Your SlideShare is downloading. ×
Customizing product dev in agric finance 28 november 2011 by muhammad khaleequzzaman
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Introducing the official SlideShare app

Stunning, full-screen experience for iPhone and Android

Text the download link to your phone

Standard text messaging rates apply

Customizing product dev in agric finance 28 november 2011 by muhammad khaleequzzaman

261
views

Published on

Published in: Technology, Business

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
261
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Customizing Products forAgricultural Production Finance Muhammad khaleequzzman Head Islamic banking & Finance IIU Islamabad
  • 2. Islamic Modes – Agricultural Financing Agricultural production Cycle - Crops STAGE ACTIVITY Entering Contract of cultivation inAcquisition of land/ case of rented land, decision about crop Choice of crop in view of market demand Clearing, Leveling, Plowing, Seed bed preparation,Preparation of land Installation of Irrigation/drainage system Crop production Sowing/transplantation, Irrigation, Fertilization, operations Weeding, Pesticide application Cutting/ picking, Harvesting threshing Post harvest & Cleaning, Grading, Processing, Packing, Marketing Storage, Transportation, Sale of produce
  • 3. Islamic Modes – Agricultural FinancingAreas of Financing (including crop production) – Working Capital: • Crop production [Purchase of inputs] {Murabahah} • Poultry Farming [purchase of feed/raw material, birds/chicks, etc.] {Murabahah} • Dairy Farming [purchase and production of feed/fodder, milk container, vaccination, etc.] {Murabahah} • Fish Farming [purchase of fuel, processing equipment, etc.] {Murabahah} • Liquidity Requirement [repair & maintenance of machinery, labor/utility charges, etc.) {Salam}
  • 4. Islamic Modes – Agricultural FinancingAreas of Financing (including crop production) – Term Financing: • Farm Mechanization [Purchase of tractor and farm machinery] {Murabahah/ Ijarah} • Transport [purchase of trailers, reefer vans, milk cooling tanks/carriers, motorcycles/pickups, etc.] {Ijarah/Diminishing Musharakah} • Live stock [purchase/replacement of animals for milk & meet production, animal sheds, etc.] {Murabahah/DM/Istisna} • Irrigation System [T/wells, water course lining, etc.] {Ijarah/Murabahah/DM/ Salam} • Poultry Farming [construction of breeding & hatchery farms, etc.] {Murabahah/ DM}
  • 5. Islamic Modes – Agricultural FinancingAreas of Financing (including crop production) – Term Financing : • Fish Farming/catching [construction of fish ponds & hatcheries, purchase/replacement of fishing boats, engines, etc.] {Murabahah/DM} • Dairy Farming [milk processing, plants, etc.] {Murabahah/DM/Ijarah} • Miscellaneous [green houses, godowns, dairy/livestock farms, seed/milk/fruits/vegetables processing equipment] {Various Modes}
  • 6. Islamic Modes – Agricultural Financing BLANK SLIDE
  • 7. Islamic Modes – Agricultural Financing Salam & Murabahah: Product Development Case Finance Requirements in Wheat Crop Production: •Preparation of land [November] [payment of rent for hire of tractor, purchase of irrigation water, and labor] •Application of inputs [November, January, March][payment for purchase of seed, fertilizer and pesticides] •Weeding & hoeing/cleaning [November- January] [hire of labor] •Harvesting/Picking & threshing [April-May] [hire of labor,hire of thresher] •Marketing of produce [May] [hire of labor for packing, hire of transportation to market]
  • 8. Islamic Modes – Agricultural Financing Financing of Wheat Crop Production Liquidity requirements (hiring of tractor & implements,sowing, purchase of water, hiring of labour for preparation of land and harvesting, marketing) Input requirements (seed, fertilizer, pesticides) Guarantees (Agric. Pass Book and Hypothecation of crop) Liquidity Liquidity Liquidity Inputs in kind Need Need Hiring forHiring for Sale of fertilizers, seed, pesticides Harvest +land prep. Marketing Exp. S J M A A US U N L P NA N R O A RL O A V M DeliveryA V B PaymentM Delivery
  • 9. Islamic Modes – Agricultural Financing THANKS