A study by agri-fintech firm Dvara E-Registry (DER) reveals that over 70 per cent of the surveyed farmers were extremely satisfied with their respective FPOs, standing to gain through cheaper inputs, increased access to market and credit among other things.
The study explores the impact of DER’s intervention with 25 FPOs across Maharashtra, Madhya Pradesh, Rajasthan, Odisha, and Manipur. The study, initiated in October 2022 and which involved 1,498 farmers, scrutinised the FPO operations, usage of the Doordrishti Krishak application, financial linkages, and the overall farmer experiences with FPOs.
The Dvara E-Registry Impact Report revealed that 70 per cent of surveyed farmers expressed satisfaction with their respective FPO, while 31 per cent of them were extremely satisfied. Approximately 70 percent of the surveyed farmers were new to credit, underscoring DER’s pivotal role in addressing a gap unfulfilled by traditional Banks/NBFCs and microfinance institutions. Further, the competitive rates offered by FPOs for both agri inputs and the sale of produce contributed to the financial well-being of farmers and enhanced their competitiveness in the market.
Another of the key findings was DER’s crucial role in providing farmers with vital services like soil testing and block weather forecasts. Through DER’s intervention, farmers have negotiated better pricing with manufacturers and suppliers of agricultural inputs. Farmers have made an average profit of around 10 per cent by purchasing inputs from their respective FPOs through this aggregation model.
Samir Shah, Executive Vice Chair & Co-Founder of Dvara Holdings, stated, “Over our 15-year journey at Dvara Holdings, our unwavering focus has been on enhancing financial inclusion in India. DER, a shining example of our mission, has been effectively transforming the lives of smallholder farmers by bolstering their economic strength and improving market accessibility. Our robust engagement with the farming community, powered by technology and innovation, perfectly aligns with Dvara Holdings’ mission of ensuring that every individual and every enterprise has complete access to financial services.”
Tharakeswar G, co-founder, DER said “The positive impact of DER’s services and the usage of the Doordrishti Krishak application underscore the effectiveness of technology in overcoming the age-old challenges farmers face. The results of our impact study will guide our future endeavours, fuelling continued innovation and refinement in our services, aiming to amplify farmers’ profitability and productivity.”
DER is currently collaborating with 50 FPOs in Maharashtra, Rajasthan, Madhya Pradesh, Manipur, and Odisha, which are supported by Nabard, SFAC, NCDC and Nafed, offering comprehensive support to their business activities and market linkages over a five-year period, starting from 2021-22. In addition, DER has also formed successful partnerships with over 160 FPOs across 12 States, reaching out to a substantial farmer base of more than 55,000 members.