Transformation · Agriculture

Finding the Farmer Producer Organisations ready for a long-term supply contract.

A company sourcing from farmer producer organisations needed to know which could hold a long-term supply contract. Every organisation in the states in scope was assessed on governance, growth, processing access, land and climate, with adverse findings called out.

Agricultural finance
Three states, 112 districts
Long-term supply contracts
Scored organisations, mapped

What was delivered

The engagement produced a ranked recommendation. Contracts against it have not yet run, so these are analysis figures rather than realised outcomes.

14,697
Organisations assessed
Every eligible farmer producer organisation in three states, scored on the same five dimensions.
659
Recommended for contract
Top scoring, well governed, with processing within reach. Spread across 81 districts and all three states.
5
Dimensions per organisation
Governance, growth, processing access, land and water, climate. Built from 76 inputs across 18 sources.
0.10
Average overlap between dimensions
Each dimension measures something the others do not. A strong score on one says almost nothing about another, so no single strength can carry an organisation.

The case

01

Contracts followed relationships

Partners were chosen because field teams knew them. Capable organisations outside that circle were never considered.

02

Diligence rested on self-reporting

What an organisation said about itself was the assessment. Nothing independent checked it before a contract was signed.

03

Long-term contracts met changing ground

Multi-year supply arrangements assumed stable land and climate. Both are now moving, and neither was being measured.

From a national universe to a contract shortlist

Each stage removed organisations for a stated reason. The final tier is the recommendation: organisations that score in the top decile overall, rank in the top third on governance, and have processing within reach.

~40,000
registered nationally
Every farmer producer organisation on the corporate registry across India.
→
17,112
in three states
Scope narrowed to Madhya Pradesh, Maharashtra and Karnataka.
→
14,697
eligible and scored
Urban districts, organisations under two years old, and non-crop businesses removed. Every remaining organisation scored on five dimensions.
→
659
recommended for contract
Top decile overall, top third on governance, processing within five kilometres.

The recommended tier is not a list of the biggest or best-known organisations. Three of the 659 carry an independently verified adverse finding, and the model surfaces them by name rather than burying them in an average. A buyer sees exactly which three to examine before signing.

Every organisation in the tier can be inspected on all five dimensions, compared to its district peers, and traced to the sources behind each score. Ten are shown below, chosen for spread rather than rank: ten districts, all three states, and scores from the top of the tier to its lower bound. Several carry one clearly weak dimension. That is the point of scoring five things separately.

Ten from the recommended tier
1 / 10

overall score, out of 100
Dimension scores:weakmiddlingstrongUse ← → keys to browse

The five dimensions, and the contract risk each one measures

Each organisation was scored on five dimensions from 76 inputs reconciled across 18 sources: corporate registries, satellite observation, village infrastructure surveys, government scheme records and independent web verification. An organisation had to score reasonably on every dimension. Excellence on one could not conceal weakness on another.

Governance and institutional integrity

External assessment grades, board structure, institutional backing, and how much authorised capital has been called up.

Contract risk: an organisation that cannot govern itself cannot honour a multi-year commitment.

Growth and traction

Scale relative to age, organisational build-out, and recorded trading and credit activity.

Contract risk: an organisation that has never traded at scale will not deliver volume on schedule.

Processing and storage access

Processing enterprises, warehouses and extension services within a five-kilometre radius.

Contract risk: produce that must travel far to be processed loses the margin the contract exists to capture.

Land quality and water

Satellite vegetation health, cropland extent and its direction of travel, irrigation access and soil testing reach.

Contract risk: cropland shrinking year on year will not supply year five of a five-year contract.

Climate resilience

Drought intensity and history, agricultural stress, and the direction of climate trend at each location.

Contract risk: a region turning drier fails the contract years before the harvest does.

Independent verification

Web-grounded confirmation of scheme participation, market listings, digital presence and adverse findings, applied across the dimensions above.

Contract risk: a claim nobody has checked is a claim the contract is resting on.

What a recommendation contains

Every organisation is placed in a tier with an action attached. Thresholds are computed from the population rather than fixed, so a buyer and a lender can each redefine what strong means and see the tiers redraw.

Tier
What it means
Action
Contract ready
Top decile overall, strong governance, processing within reach
Contract now
Verify first
Scores well, but on thin evidence with no matched organisational record
Field visit before committing
Adverse finding
Independently verified complaint, default or litigation on record
Examine before any contract
Climate exposed
Strong on every dimension except climate outlook
Shorter term, or insurance attached
Not yet ready
Weak on one or more dimensions a contract depends on
Do not contract in this cycle

What each team received

The recommendation ships as a queryable system rather than a spreadsheet. Each team asks in plain language and gets an answer drawn from live data.

Leadership

Which contracts to sign

The recommended tier, filterable by state and district, with concentration risk assessed across the set so a single regional shock cannot take out the supply base.

Procurement

Who to approach first

Full stack rank with every dimension visible. Peer comparison within district. Similarity search to find organisations resembling a partner that already delivers.

Field

What to check on site

Per-organisation profiles in plain language showing the strongest dimension, the weakest, and which claims are independently verified versus self-reported, so a visit confirms rather than discovers.

What changed in how a contract is decided

Before
Candidates came from field relationships
Diligence began from a blank page for each one
Assessment rested on what the organisation reported
Land and climate were not part of the decision
Weaknesses appeared after the contract was signed
→
After
Candidates drawn from every eligible organisation in three states
Diligence begins from a five-dimension scorecard
Independent verification checks self-reported claims
Land trend and climate outlook are scored for every organisation
Weakest dimension is known before the contract is drafted

What this is built to change

Three things a long-term contract depends on, and how the recommendation is designed to improve each. These become measured outcomes once contracts run against the shortlist.

Contract risk
Weaknesses in governance, land or climate surfaced after signing, when they were expensive to act on.
Screened first
Designed to
Show the weakest dimension and any adverse finding before a contract is drafted. Measurable as default and underperformance rate against the recommended tier.
Onboarding speed
Each partner assessed from scratch, with field visits used to discover what the organisation was.
Pre-assessed
Designed to
Deliver every candidate already scored on five dimensions, so the field visit confirms rather than discovers. Measurable as days from first contact to signed contract.
Partner performance
Selection favoured the known and the large, which are not the same as the well-run and well-placed.
Selected on fit
Designed to
Favour organisations already trading, with processing in reach, on land that will hold. Measurable as delivered volume against contracted volume.

Each of these is a claim about design, not yet about results. We publish the mechanism and the measure, and we will publish the figure when the first contracts have run long enough to produce one.

Why not just pick the ones with the most farmers?
The shortcut every buyer reaches for first

Because size tells you how many farmers an organisation has, not whether it can hold a contract. We tested it. Farmer count barely moves with contract readiness, a correlation of 0.12. Take the 659 organisations with the most farmers and only 84 make the recommended tier. The other 87 percent fall short on something a contract depends on. Of those 659 largest organisations, 425 score below 40 on at least one of governance, processing access, land or climate. A big farmer base sitting on shrinking cropland, or with no processing within reach, or with a board that cannot govern it, is a large risk rather than a large opportunity. The five dimensions exist to tell the difference.

See how your current partners score before you sign the next contract.

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