Agriculture, Livestock and Enterprises Development Services · •Pest Control of India, Pheromone Chemicals, ... •Gap Analysis ... Reliance/ITC ly Milk Supplied to Bulk Milk

Private and Confidential

Agriculture, Livestock and Enterprises

Development Services

• Rationale and Context

• Strategy

• Goal and Scope

• Elements of AgLEDS

• Action Research

• Up scaling

• Monitoring and Control

• Collaborations

ContentsBASIXEquity for Equity

BASIXEquity for Equity

• Based on various studies and review, it was felt that,

financial assistance alone would not be sufficient to

promote sustainable livelihoods of the poor.

.

Rationale

Therefore BASIX

started extending

credit plus services

to the customers



• Indian Market Research Bureau(IMRB) impact assessment study(2001) on credit customers revealedthat

• 52% showed increase in the income

• 25 % reported no change in theincome levels

• 23% reported decline in their incomelevels

• The reasons cited -

• Low Productivity

• Un-managed Risk

• Access to Market.

Context..BASIXEquity for Equity


Our Strategy

FINS(Financial Inclusion Services)

IDS(Institutional Development Services)

Livelihood

Triad

Ag/BDS(Agriculture and Business Development

Services)



Private and Confidential 6

Financial Inclusion Services (As on 2009-10)

Financial Inclusion Services• No. of

Customers• Million

USD

Outstanding

Micro-Savings/Deposits • 2,45,183 • 14.93

Micro-Credit (cumulative USD 674.89 Million) • 11,17,250 • 226.42

Micro-Insurance (life, health, livestock, weather-based crop, micro-enterprise asset) • 2,320,994




Micro Insurance (As on 2009-10)

Product Registered Customers

Group Life & Health 1,981,635

Group Insurance for Institutions (Life &

health)

6,680

Total 1,988,315

Livestock 78,323

Enterprise 98,799

Personnel Accident & Rural Health

Insurance

145,574

Retail Life Insurance 1,793

Total 324,489

Weather 8,190

Grand Total 2,320,994

Settled 62,035 Insurance Claims of USD 5.44 millions




No. of Cumulative Customers 1,023,544

Sub Sector No. of customers

(this year)

O/s. Customers

Crop (Cotton, Soya

and Paddy)

106,588 123,273

Dairy 174,744 229,718

Non Farm Sector 215,112 154,780

IDS 55,390 59,840

Total 551,834 567,611

• Vaccinated 208,779 animals

• IPM, INM, Bio inputs offered to 185,707 customers

• Imparted SRI training to over 2,276 farmers

AgLEDS (As on 2009-10)BASIXEquity for Equity


Agriculture, Livestock and Enterprises

Development Services

Elements

• Productivity enhancement

• Risk mitigation (not

insurance)

• Local value addition

• Alternative Market Linkages

More tillers in SRI

Pheromone Trap

Traditional & SRI



Goal

“To identify and develop products across various sub-

sectors and vectors with services leading to

productivity enhancement, risk mitigation, local value

addition and facilitating input and output linkages.

To upscale successful products though sustainable

business models by establishing robust systems and

processes serving the customers individually and

forming their groups ensuring higher returns to the

customers and the organization.”

Vision:

AgLEDS will continue to be a trusted, economically

sustainable SBU catering 4 million customers by 2014

enhancing their capacity and income level significantly.

AgLEDS Goal & VisionBASIXEquity for Equity


What…Action Research

Work with various sub-sectors and vectors which

affects livelihoods

Sub sectors : Sub-sector is defined as a vertical

grouping of enterprises involved in the production and

marketing of one well-defined product or several

closely related products i.e. from raw material of one

commodity to its consumer point

Identify the

Sub SectorUndertake AR

/ Study

Identify & Address the

Bottlenecks with effective

Revenue Model

Scaling up Phase



Stages:

Conceptualization

• Undertaking Sub-Sector Studies

• Select the intervention points to address the identified

bottlenecks.

Pilot Phase

• Establish collaborations

• Undertake the Action Research

• Develop successful interventions on revenue model

Scaling up

• Scale up the intervention

• Undertake impact assessment

• Improve the design.

How…Action ResearchBASIXEquity for Equity


Cotton Sub-Sector – An Example

• Large number of livelihoods

• High wage employment

• Farmers suicides prompted Study

• Study revealed

– Indiscriminate usage of pesticides

– Lack of technical knowledge

– Low access to alternate markets

• Pilot was initiated with 64 farmers in 2001 through

introduction of IPM technology.

• Input & output linkages were established

• Formed farmers institutions : 19 MACTS in Adilabad

district



Cotton Sub-Sector

IPM to organic over three years (SERP)

• Converting 3,000 acres by June 07 to organic

benefiting 1,000 farmers

• Implemented NPM in 3,300 acres through 10 mandal

Mahila Samakhyas (MMS)

• Net saving is USD 22.22/- per acre

Collaborated input and output linkages through

• Pest Control of India, Pheromone Chemicals, Margo

Bio-Control, Central Institute for Cotton Research,

ATMA, NCDEX and Super spinning mills



Cotton Sub-Sector contd…

Value Chain

• Piloted raw cotton ginning into bales with 5 MACTS

of Nirmal

• 667 quintals processed into 150 bales

• Net gain of USD 2.22 (5%) per quintal



Impact

This intervention has led to

• Direct savings by farmers- USD

44.44 per acre

• Restoration of soil fertility

• Formation of Producer Co-ops

• Linkage with Input and Output

– Gain of USD 4.44 per quintal

with market linkage

• Linkage with financial

institutions- BSFL

• Engaged in Value Addition

• Enabled IPM intervention in other

crops scaled up to 27000 farmers

BASIX Farmer Mr. Vanga

Ram Reddy felicitated by

President of India



• System of Rice Intensification (SRI)

• Piloted in A.P, Orissa and West Bengal

with 164 farmers over 32 acres

• Yield increase ranging 50% to 100%

over traditional method

• More tillers and panicles resulted in

higher yield

• Economic benefits

▪ 90% saving in seed cost

▪ Higher output of paddy as well as

straw

• Govt. Agencies impressed and open for

support

• Demand from other institutions for

training on SRI

Paddy – An action research pilot BASIXEquity for Equity


Up scaling AgLEDS

Implementation Process

• Cluster approach

• Gap Analysis

• Calendar of Services

• Fixed service delivery dates

• Village Meetings

• Demonstrations

• Farmer field schools

• Health camps

• Exposure visits



Registered over 538,662 customers in the FY 09-10.

Serviced over 460,070 customers

AgLEDS Product/Process

Steps Responsible persons

Gather customer, LSA,

LSP, FX, TA, UA

observations

UH

Analyze the learningUH and AgLEDS SBU

Refine product/ProcessAgLEDS SBU

Explain improved

product/ processUH and AgLEDS SBU



Products and Services

Crop Development Services

• Cotton

• Soya bean

• Paddy

• SRI

• Mushroom

• Kitchen Gardening

• Other major crops

NFS

• Tailoring

• Hotels

• Kirana (grocery Shop)

IDS

• SHG

• PO (PG)

( Formation and Revival)

Allied Development Services

• Dairy

• Sheep rearing and Goatery

• Pakshi Samruddhi Seva

(Bird Development Service)



Productivity Enhancement through Package of Practices

• Soil testing, Vermicompost and Integrated Nutrient

Management

Risk Mitigation

• Seed treatment, Stem application, Integrated Pest

Management

Enhanced Production in Cotton

Package of Services to Crop customersBASIXEquity for Equity


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

Linked with Market

Package of Services to Crop

customers contd…



Productivity enhancement:

• Artificial insemination,

supply of quality fodder

seed, Azolla culture, silage,

fodder management

Risk mitigation (not

insurance):

• Vaccination (preventive)

• Deworming, Veterinary

care ( curative)

Package of Services to Dairy farmers

Azolla Culture

Deworming




contd..

Local value addition:

Milk

a.Hygiene milk production,

b.Milk products :

By-products

a.Compost preparation ,

b.Cow urine as pesticide,

c.Bio-pesticide formulations

Cova Preparation




Alternate Market Linkages :

• Formation of milk routes, establish linkages with

APDDCF, Heritage, Jersy etc..,

• Reviving the defunct chilling centres/Bulk cooling

units

Linked with market



AgLEDS Revenue

Particulars2009-10 (Million

USD)

As on Sep ’1

(Million USD)

Revenue 3.26 2.82

Variable Cost 0.94 1.40

Contribution 2.32 1.41



18244

33860

104

26761

59036

17703

60296

134103

64549

113119

186800

238743

189977

436402

377674

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

500000

Crop Dairy NFS

2006-07

2007-08

2008-09

2009-10

2010-11

AgLEDS Growth over last 5 yearsBASIXEquity for Equity


AgLEDS Achievements – April-Sept 2010

4723

15370

23314

19152 23044

27172

47399

20271

38547

33020

27933

38975

21694

25385

40049

12402

30203

47465

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

Apr May Jun Jul Aug Sep

Agriculture Agri-Allied NFS

Revenue of USD 5.1million



Groups /

Institutions

Target Actual

SHG ROSCAS 4489 6421

Producer Groups (Farm/

Non Farm/Dairy)

65 69

Total 4554 6490

IDS As on September 2010

Revenue of USD 0.18 million

5265

4489

22 65

5287

4554

0

1000

2000

3000

4000

5000

6000

SHG ROSCAS Producer group Total

IDS as on Aug 2010

Target Actuals



IDS Progress on services delivered

IDS OfferingNo. of

Groups

Facilitation of Group

Monthly Meeting6,698

Bank Accounts 1,069

Lending system

internalized1,346

Link to Bank or

Financial Institution265

Book Keeping 3,474



• Context specific services/product customization

• Assessment of Customer needs

• By Livelihood Service Provider (Technically

Competent) on Contractual basis

• An LSP typically services about 300-400 customers.

• LSPs work would be supported by professionals -

Field Executive (FX)

• A total of 863 LSPs and 91 Resource Persons are in

action

Services Delivery MechanismBASIXEquity for Equity


Services Strengthening

• Implemented Cluster approach for effective services

delivery.

• Introduced SMS based services.

• Developed Product brochures and service delivery

cards in vernacular languages for seven AgLEDS

products

• Exclusive trainings to LSPs on technical Knowledge



Services Strengthening contd…

• Weather based Agro Advisory services

• Recruited Resource Persons for conducting training

on tailoring.

• Conducted Customer Satisfaction Survey which

resulted in 85% customer satisfaction.

• Business expansion through direct customers

– Cross selling of AgLEDS products



• Field inspection by Risk Management team

• Specific impact assessment studies on Structured

Management Information System

• Periodic reviews both at Field and Head Office

• Integrated module in ERP based DELPHIX package

• Annual Customer Satisfaction Surveys

• Technological interventions – value to customer

Monitoring and ControlBASIXEquity for Equity


We believe in collaborating with players having

domain expertise to…………….

Collaborative polygon

Financial Services

Training & Extension

Organization people

Research & Technology

Output Market

Input Supply

Customer

Enhance competencies, Increase outreach, Reduce

transaction costs and Reduce risk for BASIX and its

customers



Potato Value Chain Intervention

2000 Potato growers

Frito Lays India Ltd.

Seed Potato

BASIX

CR

ED

IT

Ag/B

DS

IDS

Buyback Arrangement



Reliance/ITC

Inp

ut S

up

ply

Milk Supplied to

Bulk Milk

Coolers

Ou

tpu

t Mark

et

Dairy Farmers

BASIX

Financial and Dairy

Ext Services

BASIX – Reliance/ITC Dairy Supply

Chain



Other interventions

1. Dairy Value Chain Intervention – Reliance

Dairy Foods; Mahabubnagar District

1.500 farmers; 30 villages

2.18 Producer Groups formed

3.KBS BANK credit linkages provided

4.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



Other interventions contd…

3. Sweet Orange Market Linkages – Reliance

Fresh; Mahabubnagar District

• Sweet orange farmers were registered for

Farm Management Services -FMS

• Direct Market Linkages were created with

Reliance Fresh

4. Mango Market Linkages – Jain and Other

players; Vizianagaram District

• Mango cluster has been identified for FMS

services

• Market linkages efforts started for the

coming season



AGLEDS PartnersBASIXEquity for Equity


[email protected]

Visit us @ www.basixindia.com

Thank You

mailto:[email protected]

Documents

Agriculture, Livestock and Enterprises Development Services · •Pest Control of India, Pheromone Chemicals, ... •Gap Analysis ... Reliance/ITC ly Milk Supplied to Bulk Milk