BASIX is a microfinance institution in India that aims to promote sustainable livelihoods for rural communities. It provides integrated financial services and technical assistance. Over time, BASIX transitioned from receiving soft loans and grants to raising commercial equity and debt. It focuses on agri value chains by identifying subsectors, addressing bottlenecks through collaboration, and scaling interventions. BASIX works with farmers, producer organizations, enterprises and markets. It delivers services like credit, training, inputs, and market linkages. Major constraints include access to quality seeds, production issues, post-harvest losses, lack of market information, and processing challenges. BASIX collaborates with partners across the value chain.

1. Agri Value Chain - BASIX
Fin4ag Conference
Nairobi, 16th. July 2014
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2. The BASIX Mission…..
To promote a large number of sustainable
livelihoods, including for the rural poor and
women, through the provision of financial
services and technical assistance in an integrated
manner
BASIX will strive to yield a competitive rate
of return to its investors so as to be able to access
mainstream capital and human resources on a
continuous basis.

3. Evolution of Financial Structure
Soft Loans from Donors & Development Banks
(GTB, CIDA-DID, CordAid, SIDBI, ICICI, HDFC)
1996-98
Grants and Soft Loans from Donors (Sir Ratan Tata
Trust, Ford Foundation, Swiss Agency for
Development Cooperation)
1998-2000
2001
2001 onwards
2007-08
Equity Investment
(IFC, Shore Bank, Hivos Triodos, ICICI and HDFC)
Loans from Commercial Banks
(ICICI Bank, HDFC Bank, ABN Amro, ING
Vysya)
Mainstream Equity

4. Context..
Indian Market Research Bureau
(IMRB) impact assessment study
(2001) on credit customers
revealed that
– 52% showed increase in the
income
– 25 % reported no change in the
income levels
– 23% reported decline in their
income levels
Review of BASIX Work
The reasons
• Low Productivity
• Un-managed Risk
• Low Price Realization /
Access to Market.
Credit is necessary but not a sufficient condition for
livelihood promotion

5. BASIX framework
BASIX utilizes financial, human and intellectual capital to work towards brining equality of opportunity and social justice

6. Collaborative Polygon
We propose collaborating with players having domain expertise to provide ………
Financial Services
Linkages with Banks & MFI’s
Training & Extension
Agril Universities, Ag. Research
Stations, Agril Departments,
Digital Green, Agriwatch,
Institutions
NGO’s, village govt. & other
village level community
Institutions
Service Providers
Artificial Insemination,
Vaccination, Soil testing,
Insurance
Output Market
Linkages to organised
buyers, processors etc..
Input Supply
Agri Input companies,
wholesalers', dealers,
Enhance competencies,
Reduce transaction costs
and Reduce risk for farmers
by integrating all services
FARMERS
The task is too complex for any single
actor. Hence there is a need for
multilateral partnerships or
“Collaborative Polygon”. However, it is
useful for one actor to be the anchor,
who understands both development &
finance markets for the Collaborative
Polygon to work.
BASIX tries to play that role.

7. BASIX Approaches in Agri Value Chain
Identify the
Sub Sector /
Value Chain
Undertake Action
Research
/ Study
• Livelihood Profiling
• No of HH’s engaged
• Economic contribution from
that subsector
• Strengths and Weaknesses
Identify & Address the
Bottlenecks
• Establish collaboration
• Develop successful intervention on
revenue model
Scaling up Phase
• Scale up the intervention
• Undertake impact assessment
• Improve the design

8. Enterprises/ Commercial
Farmers
Direct Loans
Joint Liability
Groups / Farmers
Producer
Organizations
Farmers
Producer
Organizations
Micro-Enterprises/
Small Farmers
Marginal Producers
Market Segment Method
8
Credit Delivery Channel

9. Farmers’ Producers’ organization (FPO)
Cereals /Vegetable / Pulse growers
Farmers Interest
Group (FIG)
Farmers Interest
Group (FIG)
Farmers Interest
Group (FIG)
Cluster Committee Cluster Committee
B
L
O
C
K
FPO
D
I
S
T
R
I
C
T
• One FIG = 10-20 Farmers.
• One village = 1- 4 FIG (15 to 60 Farmers)
• One FPO = 15-20 Villages (45-60 FIG with 600 to 1200 farmers).

10. Package of Services to Crop customers
• Productivity Enhancement
through Package of Practices
– Soil testing, Vermicompost
and Integrated Nutrient
Management
• Risk Mitigation
– Seed treatment, Stem
application, Integrated Pest
Management
• Local Value Addition
– Semi-processing (e.g. ginning
of cotton, shelling of
groundnut pods)
• Alternate Market Linkages
for better prices (Super Spinning
Mills, NCDEX)
• Establishing/strengthening
farmers’ cooperatives for
input/output marketing
Enhanced Production in Cotton
Linked with Market

11. Livelihood
Financial
Services
Cotton crop
technical
Services
Institutional
Development
Services
Farmers
Ginning
BASIX – Cotton Value Chain
Lint Pressing unit-
Conversion to
Bales
Farmers
Farmers
National Commodity Derivatives Exchange
(NCDEX )
Trading Platform
Formed into cotton
Producer Group
BASIX
Warehouse
Receipt
BANK
Loan
Assured
PriceSeeds,
Fertilizers,
Pesticides
NCMSL
Godowns
Supper Spinning Mill

12. Dairy Value Chain: BASIX - Reliance
Dairy Company Collaboration
DAIRY
FARMERS
INPUTSUPPLY
BASIX
OUTPUTMARKET
RELIANCE
Milk supplied to
Bulk Milk Coolers
Financial &
Dairy Extn
Services

13. Potato Value Chain
Frito Lays India Limited
Potato Growers
BASIX
Credit Ext. services
Gr.
formation
Potato
Seed
Buy back
arrangement

14. Some other Value Chain Interventions
1. Dairy Value Chain Intervention – Reliance
Dairy Foods
– 1000 farmers; 30 villages
– 50 Producer Groups formed
– Credit, Vet. Services, Market linkages
2. Vegetables Intervention – ITC
– Push carts were provided by ITC
– Credit, Crop extension services
– Market Linkages
3. Sweet Orange Market Linkages – Reliance
Fresh
– Credit
– Extension services
– Market Linkages
4. Mango Market Linkages – Jain and Other
players
– Mango cluster developed
– Credit
– Extension services
– Market linkages

15. BASIX Outreach – Agri Value Chain
Finance
•No. of customers: 1.05 million
•Amt. disbursed (million USD): 230
•Repayment: 97%

16. • Input Side
– Lack of quality seeds
– Timely access to inputs
• Production
– Lack of improved Farm Equipment use
– Production volumes Vs. price
– Lack of improved PoP
– Weather, Diseases
• Post Harvest
– Transport and handling related losses
– Lack of Storage facilities
– Lack of primary sorting, grading
Major Constraints

17. • Markets
– Distress sales
– Distant markets leading to middlemen
– Internal finance based sales
– Lack of market information
• Processing
– Quality adherence
– Technology and Equipment aspects
– Assured supply and Inventory management
– Branding and Marketing
Major Constraints – contd..

18. BASIX Collaborators

19. 19
Head Office
3rd Floor, Surabhi Arcade, Bank Street, Koti,
Hyderabad 500 001
Telengana
Phone: + 91-40-3917-2500 Fax: + 91-40-3917-2502
Website : www.basixindia.com
Registered Office
D 9, First Floor, Greater Kailash Enclave - I,
New Delhi 110 0 48.
Ph: 011 4173 0252 , 011 4173 0454
Website : www.basixindia.com