“Promoting Agriculture based Livelihoods for Rural Youth” Presentation by B.L.Parthasarathy

1. “Promoting Agriculture based Livelihoods for Rural Youth” Presentation by B.L.Parthasarathy CEO, BASIX Consulting Technical session V : Farmer centric approaches, Small Agri-business Models, Development of social and human capital National Conference on KVKs 24 October, 2013

2. BASIX Social Entreprise Group – A Mission Driven Pioneer • The world’s leading provider of Livelihood Promotion Services, 13 Group entities, 6000 outlets • Served over 6 mn customer cumulatively since inception • Present 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 2

3. Based on various studies and review, it was felt that, financial services alone would not be sufficient to promote sustainable livelihoods of the poor. . Rationale Therefore BASIX adopted to deliver credit plus services to the customers

4. Production Supply Processing Marketing • Lack of adequate • extension services • Shortage of inputs, • on time • Low productivity • Traditional practices • Losses in transit • Lack of village / • cluster level small • Storage facility • Poor transportation • facility • Many layers between • production and markets • Lack of grading • facility • Inadequate access to • markets • Very small quantity of agri • commodities processed • Poor processing • facility • Lack of know how • It is essential to adopt holistic approach for providing the real benefit to farmers

5. BASIX Livelihood Triad Strategy 5

6. Agriculture and Livestock Enterprise Development Services (AgLEDS) • Elements: • Productivity Enhancement • Risk Mitigation (non-insurance) • Local Value Addition • Alternative Market Linkages

7. 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

8. Productivity enhancement: Artificial insemination, Supply of quality fodder seed, Azolla culture, Silage, Fodder management Risk mitigation (non-insurance): Vaccination (preventive) Deworming,Veterinary care ( curative) Package of Services to Dairy farmers Azolla Culture Deworming

9. 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

10. Other interventions Dairy Value Chain Intervention – Reliance Dairy Foods; Mahabubnagar District 500 farmers; 30 villages 18 Producer Groups formed KBS BANK credit linkages provided BASIX Provided Ag/BDS Vegetables Intervention – ITC; Hyderabad 1. Push carts were provided by ITC 2. Ag/BDS services were provided 3. Market Linkages were established 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 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

11. AGLEDS Partners

12. BSFL- the flagship of BASIX Group • 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. 12

13. BKSL - India’s largest agro services company 13

14. 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, Rationale Private and Confidential

15. 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.

16. Farmers’ Producers’ organization (FPO)Formation • 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). Vegetable Growers/pulse growers D I S T R I C T FPO BLOCK Cluster Committee Cluster Committee Farmers Interest Group (FIG) Farmers Interest Group (FIG) Farmers Interest Group (FIG)

17. Green skill based Micro-franchising : An Innovative business model 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. Microfranchisingis 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 farmers

18. 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

19. Micro Franchise Traits • 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 Private and Confidential

20. Micro Franchise Model Private and Confidential

21. Promoting Livelihoods…Bringing Smiles THANK YOU www.basixindia.com