Project detail - SAHYADRI FARMERS PRODUCER COMPANY L

SAHYADRI FARMERS PRODUCER COMPANY L

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Who is our client

Sahyadri Farmers Producer Co. Ltd. (“Sahyadri” or the “Company”), established in 2011 in Nasik, India, is a farmer owned Farmer Producing Organization (“FPO”). Sahyadri procures, processes and markets fruits & vegetables from its farmer members; approx. 7.000 small and marginal farmers. The Company exports various fresh and processed products, mainly table grapes, to Europe, USA, Middle East and Asia, and sells fruits & vegetables to the domestic market.

Funding objective

The objective of our funding is to finance (i) the construction of collection centres for warehousing and transport of produce, (ii) distribution centres with cold storage and a fleet of refrigerated trucks for managing logistics and transport, (iii) the rollout of retail stores in urban areas of Mumbai, Pune and Nashik and (iv) the expansion of the existing production plant.

Why we fund this project

FPOs, like Sahyadri, provide an effective platform for the provision of farm production inputs and marketing of output; this can immensely enhance farm productivity and increase farm income, thereby contributing to the reduction of poverty. Farmers benefit from economies of scale, technology driven enhancements, marketing of the products and adequate facilitation to realize higher returns. This financing is expected to give a boost to the agriculture and food processing operations of Sahyadri and reduce wastages and spoilage.

Environmental and social rationale

The E&S categorization based on E&S risks/impacts and country/regional context is B+. Relevant IFC performance standards are, PS1 E&S management systems, PS2 Labour conditions, PS 3 Environmental protection and Resource Efficiency, PS4 Community Health and Safety, PS6 Biodiversity. Not relevant for this financing are PS5, PS7 and PS8, while respectively no resettlement will take place and extension of the processing activities will fit on the existing area and there are no Indigenous groups, nor any cultural heritage impacted. Business activities with potential adverse environmental or social risks are generally beyond the site boundaries through the 7.000 connected producers. Risks are addressed through good agricultural practices, of which Global G.A.P. certification of the farmers is a part of. For the processing a HCCP certified Food safety management system is in place, Global GAP record register for each farmer maintains crop related information including method of farming, source of drip irrigation, type of soil, farm map, input use and water management and traceability information. Global GAP certification costs for products which will be exported are subsidized by the government, but farmers must invest in infrastructure at the farm level.

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Date Total FMO financing
11/13/2019 EUR 10.00 MLN
Website client
http://www.sahyadrifarms.com/index.php
Region
Asia
Country
India
Sector
Agribusiness, Food & Water
Signing date
11/13/2019
Total FMO financing
EUR 5.00 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B+