Promoting Agriculture Based Livelihoods for Rural Youth

“Promoting Agriculture based Livelihoods for Rural Youth”
Presentation by B.L.Parthasarathy
CEO, BASIX Consulting
Technical session V :
Farmer centric approaches, Small Agri-business
Models, Development of social and human capital
National Conference on KVKs
24 October, 2013
BASIX Social Entreprise Group – A Mission Driven Pioneer
 The world’s leading provider of Livelihood Promotion
Services, 13 Group entities, 6000 outlets
 Served over 6 mn customer cumulatively since inception
Present in 26 states of India, working in 7 least developed
Pioneer and largest distributor of micro-insurance and micro
pensions in India,
Leader in financial inclusion and mobile payments in India.
Pioneer of energy and environmental services, including
climate change, and aggregating micro carbon credits
Pioneer in fee-based agricultural and livestock enterprise
development services and in vocational training for youth.
Owns/runs in AP and Karnataka India’s only Micro Finance
Local Area Bank licensed by RBI
• Based on various studies and review, it was felt
that, financial services alone would not be
sufficient to promote sustainable livelihoods of the
Therefore BASIX adopted to
deliver credit plus services
to the customers
• Lack of adequate
extension services
• Shortage of inputs,
on time
• Low productivity
• Traditional practices
• Losses in transit
• Lack of village /
cluster level small
Storage facility
• Poor transportation
• Many layers between
production and markets
•Very small quantity of agri
commodities processed
• Poor processing
• Lack of know how
• Lack of grading
• Inadequate access to
It is essential to adopt holistic approach for providing the real benefit to farmers
BASIX Livelihood Triad Strategy
Institutional Development
Organising Producers’ Groups
Capacity Building
Sectoral & Policy Work
Financial Inclusion
Agriculture, Livestock and
Enterprise Development
Micro Enterprise Services
Skill Development
Market Linkages
Agriculture and Livestock Enterprise
Development Services (AgLEDS)
•Productivity Enhancement
•Risk Mitigation (non-insurance)
• Local Value Addition
• Alternative Market Linkages
Package of Services to Crop customers
• Productivity Enhancement
through Package of Practices
– Soil testing, Vermicompost
and Integrated Nutrient
• Risk Mitigation
– Seed treatment, Stem
application, Integrated Pest
• 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
Enhanced Production in Cotton
Linked with Market
Package of Services to Dairy farmers
• Productivity enhancement:
– Artificial insemination,
Supply of quality fodder
seed, Azolla culture, Silage,
Fodder management
• Risk mitigation (noninsurance):
– Vaccination (preventive)
– Deworming,Veterinary care
( curative)
Azolla Culture
Package of Services to Dairy farmers
Local value addition:
– Milk a. Hygiene milk production,
b. Milk products : Srikand, ghee,
sweets, ghee, cova , butter milk
– By-products a. Compost preparation ,
b. Cow urine as pesticide,
c. Bio-pesticide formulations
Alternate Market Linkages :
– Formation of milk routes, establish
linkages with APDDCF, Heritage, Jersy
– Reviving the defunct chilling centres/Bulk
cooling units
Cova Preparation
Linked with market
Other interventions
1. Dairy Value Chain Intervention – Reliance Dairy
Foods; Mahabubnagar District
500 farmers; 30 villages
18 Producer Groups formed
KBS BANK credit linkages provided
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
3. Sweet Orange Market Linkages – Reliance Fresh;
Mahabubnagar District
1. Sweet orange farmers were registered for FMS
2. Direct Market Linkages were created with Reliance Fresh
4. Mango Market Linkages – Jain and Other players;
Vizianagaram District
1. Mango cluster has been identified for FMS services
2. Market linkages efforts started for the coming season
AGLEDS Partners
BSFL- the flagship of BASIX Group
 Among the top 10 Global MFIs in MIX Global
100 Composite Rankings in 2010, with a panIndia presence,
 Cashflow based lending model, giving
individual loans with joint liability, and monthly
or harvest time repayment. Not a Grameen
Bank replicator.
 Offers life, health, crop, livestock and asset
insurance on behalf of insurance cos. Over
100,000 insurance claims settled to date
 Only MFI providing Agriculture and
(AGLED) Services besides micro-credit
Social & Environmental performance
CGAP Gold Award for Social Performance.
Reporting. Adopted Triple Bottom Line.
Working in poorer states and with poorer
segments – women, Dalits, Tribals
Offers environmental loan products and
services such as for organic vermi-compost,
solar home lighting, safe drinking water, toilets
and micro-carbon credits
 Only MFI operating 4500 CSCs (IT Kiosk)
network in 5 states.
BKSL - India’s largest agro services company
Products &
 BKSL provides diverse range of crop,
dairy and non-farm sector services
 BASIX was the largest private sector
provider of agriculture extension
services in India, with more than
800,000 customers
Productivity enhancement
Risk mitigation (non-insurance)
Market linkages –input & output
Formation and development of producer
groups/farmers clubs
Livelihood Options
• AGRI Enterprises :
– Smallholder farms becoming viable businesses – Financial services, Business
development services, market access
• Technical services
– Skilled workers: seed production,
Rationale para-veterinary services etc
– Horticulture nurseries, tissue culture,
– Entrepreneurs : Seed production, Fish fingerling production,
DFL production,
• Institutional development services
– Seed production, intermediate processing
– Procurement, Sales & marketing of input and output
– Accounts & book-keeping, MIS, business planning,
Private and Confidential
Institution Development – Farmer Organisation
• Small Farmers’ Agribusiness Consortium (SFAC) is leading an initiative to
incubate 250 Farmer Producer Organizations (FPOs) which will aggregate
2.50 lakh farmers across the country.
• The purpose of aggregation is to integrate primary producers in the value
chain and enhance income through increased access to investments,
technology and markets.
• Indian Grameen Services is implementing the project in 15 states
(Arunachal Pradesh, Bihar, Chhattisgarh, Goa, Jharkhand, Madhya Pradesh,
Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Rajasthan, Sikkim,
Tripura, and West Bengal) covering 47,175 farmers forming about 50 FPOs.
Farmers’ Producers’ organization (FPO) Formation
• One FIG = 10-20 Farmers.
• One village = 1- 4 FIG (15 to 60 Farmers)
• One FPO
= 15-20 Villages (45-60 FIG with 600 to 1200 farmers).
Cluster Committee
Farmers Interest
Group (FIG)
Cluster Committee
Farmers Interest
Group (FIG)
Farmers Interest
Group (FIG)
Vegetable Growers/pulse growers
Green skill based Micro-franchising :
An Innovative business model
Microfranchising has its roots in
traditional franchising, which is the
practice of copying a successful business
and replicating it at another location by
following a consistent set of well-defined
processes and procedures. In traditional
franchising, the franchisor (who owns the
overall rights to the business) sells or
licenses its systematized business
approach to a franchisee. The franchisor
typically controls many of the macro
aspects of the business such as creating
and marketing the brand, procuring
inputs, continuously refining the model,
and recruiting and training franchise
Microfranchising is a powerful tool for
addressing the challenges of
eradicating poverty and creating jobs
in less developed economies. In
essence, microfranchising models
work best when they are matched to
local needs, when they are simple
enough to be managed without
formal business training, and when
they are documented and
systematized enough to scale so
that both the microfranchisor and the
microfranchisee can profit.
Of the farmers , By the farmers, For the farmers
Micro-Franchise : How it works
• The microfranchisor provides a “turn-key”
business for a microfranchisee to operate
• The microfranchises is a set of systems and
best practices, that if followed, will help the
microfranchisee to be successful
• This is key to the business being easy
enough for non-entrepreneurial individuals
to be successful
Private and Confidential
Micro Franchise Traits
• Local owners in a symbiotic relationship with an
enabling institution
• A brand or other significant intellectual property
• Mentoring
• Shared know-how codified in an operating system
• Potential for replication; and
• An overt social mission to alleviate poverty
through enterprise
Private and Confidential
Micro Franchise Model
Microfranchisor (BASIX)
Provides know-how
Conducts advertising
Designs a respected brand
Negotiates and contracts with suppliers
Protects licensed franchise territory
and establishes effective
operational manual
Private and Confidential
Promoting Livelihoods…Bringing Smiles