nurture.farm launches fair price guarantee scheme ‘Kavach Bhav Guarantee’ for farmers
- More than 1 lakh Okra farmers are to be covered across the country.
- Scheme to cover both cereal and vegetable crops.
23 November 2022, Bengaluru: nurture.farm launched a first-of-its-kind product offering to de-risk farmers against market price fluctuations. The product offering is launched as part of its flagship insurance program ‘Kavach’ and is called Bhav Guarantee.
The Kavach Bhav Guarantee product aims to help farmers get fair value for their produce and minimize financial losses in case of price fluctuations. While it is difficult to predict the mandi prices for different crops as these prices depend on a large number of variables, nurture.farm has created a risk cover mechanism through which the farmer is compensated for the fluctuations in prices of their end produce. The advantages of the Bhav Guarantee product offering include an index-based trigger, shorter disbursal window, and direct transfer of the compensation amount to the farmer’s bank account.
Partnership with Advanta Seeds
nurture.farm has partnered with Advanta Seeds to launch the Kavach Bhav Guarantee for farmers who will purchase Advanta’s Raadhika, Jaani, or Ratna brands of Okra seeds. The target crop for the scheme is okra and eligible states for the initial run of the scheme are Maharashtra, Orissa, Gujarat, and Tamil Nadu. The Farmers from these states can download the nurture.farm app and scan the QR code that is available on the Okra seeds pack to avail this cover benefit at no additional charge.
According to reports, less than 25% of the farmers in India have been able to avail benefits of MSP for commodity crops, and more than 50% of these farmers end up selling below MSP across 7,200+ agricultural market yards (or mandis) in India. These farmers neither get a fair value for their produce nor fetch a premium for better yield quality. However, unlike commodity crops, MSP is not applicable for vegetable crops thus making vegetable growers vulnerable to price fluctuations as well. With Kavach Bhav Guarantee, nurture.farm aimsto cover both cereal and vegetable crops.
Okra is one of the largest vegetable crops in India in terms of value, volume, and acreage. Okra is grown over 0.52 Mn Ha in India, and the hybrid seed market is valued at ~INR 650 Cr. Advanta is a leading player in Okra seeds in terms of value, volume, and market share across India.
Mr. Dhruv Sawhney, COO & Business Head at nurture.farm said, “Kavach Bhav Guarantee is designed to safeguard farmer’s income and aligns with our mission of making agriculture sustainable and viable. With the Kavach Bhav Guarantee, we will be able to successfully mitigate risk, minimize risk cover premiums, guarantee returns and, in turn, build for farmer resilience. The product is tailor-made for farmers and will ensure financial safety against price fluctuations.”
Mr. Prashant Belgamwar, Regional Head – Asia & Africa and International Vegetables at Advanta Seeds said, “Advanta has been working in the seeds sector with a “farmer first“ approach. Today, one of the major concerns of farmers is the uncertainty of their ROI due to fluctuating end produce prices, particularly in vegetable crops. This innovative product – Kavach Bhav Guarantee – will complement our products and provide our farmers with an opportunity to protect their cost of cultivation, in case fresh Okra prices fall below the benchmark level. We look forward to covering more than 100,000 Okra growers across the country.”
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