Dr. Amit Bhanot

UN Women is leading efforts to achieve two critical Sustainable Development Goal (SDG) targets by 2030: reducing global emissions Maternal mortality ratio Reduce MMR to less than 70 per 100,000 live births and ensure universal access to sexual and reproductive health care.

India has seen encouraging progress: focused government initiatives to enhance maternal care have led to a steady decline in MMR, from 130 in 2014-16 to 97 in 2018-20. There has also been a significant increase in the number of women in the country. Modern contraceptive useWhich has increased from 47.8 percent in 2015-16 (National Family Health Survey) [NFHS] The unmet need for family planning has declined from 12.9 per cent in 2015-16 (NFHS 4) to 9.4 per cent in 2019-21 (NFHS 5).

Vulnerability in contraceptive supply chain a major hurdle

The existing basket of options including condoms, oral contraceptive pills, emergency contraceptive pills, intrauterine contraceptive device (IUCD) and sterilisation has been expanded with new options such as the injectable contraceptive MPA (Intra Programme), Centroman (Chhaya) and more recently the implant. However, many women of reproductive age, especially the young and those living in remote areas, find it difficult to access these products.

This difference is most significant at the grassroots level, where retailers/pharmacies serve consumers directly. The retailer, the consumer-facing supply-side actor, finds itself constrained by the lack of readily available funds.

Disrupted by their own financing crisis, distributors are unwilling to invest in expanding retailers’ inventory to meet growing demand. Small and medium-sized distributors face difficulty in accessing bank loans and lending to retailers due to the cash-and-carry model adopted by social marketing organisations. Even when new financing options exist, lack of awareness among both lenders and borrowers prevents distributors from accessing risk-tolerant debt financing.

A market-driven approach may be the solution

Effective financial models, including contraceptive supply chain market actors, must be identified, and adopted to address existing credit and logistics challenges that impede the widespread distribution of contraceptive products. Importantly, commercial terms for loans should be made more accessible and attractive to small and medium-sized businesses.

Success on this front will also require fostering partnerships between financial institutions and distributors, leveraging government-backed schemes such as the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) initiative, which provides guarantees to make collateral-free bank loans available to micro and small enterprises.

Public Private PartnershipsTargeted policy support and market-driven interventions, together, are needed to create an ecosystem for sustainable and inclusive growth in India. Access to contraception,

Strategic efforts are needed to create Sustainable distribution channels

A multi-pronged strategy tailored to the specific needs of different sectors is needed. The following suggestions suggest a way forward:

Make lenders aware of the potential of contraceptive businesses: By collecting and disseminating information about the potential of the contraceptive market, including the overlap with women’s health products, we can encourage financing intermediaries to include distributors of women’s health products in their portfolios.

Tackling information asymmetry through market intelligence: In collaboration with business correspondents (BCs) and financial intermediaries, we can explore the possibility of developing credit scoring models specifically designed to assess the credit-worthiness of small and medium-sized businesses.

Promoting government-backed schemes to improve credit access: Identifying and disseminating information about government-backed schemes can improve credit access for small and medium-sized distributors across different geographies and significantly reduce the financial risks associated with expanding the supply chain.

Increased access to banking services through business correspondents: The financial intermediary, in partnership with the scheduled bank providing capital, will facilitate access to funding to enhance geographical coverage, expand the number of stores, increase sales and distribution efforts, add new products to its family planning product basket, and maintain optimal inventory levels to meet market demand.

Identifying and supporting distributor aggregators in the contraceptive market: Collaborating with these aggregators[1] Can help financial intermediaries understand how their financing can empower small enterprises to expand their market presence.

Advanced contraceptives pave the way for health, prosperity and women’s empowerment

Strengthening the contraceptive supply chain will not only improve individual health outcomes but also have wider societal benefits for the country. Therefore, barriers to access to contraception must be addressed with seriousness and urgency as India strives to build a more inclusive and sustainable future.

Dr. Amit Bhanot, Country Director and Chief of Party, FHM Engage

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