In India, smallholder farmers lack the agency to access fair prices for their produce, which results in distress selling and a decrease in farmers’ income. Dependency on a long chain of intermediaries, low harvest price during harvesting season, complex credit relationship with traders, and high post-harvest expenditure are the leading causes of this problem that has pushed 62 million farmers in a vicious debt cycle and has led to one farmer suicide every half an hour.
Gramhal structurally solves the problem of distress selling by mobilizing smallholder farmers into producer companies and by enabling farmers to own the post-harvest supply chain. Gramhal establishes and empowers these companies by providing three key supports
leadership development, finance, and market linkage to buyers across India
through a unified and integrated digital platform. The key supports from Gramhal to the Farmer Producer Companies (FPCs) allows them to provide member farmers with bundled post-harvest services of price information, quality inspection, warehouse storage, post-harvest credit, and market linkage.
Our FPCs makes it easy for farmers to store their produce at a warehouse, and access credit against it. The credit smoothens farmers’ cash flow and empowers them to avoid distress selling. Furthermore, FPCs provide daily price information over SMS to farmers. Once the prices become favorable, farmers sell their produce at one click on their phone. This agency to hold the produce, and sell it after 3-4 months, gives farmers the opportunity to maximize their profits, increase their livelihoods, and avoid predatory lending cycles.
Gramhal takes care of all the upstream operations. Gramhal’s digital platform provides the Producer Company end to end services
(i) connection with multiple end buyers, (ii) full legal compliance to execute the trade, (iii) simplifying trade in terms of process and accounting, (iv) and an immediate payment on delivery of the produce to the buyer. The support in upstream operations from Gramhal allows FPCs to not depend on any intermediary and create a farmer-owned supply chain.
Our farmer centric digital intervention ensures economic justice by providing access to a fair price and fair credit, and social justice by rebalancing the deep-rooted power structure between smallholder farmers and intermediaries.