A great initiative to make small growers self reliant.

I have visited the area and have an opportunity to see the farmer associations.

I suggest to upscale the project with other (more) farmers for agriculture/rural development in remote hill areas.

Found this an innovative idea of local socio-economic change.

All the best.

A new approach for the development of India’s small & marginal farmers

Although India is rapidly transforming itself into an open, more efficient and rapidly developing market-driven economy, in rural areas such transition has been lacking or progressing painfully slow for most farmers. Marginalized and small farmers in particular are unable to escape the powerful grip and dependence on middlemen, informal lenders and other intermediaries. Although there have been several attempts to assist farmers in escaping from their poverty trap, the results have been disappointing.
Loan and grant schemes, if at all they reach the individual farmers, do not have the desired effect as these schemes do not tackle the core problems of dependence of the farmers, which brought them in poverty in the first place. As a result, most loan and grant schemes are in effect only patching solutions rather than a structural solution.

Tripartite partnership to move farmers up the economic chain
With support from private investors, originating from successful business families, a new approach for advancement of small and marginal farmers is now being tested in India and other countries. This approach is an attempt to find a critical entry point for rural development by concentrating on setting-up healthy agro-businesses in which farmers themselves gradually gain economic ownership, supported by both NGOs and experienced private entrepreneurs.
Similar to the self-help groups and cooperatives, the aim is to set-up healthy business in handling, processing and trading farmer’s commodities on a commercial basis. The main difference of the new approach is that the farmers, along with social-conscious corporate partners, become equal business partners of the investor. The farmers will only gain full economic ownership, once the investment is repaid fully. No paternalistic form of aid, but a sound economic partnership between an investor and a (farmer-owned) company, supported by experience entrepreneurs.
Along with a corporate business partner, the farmers are to set up a commercially-run business (a joint venture in the form of a private limited), based on a solid feasibility and business plan. This farmer-run joint venture enters into a loan agreement with (social) investors and becomes responsible for setting-up and running the business in a commercially responsible manner. The joint venture is to generate sufficient profit to: i) meet its loan obligations, ii) capitalize the company, iii) pay premium prices to the farmers who supplied produce and/or iv) invest in new profitable business ventures (allowing the farmer to move further up the value-addition chain). As a result, the farmers benefit in the form of good and assured prices for their commodities and possibly additional premium or dividend payments if sufficient profit is realized.
In such partnership, the (social) investor, the social conscious entrepreneurs and the farmers become mutual depend business partners. Whereas the financial risk is to remain largely by the (social) investor, the farmers have most interest in making the business a success for their own future and village/region.

workshop expected to enrich the approach from different perspectives as:

1-Non Govt. Development organizations: How the small producers can organize? (with business rigour) to contribute as co-creators of civil society to initiate civic driven changes (speakers of the season requested from various experienced organizations Dr. Anil Joshi from HESCO confirmed)
2-Corporate houses or business professionals: What would be the good CSR policy to contribute for Inclusive growth of the Nation?
3-Investors (Banks, International donors, Govt. development projects etc.): How to find the way of sustainable investment in participatory (producers& consumers) feasible business plans based on fair business principles?
4-Development professional: How to integrate of socio-economic complexities

I felt it was an experience of new learnings.

Best wishes for the success of approach.

Keep it up.

Hopefully, we’ll have a learning sharing visit soon

Judith from Konstaz, Germany