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Anil Kumar SG is the Founder & CEO of Samunnati, an agri value chain player, which aims to unlock the trillion-dollar-plus potential of Indian agriculture with smallholder farmers. Serving the entire value chain, Samunnati’s agri commerce and agri finance solutions enable affiliated farmer collectives and the larger agri and allied ecosystem to be more efficient and productive through multiple technology-enabled interventions and collaborative partnerships.
Anil, who has three decades of experience in rural, retail and agri banking, was previously the Co-Founder & Trustee of IFMR Trust and the CEO of IFMR Rural Channels. Team Enmasse spoke to Anil about his passion to bring deep impact in the agri ecosystem, and his vision with which he leads Samunnati.
Most rural households have multiple sources of income, which often include agriculture. Anil is an EPIC entrepreneur, who has understood the needs of such EHs and built an EH focussed organisation, which provides market linkages and advisory services to smallholder farmers and agri enterprises. Consequently, Samunnati is a shining example, that entrepreneurship can be targeted at providing commercially viable solutions to a customer segment which is often misunderstood, mislabeled and sidelined by businesses with traditional outlooks. The possibilities of engaging with Entrepreneurial Households are endless and the opportunity is EPIC.
Team Enmasse: Welcome Anil. Can you share your journey to starting Samunnati? What inspired you to take this path?
Anil Kumar: Thank you for having me. My journey to start Samunnati is deeply rooted in my experiences with the Indian banking sector. I spent over two decades at ICICI Bank, working extensively with rural and agricultural sectors. I realised a significant gap in the financial ecosystem for farmers and agri-enterprises. Traditional banking services were not catering to their unique needs. This insight and my passion for agriculture led me to establish Samunnati in 2014.
Our mission at Samunnati is to enable financial inclusion for the agricultural value chain. We started by providing customised financial products to farmers and agri-enterprises. Over time, we expanded our services to include market linkages and advisory services.
Team Enmasse: How big is Samunnati today? Can you share some numbers and milestones?
Anil Kumar: Samunnati has grown significantly since its inception, and has achieved over INR 21,000 crore of gross transaction value with farmers and agri-enterprises, till March 31, 2024. Our network spans over 5,500 Farmer Producer Organizations (FPOs), covering 112 agri-value chains. We have also established partnerships with key stakeholders in the agricultural ecosystem, ensuring a holistic approach to addressing the sector's needs.
Today, we operate in 28 states across India, with an outreach to over 8 million farmers. We provide financial services to more than 3,500 agri-enterprises and have facilitated market linkages worth INR 2,500 crore. A noteworthy achievement is our collaboration with the Small Farmers' Agribusiness Consortium (SFAC) to promote and support FPOs across the country, and we are now recognised as an industry leader in the space for finance for FPOs in India.
Team Enmasse: What challenges have you faced on this journey, and how have you overcome them?
Anil Kumar: The journey has been filled with challenges, but each has been a learning experience. One of the primary challenges was building trust among farmers. Many had negative experiences with traditional financial institutions and were sceptical of new players. We addressed this by working closely with community leaders and conducting numerous awareness programs to educate farmers about our services.
Another challenge was navigating the regulatory landscape. Ensuring compliance with various financial regulations required meticulous planning and execution. We invested heavily in building a robust compliance framework and leveraging technology to streamline our processes.
Additionally, managing risk in the agricultural sector is inherently challenging due to factors like weather variability and market fluctuations. We have developed innovative financial products like warehouse receipt financing and crop-specific loans to mitigate these risks. These products are tailored to the unique needs of different agri-value chains, providing farmers with the flexibility and security they need.
Team Enmasse: Were there any surprises with your initial market expectations? Can you share any stories?
Anil Kumar: Absolutely. One of the most surprising and gratifying experiences was our work with the turmeric farmers in Erode, Tamil Nadu. Initially, we were uncertain about the adoption of our financial products in this region. However, the response was overwhelming. Farmers were not only willing to take loans but also keen to participate in our market linkage programs.
We organised a pilot program where we connected turmeric farmers directly with large spice processors. This eliminated the need for middlemen, ensuring better prices for the farmers. The success of this pilot program led to its expansion, and today, hundreds of turmeric farmers in Erode benefit from direct market access through Samunnati.
Team Enmasse: Tell us a little bit about the EPIC aspiration you've seen on this journey.
Anil Kumar: The EPIC aspiration is very much alive in small-town India. Farmers and agri-entrepreneurs strongly desire to improve their livelihoods and embrace new opportunities. They are looking for more than just financial assistance; they want to adopt modern agricultural practices, access new markets, and enhance their overall productivity.
For instance, in the district of Vidarbha in Maharashtra, we partnered with local FPOs to introduce advanced farming techniques and provide access to high-quality seeds and fertilisers. The transformation we witnessed was remarkable. Farmers who were previously struggling with low yields saw a significant increase in their productivity and income. This aspiration to grow and innovate is what drives our mission at Samunnati.
Team Enmasse: What does the EPIC (Economic Power of Industrious Communities) Opportunity mean for Samunnati and the agricultural sector?
Anil Kumar: The EPIC Opportunity represents the untapped potential of industrious communities, particularly in rural and semi-urban areas. For Samunnati, it means recognising and harnessing the economic power of these communities to drive sustainable growth. By providing financial and non-financial support to EHs, we can help them achieve their aspirations and contribute to the broader economic landscape.
The EPIC Opportunity aligns with our mission to enable financial inclusion and promote entrepreneurial activities within the agricultural sector. By tapping into the economic power of industrious communities, we can positively impact millions of lives, driving growth and development in regions that have traditionally been underserved.
Team Enmasse: What is your vision for Samunnati? Ultimately, where do you want to take this organisation?
Anil Kumar: Our vision for Samunnati is to catalyse growth in the agricultural sector. We aim to create an inclusive ecosystem where farmers and agri-enterprises can access the financial and non-financial support they need to thrive. We plan to expand our geographic reach within India and internationally to impact more lives.
In the long term, we want Samunnati to be synonymous with agricultural development and empowerment. We envision a future where every farmer can access the resources and support necessary to succeed, leading to a more sustainable and prosperous agricultural sector.
Team Enmasse: What role do partnerships play in your strategy?
Anil Kumar: Partnerships are central to our strategy at Samunnati. We believe in leveraging the strengths of various stakeholders to create a comprehensive support system for the agricultural ecosystem. One of our key partnerships is with the Bill & Melinda Gates Foundation. This collaboration promotes access to finance for farmer collectives and their members, promotes adoption of technology and enables access to markets.
Another significant partnership is with the World Bank, under the Agriculture Risk Resilience and Insurance Access Program. This program aims to enhance the resilience of smallholder farmers to climate risks by providing them with access to innovative insurance products.
We collaborate with government agencies to ensure our services align with and enhance existing support structures. For example, we work closely with the National Bank for Agriculture and Rural Development (NABARD) to promote financial inclusion and support FPOs. This collaboration has enabled us to leverage government subsidies and programs to benefit our clients.
We also collaborate with private sector players like BigBasket and ITC to create market linkages for farmers. These partnerships have enabled us to provide farmers with better access to markets, fair prices for their produce, and opportunities to enhance their income.
Team Enmasse: What are some innovative products and services Samunnati offers?
Anil Kumar: At Samunnati, we constantly strive to innovate and offer products and services that cater to the evolving needs of the agricultural sector. Some of our key offerings include:
Market Linkage Services: We connect farmers directly with buyers, processors, and retailers, eliminating intermediaries and ensuring better prices. Our digital platform, Samunnati Connect, facilitates these linkages and provides real-time market information.
Advisory Services: We provide farmers with access to agronomic advice, weather forecasts, and market trends through our network of agronomists and digital tools. This helps them make informed decisions and improve their productivity.
Warehouse Receipt Financing: This product allows farmers to store their produce in accredited warehouses and use the warehouse receipts as collateral for loans. This helps them avoid distress sales and get better prices for their produce.
Crop-Specific Loans: We offer tailored loan products for different crops, considering their unique cultivation cycles and financial needs. For example, our loans for horticultural crops like bananas and mangoes have specific terms that align with their growth and harvest periods.
FPO Support Programs: We offer capacity-building programs and financial support to FPOs, helping them become more effective and sustainable. Our initiatives include training programs on governance, business planning, and market strategies.
Team Enmasse: How do you ensure the sustainability of your initiatives and their impact on the agricultural sector?
Anil Kumar: Sustainability is at the core of everything we do at Samunnati. We focus on creating long-term value for farmers and agri-enterprises by promoting sustainable agricultural practices and ensuring financial inclusion. Our approach includes:
Promoting Sustainable Farming Practices: We encourage farmers to adopt crop rotation, organic farming, and integrated pest management practices. These practices not only improve soil health and productivity but also reduce the environmental impact of agriculture.
Leveraging Technology: We use technology to enhance the efficiency and reach of our services. Our digital platforms provide farmers access to real-time information, financial services, and market linkages, empowering them to make better decisions.
Building Resilience: We offer insurance products and financial services that help farmers manage risks and build resilience against climate variability and market fluctuations. We focus on creating a safety net that protects their livelihoods.
Engaging with Communities: We work closely with local communities to understand their needs and tailor our services accordingly. Our community engagement programs include awareness campaigns, training sessions, and capacity-building initiatives that empower farmers and agri-enterprises to thrive.
Team Enmasse: Finally, what advice would you give aspiring entrepreneurs looking to impact the agricultural sector?
Anil Kumar: My advice to aspiring entrepreneurs is to stay close to the ground and understand the needs of the farming community deeply. The agricultural sector is vast and diverse, with unique challenges and opportunities in different regions. Building strong relationships with farmers and other stakeholders is crucial to creating impactful and sustainable solutions.
Additionally, be prepared to innovate and adapt continuously. The agricultural sector is evolving rapidly, with new technologies and practices emerging regularly. Staying ahead of the curve and being open to change will help you create a lasting impact.
Lastly, focus on creating value for all stakeholders in the agricultural value chain. A holistic approach that considers the needs of farmers, agri-enterprises, and consumers will ensure your initiatives are sustainable and beneficial for the entire ecosystem.
