Guwahati: India’s first peer-to-peer (P2P) social investing platform, Rang De, has launched a dedicated fund to support potato farmers of the Northeast by offering affordable credit solutions.
Launched on November 1, the fund called ‘Northeast Fund’ has reached 11 districts in Assam, with affordable credit to over 500 farmers from 19 Farmer Producer Companies (FPCs) dealing with potatoes, a company spokesperson informed Business North East.
So far, the Northeast Fund has raised Rs.1.08 crore from 3,015 social investors. So, how does this business model work?
Rang De enables one to invest in entrepreneurs and students from low-income communities across India. It leverages its digital platform to raise funds from social investors who are socially conscious everyday citizens and channels it to farmers to enable their livelihood activity and education.
“When we started, there were only 5 FPCs in Assam primarily working in potato”, Naresh Babu Kunche, senior manager of Rang De, said. “Now, we are engaged with more than 14 FPCs on the potato value chain alone.”
Rang De also provides financial literacy training and supports the farmers and farmer-producer organisations with affordable credit for agribusiness, Kunche said, adding that many farmers are now moving from paddy to potato cultivation or other crops. “This is a clear move towards commercial farming”, he said.
Elaborating further, he said, “Paddy is cultivated more for subsistence. But potato farming can help in a more commercial engagement where there is the possibility of value addition. There are global multi-national companies that procure the product.”
“Rang De’s model of working with partner organisations and building support systems for borrowers ensures high repayment rates, helps build credit scores, and lowers the risk taken by lenders”, said Kunche.
To address issues like scarcity of original seeds and the presence of spurious seeds, Siddhivinayak Agri Processing Private Limited (SV Agri), the consortium partner, provides the original seeds and technical training and buys back the produce. Under Assam government initiative ‘Xamahar’, both Rang De and SV Agri are striving to strengthen the potato value chain, the companies said.
Xamahar is funded by the World Bank and is being implemented by the Assam Rural Infrastructure and Agricultural Services (ARIAS) as the Assam Agribusiness and Rural Transformation Project (APART).
Rang De and SV Agri cater to both aspects of potato farming. One is the table variety of potatoes that we usually consume at home, with the other being the processing variety.
The North East fund page can be accessed at https://rangde.in/northeast-fund.
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