion to Bales
Farmers
Farmers
National Commodity Derivatives Exchange(NCDEX )
Trading Platform
Formed into cotton Producer
Group
BASIXWarehouse Receipt
BANK
Loan
Assured PriceSeeds,
Fertilizers,
Pesticides
NCMSL Godowns
Supper Spinning Mill
Dairy Value Chain: BASIX - Reliance Dairy Company Collaboration
DAIRYFARMERS
INP
UT S
UP
PLY
BASIX OU
TP
UT M
AR
KET
RELIANCE
Milk supplied toBulk Milk Coolers
Financial & Dairy Extn
Services
Potato Value Chain
Frito Lays India Limited
Potato Growers
BASIX
Credit Ext. services Gr. formation
Potato
Seed
Buy back arrangeme
nt
Some other Value Chain Interventions
1. Dairy Value Chain Intervention – Reliance Dairy Foods
– 1000 farmers; 30 villages– 50 Producer Groups formed– Credit, Vet. Services, Market linkages
2. Vegetables Intervention – ITC– Push carts were provided by ITC– Credit, Crop extension services – Market Linkages
3. Sweet Orange Market Linkages – Reliance Fresh
– Credit– Extension services– Market Linkages
4. Mango Market Linkages – Jain and Other players
– Mango cluster developed – Credit– Extension services– Market linkages
BASIX Outreach – Agri Value Chain Finance•No. of customers: 1.05 million•Amt. disbursed (million USD): 230•Repayment: 97%
• Input Side– Lack of quality seeds– Timely access to inputs
• Production– Lack of improved Farm Equipment use– Production volumes Vs. price– Lack of improved PoP– Weather, Diseases
• Post Harvest– Transport and handling related losses– Lack of Storage facilities– Lack of primary sorting, grading
Major Constraints
• Markets– Distress sales– Distant markets leading to middlemen– Internal finance based sales– Lack of market information
• Processing– Quality adherence– Technology and Equipment aspects– Assured supply and Inventory management– Branding and Marketing
Major Constraints – contd..
BASIX Collaborators
Thank You
19
Head Office3rd Floor, Surabhi Arcade, Bank Street, Koti, Hyderabad 500 001TelenganaPhone: + 91-40-3917-2500 Fax: + 91-40-3917-2502Website : www.basixindia.com
Registered OfficeD 9, First Floor, Greater Kailash Enclave - I, New Delhi 110 0 48.Ph: 011 4173 0252 , 011 4173 0454 Website : www.basixindia.com