Page 15 - Case Studies-NIBAF
P. 15
Highlights
Local shylocks (moneylenders) exploited their situation and lent at obnox-
iously higher rates that kept on accumulating. Most farmers were illiterate,
lacking resources and knowledge to cope with the situation or even to Case Scenario
change the culture; and breaking the chains of poverty. The shambled farm- A financial institution coping with the challenges daring-
ers were completely hopeless and dishearten. ly enters into an adventure of farmer financing through
The case introspects how aptly the vacuum was filled by JDW through innovative product development, i.e. value chain financ-
promoting sugarcane - cash crop - in the area while introducing modern- ing back in 2004-05. The collaboration with one of the
ized farming through high yield sugarcane seed, mechanization, fertilizer leading industrial house resulted in sugarcane value
mix, pesticide usage and innovative financing ideas. The collaboration with chain financing (SVCF).
banks enabled them to facilitate even a larger number of farmers and Case Protagonists
improved their socioeconomic stature.
- Muhammad Imran and Ismail - sugarcane growers.
The case, however, questions the longevity of such intervention due to
- Processor – JDW Group
depleting water levels, electricity cost etc. In the end, the case offers the
- Financing Institution – Faysal Bank
canvas for setting up national Agri. priorities; a balance between staple and
cash crops to aptly address national food security needs over time, vis-à-vis Problem-Decision Situation
opportunity of earning foreign exchange through exports.
Whether the shift from traditional crop farming was
beneficial for farmers who have been poverty ridden
since ages? Whether the financial institution was
assuming the greater risk by overriding the require-
ments of conventional financing?
Desired Learning Outcome Areas
Innovative financing products, the role of processor in a
value chain financing model, Agri. financing, the role of
financing in socioeconomic uplift of farmers, national
A view of Sugarcane fields in Sadiqabad, Rahim Yar Khan Agri. priorities viz a viz farmer uplift.
