As India was struck hard by the COVID-19 pandemic, the government declared several relief measures under the Pradhan Mantri Garib Kalyan Yojana (PMGKY). As part of PMGKY, thePradhan Mantri Ujjwala Yojana (PMUY) beneficiaries were to receive advance cash transfers in their bank accounts to purchase three liquefied petroleum gas (LPG) canisters. According to government statistics, around 75 million women received the transfers.
MSC conducted two rounds of demand–side research using a mixed–methods approach to evaluate the efficacy of this intervention and the experience of beneficiaries in receiving the cash transfers and purchasing LPG refills during and after the lockdown. The paper suggests that India must now work to promote and sustain LPG usage, which remains a significant challenge.
The COVID-19 pandemic and resulting lockdown disrupted the lives and livelihoods of the migrant workforce, which represents 38% of India’s total population. As a part of a series of relief measures under the Pradhan Mantri Garib Kalyan Yojana, the Government of India provided employment opportunities to the distressed rural households through Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
However, the surge in demand for work, payment delays, and issues in the program design posed challenges to its efficacy. MSC’s paper assesses the program’s success in tackling the loss of income and livelihood and lists key challenges India faced in addressing the crisis.
The COVID-19 pandemic and resulting lockdown to curb put the lives and livelihoods of the migrant workforce, which represents 38% of India’s total population, in jeopardy. As a part of a series of relief measures under Pradhan Mantri Garib Kalyan Yojana, the government of India provided employment opportunities to the distressed rural households through Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
However, the surge in demand for work, payment delays, and issues in the program design posed challenges to its efficacy. MSC’s paper assess the success of the program in tackling the loss of income and livelihood and lists key challenges India faced in addressing the crisis.
The Government of India (GoI) ensures the food security of its population through the distribution of food grains to vulnerable sections at highly subsidized prices every month under the National Food Security Act (NFSA). In the wake of the COVID-19 pandemic, the government announced to distribute free food grains to around 800 million NFSA beneficiaries for eight months. The distribution of free food grains was a massive exercise carried out efficiently by the GoI. Timely delivery of benefits supported many households to survive through the testing times and safeguard their food and nutritional security
The Government of India (GoI) ensures the food security of its population through the distribution of food grains to vulnerable sections at highly subsidized prices every month under the National Food Security Act (NFSA). In the wake of the COVID-19 pandemic, the government announced to distribute free food grains to around 800 million NFSA beneficiaries for eight months. The distribution of free food grains was a massive exercise carried out efficiently by the GoI. Timely delivery of benefits supported many households to survive through the testing times and safeguard their food and nutritional security.
A webinar on “Financing agribusinesses amid COVID-19”
The webinar featured conversations with representatives from both the demand and supply sides who revealed the situation on the ground. Participants explored the challenges that MSMEs in the agriculture sector grapple with as they seek finance during the pandemic. After this, a panel of experts brainstormed how governments, donors, and financial service providers can support these entrepreneurs to build back better.
The key themes for discussion were:
Tuning into voices from the ground to gauge the impact of COVID-19 on MSMEs, women, and youth—to enable agriculture finance stakeholders to place theory into action;
Innovation, coping mechanisms, and case studies of agriculture finance;
Challenges that MSMEs in the agriculture sector grapple with as they seek finance during the pandemic;
The role of key stakeholders, such as governments, donors, and financial service providers, in aiding a post-COVID recovery.
Click on the timestamps from the webinar stream to hear specific segments. You can also click on the image below to experience the complete webinar.
00:00– 2:20 Doreen Njau, Communications Manager, Anglophone Africa, opens up the conversation and introduces the topic for the day
2:28– 4:10 Kimotho Joseph, Access to Finance Specialist Feed the Future, Kenya Crops & Dairy Market Systems (KCDMS), gives the welcome note and sets the agenda for the webinar
4:39– 7:23 – Eric Kingori, Independent Consultant—Finance and Investments, gives the context of the discussion and introduces the participants
13:26– 15:42 Tom Kibet—Chief Operations Officer, Nuru Kenya responds to question 1: Paint a picture of how business was like before COVID-19 and how it compares to the situation today
16:01– 18:54 Daniel Musyoka—CEO and Managing Director, Biofarms Limited contributes to question 1. Paint for a picture of how business was like before COVID-19 and how it compares to the situation today
19:44–21:56 Vivian Opondoh—Tech entrepreneur responds to question 2: How did the disruptions caused by COVID-19 affect your access to finance?
22:34–23:49 Nehemia Odongo—CEO, Magos Farm Enterprises gives his perspective on question 2: How did the disruptions caused by COVID-19 affect your access to finance?
24:16 –29:41 Immaculate Ochieno—Lending Manager – East Africa, Shared Interest Society Ltd. gives her perspective from the supply-side on question 2: How did the disruptions caused by COVID-19 affect your access to finance?
30:21–33:31 Dr. Patrick Gathondu—CEO, BIMAS Kenya Microfinance Limited, also shares his perspective from the supply side on question 2: How did the disruptions caused by COVID-19 affect your access to finance?
34:11 –36:52 Dr. Patrick Gathondu responds to question 3: What do you foresee as the medium- and long-term changes? What changes are going to be irreversible?
37:16 – 39:50 Nehemia Odongo gives his perspective from the demand side on question 3: What do you foresee as the medium- and long-term changes? What changes are going to be irreversible?
39:57 – 52:55 – The panelists respond to a round of questions from the audience
Question 1) I wonder if lenders, such as funders, could be flexible with the terms of repayment of loans? In other words, did you have space to renegotiate the lending terms with your lenders?
Question 2) In the future, how do the financers ensure that agribusinesses are financed despite challenges around lack of guarantors or inappropriate guarantees?
Question 3) Are export-oriented crops the only ones that are financeable?
Question 4) What are the key variables one needs to consider from a business perspective given the impact of the pandemic?
1:00:10– 1:04:58 – Eric Kingori introduces the panel of three for a round of conversation
1:06:26– 1:08:59 John Kashangaki- Senior Advisor, Palladium Group- USAID/KIM responds to Question 1: What have been the sustained impacts of COVID-19 on the economy?
1:09:46 – 1:13:05 Juliet Ongwae (Ph.D.)—Digital Transformation Expert, MSC contributes to Question 1: What have been the sustained impacts of COVID-19 on the economy?
1:14:16 – 1:21:20 Jahazi David, Program Lead, Youth Engagement—Kenya responds from a gender and youth lens to Question 1: What have been the sustained impacts of COVID-19 on the economy?
1:21:50 – 1:26:54 John Kashangaki responds to Question 2: What interventions can development actors or governments undertake or are undertaking to address the adverse effects of COVID-19? How can these opportunities be exploited?
1:27:25 – 1:30:08 Juliet Ongwae gives her perspective on Question 2: What interventions can development actors or governments undertake or are undertaking to address the adverse effects of COVID-19? How can these opportunities be exploited?
1:31:30 – 1:35:10 Jahazi David responds to Question 3: What’s the approach that Mastercard Foundation currently uses to create dignified jobs in agribusiness amid the COVID-19 crisis?
1:39:19– 1:46:20 Dr. Robert Mwadime, USAID- KCDMS Chief of Party and Deputy Office Director- Office of Economic Growth and Integration, USAID present the concluding remarks.
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