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<ul><li><keyword id="8188441" type="General" weightage="20" keywordseo="u-gro" source="Orion">U GRO</keyword> Capital is looking to disburse loans worth ₹2,000 crore by March 2023 with their new alliance with <keyword id="14257101" type="General" weightage="20" keywordseo="yubi" source="Orion">Yubi</keyword>.</li><li>Separately, the company has an off-book asset under management (AUM) of ₹3,600 crore that they plan to double in the same time frame.</li><li>The lender believes that the alliance would make their partnership with banks much simpler.</li></ul>Lending company U GRO Capital on Wednesday announced a strategic alliance with debt marketplace Yubi (formerly known as CredAvenue) in an attempt to give out small business loans worth ₹2,000 crore to MSMEs by the end of this fiscal year. Separately, the company has an off-book asset under management (AUM) of ₹3,600 crore that they plan to double in the same time frame. The strategic alliance comes with two partnership deals to achieve this target set for the deal. First, between the companies’ co-lending platforms Yubi-Co.Lend and GRO-Xstream. Second, between Yubi's supply chain financing vertical Yubi Flow and U GRO’s offer for end retailers GRO-Line. Shachindra Nath, vice chairperson and managing director of U GRO Capital, in a conversation with Business Insider India noted that Yubi is building a market infrastructure, where they are integrating multiple banks and lenders together to make the co-lending process smoother. He noted that this integration would allow lenders like U GRO to directly transfer all major data of the customer to the co-lending banks, digitizing the entire process. This partnership would actually allow the lending company to enhance their existing co-lending partnership with banks, he added. “Today if I am doing ₹50 crore co-lending with a particular bank. Increasing from ₹50 crore to ₹100 crore is very difficult because banks have to put more people in and we have to put more people in between… If your bank is taking two hours or three hours to process a particular loan case, it will [now] only take five minutes,” Nath added. <cmsannotation type="cmsannotation" annotationid="The Yubi partnership can help U GRO enhance its co-lending partnerships" comment="subhead" text="The Yubi partnership can help U GRO enhance its co-lending partnerships">The Yubi partnership can help U GRO enhance its co-lending partnerships</cmsannotation> Notably, a co-lending arrangement usually involves two entities — a non-banking finance company (NBFC) and a bank. The NBFC is the front for underwriting a loan, but a majority of that loan is actually facilitated by large financial institutions like a traditional bank. In this case, U GRO being an NBFC, onboards small business owners as borrowers based on several metrics. The company itself only finances 20% of the loan amount, while the rest is financed by traditional banks like State Bank of India and Yes Bank. Any profit, interest or loss is incurred by these two entities in the 20:80 ratio. “It is only 20% of the loan on my (U GRO’s) book. The balance is gone to SBI or any other partner bank, but U GRO would service that loan for the next five-six years. Customer is unimpacted,” Nath explained, emphasizing that this model is globally known as Lending-as-a-Service (LaaS). Nath noted that they are underwriting loans through their tech platform that majorly runs on data points with less human intervention. The banks, on the other hand, access the same loan manually which requires a lot of manpower and time. Therefore, the integration with a tech platform like Yubi would enable their banks to access these loans much faster with the same capacity. “We, at Yubi, are working towards accelerating financial inclusion in the country through a technology-driven credit infrastructure that powers discovery, execution and fulfillment. We are elated to partner with U GRO Capital with a shared vision to bridge the <keyword id="6358354" type="General" weightage="20" keywordseo="msme" source="Orion">MSME</keyword> credit gap in India by providing credit access to the unserved and underserved sectors in the country,” Gaurav Kumar, founder and CEO of Yubi, said in a statement. SEE ALSO <a href="https://www.businessinsider.in/finance/news/the-worst-of-the-rupees-decline-might-be-over-as-market-expects-us-fed-to-dial-down-pace-of-hikes/articleshow/93290895.cms">The worst of the rupee's decline might be over as market expects US Fed to dial down pace of hikes</a> <a class="tout-title-link" href="https://www.businessinsider.in/stock-market/news/markets-on-a-wait-and-watch-mode-as-they-await-cues-from-rbi/articleshow/93290015.cms">Markets on a wait and watch mode as they await cues from RBI</a> <a href="https://www.businessinsider.in/business/auto/news/as-new-cars-get-pricier-pre-owned-bmws-audis-and-porsches-get-more-attractive/articleshow/93275786.cms">As new cars get pricier, pre-owned BMWs, Audis and Porsches get more attractive</a>

This startup is building infrastructure to automate and ease the process of giving out small biz loans

<ul class="summary-list"><li><keyword id="11894337" type="UNKNOWN" weightage="60" keywordseo="russia" source="Orion">Russia</keyword>'s invasion of <keyword id="11985141" type="UNKNOWN" weightage="60" keywordseo="ukraine" source="Orion">Ukraine</keyword> has worsened global food supply shortages. </li><li>An expert told the UN that the world has about only 10 weeks of wheat supplies left. </li></ul>The world has about 10 weeks of wheat supplies stored as Russia's invasion of Ukraine enters its fourth month, <a href="https://media.un.org/en/asset/k10/k10mjpv1u3?kalturaStartTime=2120">a food insecurity expert told the UN. </a>Sara Menker, the CEO of agriculture analytics firm Gro Intelligence, told the UN Security Council that the Russia-Ukraine war was not the cause of a food security crisis but "simply added fuel to a fire that was long burning."Ukraine is considered the <a href="https://www.businessinsider.com/russia-assault-ukraine-could-lead-to-famine-in-yemen-2022-3">world's "breadbasket"</a> and Russia and Ukraine combined account for almost a third of the world's wheat exports. https://media.un.org/en/asset/k10/k10mjpv1u3?kalturaStartTime=2120This comes as <a href="https://www.state.gov/secretary-antony-j-blinken-at-the-unsc-meeting-on-food-insecurity-and-conflict/">US Secretary of State Antony Blinken accused Russia of using food as a weapon.</a> Blinken, also addressing the UN Security Council, said that Russia was holding food "hostage" not just for Ukrainians but for millions across the world. "The Russian government seems to think that using food as a weapon will help accomplish what its invasion has not - to break the spirit of the Ukrainian people," Blinken said.Menker said droughts across the world are contributing to declining wheat resources. Menker said global food supplies are also being impacted by climate change and fertilizer shortages."We currently only have 10 weeks of global consumption sitting in inventory around the world. Conditions today are worse than those experienced in 2007 and 2008," she said.Menker said estimates from official government agencies from across the world show that wheat inventories at 33% of annual consumption, but added that models created by Gro Intelligence show that the figure may actually be closer to 20%, a level not seen since 2007 and 2008. "It is important to note that the lowest grain inventory levels the world has ever seen are now occurring while access to fertilizers is highly constrained," she said. "And drought in wheat growing regions around the world is the most extreme it's been in over 20 years. Similar inventory concerns also apply to corn and other grains."

A food insecurity expert predicts that there's only 10 weeks of wheat supplies left in the world as Russian invasion disrupts production

Welcome to <keyword id="9884466" type="UNKNOWN" weightage="60" keywordseo="insider-cannabis">Insider Cannabis</keyword>, our weekly <keyword id="621414" type="PERSON" weightage="60" keywordseo="Newsletter">newsletter</keyword> where we're bringing you an inside look at the deals, trends, and personalities driving the multibillion-dollar global <keyword id="14728" type="ENTERTAINMENT" weightage="100" keywordseo="cannabis">cannabis</keyword> boom.<a href="http://newsletter.businessinsider.com/join/cultivated">Sign up here to get it in your inbox every week</a>.Hello everyone,Breathe out. If you work for, invest in, or lead a cannabis company - this was probably one of the busiest weeks of the summer.Most of the major US cannabis companies or MSOs reported earnings this week, giving us a clear snapshot into how the industry's doing amid the pandemic.For us, that means a whirlwind of calls, interviews, reading, writing, more calls, more interviews, more reading, and more writing. If you tried to reach Yeji or me this week and we haven't gotten back you, now you know why. We're doing our best.Our quick takeaway on the quarter: MSOs like Trulieve, Green Thumb Industries, Verano Holdings and others posted strong quarters in terms of revenue growth and actually turning a profit, compared to their Canadian counterparts. How novel.What else we're watching:Gov. Cuomo's resigning, and industry experts told us <a href="https://www.businessinsider.com/new-york-cannabis-cuomo-resignation-speed-up-marijuana-sales-timeline-2021-8">that'll speed up the rollout of legalization in New York</a>.Trulieve CEO Kim Rivers' husband JT Burnette is on trial over corruption charges associated with real estate purchases he made. The jury is deliberating as we speak.But for the cannabis industry, there's a damning piece: According to audio from a conversation between Burnette and an undercover FBI agent, Burnette claimed he worked with a Republican state representative to create barriers that would benefit his wife's company and keep others out of Florida's lucrative medical marijuana market, <a href="https://www.tallahassee.com/story/news/local/fbi/2021/08/10/j-t-burnette-trial-day-12-federal-prosecutors-cross-examination/5549817001/">the Tallahassee Democrat reported</a>. In an industry like cannabis, in the context of decades of racially motivated policing and incarceration, reputation is everything for leaders of publicly traded cannabis companies that are now profiting from legalization.We're asking CEOs and other execs how they thread that needle in an industry where corporate reputation is of critical importance because of that history and the polarized political environment we all inhabit.If you've got thoughts on that, get in touch with us. - Jeremy Berke (<a href="https://twitter.com/jfberke">@jfberke</a>) &amp; Yeji Jesse Lee (<a href="https://twitter.com/jesse_yeji">@jesse_yeji</a>)If you like what you read, share this newsletter with your colleagues, friends, boss, spouse, strangers on the internet, or whomever else would like a weekly dose of cannabis news. Here's what we wrote about this week:<h3><a href="https://www.businessinsider.com/analyst-list-cannabis-stocks-to-buy-now-after-pullback-2021-8">A top Wall Street analyst says investors are overlooking a 'transformative growth opportunity' in cannabis stocks, and names 9 to buy now</a></h3>Cannabis stocks have pulled back significantly since February and Viridian analyst Jonathan DeCourcey says this creates an opportunity for investors. DeCourcey names 9 stocks in particular that are poised to see "transformative growth."<h3><a href="https://www.businessinsider.com/cannabis-amc-meme-stocks-retail-investors-shareholders-proxy-voting-2021-6">Robinhood just announced a $140 million deal for a startup focused on increasing proxy voting as meme stocks struggle to get participation from retail investors</a></h3>Companies with large retail-investor bases face difficulties reaching a quorum in shareholder votes. "It's hard to get those shareholders to show up and vote," Tilray CEO Irwin Simon told Insider. To address this issue, Robinhood said on Tuesday that it had made a big deal that would help increase proxy voting.<h3><a href="https://www.businessinsider.com/new-york-cannabis-cuomo-resignation-speed-up-marijuana-sales-timeline-2021-8">The cannabis industry says Cuomo's resignation could speed up marijuana sales in New York</a></h3>New York Gov. Andrew Cuomo's resignation amid a wave of sexual assault allegations may be beneficial for the state's fledgling cannabis industry."I think a lot of people in this industry, including some of our clients, are breathing a sigh of relief knowing that the governor of New York is no longer using cannabis as a pawn in unrelated battles," Jeffrey Schultz, partner at cannabis law firm Feuerstein Kulick, told Insider.<h3><a href="https://www.businessinsider.com/cannabis-real-estate-retail-industrial-green-rush-jlll-cushman-cbre-2021-8">THE NEW GREEN RUSH: Risk-taking real-estate brokers who cater to cannabis companies are cashing in</a></h3>Cannabis real estate is projected to be a $50 billion industry by 2027 and some risk-taking brokerages are cashing in, helping cannabis firms find grow houses and retail storefronts.<h3><a href="https://www.businessinsider.com/riv-capital-ceo-narbe-alexandrian-interview-us-cannabis-deals-2021-8">The man building a new cannabis company with cash from Scotts Miracle-Gro lays out his plan to dominate the US with a $320 million war chest</a></h3>A Scotts Miracle-Gro unit is investing $150 million in RIV Capital and RIV Capital CEO Narbe Alexandrian told Insider he's using the money to shop for US cannabis deals. He says he's focused on populous states and said he's looking for distressed deals and for companies with strong teams. <h2>Executive moves</h2><ul><li>Tom Price, the former HHS secretary under President Donald Trump, is joining the board of Botanical Sciences, a cannabis company that recently won a coveted medical license in Georgia, <a href="https://www.marijuanamoment.net/former-anti-marijuana-congressman-and-top-trump-health-official-joins-cannabis-company-board-documents-show/">Marijuana Moment reports</a>. </li></ul><h2>Deals, launches, and IPOs</h2><ul><li>Leafly <a href="https://www.prnewswire.com/news-releases/leafly-to-go-public-through-business-combination-with-merida-merger-corp-i-301350986.html">said</a> on Monday that it plans to go public through a special purpose acquisition company sponsored by Merida Capital Holdings in a deal that values the company at around $532 million. The company plans to trade on the NASDAQ under the ticker "LFLY."</li><li>RIV Capital <a href="https://www.prnewswire.com/news-releases/riv-capital-announces-us150-million-strategic-investment-by-the-hawthorne-collective-a-subsidiary-of-the-scotts-miracle-gro-company-301351777.html">announced</a> on Tuesday that it has received a $150 million investment from The Hawthorne Collective, a subsidiary of The Scotts Miracle-Gro Company. RIV Capital CEO Narbe Alexandrian <a href="https://www.businessinsider.com/riv-capital-ceo-narbe-alexandrian-interview-us-cannabis-deals-2021-8">told Insider</a> he's using the money to shop for US cannabis deals.</li><li>Montréal Cannabis Médical Inc. is <a href="https://www.newswire.ca/news-releases/mtl-cannabis-to-acquire-control-of-canada-house-808267174.html">going public on the CSE</a> through a reverse takeover with Canada House.</li><li>Canadian cannabis company Fire &amp; Flower is <a href="https://www.barrons.com/articles/fire-flower-enters-california-market-as-american-acres-completes-name-change-to-fire-flower-u-s-holdings-01628595341#:~:text=(%22Fire%20%26%20Flower%22%20or,Palm%20Springs%2C%20California%20located%20at">entering the US</a> through a licensing agreement with American Acres Managers, which will change its name to Fire &amp; Flower U.S. Holdings and open a branded dispensary in Palm Springs. </li><li>Psychedelics giant Atai <a href="https://www.globenewswire.com/news-release/2021/08/12/2279817/0/en/atai-Launches-Revixia-Life-Sciences-to-Develop-Salvinorin-A-for-a-Variety-of-Mental-Health-Conditions.html">announced</a> on Thursday that it had launched Revixia Life Sciences, a subsidiary focused on developing Salvinorin A, a compound derived from the psychedelics plant Salvia divinorum.</li><li>Origin Therapeutics <a href="https://www.globenewswire.com/news-release/2021/08/12/2279705/0/en/Origin-Therapeutics-Closes-6-5-Million-Private-Placement-to-Fund-New-Investments-in-Psychedelics.html">said</a> on Thursday that it closed a $6.5 million private placement to fund investments into private, early-stage psychedelics companies.</li><li>BuzzFeed is launching a line of cannabis products, <a href="https://www.forbes.com/sites/javierhasse/2021/08/05/get-your-buzz-on-with-buzzfeeds-new-cannabis-line/?sh=97a3aaf43a3a">Forbes reports</a>.</li></ul><div type="image" title="Cannabis" height="1333" width="2000" msid="85312123" hostid="261"></div><h2>Policy moves</h2><ul><li>Gov. Andrew Cuomo has announced his resignation from office, leaving New York - and the rollout of New York's cannabis industry - to Lt. Gov Kathy Hochul. We've got you <a href="https://www.businessinsider.com/new-york-cannabis-cuomo-resignation-speed-up-marijuana-sales-timeline-2021-8">covered on why experts say this might be beneficial for cannabis</a>. </li><li>As part of the mammoth $1 trillion infrastructure bill that passed the Senate this week, researchers <a href="https://www.marijuanamoment.net/senate-votes-to-let-researchers-study-marijuana-from-dispensaries/">would be allowed to study marijuana</a> that consumers purchase from recreational dispensaries. The bill is now in the House. </li></ul><h2>Earnings</h2><ul><li>Curaleaf released its 2021 <a href="https://ir.curaleaf.com/2021-08-09-Curaleaf-Reports-Record-Second-Quarter-2021-Results">Q2</a> results on Monday, reporting $312 million in revenue and a net loss of $7.2 million.</li><li>Verano Holdings released its 2021 <a href="https://investors.verano.com/news/news-details/2021/Verano-Reports-Second-Quarter-2021-Record-Revenue-of-199M/default.aspx">Q2</a> results on Tuesday, reporting $198.7 million in revenue and a net profit of $6.8 million.</li><li>Acreage Holdings released its <a href="https://investors.acreageholdings.com/financial-information/financial-releases/press-release/2021/Acreage-Holdings-Reports-Second-Quarter-2021-Results/default.aspx">Q2</a> 2021 results on Tuesday, reporting $44.2 million in revenue and a net loss of $2.6 million.</li><li>Harvest Health &amp; Recreation released its <a href="https://investor.harvesthoc.com/press/press-release/2021/Harvest-Health--Recreation-Inc.-Reports-Second-Quarter-2021-Financial-Results/default.aspx">Q2</a> 2021 results on Tuesday, reporting $102.5 million in revenue and a net loss of $19.5 million.</li><li>Ascend Wellness Holdings released its <a href="https://awholdings.com/awh-announces-q2-2021-financial-results/">Q2</a> 2021 results on Tuesday, reporting $83.4 million in revenue and a net loss of $44.9 million.</li><li>Green Thumb Industries released its <a href="https://investors.gtigrows.com/investors/news-and-events/press-releases/press-release-details/2021/Green-Thumb-Industries-ReportsSecond-Quarter-2021-Results/default.aspx">Q2</a> 2021 results on Wednesday, reporting $221.9 million in revenue and a net profit of $22.1 million.</li><li>Columbia Care released its <a href="https://d1io3yog0oux5.cloudfront.net/_f3c290420906e976623f5b06f399cdcd/colcare/news/2021-08-12_Columbia_Care_Reports_Record_Second_Quarter_2021_139.pdf">Q2</a> 2021 results on Thursday, reporting $102.4 million in revenue and a net loss of $10.2 million.</li><li>Trulieve released its <a href="https://www.newswire.ca/news-releases/trulieve-reports-record-second-quarter-2021-earnings-and-expansion-into-new-markets-887024603.html">Q2</a> 2021 results on Thursday, reporting $215.1 million in revenue and a net profit of $40.9 million.</li><li>Charlotte's Web released its <a href="https://investors.charlottesweb.com/press-releases/press-release-details/2021/Charlottes-Web-Holdings-Inc.-Reports-Q2-2021-Results/default.aspx">Q2</a> 2021 results on Thursday, reporting $24.2 million in revenue and a net loss of $5.4 million.</li><li>Hydrofarm Holdings released its <a href="https://investors.hydrofarm.com/news-releases/news-release-details/hydrofarm-holdings-group-announces-second-quarter-2021-results">Q2</a> 2021 results on Thursday, reporting $133.8 million in sales and a net income of $2.3 million.</li><li>Cresco Labs released its <a href="https://investors.crescolabs.com/investors/press-releases/press-release-details/2021/Cresco-Labs-Announces-Second-Quarter-2021-Financial-Results/default.aspx">Q2</a> 2021 results on Friday, reporting $210 million in revenue and a net income of $2.7 million. </li></ul><h2>What we're reading </h2><a href="https://www.politico.com/news/2021/08/10/weed-cannabis-legalization-energy-503004">An inconvenient truth (about weed)</a> (Politico) <a href="https://www.washingtonpost.com/world/2021/08/08/mexico-marijuana-american-border/">Legal U.S. marijuana is pouring into Mexico. It's pricey, popular and has names such as 'Bubba Kush.'</a> (The Washington Post)<a href="https://www.vanityfair.com/style/2021/08/beyonce-building-hemp-honey-farms-health-benefits-for-children-blue">Beyoncé Is Building a Hemp and a Honey Farm</a> (Vanity Fair)<a href="https://thewalrus.ca/what-do-you-do-with-a-billion-grams-of-surplus-weed/">What Do You Do with a Billion Grams of Surplus Weed?</a> (The Walrus)<a href="https://www.statnews.com/2021/08/03/punishing-drug-use-heightens-the-stigma-of-addiction/">Opinion: Punishing drug use heightens the stigma of addiction</a> (Stat News)

Insider Cannabis: Earnings, earnings, earnings

<ul><li>The stress among <keyword id="6359766" type="General" weightage="20" keywordseo="private-schools" source="Orion">private schools</keyword> is emerging mainly due to poor fee collections, which is not just affecting their cash flows but also impeding their ability to pay loan dues. </li><li>Many of them fear that a third wave of COVID-19 infections, and a subsequent lockdown, if any, may even force them to shut down forever. </li><li>The worst-hit have been pre-primary to middle-level schools, especially those catering to low-income families in rural and semi-urban areas. </li></ul><keyword id="4363300" type="General" weightage="20" keywordseo="private-schools-in-india" source="Orion">Private schools in India</keyword> have been struggling to pay their bills and loan dues to banks and other lenders due to poor student turnout amid the pandemic. Many of them fear that a third wave of COVID-19 infections, and a subsequent lockdown, if any, may even force them to shut down forever. The worst-hit have been those that focus on pre-primary to middle-level education, and cater to low-income families in rural and semi-urban areas. Aside from causing a disastrous loss in the form of lack of access to education for children, this could lead to a lot of unpaid loans for banks and other lenders, and loss of livelihood for teachers and support staff. Take Kerala High School, located in Karimnagar in Telangana, for instance. The budget private school that runs classes from Nursery to Xth standard has a strength of 550 students, with most hailing from the neighbouring villages. For the past 18 months, it has been surviving on near-zero cash flows as most of the fees it collected got exhausted in paying salaries to its staff, repaying loan installments, and running online classes. The fee collection, at close to 20% for the last academic year, has been poor mainly because parents either lost their livelihoods during the pandemic or were unwilling to pay school fees due to absence of offline classes. Further, even the attendance for online classes has remained low at just 20-30%, said Rajendra B, chairman and principal at Kerala High School for the past decade, as most students did not have smartphones and internet connections. But if a third Covid wave happens and lockdown curbs are announced again, the 27-year old school may not even survive. “We had to take loans from family and friends to pay our loan installments during the pandemic as debt kept piling up,” said Rajendra. “If a third wave strikes and there is a lockdown again, I may have to sell half of my 1,000 sq. ft school land to repay the dues,” he said. Further, many students studying in private schools have already switched to government schools over the past three years, as per the<a href="https://www.pratham.org/about/"> Annual Status of Education Report 2020</a> that surveyed 16,761 schools across India. The study, conducted by non-government body<a href="https://www.pratham.org/about/"> Pratham</a> in Sep. 2020, said that the reasons for the switch “may include financial distress in households and/or permanent school shutdowns among the private schools.” Pain Points Private schools that operate in pre-primary, primary and middle education categories (classes Nursery to Class VIIth), according to Vivek Iyer, partner and national leader-financial services risk advisory at Grant Thornton Bharat, have been the worst-affected as they have remained shut the longest for close to 17-18 months. The Covid impact, he said, has also been higher on schools catering to children from low-income families and rural areas “Lower the school fees and the category of the school, worse the Covid impact. That way, private schools catering to the most vulnerable segments have been the worst-hit, while their quality of education has also suffered due to poor transition to digital learning models,” he said. Steve Hardgrave, co-founder and chief executive of Varthana, a Bengaluru-based non-bank lender that focuses on loans to affordable private schools that charge fees of up to Rs 3,000 a month, is dreading the expected third wave of the pandemic. “Of the 4,000 schools that we have funded, close to 5% (or 200 schools) have cited issues with continuing their business, but that number is expected to go up to 25% if the third wave strikes. Also, owners that were running schools on leased land and property are finding it difficult to sustain,” he said. “In some cases, schools had to be sold to a third-party to facilitate clearing off their loan dues.” And Hardgrave is not alone. Even as schools have reopened in most parts of the country, classroom attendance remains thin at about 20-30% as parents are afraid to send their children to schools due to lack of vaccination for children below 18 years of age, said V L Ramakrishnan, managing director and chief executive at Shikha Finance, a Tamil Nadu-based lender that focuses primarily on school financing. “Even though schools have reopened, it is an abstract factor, because parents are still reluctant in sending their children, especially those studying between Nursery and class VIIIth, back to schools,” he said. “About 3-5% of school entrepreneurs, or roughly 20 schools, in our portfolio, have expressed that they will not be able to continue their business. If a third wave strikes, that number would go up,” he said. Mounting Debt It is clear that the stress among private schools is emerging mainly due to poor fee collections, which is not just affecting their cash flows but also impeding their ability to pay loan dues. Chirag Jagdish Chandra Pathak, who has been running Mother Care School that offers education for kindergarten to Class XIIth students in Kheda, Gujarat, had taken a ₹6 crore loan in March 2018 to construct a new school building. As the pandemic struck in March last year, the school’s cash flows fell to near-zero in the following five months. Pathak, however, took quick action and gave teachers at his school smartphones and internet connection to impart online education. But a 25% fee cut by the state government and unwillingness of parents to pay school fees as they did not consider online education at par with classroom learning, led Pathak to avail a loan moratorium during the first wave. Later, he also applied for loan restructuring as his school’s cash flow remained deficient by 30-50%. “Despite schools getting reopened again, our loan repayment ability has reduced by at least 30%. The biggest reason for that is uneven cash flow as fee collection has still not stabilized, while our leverage has gone up due to accumulation of interest,” he said. Like Mother Care, <keyword id="9434367" type="General" weightage="20" keywordseo="many-private-schools" source="Orion">many private schools</keyword> in the country are dealing with mounting debt as most either opted for a loan moratorium or restructuring, in anticipation that their cash flows would improve eventually. But fee collections still remain inadequate, while interest on their loans have either gone up or their loan repayment period extended. “Schools are over-leveraged by at least 2-3 times as their revenue took a beating of anywhere between 20% to even 80%, depending on the fee category of the school. Restructuring was granted to schools as their cash flows were expected to improve, but if a third wave strikes, it will be difficult for many to manage their debt as fee collection would drop again,” said Anuj Pandey, chief risk officer at non-banking financial company U GRO Capital. So far, U Gro Capital that has ₹136 crore in assets under management across 75 schools as of June 30, has restructured close to 12% of its loan portfolio in school financing. Varthana Finance, which has ₹1,000 crore in AUM towards school loans, has also restructured about 15% of its portfolio. Shiksha Finance restructured close to 10% of its ₹185 crore loan book dedicated to 2,200 schools. “Restructuring has not been much of a solace. Most schools continue demanding for extended repayment terms and moratorium, as their situation has barely improved,” said Ramakrishnan. Agreed, Hardgrave. “Of the 70% schools that had applied, only 15% could be offered restructuring. Even among the most vulnerable schools, we could only restructure loans for those that showed clear signs of business continuity,’ he said. The lack of restructuring options for schools, Hardgrave said, was mainly because there was no provision made by the government or the Reserve Bank of India for non-banking financial companies (NBFC) catering to schools. “There were no special liquidity provisions announced for NBFCs catering to schools and no benefits offered for higher restructuring of school loans, which also affected our ability to do so,” he said. To be sure, the RBI had announced a one-time restructuring scheme last year to aid borrowers affected by the Covid-19 pandemic. The scheme was to be invoked by December 31, 2020 and implemented within 180 days for corporate borrowers. This year, the scheme was further extended for retail and small business borrowers to September 30. “The government did not just reduce school fees but actively encouraged parents to not pay up, even when we were doing our best to provide online education. On top of that, there was no loan waiver and our debt kept piling up,” said Pathak. A Systemic Issue Not just schools, but specialized non-bank lenders catering to the school segment have also seen their asset quality deteriorate during the pandemic. While Shiksha Finance saw its gross non-performing assets rise from 8.3% of its gross advances, as of June 30, to nearly 17% by August-end, Varthana’s gross NPA rose from a little over 6% by June-end to its highest-ever at almost 8%, as of Aug. 31. But U GRO, which lends to small and medium sized schools, managed to keep its gross NPAs at less than 1%. This, Pandey said, may be because most schools that it lent to were located in urban centres and catered to the middle-class population strata. And a third wave is likely to make matters worse. “While restructuring has helped with immediate cash flow issues, many schools may get pushed to the brink of shutting down if a third wave leads to a fresh set of lockdowns in the country. Even those with better cash flow management may face issues with running their enterprises,” said Pandey. Iyer, however, sees the outcome a bit differently. More than permanent shutdowns, the pandemic would lead to further consolidation among private schools, he said. “Many large school chains backed by deep-pocketed investors are seeing distressed schools in rural and semi-urban areas as good acquisition opportunities for their own expansion.” Be it closure or distressed sale, it is clear that the fate of already stressed private schools hangs in balance. A third wave may also mean the end of the road for many. But Rajendra remains hopeful. In September, Kerala High School reopened following the state government’s directions. The attendance, however, has been low at about 30%, as school buses— the only mode of transportation for over half of its students, are yet to ply. “Once our buses get repaired, we may even touch 70% attendance in the coming weeks. And, if a third wave does not happen, we expect to return to normal fee collections over the next six months,” he said.

EXCLUSIVE: Many private schools in India are on the brink of bankruptcy and fear that a third wave of COVID-19 could be their end

<ul class="summary-list"><li>Russia and <keyword id="11985141" type="UNKNOWN" weightage="60" keywordseo="ukraine" source="Orion">Ukraine</keyword> export nearly a third of the world's wheat and barley, over 70% of sunflower oil, and also supply corn.</li><li>About 90% of Ukraine's wheat and other <keyword id="12168891" type="UNKNOWN" weightage="60" keywordseo="grains" source="Orion">grains</keyword> are being held up by Russian blockades of the Black Sea coast.</li></ul>LONDON — Russian hostilities in Ukraine are preventing grain from leaving the "breadbasket of the world" and making food more expensive across the globe, threatening to worsen shortages, hunger and political instability in developing countries.Together, Russia and Ukraine export nearly a third of the world's wheat and barley, more than 70% of its sunflower oil and are big suppliers of corn. Russia is the top global fertilizer producer.World food prices were already climbing, and the war made things worse, preventing some 20 million tons of Ukrainian grain from getting to the Middle East, North Africa and parts of Asia.Weeks of negotiations on safe corridors to get grain out of Ukraine's Black Sea ports have made little progress, with urgency rising as the summer harvest season arrives."This needs to happen in the next couple of months (or) it's going to be horrific,'' said Anna Nagurney, who studies crisis management at the University of Massachusetts Amherst and is on the board of the Kyiv School of Economics. She says 400 million people worldwide rely on Ukrainian food supplies. The U.N. Food and <keyword id="11963490" type="UNKNOWN" weightage="60" keywordseo="agriculture" source="Orion">Agriculture</keyword> Organization projects up to 181 million people in 41 countries could face <keyword id="13544066" type="UNKNOWN" weightage="60" keywordseo="food-crisis" source="Orion">food crisis</keyword> or worse levels of hunger this year.Here's a look at the global food crisis:<h2>What's the situation? </h2>Typically, 90% of wheat and other grain from Ukraine's fields are shipped to world markets by sea but have been held up by Russian blockades of the Black Sea coast.Some grain is being rerouted through Europe by rail, road and river, but the amount is a drop in the bucket compared with sea routes. The shipments also are backed up because Ukraine's rail gauges don't match those of its neighbors to the west.Ukraine's deputy agriculture minister, Markian Dmytrasevych, asked European Union lawmakers for help exporting more grain, including expanding the use of a Romanian port on the Black Sea, building more cargo terminals on the Danube River and cutting red tape for freight crossing at the Polish border.But that means food is even farther from those that need it."Now you have to go all the way around Europe to come back into the Mediterranean. It really has added an incredible amount of cost to Ukrainian grain,'' said Joseph Glauber, senior research fellow at the International Food Policy Research Institute in Washington.Ukraine has only been able to export 1.5 million to 2 million tons of grain a month since the war, down from more than 6 million tons, said Glauber, a former chief economist at the U.S. Department of Agriculture.Russian grain isn't getting out, either. Moscow argues that Western sanctions on its banking and shipping industries make it impossible for Russia to export food and fertilizer and are scaring off foreign shipping companies from carrying it. Russian officials insist sanctions be lifted to get grain to global markets.European Commission President Ursula von der Leyen and other Western leaders say, however, that sanctions don't touch food.<h2>What are the sides saying?</h2>Ukraine has accused Russia of shelling agricultural infrastructure, burning fields, stealing grain and trying to sell it to Syria after Lebanon and Egypt refused to buy it. Satellite images taken in late May by Maxar Technologies show Russian-flagged ships in a port in Crimea being loaded with grain and then days later docked in Syria with their hatches open.Ukrainian President Volodymyr Zelenskyy says Russia has provoked a global food crisis. The West agrees, with officials like European Council President Charles Michel and U.S. Secretary of State Antony Blinken saying Russia is weaponizing food.Russia says exports can resume once Ukraine removes mines in the Black Sea and arriving ships can be checked for weapons.Russian Foreign Minister Sergey Lavrov promised that Moscow would not "abuse" its naval advantage and would "take all necessary steps to ensure that the ships can leave there freely."Ukrainian and Western officials doubt the pledge. Turkish Foreign Minister Mevlut Cavusoglu said this week that it may be possible to create secure corridors without the need to clear sea mines because the location of the explosive devices are known.But other questions would still remain, such as whether insurers would provide coverage for ships. Dmytrasevych told the EU agriculture ministers this week that the only solution is defeating Russia and unblocking ports: "No other temporary measures, such as humanitarian corridors, will address the issue."<h2>How did we get here?</h2>Food prices were rising before the invasion, stemming from factors including bad weather and poor harvests cutting supplies, while global demand rebounded strongly from the COVID-19 pandemic.Glauber cited poor wheat harvests last year in the United States and Canada and a drought that hurt soybean yields in Brazil. Also exacerbated by climate change, the Horn of Africa is facing one of its worst droughts in four decades, while a record-shattering heat wave in India in March reduced wheat yields.That, along with soaring costs for fuel and fertilizer, has prevented other big grain-producing countries from filling in the gaps.<h2>Who's hardest hit?</h2>Ukraine and Russia mainly export staples to developing countries that are most vulnerable to cost hikes and shortages.Countries like Somalia, Libya, Lebanon, Egypt and Sudan are heavily reliant on wheat, corn and sunflower oil from the two warring nations.<div type="image" title="Farmer Serhiy gestures standing near a mound of grain in his barn in the village of Ptyche in eastern Donetsk region, Ukraine, Sunday, June 12, 2022. Russian hostilities in Ukraine are preventing grain from leaving the “breadbasket of the world&quot; and making food more expensive across the globe, raising the specter of shortages, hunger and political instability in developing countries." height="5267" width="7023" msid="92308795" hostid="261"></div>"The burden is being shouldered by the very poor," Glauber said. "That's a humanitarian crisis, no question.'' Beside the threat of hunger, spiraling food prices risk political instability in such countries. They were one of the causes of the Arab Spring, and there are worries of a repeat.The governments of developing countries must either let food prices rise or subsidize costs, Glauber said. A moderately prosperous country like Egypt, the world's top wheat importer, can afford to absorb higher food costs, he said."For poor countries like Yemen or countries in the Horn of Africa — they're really going to need humanitarian aid," he said.Starvation and famine are stalking that part of Africa. Prices for staples like wheat and cooking oil in some cases are more than doubling, while millions of livestock that families use for milk and meat have died. In Sudan and Yemen, the Russia-Ukraine conflict came on top of years of domestic crises.UNICEF warned about an "explosion of child deaths" if the world focuses only on the war in Ukraine and doesn't act. U.N. agencies estimated that more than 200,000 people in Somalia face "catastrophic hunger and starvation," roughly 18 million Sudanese could experience acute hunger by September and 19 million Yemenis face food insecurity this year.Wheat prices have risen in some of those countries by as much as 750%."Generally, everything has become expensive. Be it water, be it food, it's almost becoming quite impossible," Justus Liku, a food security adviser with the aid group CARE, said after visiting Somalia recently. Liku said a vendor selling cooked food had "no vegetables or animal products. No milk, no meat. The shopkeeper was telling us she's just there for the sake of being there." In Lebanon, bakeries that used to have many types of flat bread now only sell basic white pita bread to conserve flour.<h2>What's being done? </h2>For weeks, U.N. Secretary-General Antonio Guterres has been trying to secure an agreement to unblock Russian exports of grain and fertilizer and allow Ukraine to ship commodities from the key port of Odesa. But progress has been slow.A vast amount of grain is stuck in Ukrainian silos or on farms in the meantime. And there's more coming — Ukraine's harvest of winter wheat is getting underway soon, putting more stress on storage facilities even as some fields are likely to go unharvested and because of the fighting.Serhiy Hrebtsov can't sell the mountain of grain at his farm in the Donbas region because transport links have been cut off. Scarce buyers mean prices are so low that farming is unsustainable. "There are some options to sell, but it is like just throwing it away," he said.U.S. President Joe Biden says he's working with European partners on a plan to build temporary silos on Ukraine's borders, including with Poland, a solution that would also address the different rail gauges between Ukraine and Europe.The idea is that grain can be transferred into the silos, and then "into cars in Europe and get it out to the ocean and get it across the world. But it's taking time," he said in a speech Tuesday. Dmytrasevych said Ukraine's grain storage capacity has been reduced by 15 million to 60 million tons after Russian troops destroyed silos or occupied sites in the south and east.<h2>What's costing more?</h2>World production of wheat, rice and other grains is expected to reach 2.78 billion tons in 2022, down 16 million tons from the previous year — the first decline in four years, the U.N. Food and Agriculture Organization said. Wheat prices are up 45% in the first three months of the year compared with the previous year, according to the FAO's wheat price index. Vegetable oil has jumped 41%, while sugar, meat, milk and fish prices also have risen by double digits.The increases are fueling faster inflation worldwide, making groceries more expensive and raising costs for restaurant owners, who have been forced to increase prices.<div type="image" title="Halimo Hersi, 42, right, buys wheat flour from a shopkeeper in the Hamar-Weyne market in the capital Mogadishu, Somalia Thursday, May 26, 2022." height="3800" width="5066" msid="92308796" hostid="261"></div>Some countries are reacting by trying to protect domestic supplies. India has restricted sugar and wheat exports, while Malaysia halted exports of live chickens, alarming Singapore, which gets a third of its poultry from its neighbor. The International Food Policy Research Institute says if food shortages grow more acute as the war drags on, that could lead to more export restrictions that further push up prices.Another threat is scarce and costly fertilizer, meaning fields could be less productive as farmers skimp, said Steve Mathews of Gro Intelligence, an agriculture data and analytics company. There are especially big shortfalls of two of the main chemicals in fertilizer, of which Russia is a big supplier."If we continue to have the shortage of potassium and phosphate that we have right now, we will see falling yields," Mathews said. "No question about it in the coming years."

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