Risk Disclosures

Please read this page carefully before you decide to participate in Mountain Mist.

Important: Agricultural investments carry significant risk, including the possible loss of the capital you invest. Any returns shown on this website are projections based on assumptions and are not guaranteed.

About this disclosure

This page explains the main risks of participating in the Mountain Mist coffee and spice estate project ("the Project") offered by SmartAgro Farm Solutions LLP ("SmartAgro", "we", "us" or "our"). It is meant to help you make an informed decision.

By participating in the Project, you confirm that you have read, understood and accepted the risks described here.

General disclaimer

  • Mountain Mist is a long-term agricultural participation in a managed coffee estate in Sakleshpura, Karnataka.
  • It is not a fixed deposit, a guaranteed-return product or a liquid security.
  • Any returns mentioned on this website or in our materials are projected estimates based on assumptions about crop yields, market prices and land values. Actual outcomes may be lower, and you may lose part or all of your capital.
  • Past performance of other agricultural projects does not indicate future results.

No financial advice

  • Information on this website, in brochures, presentations and other materials is for general information only. It is not financial, investment, legal or tax advice.
  • SmartAgro and its representatives are not SEBI-registered investment advisers.
  • Please consult a qualified financial adviser, chartered accountant and lawyer before you decide.

Regulatory status

  • SmartAgro Farm Solutions LLP is registered with the Ministry of Corporate Affairs, Government of India.
  • The Project is structured through a Special Purpose Vehicle (SPV) partnership. Individual land ownership is not offered.
  • This offering has not been reviewed, approved or registered by SEBI, RBI or any other regulator, so the protections available for regulated financial products do not apply.

Agricultural and operational risks

Weather and climate

  • Coffee and intercrop yields depend on rainfall, temperature, humidity and seasonal patterns.
  • Drought, excess rain, hailstorms, unseasonal rain and other extreme weather can reduce yields or cause crop loss.
  • Climate change may alter traditional weather patterns in the region.

Pests and diseases

  • Coffee and spice crops are vulnerable to pests and diseases. Outbreaks can occur despite preventive care.
  • New or resistant strains may emerge that are difficult to control.

Multiple crops

  • Each crop in the estate has its own cultivation needs, timelines and market risks.
  • Crop maturity timelines are estimates. Plants may take longer than expected to reach full productivity.
  • Long-cycle crops such as agarwood are especially uncertain. Resin quality, quantity, harvest timing and market prices can vary widely.

Farm management and infrastructure

  • Results depend heavily on the quality of farm management by SmartAgro and its team.
  • Changes in the management team, human error, and availability or cost of rural labour can affect operations.
  • Irrigation, fencing, roads and other infrastructure need ongoing maintenance and may need unplanned repair.
  • Water availability and soil health can change over time.

Market and economic risks

  • Prices of coffee, spices and other produce move with domestic and global supply and demand, currency movements, trade policy and market sentiment, and can fall sharply.
  • Operating costs such as labour, inputs, power and transport may rise faster than expected and reduce margins.
  • Economic slowdowns, changes in consumer demand or changes in trade rules can affect the value and saleability of produce.

Land and legal risks

  • Despite legal due diligence, agricultural land can be subject to title disputes, encumbrances or third-party claims.
  • Changes in land-use, land-holding, conversion or zoning rules may affect land value or usage.
  • Participants hold interests in the Project through the partnership or SPV structure. This is not direct freehold ownership of land in individual names.
  • Changes in government policy on agriculture, subsidies, exports, imports, environment or water use may increase costs or limit operations.

Liquidity and exit risks

  • Agricultural land and partnership interests are illiquid. There is no organised market for buying or selling interests in the Project.
  • Exit is possible only as permitted under the partnership terms, usually by transfer to a new qualified participant. A suitable buyer may not be available at the price or time you want.
  • Exit values depend on independent valuation and market conditions at the time, and may be lower than projected.
  • This is a long-term commitment. Leaving early may result in lower returns or a loss. It is not suitable if you may need this money in the near term.

Projections and returns

  • Projections on this website and in our materials are based on assumptions about crop yields, market prices, land appreciation, operating costs and harvest success. Any of these may turn out differently.
  • Actual returns may be significantly lower than projected, may arrive later than expected, or you may lose capital.
  • Cash flows in the early years are expected to be low or negative while the estate is being established. A large part of the projected value depends on later years and on long-cycle crops.
  • Several adverse factors happening together, such as poor weather, pests and falling prices, could result in minimal returns or capital loss.

Tax considerations

  • Agricultural income is currently exempt from income tax in India, subject to conditions under the Income Tax Act. Tax laws can change.
  • Gains on the sale or transfer of land or partnership interests may be taxable depending on the asset classification, location and holding period.
  • Tax treatment may differ depending on the legal structure used. You are responsible for your own tax filings. Please consult a tax adviser.

Dependence on SmartAgro and third parties

  • The Project depends on SmartAgro continuing to operate and perform. Financial difficulty, business closure or management changes at SmartAgro could seriously affect the Project.
  • The Project relies on key people, vendors, suppliers and contractors whose performance may be outside SmartAgro's control.
  • SmartAgro acts as both project developer and farm manager and receives management fees, which may create conflicts of interest. SmartAgro may also manage other projects.
  • Some services or transactions may involve SmartAgro affiliates or related parties. Please review the partnership documents for details.

Natural disasters and unforeseen events

  • Floods, landslides, fires, earthquakes and similar events can damage crops, land and infrastructure. Insurance, where available, may not cover all losses.
  • Health emergencies, civil unrest, political events or movement restrictions can disrupt operations, labour, supply chains and markets.
  • Technological or market changes, such as substitutes for natural products, may reduce demand for produce.

Concentration risk

  • The entire Project is located in one region. Local events such as regional pest outbreaks, water scarcity, regulatory changes or land disputes affect all participants.
  • The number of participants is limited, which may further reduce liquidity.

Who this is suitable for

Suitable only if you

  • Can commit capital for the long term
  • Have a high tolerance for risk and can bear a loss of capital
  • Understand agricultural and commodity market risks
  • Do not need this money for living expenses or emergencies
  • Are investing surplus capital, not borrowed money or retirement savings
  • Hold a diversified portfolio in which this is a reasonable share

Not suitable if you

  • Want capital protection or guaranteed returns
  • Need regular, predictable income
  • May need this money in the near term
  • Are looking for a SEBI-regulated product

Eligibility

  • Participants must be adults legally competent to enter into contracts.
  • Participation by non-resident Indians is subject to RBI and FEMA rules.
  • Participants must complete KYC and anti-money-laundering checks. SmartAgro may decline any application that does not meet these requirements.

Accuracy of information

  • Information on this website and in our materials is provided in good faith. SmartAgro does not warrant that it is complete, accurate or current, and it may change without notice.
  • Some information comes from third-party sources that we believe to be reliable but have not independently verified.
  • Forward-looking statements about yields, prices, land values and returns involve risks and uncertainties. Please do not rely on them as promises of future performance.

Your responsibilities

  • Carry out your own due diligence on the Project, its location and SmartAgro.
  • Visit the estate before you decide.
  • Read all legal documents carefully, including the partnership deed and land records.
  • Seek independent financial, legal and tax advice.
  • Ask us any questions you have before you commit. The decision to participate is yours alone.

Limitation of liability

  • SmartAgro makes no warranty about returns, yields, profitability, land value or crop performance.
  • To the extent permitted by law, SmartAgro is not liable for indirect, consequential or special losses, or for losses caused by events outside its reasonable control such as weather, market conditions, government action or force majeure.
  • SmartAgro's obligations are limited to those set out in the partnership or management agreement, which prevails over this page if there is any conflict.

Governing law and disputes

  • The Project and related agreements are governed by the laws of India. Courts in Bengaluru, Karnataka have jurisdiction.
  • Disputes will first be addressed through good-faith discussion and, if unresolved, through arbitration in Bengaluru under the Arbitration and Conciliation Act.

Privacy

We handle your personal information as described in our Privacy Policy.

Contact and grievances

For questions, clarifications or complaints, please contact SmartAgro Farm Solutions LLP.

We will acknowledge your complaint and respond as quickly as we reasonably can. If you are not satisfied, you may use the dispute resolution process in the partnership agreement.

Important notice

No employee, representative or agent of SmartAgro is authorised to guarantee returns or make any statement that contradicts this page. This page should be read together with the partnership agreement and other offering documents. If there is any conflict, the partnership agreement prevails. SmartAgro may update this page from time to time.