Naagin’s ‘Soil to Sauce’ Model Redefines Chilli Sourcing Through Direct Farmer Partnerships

SUMMARY
India’s chilli supply chain has historically been fragmented, with various intermediaries inflating costs and creating uncertainties for both farmers and food and beverage brands. As Naagin expanded its reach into retail, international markets, and food service partnerships, the demand for high-quality chillies surged, prompting the brand to rethink its sourcing strategy. The answer lay in a direct farmer partnership model called ‘Soil to Sauce,’ which aims to streamline procurement, ensure consistent quality, and provide fair pricing, along with reliable support and income for growers.
Founded by Mikhel Rajani, Arjun Rastogi, and Kshitij Neelakantan, Naagin has consistently championed Indian chillies through innovative products. This initiative signifies a strategic shift from merely sourcing ingredients to actively managing the agricultural supply chain.
Grass-Root Impact: Reducing Risks for Farmers
Naagin collaborates with farmers throughout the entire crop cycle—from planting to harvest. Farmers benefit from custom seed varieties and pre-harvest financial support for essential equipment and resources, which enhance both yield and quality. This approach eliminates the need for farmers to make upfront investments, ensuring that no corners are cut and promoting more efficient cultivation. Naagin commits to purchasing the entire harvest at a premium above market rates, addressing the common issue of “grading loss,” where high-quality produce is often rejected due to its imperfect appearance. In cases of significant crop failure, Naagin covers costs, providing a rare sense of stability and income protection in an otherwise unpredictable sector.
“A few years ago, the toughest challenge was growing a good crop only to face uncertainty at the time of sale. So many factors are beyond our control. With Naagin,
the process is straightforward, and the outcomes are reliable. It feels more like a partnership than just a supplier relationship,” shared a partner farmer from Maharashtra.
Naagin’s hands-on approach with farmers has been greatly enhanced through its collaboration with Hi Rich Seeds (HRS), led by Dr. Narendra Singh, Senior GM of R&D, and his team. Farmers receive tailored seed varieties and technical guidance on modern agronomy to maximize yield.
Boosting Operational Efficiency through Partnership
By managing seeds, providing equipment support, and guaranteeing buybacks, Naagin ensures that chillies maintain consistent flavour and heat, allowing for uniformity across batches. Moreover, direct sourcing cuts out multiple layers of intermediaries, reducing transaction costs and enabling more investment in quality raw materials.
“In our food ecosystem, farmers are frequently the most marginalised participants, and this needs to change. It has been enlightening to work with them. Our aim is to create a sourcing model where they earn fairly, experience less uncertainty, and genuinely feel supported, while we secure the consistent quality needed for a global brand. If we can demonstrate that this model leads to better business outcomes, we hope to influence the way India grows and sources food for the better,” said Arjun Rastogi, Co-Founder of Naagin.
A Vision for a Sustainable Food Ecosystem
Currently in its pilot phase, the ‘Soil to Sauce’ model illustrates that social responsibility and commercial efficiency can coexist. By providing assured buybacks, transparent pricing, and agronomic support, Naagin Foods is laying the groundwork for a more equitable, transparent, and resilient spice supply chain in India.
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