The various financial instruments that Samunnati uses for Agriculture Value chain finance are as following:
Most of these instruments can be used stand alone, and it is important to note that the use of one or more of these financial instruments does not in itself constitute value chain finance; rather, value chain finance is an approach that applies instruments appropriate to the value chain. Therefore Samunnati will engage in using several of these instruments within each value chain that Samunnati works with.
Such a variety of sizes and types of financial solutions can be offered only through a combination of financial service providers. Therefore Samunnati sees itself as a financial intermediator where it will work with range of financial services providers like banks, insurers, payment services providers etc., to create a complete enabling ecosystem of financial services delivery at the front end.
“Samunnati has provided us a tailor-made working capital loan to procure certified paddy seeds from small and marginal farmers in Purulia, WB. Nanritam was able to pay the farmers upfront for the procurement as well as utilize its recently procured rice processing unit. The intervention became very relevant in the backdrop of the drought which prevailed throughout the season, forcing the farmers to use the seeds for consumption & side-selling at a throwaway price” – Mr. Asok M Chakraborty, Chairperson, Nanritam, West Bengal
“Samunnati has given us a customized financial product for supply of food grains to mid-day meal scheme through ISKON Food Relief Foundation. Samunnati is playing a vital role in the agriculture value chain, seeking to address the financial needs in a way that reduces and distributes risks. Their need-based help to the farmers remains incredible” – Ms.Vaishalee Khadilkar, Chairperson, Baliraja Farmer Producer Organization, Maharashtra