Financial Inclusion for Inclusive Growth – Save the Farmer Campaign
“For some, it’s a picture perfect weather, for some it’s a tree to hang themselves”
The ContextThe Context
SAVE THE FARMER program focus
• 31 Farmers committed suicide in 2 months
• 51% of them below 40 years of age
• 10.44 % farmers under debt
• 40% have no Bank accounts
• About 30,000 farmers have taken private loans
Vulnerable families (< Rs One lakh family income pa, and indebted to money lenders – BCWD survey)
1 Taluk wise distribution# Taluk Without
bank acWith bank ac
Total Vulnerable HH
%
1 CHIKNAYAKANHALLI 1,532 2,790 4,322 10 2 GUBBI 1,209 2,390 3,599 8 3 KORATAGERE 1,360 2,539 3,899 9 4 KUNIGAL 1,845 3,740 5,585 13 5 MADHUGIRI 1,880 4,082 5,962 14 6 PAVAGADA 1,921 2,693 4,614 11 7 SIRA 2,872 4,673 7,545 18 8 TIPTUR 416 1,429 1,845 4 9 TUMKUR 1,031 2,159 3,190 7
10 TURUVEKERE 618 1,719 2,337 5 11 TOTAL 14,684 28,214 42,898
Why FARMER SUICIDES?• Small land holdings (72%)• Single cropping pattern• Low productivity/income• Untimely rains• High interest rates • Fluctuating market• No supplementary
livelihood• Low asset and skill base• Lack of handholding• LOSS OF HOPE !!!
Save the Farmer VideoSave the Farmer Video
What we want to achieve?
Long Term•Make Agriculture more profitable•Reduce input costs•Sustainable Farming methods•Multiple livelihood skills•Activate self help groups•Financial Literacy
Short Term•Mobilise CSR funds•360 degree support•Expert Counseling•Wean away from Money lenders
How do we approach this challenge- PEST?
P
Social
Tap NGOs, Corporates
and University
students to reach out to each farmer family and handhold towards
prosperity.
Technology
Gain greater
speed and power via
technology viz, crowd and CSR funding,
Mobile Banking weather
forecasting, online market
for co-ordinated &
global reach
Political
“Increased
government support
from all programmes to build
an environment of hope
.
Economic
Converge and Extend
various technologica
l advancemen
ts and successful
experiments to raise
agricultural incomes.
Core Committee
Activities of Core Committee
VF-IDF Achievements at Kunigal Taluk
IDF • Households covered - 46,364• Poor Households – 25,534• Groups - 2400
PrakashMaramma Devi JLGSiddapura, Nademavinapura GPFamily members: 3Land holding: 1 acreIntroduced SRI Paddy – pesticide free practicesCost of Seed, Manures, Pesticides, Labour reduced by 30%Yield increased by 30%Interest reduced by 50% (@4%pa from SBI against 30% from money lenders)
# Particulars Before Rs After Rs % (+/-)1 Paddy yield in Q / acre 20 40 100 2 Gross Income 20,000 52,000 160 3 Expenditure 15,000 8,300 -45 4 Loan interest 3,000 1,700 -43 5 Total expenditure 18,000 10,000 -44 6 Net Income 2,000 42,000
idf
KavithaMuthulaxmi MKSP SHGAnkasandra, Gubbi
2 Acre rain fed farmRagi, Maize, Bajra, Horsegram, Field beanCross bred cow and GoatsTree based farming - 5 coconuts, 4 Jackfruit, 40 Mango, 11 Tamarind trees Micro enterprise of stationery salesServices as Community Resource person
# Particulars Before Rs After Rs % (+/-)1 Ragi 4,200 8,000 90 2 Milk income after feeding Lime water 8,640 1003 Vegetables 4,800 1004 Goat unit 5,000 1005 Stationery sales 6,000 1006 CRP services 24,000 100
Total 4,200 56,440
idf
BAIF Achievements
• Integration of Livestock into the Farming System • Integration of trees into the Farming System • Crop-Diversification in mono-cropped areas • specific Natural Resource Management
Proven Methodology – sample case studies - BAIF
1. Advisory/contingency plans eg to sow or not to sow; sprays; harvesting to prevent losses
2. Weather calendar for 30 days forecast about rainfall – distribution, intensity from reputed weather portals
3. Identification of moisture availability period for sowing
4. Wide publicity and education about the services through the SHGs/Farmers group to obtain location specific information about incidence of rainfall
Weather forecast based planning
Gubbi Weather calendar for Nov.15
Mobile Technology for digital monitoring and management
1. Account Opening
2. Basic Banking transactions such as Cash deposit, Withdrawal, fund Transfer, Balance Enquiry and mini statement.
3. Create a complete citizen database of each Taluk
4. Form cohesive Self Help Groups/ Joint Liability Groups of citizens
5. Create and maintain group accounts and manage group meeting and operations
FINANCIAL INCLUSION ACTIVITIES1.Staff Training on Financial Inclusion Activities 2.Opening of Bank Accounts 3.Facilitation of Credit Linkages4. Facilitation of Insurance Facilities 5. Facilitation of Pension Facilities
Cycle Period Quantum (Rs)
1st cycle 1 year 25000
2nd cycle 2 years 50000
3rd cycle 3 years 75000
4th cycle 4 years 100000
www.micrograam.com
• Affordable, micro-loans to those who do not have access to credit• Impact 11000 people (95% women) disbursed loans of around INR 14
crores as on date. Target is to reach INR 500 crores by 2018.
Model Credit Plans for farmers:
Retail Model:
Loan Tenure 18 months
Investor Returns 6.0% pa
MicroGraam Fee 1.5% pa
NGO Fee 5% pa
Cost to the farmer (APR)
13.0% pa
CSR Model:
Loan Tenure 18 months
Investor Returns 0% pa
MicroGraam Fee 1% pa
NGO Fee 5% pa
Cost to the farmer (APR)
6.3% pa
BRIDGING GAPS IN SERVICE DELIVERY
Present set-up• 1 Agri Exten Official : 4000 Families. • 1 Horti Exten Official : 35000 Families• 1 Animal Husbandry : 7000 FamiliesProposed reach out• 1 Multi task exten worker: 1000 Families @ Rs.15000 per month• Program Management Cost for 3 Families Rs. 15000 * 300 workers = Rs. 45,00,000 pa
Minimum hand holding for 3 years needed!
Implementation-First Step
Individual Family development plan (IFDP) by IDF
Taluk GP Cases Estimate Rs Sira Kallambella 1 70,000 Tayappanahalli 1 1,37,600Sira Total 2 2,07,600Gubbi MN Kote 2 3,02,600 Koppa 1 1,22,500 Kondli 1 92,500Gubbi total 4 517600Kunigal Kodavathi 1 1,38,000 Tavarekere 2 3,02,000Kunigal Total 3 440000GRAND TOTAL 11,65,200
IFDP Summary (Tumkur district)
# Amt # Amt # Amt # Amt # Amt # Amt # Amt # Amt # AmtGubbi 4 3 1.50 3 0.08 1 0.50 9 3.10 16 5.18 Kunigal 3 3 1.50 3 0.12 3 0.33 7 2.15 1.00 0.30 17 4.40 Madhugiri 2 1 0.20 2 0.70 1 0.08 2 0.60 1 0.35 7 1.93 Pavagada 1 1 0.95 1 0.95 Sira 2 1 0.45 1 0.10 1 0.10 6 1.50 9 2.15 Tiptur 1 1 0.60 1 0.05 2 0.65 Tumkur 2 1 0.15 2 0.70 1 0.55 4 1.40 Turuvekere 4 3 1.45 2 0.10 1 0.60 1 0.80 7 2.95 TOTAL 19 1 0.20 # 7.15 7 0.30 5 0.38 # 2.83 # 7.55 2 0.90 55 19.01
TotalIFDFTaluk
Departments
Foresty SericultureAgricultureAnimal
HusbandryEducation Horticulture NAREGA
Social Welfare
Project FinancialsUnit rate per Family in Rs
1. Conversion of Farmer to Agri-preneur (Group Trainings, Technology Dissemination, Financial Literacy,
Value Addition etc)
9,000
2. Capacity development of CBOs 6,000
Capacity development of families (CSR Total) 15,000
Investments in Soil and Water conservation (Govt.) 75,000
Debt leveraged from the bank (Financial Inclusion) 1,00,000
Total Investment per Family 1,90,000
Short term Incremental Income (Field crops, livestock) 1,50,000
Long term incremental income (Tree based farming) 1,50,000
Returns in 3 years 3,00,000
COST – BENEFIT RATIO 1.57
How different is this program?
A CSR and crowd funding approach to raise funds
Weather ForecastingAppropriate Cropping
Capacity BuildingMicro Planning
convergence
Mobile bankingFinancial Inclusion
Data/Technology Driven
Goal Oriented
Linking with online Market platform
Multiple Livelihood Opportunities unfolded
CSR as a catalyst for Government contribution..
Fixed Program Management Cost
Program Cost
CSR
Karnataka State Govt/Banks
CSR support is pouring in
•Vattikuti Foundation committed for 3 Talukas
•Bhoruka Steels adopting 1 Taluka for skill development
•Manipal Foundation Scholarships @ Rs.10000/student of deceased
•NABARD sanctioned exposure visits
•Farmer Producer Company Launched
What this means for Corporates..
• Repay our debts to Annadata
• Healthy economy for healthy business
• Compliance to Corporate Social Responsibility
• Avail Tax Benefits
• Sense of fulfillment!
ThankYou…
Helpline 1800 425 3553