In a move towards transforming agriculture in India, Mastercard has announced a strategic collaboration with Archer Daniels Midland Company (ADM), a global leader in innovative agricultural solutions, to enhance the digitalization of Farmer Producer Organizations (FPOs) and their farmer partners in Maharashtra. This initiative aims to promote financial inclusion and streamline sourcing operations, empowering smallholder farmers to participate more effectively in the agricultural value chain.
As part of the collaboration, ADM will integrate its FPOs, collection centers, and farmer partners into Farm Pass, a technology-powered platform developed by Mastercard. Farm Pass enables farmers and FPOs to participate in a digital ecosystem that connects them to buyers, lenders, and service providers, helping them access markets, financial products, and government welfare schemes.
Scaling Direct Sourcing and Financial Inclusion
The collaboration will significantly scale ADM’s direct sourcing from smallholder farmers in Maharashtra through the farmer-FPO channel. By leveraging the existing Farm Pass platform, ADM will encourage more FPOs to join their oilseeds sourcing program, improving the efficiency and transparency of their supply chain.
One of the key goals of this initiative is to enhance financial inclusion for smallholder farmers. ADM will work with Mastercard’s Community Pass card issuers to provide unique financial inclusion and loyalty solutions to approximately 250,000 farmers. These farmers will be able to receive payments for their produce directly onto Community Pass cards, providing them with a secure and efficient means to access financial services.
Innovative Benefits for Farmers
The collaboration also brings innovative benefits to the farmers. Through the Community Pass financial inclusion cards, farmers will have access to credit, government welfare schemes, and other financial tools. Over the next few years, this initiative is expected to facilitate around $30 million in welfare scheme access and credit flow, giving smallholder farmers more financial stability and the ability to invest in their farms.
Additionally, ADM plans to offer loyalty benefits to farmers using these cards, incentivizing their participation and fostering stronger ties between FPOs and the company’s supply chain.
“Digitalization can offer great value to farming communities across India. Mastercard is delighted to collaborate with ADM to empower smallholder farmers and FPOs by enabling digital access to buyers and increasing transparency in the value chain. This initiative reaffirms Mastercard’s commitment to leveraging technology and innovation to drive inclusive growth.”
Connecting the Agricultural Ecosystem
The Community Pass platform, which includes the Farm Pass offering, connects the entire agricultural ecosystem—from farmers and agro-buyers to lenders and service providers. This allows farmers to adjust their supply and production based on real-time demand for their crops, ultimately leading to better planning and higher income potential.
Community Pass is a digital infrastructure designed to enable low-income communities to access essential services through interoperable technology. By providing a unified user experience, the platform helps reduce the cost of delivering services and increases efficiency by linking multiple service providers, including governments, banks, and agricultural technology firms.
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By integrating ADM’s supply chain into Mastercard’s Community Pass, this collaboration is expected to deliver tangible benefits to smallholder farmers in Maharashtra, improving operational efficiency while enhancing their access to financial services and market opportunities.
“This partnership has the potential to bring greater predictability in our supply chain and to empower farmers through financial inclusion. Simultaneously, we aim to support FPOs in expanding their business and serving farmers more effectively. We are excited to expand our efforts through this collaboration to support the agricultural sector in Maharashtra, including the communities we serve.”
Looking Ahead
The partnership between Mastercard and ADM is set to begin in Maharashtra but has the potential to expand to include smallholder farmers in other states across India. With this collaboration, both entities are focused on improving the agricultural ecosystem by providing farmers with the tools and resources they need to succeed in an increasingly digital world.
This initiative marks a significant step toward making India’s agricultural sector more inclusive and resilient by integrating advanced digital technology and promoting financial inclusion for farmers at the grassroots level.
