Financial Inclusion for Inclusive Growth – Save the Farmer Campaign

“For some, it’s a picture perfect weather, for some it’s a tree to hang themselves”

The ContextThe Context

SAVE THE FARMER program focus

• 31 Farmers committed suicide in 2 months

• 51% of them below 40 years of age

• 10.44 % farmers under debt

• 40% have no Bank accounts

• About 30,000 farmers have taken private loans

Vulnerable families (< Rs One lakh family income pa, and indebted to money lenders – BCWD survey)

1 Taluk wise distribution# Taluk Without

bank acWith bank ac

Total Vulnerable HH

%

1 CHIKNAYAKANHALLI 1,532 2,790 4,322 10 2 GUBBI 1,209 2,390 3,599 8 3 KORATAGERE 1,360 2,539 3,899 9 4 KUNIGAL 1,845 3,740 5,585 13 5 MADHUGIRI 1,880 4,082 5,962 14 6 PAVAGADA 1,921 2,693 4,614 11 7 SIRA 2,872 4,673 7,545 18 8 TIPTUR 416 1,429 1,845 4 9 TUMKUR 1,031 2,159 3,190 7

10 TURUVEKERE 618 1,719 2,337 5 11 TOTAL 14,684 28,214 42,898

Why FARMER SUICIDES?• Small land holdings (72%)• Single cropping pattern• Low productivity/income• Untimely rains• High interest rates • Fluctuating market• No supplementary

livelihood• Low asset and skill base• Lack of handholding• LOSS OF HOPE !!!

Save the Farmer VideoSave the Farmer Video

What we want to achieve?

Long Term•Make Agriculture more profitable•Reduce input costs•Sustainable Farming methods•Multiple livelihood skills•Activate self help groups•Financial Literacy

Short Term•Mobilise CSR funds•360 degree support•Expert Counseling•Wean away from Money lenders

How do we approach this challenge- PEST?

P

Social

Tap NGOs, Corporates

and University

students to reach out to each farmer family and handhold towards

prosperity.

Technology

Gain greater

speed and power via

technology viz, crowd and CSR funding,

Mobile Banking weather

forecasting, online market

for co-ordinated &

global reach

Political

“Increased

government support

from all programmes to build

an environment of hope

.

Economic

Converge and Extend

various technologica

l advancemen

ts and successful

experiments to raise

agricultural incomes.

Core Committee

Activities of Core Committee

VF-IDF Achievements at Kunigal Taluk

IDF • Households covered - 46,364• Poor Households – 25,534• Groups - 2400

PrakashMaramma Devi JLGSiddapura, Nademavinapura GPFamily members: 3Land holding: 1 acreIntroduced SRI Paddy – pesticide free practicesCost of Seed, Manures, Pesticides, Labour reduced by 30%Yield increased by 30%Interest reduced by 50% (@4%pa from SBI against 30% from money lenders)

# Particulars Before Rs After Rs % (+/-)1 Paddy yield in Q / acre 20 40 100 2 Gross Income 20,000 52,000 160 3 Expenditure 15,000 8,300 -45 4 Loan interest 3,000 1,700 -43 5 Total expenditure 18,000 10,000 -44 6 Net Income 2,000 42,000

idf

KavithaMuthulaxmi MKSP SHGAnkasandra, Gubbi

2 Acre rain fed farmRagi, Maize, Bajra, Horsegram, Field beanCross bred cow and GoatsTree based farming - 5 coconuts, 4 Jackfruit, 40 Mango, 11 Tamarind trees Micro enterprise of stationery salesServices as Community Resource person

# Particulars Before Rs After Rs % (+/-)1 Ragi 4,200 8,000 90 2 Milk income after feeding Lime water 8,640 1003 Vegetables 4,800 1004 Goat unit 5,000 1005 Stationery sales 6,000 1006 CRP services 24,000 100

Total 4,200 56,440

idf

BAIF Achievements

• Integration of Livestock into the Farming System • Integration of trees into the Farming System • Crop-Diversification in mono-cropped areas • specific Natural Resource Management

Proven Methodology – sample case studies - BAIF

1. Advisory/contingency plans eg to sow or not to sow; sprays; harvesting to prevent losses

2. Weather calendar for 30 days forecast about rainfall – distribution, intensity from reputed weather portals

3. Identification of moisture availability period for sowing

4. Wide publicity and education about the services through the SHGs/Farmers group to obtain location specific information about incidence of rainfall

Weather forecast based planning

Gubbi Weather calendar for Nov.15

Mobile Technology for digital monitoring and management

1. Account Opening

2. Basic Banking transactions such as Cash deposit, Withdrawal, fund Transfer, Balance Enquiry and mini statement.

3. Create a complete citizen database of each Taluk

4. Form cohesive Self Help Groups/ Joint Liability Groups of citizens

5. Create and maintain group accounts and manage group meeting and operations

FINANCIAL INCLUSION ACTIVITIES1.Staff Training on Financial Inclusion Activities 2.Opening of Bank Accounts 3.Facilitation of Credit Linkages4. Facilitation of Insurance Facilities 5. Facilitation of Pension Facilities

Cycle Period Quantum (Rs)

1st cycle 1 year 25000

2nd cycle 2 years 50000

3rd cycle 3 years 75000

4th cycle 4 years 100000

www.micrograam.com

• Affordable, micro-loans to those who do not have access to credit• Impact 11000 people (95% women) disbursed loans of around INR 14

crores as on date. Target is to reach INR 500 crores by 2018.

Model Credit Plans for farmers:

Retail Model:

Loan Tenure 18 months

Investor Returns 6.0% pa

MicroGraam Fee 1.5% pa

NGO Fee 5% pa

Cost to the farmer (APR)

13.0% pa

CSR Model:

Loan Tenure 18 months

Investor Returns 0% pa

MicroGraam Fee 1% pa

NGO Fee 5% pa

Cost to the farmer (APR)

6.3% pa

BRIDGING GAPS IN SERVICE DELIVERY

Present set-up• 1 Agri Exten Official : 4000 Families. • 1 Horti Exten Official : 35000 Families• 1 Animal Husbandry : 7000 FamiliesProposed reach out• 1 Multi task exten worker: 1000 Families @ Rs.15000 per month• Program Management Cost for 3 Families Rs. 15000 * 300 workers = Rs. 45,00,000 pa

Minimum hand holding for 3 years needed!

Implementation-First Step

Individual Family development plan (IFDP) by IDF

Taluk GP Cases Estimate Rs Sira Kallambella 1 70,000 Tayappanahalli 1 1,37,600Sira Total 2 2,07,600Gubbi MN Kote 2 3,02,600 Koppa 1 1,22,500 Kondli 1 92,500Gubbi total 4 517600Kunigal Kodavathi 1 1,38,000 Tavarekere 2 3,02,000Kunigal Total 3 440000GRAND TOTAL 11,65,200

IFDP Summary (Tumkur district)

# Amt # Amt # Amt # Amt # Amt # Amt # Amt # Amt # AmtGubbi 4 3 1.50 3 0.08 1 0.50 9 3.10 16 5.18 Kunigal 3 3 1.50 3 0.12 3 0.33 7 2.15 1.00 0.30 17 4.40 Madhugiri 2 1 0.20 2 0.70 1 0.08 2 0.60 1 0.35 7 1.93 Pavagada 1 1 0.95 1 0.95 Sira 2 1 0.45 1 0.10 1 0.10 6 1.50 9 2.15 Tiptur 1 1 0.60 1 0.05 2 0.65 Tumkur 2 1 0.15 2 0.70 1 0.55 4 1.40 Turuvekere 4 3 1.45 2 0.10 1 0.60 1 0.80 7 2.95 TOTAL 19 1 0.20 # 7.15 7 0.30 5 0.38 # 2.83 # 7.55 2 0.90 55 19.01

TotalIFDFTaluk

Departments

Foresty SericultureAgricultureAnimal

HusbandryEducation Horticulture NAREGA

Social Welfare

Project FinancialsUnit rate per Family in Rs

1. Conversion of Farmer to Agri-preneur (Group Trainings, Technology Dissemination, Financial Literacy,

Value Addition etc)

9,000

2. Capacity development of CBOs 6,000

Capacity development of families (CSR Total) 15,000

Investments in Soil and Water conservation (Govt.) 75,000

Debt leveraged from the bank (Financial Inclusion) 1,00,000

Total Investment per Family 1,90,000

Short term Incremental Income (Field crops, livestock) 1,50,000

Long term incremental income (Tree based farming) 1,50,000

Returns in 3 years 3,00,000

COST – BENEFIT RATIO 1.57

How different is this program?

A CSR and crowd funding approach to raise funds

Weather ForecastingAppropriate Cropping

Capacity BuildingMicro Planning

convergence

Mobile bankingFinancial Inclusion

Data/Technology Driven

Goal Oriented

Linking with online Market platform

Multiple Livelihood Opportunities unfolded

CSR as a catalyst for Government contribution..

Fixed Program Management Cost

Program Cost

CSR

Karnataka State Govt/Banks

CSR support is pouring in

•Vattikuti Foundation committed for 3 Talukas

•Bhoruka Steels adopting 1 Taluka for skill development

•Manipal Foundation Scholarships @ Rs.10000/student of deceased

•NABARD sanctioned exposure visits

•Farmer Producer Company Launched

What this means for Corporates..

• Repay our debts to Annadata

• Healthy economy for healthy business

• Compliance to Corporate Social Responsibility

• Avail Tax Benefits

• Sense of fulfillment!

ThankYou…

Helpline 1800 425 3553