Enabling marginal farmers to capture a larger share of the food value chain.
Indiashares connects farmer SHG's produce to large, profitable, urban markets, thereby improving impact, effectiveness and enabling scale.
I confirm that I am fully aware of the eligibility criteria, and based on its description, I am eligible to apply to the CSV Prize 2017.
Growth (the pilot has already launched and is starting to expand)
Annual budget in 2017 (USD)
Number of beneficiaries impacted so far
Headquarters location: Country
Headquarters location: City
Location(s) of impact
India: Sirsi, Siddapur, Hubbali, Hudli (village)
One of the farms in a small village in Malnad that we work with.
Problem: What problem is this initiative trying to address?
Marginal farmers have the lowest share of the food value chain because of their limited resources, a voluntary grouping of farmers play a vital role of pooling in, however, these groups, cooperatives are very often limited in their effectiveness because their reach is only limited to catchment markets with limited demand.
By providing access to larger markets, we are making existing solutions, infrastructure (SHG) effective and scalable.
Solution Summary: What is the proposed solution? What do you see as its most promising aspects for creating shared value?
Indiashares provides marginal farmers urban market access through its brand GO DESi. We have developed a ‘plug n play’ model where we with the help of cooperatives
1) Develop products based on regional produce
2) Make them retail shelf ready
3) Plug them in our distribution network
For example, we work with a cooperative in Sirsi, Karnataka which has the ability to procure 500 kgs of Jackfruit bars a day but procures 50 kgs because of lack of demand. By simple packaging innovation, we were able to convert these bars into small Rs.5 sachets and then we plugged the product in our distribution network. The impact has been as follows:
1. Increase in procurement from farmers and better capacity utilisation
2. Farmers share in the value chain increasing from 10% (Raw Jackfruit) to 40% (Jackfruit bars)
Impact: What is the impact of the work to date? Specify both the social and the environmental impact of your work
During our pilot, the following are the outcomes:
1. Additional Income of 500$ per month for the cooperatives
2. Increase in capacity utilisation of the cooperatives
3. Increased share in the value chain for the cooperatives from 10% to 35-40%
Our solution does not re-invent the wheel, it makes the existing machinery effective, to just give a perspective, there are 30000 cooperatives in Karnataka each having 1000 marginal farmers as members.
1. By providing scale to these cooperatives, we create a stable, increased demand for marginal farmers produce enabling regular and stable incomes.
2. The cooperatives become a hub of economic activity creating employment, i.e. Hudli farmer cooperative employs 10 women.
3. By procuring processed food products, we reduce wastage of agri-produce.
4. Our quality parameters ensure zero chemical agriculture.
Financial sustainability plan: How is this initiative financially supported? How will you ensure its financial sustainability long-term?
The initiative is bootstrapped currently. Financial sustainability is built in the model.
The business is an asset-light model and financial requirements are primarily for working capital. The sales from the GO DESi products to the stores is ploughed back for increasing procurement, increasing distribution reach and covering operational expenses.
Therefore at the current stage, 40% of annual budget is bootstrapped and 60% is earned income.
Unique value proposition: What makes your initiative innovative? How does your project differ from other organizations working in the same field?
Simplicity, Indiashares builds on the proven cooperative model and improves its effectiveness.
Founding story: Share a story about the "Aha!" moment that sparked the beginning of this initiative.
The Aha moment happened while on a hike to one of the Earth's largest bio-diverse regions- the Western Ghats. Drenched in rain, tired and looking for a shelter and a quick bite, we stopped at a Chai (Tea) shop, along with tea, I picked up a pack of Jackfruit bars and it turned out to be the tastiest fruit bar I had ever eater, my friend picked up a pack of Banana bites- again delicious. Both the products were sold loose and on further enquiry, they were supplied by the local farmer cooperative.
On our way, we had seen many Jackfruits lying on the path, wasted, not even harvested. This got me thinking why is this Jackfruit bar not available in my neighbourhood store? What is the other regional produce that we city dwellers are missing?
Where did you hear about the Nestlé Creating Shared Value Prize?