New Impact Fund to Advance Gender Equality in India
A new fund will help smallholder cotton farmers in India become more resilient to climate change and empower women.
By supporting Farmer Producer Organisations (FPOs), the fund aims to improve access to finance and promote sustainable farming practices.
Smallholder cotton farmers, who make up the vast majority of the world's cotton producers, often struggle to access the financial support they need to thrive. This is especially true for farmers in India, where most FPOs lack the credit history required to qualify for loans.
To address this challenge, Better Cotton and FS Impact Finance have joined forces to create a new fund. This fund will provide financial support to Indian FPOs so they can invest in projects that improve women's roles in farming and help communities adapt to climate change. By helping FPOs build a strong credit history, the fund will also open doors to future financing opportunities.
This initiative is crucial because it empowers smallholder farmers, who are often at the greatest risk from the impacts of climate change. By investing in sustainable farming practices and women's empowerment, the fund contributes to a more resilient and equitable cotton sector.
Alan McClay, CEO at Better Cotton, said: "This collaboration with FS Impact Finance has the potential to accelerate important work already underway in India, and it will do so in an inclusive way. Access to finance for smallholders is always a challenge and we are excited at the prospect of helping to change that."
Martin Cremer, Managing Director at FS Impact Finance, said: "We look forward to jointly developing this innovative financing solution in the cotton sector that complements Better Cotton’s great work in this area. Our goal is to improve the situation of smallholder farmers and contribute to the development and professionalisation of players along the local value chains."
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Source: Better Cotton
