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HomePosts Tagged "State Bank of India (SBI)"
AgroPolicy, Agrotech, Finance, Foodgrains, India, Industry Reports / Analysis

The report also mentioned that MSP might be converted to floor price of auction on e-NAM to benefit farmers.  

State Bank of India’s Economic Research Department has published a report on recent increase in MSP (Minimum Support Price) for Kharif crops for marketing season 2023-24 by central government. The report has been authored by Dr Soumya Kanti Ghosh, Group Chief Economic Adviser, State Bank of India. 

Highlights from the report:

The Union Cabinet has approved increased MSP for Kharif crops for marketing season 2023-24. The increase in MSP is in the range of 5-11 per cent. Interestingly, this increase is unlikely to be inflationary as any impact on inflation is directly proportional to procurement. While procurement of cereals is primarily in the realm of wheat and rice, the procurement of pulses by NAFED is not much.      

 Separately, in a welcome move that is unnoticed is that latest average modal prices in e-NAM mandis are higher than the MSP for some of the crops. MSP should be converted to Floor Price of Auction on e-NAM so that growers of crops like maize, ragi, moong are also benefitted. The e-NAM is not a parallel marketing structure but rather a device to create a national network of physical mandis which can be accessed online. Currently 1.76 crore farmers are part of e-NAM in 1361 mandis.                

The role of MSPs in influencing the inflation trajectory in India has been an issue of intense academic and public policy debate. While empirical findings are mixed, the actual impact of the MSP hike would depend on the procurement strategy of the Government as well as the ruling market prices of various crops vis-à-vis the revised MSPs. In our case, we believe the impact will be negligible depending on the prices prevailing in e-NAM markets and also the procurement.  

We recommend that MSP should be converted to Floor Price of Auction on e-NAM so that growers of crops like maize, ragi, moong are also benefitted. 

The report also mentioned that MSP might

Company News, Finance, Horticulture, India, Start ups

Through this financing solution, farmers can access collateral-free loans up to Rs three lakhs.

Bengaluru based Fasal, India’s leading horticulture-first, full-stack Agri-tech company, announced its partnership with State Bank of India (SBI), aimed to provide farmers with easy access to capital. The partnership will help solve cash-flow constraints during key cycles in farming by providing quick, easy, and collateral-free loans at very competitive rates. This ties into Fasal’s larger objective of solving the many challenges across the entire horticulture value chain, thereby paving the way for India’s horticultural transformation.

In the 2023 budget, the government announced raising the agriculture credit target by 11 per cent to Rs20 lakh crore for FY24. The launch of Fasal’s latest financing solution echoes the government’s focused efforts toward increasing financial support for farmers across the country. Through this financing solution, farmers can access collateral-free loans up to three lakhs. The goal is to enable farmers to effectively fund and manage urgent and immediate agri-input needs and adopt Fasal’s technology solution to make their farming precise and predictable. These loans will be disbursed under the Kisan Credit Card (KCC) scheme, well known for its lowest interest rate within the farmer credit support system. This latest offering from Fasal will be initially available in Maharashtra, Karnataka, Chhattisgarh, and Madhya Pradesh and later expand to other regions. Alternatively, if the farmer has already exhausted his/her KCC limit, SBI will enable these financing solutions through other Agri schemes.

Talking about the collaboration, Shantanu Pendsey, CGM, Agriculture Business Unit (ABU), State Bank of India, Corporate Centre, said, “We are pleased to partner with Fasal, a frontrunner in providing innovative solutions to the horticulture community. Through this collaborative effort, we will be able to reach out to more farmers across India and offer them timely as well as easy access to financial support. We look forward to working with the Fasal team to financially empower farmers in India.”

Commenting on the partnership, Shailendra Tiwari, Founder of Fasal, said, “Access to quick, easy and low-cost financial support to farmers, as well as horticulturists, will be key as we work to make horticulture a main focus in the country. With SBI’s support and their extensive nationwide network in rural areas, we are confident that we can positively impact farmers by providing better access to credit and consequently, bring precision farming to a lot more farmers.”

Through this financing solution, farmers can access