Overview
About
Recognising that Indian farmers would be able to better negotiate for their needs in large numbers, the Government of India steered programmes geared for the widespread adoption of Farmer Producer Organisations. Unlike cooperative models, FPOs in India have a corporate structure, allow members to make profits, act as farmer development centres and are governed under the Companies Act.
This translates to so much more than an organised community for farmers to rally for the basic minimum – subsidies, inputs, etc. Now, FPOs have become platforms where farmers from the same geographies, experiencing the same issues negotiate and find solutions.
Leveraging Samunnati’s partnership as an NBFC since 2014, FPOs have been bargaining for better aggregation, crop production and market linkages.
Approach
Samunnati believes that in an ecosystem like the agri value chain, every component must function at maximum capacity to ensure the welfare of everyone in the community. While understanding how integral farmers are to this agri finance finance ecosystem, we truly believe that through their empowerment the entire value chain will realise unprecedented growth.
We believe that by enhancing income, empowering and assisting them with centres for excellence, FPOs can realise remarkable growth. Besides timely financial assistance through solutions like long term agricultural loan, Samunnati has pioneered a unique approach in agri value chain financing that will help farmer producer organisations leverage the economy for greater benefits.
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Aggregation
We understand how integral procuring good products is to the production process. By leveraging the bargaining power that comes with numbers, we help Farmer Producer Organisations source inputs in bulk and at lower costs. With Samunnati’s intervention, FPOs now manage members, output purchase and demand seamlessly with the latest technology in agriculture.
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Market Linkages
Building better market connections is more than just finding a market in the agricultural ecosystem to sell the produce. It means leveraging market ties to find the best price for a certain produce. Beyond this, Samunnati works closely with FPOs to build production capacities using new farming technology to cater to international markets.
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Advisory Services
Samunnati understands the real testament of growth is not just scaling farmers’ incomes. Through agricultural advisory services we offer training skills ranging from situation analysis and business planning to agricultural finance literacy and disaster preparedness, Samunnati helps in boost operations and eventually increase the scale of production. A significant portion of our effort goes towards the creation of centres for excellence to demonstrate new cropping techniques and modern technologies in agriculture.
Workflow
1
2
7-10 Days
Visit Resource & Promoting Institutions(NEO, NABARD, CSR)
State/District level workshops and in-person visits
2
3
2-3 Days
Visit FPOs
Detailed interaction with State/District level workshops and CEO/BOO/Staff/member representatives
3
4
2-3 Days
FPO Assessment
Due diligence process with document mobilisation
4
5
4-5 Days
Document Mobilisation
Collecting documents as per the standard checklist
5
6
4-5 Days
Due diligence process
Assessment is done by Relationship Manager and Credit Manager
6
7
7
2-3 Days
Cam (Credit Appraisal Memo)
Proposal with a detailed engagement note
7
8
2-3 Days
Credit Committee (CC) Appraisal
Detailed appraisal to decide sanction
8
9
1-2 Days
Sanction Letter
Credit admin to issue sanction letter based on CC approval
9
10
3-4 Days
Documents Execution
Loan document to be executed as per sanction letter
10
11
3-4 Days
Cheque Validation
Deposit cheque for client visit charges, documentation and processing fee
11
12
1-2 Days
ESCROW Account
Opening escrow account in the name of FPO to secure procurement/output loans
12
13
1-2 Days
Release Order
Credit admin to issue order by validating documents
13
14
3-4 Days
Loan Utilization
FPO to avail facilities like input, output and catalytic infrastructure
14
15
4 -10 days
Disbursement as per sanction terms
Opening escrow account in the name of FPO to secure procurement/Output loans
15
4 -10 days
Repayment as per FPO's funding request
To happen through ESCROW/DAS
Solutions
We understand that diversity is an integral part of the agri finance value chain. So, what brings tremendous success for one Farmer Producer Organisation may not work for another. Our team understands this and crafts solutions that are equipped to suit the size of any organisation.
