Syngenta Pacts with Jai Kisan to Provide Quick Credit to Small Farmers & More Credit News
Syngenta India, a subsidiary of the Swiss-based agriculture company, has partnered with Jai Kisan, a rural-focused neo bank, to provide smallholder farmers with quick and affordable credit, as well as access to cutting-edge technology and products. Syngenta is a multinational agricultural inputs company owned by the Chinese state-owned company ChemChina.
Syngenta India’s chief sustainability officer, KC Ravi, told that the agreement with Jai Kisan was signed under Syngenta’s farmer-friendly Krishi Mitra Program. The agreement calls for a one-year pilot project.
Farmers can obtain loans of up to 30,000 over a 120-day period, according to Abhishek Agarwal, Head (Finance), Syngenta India. “Farmers must keep a minimum balance in their bank account equal to the loan amount, which will be deducted automatically on the due date. Interest and processing fees will be deducted in advance,” he said.
The loan is intended to assist smallholder farmers, who account for 40% of the country’s grain production as well as half of the production of fruits, vegetables, and other crops, in purchasing Syngenta products from retailers. Farmers are then given the option of deferring payment until their harvests are sold.
“The pilot will be implemented in nine locations,” Ravi said, naming Indore, Ratlam (Madhya Pradesh), Aurangabad, Akola (Maharashtra), Krishna, Godavari (Andhra Pradesh), Hyderabad (Telangana), Ballari and Hubahalli (both Karnataka).
According to a Syngenta official, reaching out to smallholder farmers with farm support schemes has always been difficult, and this collaboration with Jai Kisan will help bridge that gap. “Farmers will benefit from a variety of financial programmes that will allow them to make independent decisions to access the most up-to-date technology and solutions,” he said.
Kanidmalla Veeraiah, a farmer from Gaddipalli village in Telangana’s Suryapet district, believes he will be able to save on the 24% interest he pays to the retailer for crop inputs. Under the Jai Kisan project, he would save at least 50% on interest and be able to purchase inputs at a competitive price.
S Bakkaiah, who owns an agri input company, said the Syngenta-Jai Kisan project has enabled him to obtain products at a competitive price, which will benefit farmers as well because they will pay less. “The entire transaction is entirely cash-based and hassle-free. Because it is cash-based, I can get the products at a lower price than when I get them at credit,” he said.
Dyaneshwar Bhika Riwate, a farmer from Dhawada in Maharashtra’s Aurangabad district, said the Jai Kisan project has enabled him to obtain crop protection products on time. It has also saved him from having to borrow on “painful terms,” he claims. According to Ravi, it is critical that farmers have access to finance, farming products, and technologies; the Jai Kisan initiative will help farmers.