Value Chain Financing in Agriculture: Case Studies from India

Understanding the flow of the products and finance along the value chain is very important to design the products and services to match the requirements of each of the actors involved in the chain. The paper tried here to give an overall idea of agriculture value chains and the flow of products and finance in Chapter 2. The Chapter 3 dealt with the flow of credit to agriculture sector in India and the challenges it is facing. Three case studies of commodity value chain financing in India are documented in Chapter 4 which has three sections (Maize in Section 1, Milk in Section 2 and Section 3 dealt with a minor commodity ‘Mentha’). It was felt that the case studies on value chain finance will not be completed if there is no case discussion on the financial service provider and the value chain finance products and deliver models by Yes Bank Ltd. were discussed in Chapter 5. The case studies were selected based on their discrete character, importance to the small holder farmers and the acceptability by the financial institutions. The final chapter (Chapter 6) dealt with the general conclusion and future direction which could help to develop financing services and products for the value chain actor so as to improve the effectiveness and efficiency of the value chains.

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