Since 2006, Bayer CropScience has enabled Indian cotton farmers to invest in their productivity by providing zero- or low-interest micro loans. Bayer originally worked together with the Bank of India on this program, but most of the micro loans are now awarded directly by the company. The concept includes credit rates that are either awarded at zero percent or at an interest level that is substantially lower than the usual rate of interest in the Indian financial market. In the 2007/2008 season alone, Bayer CropScience awarded Indian cotton farmers loans totaling 15 million rupees (EUR 261,873.61 / EUR 1 = INR 57.2537) – in many cases interest-free.
The investments enable farmers to increase both their productivity and their profitability. At the same time, the economic pressure to employ cheap labor – such as children – is thereby reduced.
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