That’s why we believe that micro-credit institutions at the local and district level become important, as this kind of information becomes available. Such institutions are just one set of partners. Let me articulate two more. The second is companies that are already present in rural India as a seed supplier, fertiliser supplier, recently as a contract farming partner buying output, equipment supplier — pumps, tractors — and so on. So, for instance, through a poultry seed manufacturer. we reach the poultry farmer.

Who is the intermediary?

The feed supplier. We are looking beyond lending here. To continue with this example, good cattle feed can increase milk output. Today, the problem is the chicken and egg one. Farmers don’t have money to buy the feed. So, you work with the feed supplier to provide credit to him to buy the feed. If his output goes up, wealth creation takes place, and he’s able to repay the loan. A major part of lending has to be for productive wealth creation. That’s what we are aiming it at.

Then, we also facilitate price discovery. A big problem a farmer faces is he doesn’t have access to information. So, we use technology to take that information to the village. We put a ticker tape there. Before going to the mandi, the farmer can find out what’s a fair price for his produce. If he’s not getting a fair deal, he can store it in a warehouse. We will provide finance to him against his warehouse receipt. It’s possible because we are working through an agent.

... contd.