Mastercard announced a collaboration with Archer-Daniels-Midland Company (ADM), a global leader in innovative natural solutions, to improve the digitalisation of ADM’s Farmer Producer Organisations (FPOs) and farmer partners in Maharashtra, India. ADM would register FPOs, collection centres, and farmers to participate in Farm Pass, a Mastercard-powered system.
The agreement intends to increase ADM’s direct sourcing from smallholder farmers via the farmer-FPO channel. ADM would also use current Farm Pass programs to encourage more FPOs in the region to participate in their oilseed sourcing program.
As part of the agreement, ADM plans to engage with Mastercard Community Pass card issuers to expand its provision of unique financial inclusion and loyalty solutions, which could reach around 250,000 farmers. The initiative enables farmers and FPOs to receive the value of produce sold to ADM directly on their Community Pass financial inclusion cards. ADM might also provide farmers with novel loyalty perks. These financial inclusion cards would give farmers access to credit and government welfare systems, with the potential to facilitate $30 million in welfare and credit flow over the following five years.
Community Pass is a digital platform that integrates the existing Farm Pass program offering and connects the agricultural ecosystem – farmers, agri-buyers, lenders, and other service providers – allowing farmers to modify supply and production based on crop demand. Mastercard Community Pass enables low-income communities to access critical services via interoperable digital technology, resulting in a unified user experience and dividing the cost of digital service delivery across multiple service providers such as governments, banks, and agriculture technology firms.
By linking ADM’s supply chain to Mastercard’s Community Pass digital infrastructure, the alliance will not only improve operational efficiency but also provide practical advantages to smallholder farmers in Maharashtra.
Commenting on the impact of the collaboration, Tara Nathan, Executive Vice President and Founder, Mastercard Community Pass, said, “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.”
Amrendra Mishra, Managing Director – Oilseeds and Country Manager, India, Archer-Daniels-Midland Company, said, “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.”
