According to Asian Development Bank, Suguna's business has been significantly impacted by Covid-19. There were false rumors in India associating chickens with the spread of Covid-19 leading to a sharp contraction in demand. The situation was further aggravated by supply disruptions as a result of the lockdown. This has resulted in losses and tight liquidity conditions for Suguna. The project will provide essential liquidity support to Suguna helping it sustain operations and livelihoods of 40,000 contract poultry farmers and over 7,700 employees. The project will help Suguna sustain its business operations through the Covid-19 crisis, by providing financing for working capital and operational expenditure. In addition, due to supply chain disruptions, Suguna plans to maintain higher levels of inventory (feed and medicines) to ensure adequate buffers for sustained operations.
The project is ADB’s first COVID-19 emergency assistance to an agribusiness in India.
ADB will provide debt financing to Suguna by subscribing to up to $15,000,000, in Indian
rupee equivalent, of 2-year amortizing senior secured nonconvertible debentures, in three
|Private Actor 1||Private Actor 1 Role||Private Actor 1 Sector||Relation||Private Actor 2||Private Actor 2 Role||Private Actor 2 Sector|
|-||-||-||-||Suguna Foods Private Limited||Client||-|
|Responsible ADB Department||Private Sector Operations Department|
|Responsible ADB Division||Office of the Director General, PSOD|
|Responsible ADB Officer||Mosnier, Zsuzsanna|
ACCOUNTABILITY MECHANISM OF ADB
The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main