Syngenta signs agreement with Jai Kisan to provide quick credit to smallholder farmers
Syngenta India, an arm of the Swiss-based agricultural society, has partnered with Jai Kisan, a neo-bank focused on rural areas, to provide fast and affordable credit to smallholder farmers and help them access the latest technologies and products. Syngenta is a global agri-input giant owned by Chinese state-owned ChemChina.
Syngenta India’s Director of Sustainability, KC Ravi, said Activity area that the deal with Jai Kisan was signed under a farmer-friendly Krishi Mitra Program run by Syngenta. The agreement concerns the realization of a pilot project for one year.
Abhishek Agarwal, Head (Finance) of Syngenta India, said farmers can avail loans of up to ₹30,000 over a period of 120 days. “Farmers must maintain a minimum balance equal to the value of the loan in their bank account, which will be automatically deducted on the due date. Interest and processing fees will be deducted in advance,” he said.
The loan aims to help smallholder farmers, who contribute 40% of the country’s grain production and half of the production of fruits, vegetables and other crops, to purchase Syngenta products from retailers. In turn, farmers have the option to defer payment until their crops are sold.
“The pilot will be implemented in nine locations – Indore, Ratlam (Madhya Pradesh), Aurangabad, Akola (Maharashtra), Krishna, Godavari (Andhra Pradesh), Hyderabad (Telangana), Ballari and Hubahalli (both from Karnataka)”, Ravi said.
The Syngenta official said that it has always been difficult to set up agricultural support programs for smallholder farmers and that this partnership with Jai Kisan will help fill this gap. “Farmers will benefit from various financial programs that will allow them to make independent decisions to access the latest technologies and solutions,” he said.
According to Kanidmalla Veeraiah, a farmer from Gaddipalli village in Suryapet district of Telangana, he could save on the 24% interest he pays to the retailer for his agricultural inputs. Under the Jai Kisan project, he would benefit from a reduction of at least 50% of the interest and could buy the inputs at a competitive price.
S Bakkaiah, who runs an agri-input business, said the Syngenta-Jai Kisan project has helped him source products at a competitive price, which will also benefit farmers, as they will get them at a lower price. . “The whole transaction is completely cash and hassle-free. As it is cash, I also get the products at a lower price than I get on credit,” he said.
Dyaneshwar Bhika Riwate, a farmer from Dhawada, Aurangabad district, Maharashtra, said he was able to get crop protection products on time through the Jai Kisan project. It also saved him from borrowing on “painful terms,” he said.
Ravi said it was essential for farmers to be able to access finance, agricultural products and technologies; the Jai Kisan initiative will benefit farmers.
May 11, 2022