The current situation around agriculture in India is not very pretty, as the country has found itself in a terrible state in some regions due to the attitude of the government towards its need for farmers. It is not clear when the situation will stabilize, or how, but it is interesting to note that the growth of the fintech sector has given local farmers some breathing space, allowing them to stabilize their positions and reorganize their current plans.
1) Easy Farmer Loans
Borrowing money is a common part of any agricultural operation in many nations, and India is no exception. Unfortunately, the situation was less favorable so far, as farmers were forced to go through intermediaries and go through various obstacles to obtain the funds they needed to operate. However, that is not the case today, mostly thanks to the fintech sector’s efforts to make
direct loans more available to everyone.
2) Direct connections
In that sense, farmers now have better opportunities to establish direct connections with moneylenders and other institutions that could be important in their operations, rather than having to rely on intermediaries. This change alone can have a big impact on the way things work locally and hopefully it is a trend that will further stabilize.
3) Continuous payment model
Instead of having to make large up-front payments for equipment and tools, farmers can now make use of various ongoing payment programs that can introduce a lot of stability to their operations compared to before. By paying only for what they are actually using, many people now have the ability to organize their finances in a much more efficient way, omitting some of the problems commonly encountered when working with the traditional model.
4) Affordable financial services
Financial inclusion in the agricultural sector has traditionally been low in India and the surrounding region, but that is no longer the case today as various financial services are becoming increasingly accessible to farmers in the area. Some new companies hitting the market are even targeting this specifically, bringing an even greater variety of financial tools and utilities to this corner of the market.
5) Better safe
Another problem that has been prevalent for quite some time, but is now beginning to be addressed, is the availability of
crop insurance Plans for farmers are finally beginning to take shape in a more serious way. Protecting crops from the worst is no longer such a challenging test, although much can still be done to improve the situation. The important thing is that things are moving in the right direction, and it is happening mainly thanks to the fintech sector.
Other positive effects to fintech can also be traced, although we should probably defer further analysis in this regard until the situation has stabilized a bit and we have had a chance to see some proper results. However, one thing is clear: this relationship is very positive.