Spices – India

Key Facts

• Client: Value Ingredients Private Limited (VIPL)
• Term: 6-year term loan and 1-year revolving working capital facility (committed 6 years)
• Guarantee instrument: Pari Passu
• Guarantee exposure: INR 350 Mln (~USD 4 Mln, 54% of total loan)
• Effective date: September 2025

Deal Summary

AGRI3 is supporting the mobilisation of INR 650 Mln from HSBC India for Value Ingredients Private Limited (VIPL), a spice processor and exporter that directly contracts with smallholder farmers across 15 Indian districts to produce traceable, low-pesticide spices for export to more than 26 countries.

The guarantee enables HSBC to provide a new 6-year term loan for the construction of a new processing facility and to increase VIPL’s working capital capacity, allowing the company to expand procurement from farmers enrolled in its integrated pest management (IPM) programme and to scale its SAI FSA certification pipeline.

Impact Rationale

VIPL promotes a traceable, low-chemical-input model of spice production through direct farmer engagement, IPM training, drip irrigation, and a digital sourcing platform (TraceAgTech) that records farm-level practices down to plot level. Farmers enrolled in the programme receive guaranteed offtake and a 7-10% price premium over conventional produce. FSA SAI certification is being progressively rolled out across chilli, turmeric, and cumin farmers, with a target for 50-60% of the company’s sourcing area to be certified under SAI FSA by 2031. Certified area will reduce synthetic pesticide use, improve soil health, and contribute to a 6,043 tCO2e/year GHG reduction by 2031.

VIPL’s programme supports over 1,600 smallholder farmers at baseline, with a target to reach 7,506 farmers (including 826 women) by 2031, supported by village coordinators and field staff who provide agronomic training and facilitate procurement. The new processing facility will also create direct employment, with VIPL committed to maintaining female staff across all departments and formalising a Gender Inclusion Strategy.

AGRI3 is providing TA support for FSA SAI certification and will assist VIPL in developing an Environmental and Social Management System (ESMS), a formal gender policy, and deforestation screening tools for onboarding farmers in ecologically sensitive areas.

Impact Targets

Protection of natural ecosystem (direct and indirect)

Sustainable agriculture

Improved rural livelihoods