Meeting the credit needs of small-holder Farmers

One stop shop for farmers

eKutir Opportunity Driven By

Knowledge 1

What is the Present Credit Arrangement

• Credit is inadequate

• Credit not given in time

• Banks perceived as alien organisations

• MFI’s only concentrate on credit dispersal

Farmers

• Farm Credit - a risky Portfolio

• Small and Marginal Farmers are Non bankable

• Lack of concern

• No value added services offered

Banks & MFIs

• Money lenders – Last resort

• No increase in productivity

• No increase in income

• Cycle of Perpetual poverty

Impoverished Farmers

2

• No liquidity problems

• Inputs available from eKutir

• Quality, Service and de-risking done

• Better Portfolio Management

• Enhanced Productivity

• More Income

Farmers

• Good Market & Captive Customers

• Value added services

• Less Risk and more Income

• Less transaction costs

• More products without credit from input suppliers

eKutir entrepreneurs

• No credit transactions by farmers for inputs

• Instant Payment to Farmers

• No liquidity crunch

Local Traders

• Less Risk and Transaction costs

• Outsourcing of Banking operations to eKutir

• More market access

Banks /MFIs

• Assured quality of farm produce

• Captive Farmer groups

• Adherence to GAP standards

AgriProcessors

• Benefits from inputs and outputs

• Better Productivity

• Enhanced Incomes

A Happy

eKutir Farmer

Post Intervention

Phase

3

eKutir Voucher System Voucher to be issued to

registered farmers

2Vr books to be issued with 10leaves for two

crops

Farmer can come to the hubs and ask queries on line for those two crops

free of cost

At the hub vr no will be entered and the

amount will be entered as income

This will help farmer in coming to the hubs and start taking some more

agri inputs

eKutir Voucher will be issued to the registered farmers for availing all information and advisory on line through ekutir hubs for two crops. This system has been designed to help the farmer to come to the hubs and get objective information without paying anything. This voucher system initially to be sponsored by eKutir Rural Management Services Ltd but later on to be sponsored by different Agri Agencies but later on after the farmer realises the importance of the information and online advisory will start paying for the usage.

4

eKutir

• Business expansion of eKutir entrepreneurs

• Monetisation of the Farmers Information

• To build up the credit Information of the Farmers

• Helps in mitigating the risks of the stakeholders

Fis/MFIs/

•Fis/MFIs/ get a readymade market where the risks and the transaction cost is minimized

•BCs/BFs can earn more money because of this opportunity

Contract Farming Organisation/Agri

Processors

• They can issue a credit card to their captive farmers for buying and paying inputs required for raising the identified crops. The quality of the crop is ensured and the utilisation of the inputs ensured

• The payment is made by them if agreed by Farmers and also the payment of the produce net of creidt is paid to them.

•Ekutir Farmers’ Credit Card will be issued to the Farmers by FIS/MFIs/Contract Farmer/ Organisation/Agri Processors

•Farmers are issued the card to meet their input requirements for raising a crop.

•Farmers indicates the crops for which the credit in the form of kinds will be taken from eKutir or eKutir accredited organisations

•The transaction will be confined to the input requirements of the crops indicted by the farmer .For crop changes he has to apply and changes to be effected

•The total repayment will be confined to total duration of the crops + 15days

AgriPlus

5

Crop Planning Tool

Farmer Risk Analysis Tool

Farmers Financial Tool

• Registration Charges from the farmer for giving objective advisory

• Charges from other farmer

• Registration Charges

• Charges from the Bank/Fis for giving risk analysis Report

• Registration of the Farmer

• Commission from the banks for any financial transaction

De-Risking the Small-Holder Farmer

6

Soil Nutrient Management

Tool

Seed Selection Tool

Pest & Disease Management

Tool

• Registration of the farmer

• Registration Charges from the Fertliser /Soil Nutrient Vendors

• Commission/Profit for selling the nutrients/supplying the nutrients

• Registration of the Farmer

• Seed Vendors Registration

• Commission on selling seeds

• Registration of Farmers

• Registration of Vendors

• Commission on selling of pesticides

De-Risking the Small-Holder Farmer

7

Harvesting Management

Tool

Marketing Management

Tool

Farmers Advisory Tool

• Registration of the Farmer

• Registration of different buyers

• Registration of Farmer

• Registration of Traders/Buyers

• Commission on marketing from the Farmers

• Registration of the Farmer for advisory

• Registration of different advisors

De-Risking the Small-Holder Farmer

8

Namaste &

Thank You!

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