“promoting agriculture based livelihoods for rural youth” presentation by b.l.parthasarathy ceo,...
TRANSCRIPT
“Promoting Agriculture based Livelihoods for Rural Youth”
Presentation by B.L.ParthasarathyCEO, BASIX Consulting
Technical session V : Farmer centric approaches, Small Agri-business
Models, Development of social and human capital
National Conference on KVKs24 October, 2013
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The world’s leading provider of Livelihood Promotion Services, 13 Group entities, 6000 outlets Served over 6 mn customer cumulatively since inceptionPresent in 26 states of India, working in 7 least developed countries Pioneer and largest distributor of micro-insurance and micro pensions in India, Leader in financial inclusion and mobile payments in India.Pioneer of energy and environmental services, including climate change, and aggregating micro carbon credits Pioneer in fee-based agricultural and livestock enterprise development services and in vocational training for youth.Owns/runs in AP and Karnataka India’s only Micro Finance Local Area Bank licensed by RBI
BASIX Social Entreprise Group – A Mission Driven Pioneer
Rationale• Based on various studies and review, it was felt that, financial services alone would not be sufficient to promote sustainable livelihoods of the poor.
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Therefore BASIX adopted to deliver credit plus services to the customers
Production
• Lack of adequate extension services• Shortage of inputs, on time• Low productivity• Traditional practices
Supply Processing Marketing
• Losses in transit• Lack of village / cluster level small Storage facility• Poor transportation facility• Many layers between production and markets
•Very small quantity of agri commodities processed• Poor processing facility• Lack of know how
• Lack of grading facility • Inadequate access to markets
• It is essential to adopt holistic approach for providing the real benefit to farmers
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Institutional Development Services
Organising Producers’ Groups
Capacity Building
Sectoral & Policy Work
Financial Inclusion Services
Credit
Savings
Insurance
Pensions
Remittances
Agriculture, Livestock and Enterprise Development
Services
Crop
Dairy
Micro Enterprise Services
Skill Development
Market Linkages
BASIX Livelihood Triad Strategy
Agriculture and Livestock Enterprise Development Services (AgLEDS)
Elements:
•Productivity Enhancement
•Risk Mitigation (non-insurance)
• Local Value Addition
• Alternative Market Linkages
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 mktg
Enhanced Production in Cotton
Linked with Market
Package of Services to Dairy farmers
• Productivity enhancement:
– Artificial insemination, Supply of quality fodder seed, Azolla culture, Silage, Fodder management
• Risk mitigation (non-insurance):
– Vaccination (preventive)
– Deworming,Veterinary care ( curative)
Azolla Culture
Deworming
Package of Services to Dairy farmers
• Local value addition:– Milk a. Hygiene milk production, b. Milk products : Srikand, ghee,
sweets, ghee, cova , butter milk
– By-products a. Compost preparation , b. Cow urine as
pesticide, c. Bio-pesticide
formulations• Alternate Market Linkages :
– Formation of milk routes, establish linkages with APDDCF, Heritage, Jersy etc..,
– Reviving the defunct chilling centres/Bulk cooling units
Cova Preparation
Linked with market
Other interventions
1. Dairy Value Chain Intervention – Reliance Dairy Foods; Mahabubnagar District
1. 500 farmers; 30 villages2. 18 Producer Groups formed3. KBS BANK credit linkages provided4. BASIX Provided Ag/BDS
2. Vegetables Intervention – ITC; Hyderabad 1. Push carts were provided by ITC 2. Ag/BDS services were provided 3. Market Linkages were established
3. Sweet Orange Market Linkages – Reliance Fresh; Mahabubnagar District
1. Sweet orange farmers were registered for FMS 2. Direct Market Linkages were created with Reliance Fresh
4. Mango Market Linkages – Jain and Other players; Vizianagaram District
1. Mango cluster has been identified for FMS services 2. Market linkages efforts started for the coming season
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Among the top 10 Global MFIs in MIX Global 100 Composite Rankings in 2010, with a pan-India presence,
Cashflow based lending model, giving individual loans with joint liability, and monthly or harvest time repayment. Not a Grameen Bank replicator.
Offers life, health, crop, livestock and asset insurance on behalf of insurance cos. Over 100,000 insurance claims settled to date
Only MFI providing Agriculture and Livestock Enterprise Development (AGLED) Services besides micro-credit
Only MFI operating 4500 CSCs (IT Kiosk) network in 5 states.
BSFL- the flagship of BASIX Group
Social & Environmental performance
CGAP Gold Award for Social Performance. Reporting. Adopted Triple Bottom Line.
Working in poorer states and with poorer segments – women, Dalits, Tribals
Offers environmental loan products and services such as for organic vermi-compost, solar home lighting, safe drinking water, toilets and micro-carbon credits
Institutional Profile
BKSL provides diverse range of crop,
dairy and non-farm sector services BASIX was the largest private sector
provider of agriculture extension
services in India, with more than
800,000 customers
Products & Services
Productivity enhancement Risk mitigation (non-insurance) Market linkages –input & output Formation and development of producer
groups/farmers clubs
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BKSL - India’s largest agro services company
Livelihood Options
• AGRI Enterprises : – Smallholder farms becoming viable businesses – Financial services, Business
development services, market access
• Technical services– Skilled workers: seed production, para-veterinary services etc– Horticulture nurseries, tissue culture, – Entrepreneurs : Seed production, Fish fingerling production,
DFL production,
• Institutional development services – Seed production, intermediate processing– Procurement, Sales & marketing of input and output – Accounts & book-keeping, MIS, business planning,
Private and Confidential
Rationale
Institution Development – Farmer Organisation
• Small Farmers’ Agribusiness Consortium (SFAC) is leading an initiative to incubate 250 Farmer Producer Organizations (FPOs) which will aggregate 2.50 lakh farmers across the country.
• The purpose of aggregation is to integrate primary producers in the value chain and enhance income through increased access to investments, technology and markets.
• Indian Grameen Services is implementing the project in 15 states (Arunachal Pradesh, Bihar, Chhattisgarh, Goa, Jharkhand, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Rajasthan, Sikkim, Tripura, and West Bengal) covering 47,175 farmers forming about 50 FPOs.
Farmers’ Producers’ organization (FPO) Formation
Vegetable Growers/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).
Microfranchising has its roots in traditional franchising, which is the practice of copying a successful business and replicating it at another location by following a consistent set of well-defined processes and procedures. In traditional franchising, the franchisor (who owns the overall rights to the business) sells or licenses its systematized business approach to a franchisee. The franchisor typically controls many of the macro aspects of the business such as creating and marketing the brand, procuring inputs, continuously refining the model, and recruiting and training franchise operators.
Microfranchising is a powerful tool for addressing the challenges of
eradicating poverty and creating jobs in less developed economies. In
essence, microfranchising models work best when they are matched to local needs, when they are simple
enough to be managed without formal business training, and when
they are documented and systematized enough to scale so
that both the microfranchisor and the microfranchisee can profit.
Of the farmers , By the farmers, For the farmersOf the farmers , By the farmers, For the farmers
Green skill based Micro-franchising : An Innovative business model
Micro-Franchise : How it works
• The microfranchisor provides a “turn-key” business for a microfranchisee to operate
• The microfranchises is a set of systems and best practices, that if followed, will help the microfranchisee to be successful
• This is key to the business being easy enough for non-entrepreneurial individuals to be successful
Private and Confidential
Micro Franchise Traits
Private and Confidential
• Local owners in a symbiotic relationship with an enabling institution
• A brand or other significant intellectual property • Mentoring • Shared know-how codified in an operating system • Potential for replication; and • An overt social mission to alleviate poverty
through enterprise