Just two decades ago, providing credit to low income people was seen as unviable in India. The scale and the reach that Microfinance as a model achieved, amply demonstrated the ability to replicate an approach that made small credits available to excluded markets as well as households. However these excluded households are not operating in vacuum but are dependent on the value chain of the economic activity that they are engaged in. And if that value chain happens to be Agri and Allied activities then the challenge of these households to access formal financial services becomes even more pronounced given that there is no focused intervention to cater to this segment. Their financial needs are generally too large for microfinance, but too small for commercial banks. This gap hampers growth and limits agricultural development. Agricultural value chain actors need access to finance to develop their businesses. For example take smallholder farmers with fragmented land holdings. Smallholder farmers have very restricted access to markets and lack access to warehouses or storage facilities to store their harvest. Consequently, they are strained to sell their surplus produce during the harvest season, when the prices are low. Intermediaries (traders) who can invest their capital as well as access storage space, time and again take advantage of smallholders‘ limitations: they accumulate agricultural harvest at very low prices and sell them during the most beneficial market conditions. In addition, farmers face enormous difficulties in obtaining credit for their agricultural activities because of the lack of financial services in rural areas. Existing products from formal financial institutions like Banks, MFIs are usually ill suited to the smallholder farmers‘ livelihoods and frequently on account of their cash flows. Hence these farmers are constrained to resort to borrowing from informal sources. Even for small enterprises that constitute the MSMEs (Micro Small and Medium Enterprises), which play a vital role in the nation’s economy, the lack of access to finance and timely credit is the most important reasons for below than normal utilization of their capabilities. The MSMEs which add value to the agricultural produce and also play intermediation role in an Agri value chain, need finance to increase their capacity. MSMEs that operate in activities like dairy farms, trading of commodities need funds to procure raw materials, and stock, pay wages to staff, meet other working capital requirements and at the same time for expansion of business.


Despite various efforts of stakeholders in this area, there continues to be huge demand-supply mismatches in financing these value chains and enterprises. Traditionally informal sources have been the main source of internal and external finance for Agriculture value chains and MSMEs. Major challenges constraining Financial Institutions from financing enterprises in agri-value chains in a traditional manner are:

Access to Information
One of the decisive inputs that forms part of the credit decision is the access to fair and accurate information about a value chain actor.
Many such actors advance in the informal economy.
Information Asymmetry
Asymmetric information makes it impossible to accurately differentiate between ―credit worth and ―not credit worth agri-value chain actor/ borrowers.
Lack of collaterals
Collaterals acts as a screening tool to mitigate the adverse selection risk and also mitigates the moral hazard risk to a certain extent as this is useful in enforcing a contract.
Agriculture specific risks
Pre-harvest risks i.e. risks pertaining to production and yield which are in turn derived from weather, pests and other natural
calamities/hazards that agriculture produce is prone

There are other challenges that agri-value chains face when it comes to accessing credit. Because of the fractured supply chains and broken market linkages, enterprises in the agri –value chains run the risk of under utilization on investments made, keeping prospective financiers at a distance. But all the above challenges can be dealt with by leveraging relationships between suppliers & buyers and financial institutions can play a critical role in making these value chains more proficient. When it comes to financing Value chains and the MSMEs operating in these chains, there is a need for a new approach ―Swikriti Agro that is close enough to the actors of the value chain to verify cash flows and income flows of the enterprise and finance them through financing relationships across the value chain. These relationships can be structured by trapping information and cash related to payments in the value chain, instead of only collateral based approach.


In other usual forms of agri finance, whether internal financing within the value chain, such as traditional trader credit, or financing originating externally, such as banking finance, MFI lending etc, the view of the overall activity that the borrower is engaged in, is less comprehensive, and therefore encompasses significant risk. The additional risk is due in large part to uncertainty; not being able to fully understand the risks and consequently not being able to assess and mitigate against those risks.


Under Swikriti Agro‘s Value Chain Finance approach the decisions about financing are based on the health of the entire value chain, including market demand, and not just on the financial health of the individual borrower. This means that in order to offer value chain-based finance, knowledge of the agricultural system is required.

In general, Swikriti Agro caters to the following needs of different value chain actors:

Providers of feeds, fertilizers, chemicals, agri equipment etc. Swikriti Agro provides them with small, short-term loans for working capital: and long term, Term-loans to expand business. Through its financial relationships with farmers, Swikriti Agro creates compatible incentives for farmers to buy from empanelled input suppliers thereby mitigating the business risks of suppliers.

Farmers, producers and their families manage the crops or animals, and are involved in sowing to post-harvesting activities including marketing. For Agri-farmers specifically, a lot of pre-harvest risks can be taken care of by seeking group guarantees or third party guarantees, and by say, making equipment available through leasing or asset finance. Using these mechanisms, Swikriti Agro finances the working capital to buy seeds and other inputs and asset loans to buy equipment.



  • Also using the network relation with suppliers, Swikriti Agro helps farmers procure required supplies, at discounted rates. Swikriti Agro provides access to finance to farmers to purchase livestock/animals or invest in storage spaces and offers them insurance products to protect the assets, price guarantees or derivatives to lock in better revenues.
  • For post harvest activities, Swikrti Agro provides traders access to short term finance and help farmers avail liquidity using warehouse receipts and other collateralized lending. These products and mechanisms help farmers and traders manage their working capital needs.
  • Traders play an important market linkage role. They buy produce from the farmers or co-ops and aggregate them before selling them to procurers, processors and marketing firms. Swikriti Agro through financial intermediation will assist traders to manage their working capital flow. It will also provide traders access to finance to invest in assets that allow traders to aggregate and store.
  • Processors/ Aggregators who buy products in bulk from farmers or traders, are provided working capital loans to allow them to buy the produce. Through Swikriti Agro, these processors/aggregators can pay farmers and traders electronically. Swikriti Agro through its customized produce solutions helps , processors/aggregators to invest in or lease out processing equipment.

Through tailored value chain solutions based on deeper understanding of the local value chains, Swikriti Agro helps expand the financing for agri activities and improves efficiency through customized financial solutions. These customized solutions strengthen or solidify linkages among participants in the chain. It improves the quality and efficiency of financing agricultural chains by:


Identifying financing gaps existing in the value chain;


Customize financial solutions to fit the needs of the actors in the chain;


Use value chain linkages to mitigate risks of the chain and its partners by structured buy-sell contracts and tri-party agreements;


Establish payment ecosystems to bring in transaction efficiency in the value chains and also reduce financial transaction costs;


Use payment ecosystem to mitigate operations and credit risk by cash flow trapping at source;


Provide risk mitigation tools like insurance to mitigate asset, price and income risks.


The various financial instruments that Samunnati uses for Agriculture Value chain finance are as following:

Row Financing
Trader Credit
Input-Supplier Finance
Working Capital Loans/Pre harvest Loans
Asset Finance
Cattle Finance, Vehicle Finance
Warehouse receipt finance/Post Harvest Loans
Financial /Operating Leasing
Project Finance
Processing units finance
Dairy Farms/Mini Dairy Farms
Marketing and packaging units
Receivable Financing
Trade receivable financing
Bill discounting
Risk Mitigation Products
Forward Contracts
Buyer Guarantees


Anita Pandey

Swikriti Agro has created a benchmark in terms of their projects aimed for the welfare of the farmers. I wish more people look forward to this idea and get associated with Swikriti.

Ankita Sengar

It is a wonderful company! I like the approach and their mission to uplift the farmers of India by allocating the needful resources at the required time.

Dhananjai Sharma

The concept of Swikriti Agro is fabulous. I wish more and more farmers get associated with Swikriti and work for the welfare of our farmers.

Pravin Rana

India is an agrarian economy where the condition of farmers is very poor. This company helps the farmers throughout in all kinds of their operations and financials.

Ashutosh Sharma

Swikriti Agro the only one in its own kind. We hardly find companies working for the welfare of the society. Good luck to the team of Swikriti Agro.

Kapil Bhaskar

Swikriti Agro is the best company I have ever seen in terms of working for the upliftment and development of the farmers as well as the society.

Swikriti Agro is a diversified entity with turnover in excess of one billion dollars. We have a global presence with 30 manufacturing bases spread over four continents.

our Address

S-18, Shalimar Garden, Ext.1,
Sahibabad, Ghaziabad Uttar Pradesh -201005

our Phones

Phone: 0120-4111155

our hours

Monday to Saturday 10:00 to 18:00
Sunday Closed


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