Updated: Jan 19, 2023
Farming is a a serious business and like every business it also needs a working capital to raise crops. Unfortunately, access to limited finance is often the starting point of agrarian distress. Low capital means lower investment on quality agri-inputs, leading to lower yield and quality of agri-produce and ultimately low realization on a four month long production cycle. And, to worsen the situation, this scarcity of working capital further looms on the subsequent production cycles. Though it sounds like an adage, Farmers in India are stuck in a vicious cycle.
Early December in Ahmednagar, Maharashtra, Sunil Khedkar, a Farmer, is still evaluating how much he has made from the previous season in which he grew soybean and what should be the crop for the coming Rabi season. "Onion market prices are not encouraging enough whereas selling wheat at MSP prices still remains a challenge", recollects Sunil. Fast-forward into January, Sunil is exhilarated to sow a special variety of grain for which he is going to get an assured 33% premium rates. To sweeten the deal, he has got the access to credit to purchase the seeds and other agri-inputs. "Such a deal is encouraging as a farmer. It's a golden goose that no one can part with," cherishes Sunil.
Like Sunil, there are 30 such farmers who will be benefitted this season through advisory on crop/variety selection, and access to credit, quality inputs and organized commodity markets.
This is what FarmServ Infinity is all about - taking a holistic approach to address the agrarian distress. Next year the number of farmers will grow by 100x only for this particular crop variety and several more will be onboarded under different crop value chains.
Will that mean deploying multitude of 'feet-on-ground' to engage with these many farmers and making the business model on a rickety, cash-guzzling foundation? Not at all. Infinity program leverages the network of select value chain players who are entrusted for the last mile delivery of solutions. A 1000+ ever-growing network of local partners give the program reach and depth.
This step change, we believe, will flip the vicious cycle into a virtuous one, unlocking the infinite potential of farming community.