AGRICULTURAL VALUE CHAIN FINANCING-AN EXPLORABLE AVENUE

A value chain is characterised by a market-focussed collaboration of a set of enterprises working together to produce, process and market products and services in an effective and efficient manner. The actors (private and public, including service providers) and the sequence of value-adding activities involved in bringing a product from production to the end-consumer

- J. Rajesh Kumar

Abstract

In agriculture they can be thought of as a "farm-to-fork" set of inputs, processes and flows (Miller and da Silva, 2007). In India, the traditional agri value chains in existence are small scale, unorganised, fragmented and disjointed where the produce traversed through several channels and players, often redundant, requiring several touch points at the farm gate end (Barrett et al., 2022). Catalysed by changes to global markets, urbanization, and other trends, Agrifood value chains have been growing and changing rapidly in India over the past few decades.

Introduction

Agriculture has always been a mainstream sector in India with close to 50% of the country's population involved in agricultural and allied activities for their livelihoods and the sector contributing significantly to the country's gross domestic product (GDP). Nearly 700 million people in India live in rural areas and are directly dependent on sectors like agriculture, forestry and fisheries, and biodiversity. At present, the Government is focusing on improving the country's agricultural value chains (AVCs).

The term Agriculture Value Chains (AVC) refers to the set of interrelated activities involved in delivering an agricultural product from its production to the final consumer in a manner that support investments, growth, and competitiveness of the value chain actors (Chen K.Z., et.al 2015). The concept of Agricultural Value Chain includes the full range of activities and participants involved in moving agricultural products from input suppliers to farmers' fields, and ultimately, to consumers' tables.