Assam Rural Infrastructure and Agricultural Services Society (ARIAS) under Assam Agribusiness and Rural Transformation Project (APART) is organizing a series of four "Agriculture Value Chain Financing Conclave" in a first-ever initiative to bridge the knowledge gap and introduce appropriate financial instruments to propagate the provision of financial services in the agricultural sector.
About Agriculture Value Chain Financing Conclave
- The conclave will take place in four zones - Silchar (12th October), Jorhat (16th October), Morigaon (31st October), and Lakhimpur (2nd November) - and target farmers, FIGs (Farmer Interest Groups), FPCs (Farmer Producer Companies), SHGs and traders from across 12 districts of Assam.
- The Agriculture Value Chain Financing Conclave aims to promote various value-chain financing options, including Working Capital, Term Loans, Insurance, Social Security Schemes, and Digital Financial Literacy.
- The purpose of the event is to facilitate and promote value-chain financing models that benefit farmers, FIGs, FPCs, and other stakeholders.
- The Conclave will showcase innovative financial products, digital financial literacy, financial inclusion, KCC, Financing of Agriculture Infrastructure Projects among others to improve access to agri-finance to meet the needs of various actors in the value chain.
- The conclave will have representatives from various government departments such as District administration, NABARD, District Agriculture Office, DICC, Lead Banks, and other stakeholders.
National Bank for Agriculture and Rural Development (NABARD): NABARD is India’s apex development bank, established in 1982 under an Act of Parliament to promote sustainable and equitable agriculture and rural development. In its journey of more than four decades, the premier development financial institution has transformed lives in Indian villages through agri-finance, infrastructure development, banking technology, promotion of microfinance and rural entrepreneurship through SHGs & JLGs and more.
- Currently, despite high demand for credit and general financial services, there is a lack of knowledge and appropriate financial instruments that have prevented the provision of these services widely.
- The financers often struggle to contain their risks and costs in financing agriculture, which results in a large gap in adequate financing.
- During the conclave, participants will learn about financial products and services and their delivery mechanisms. As part of the workshop, participants will be disseminated about how financial services can be extended as well as how access to financial services can improve the lives of value-chain actors.
The central part of this conclave is the "Xamahar" initiative under which APART has collaborated with Financial service providers for deploying various innovative business models and instruments for delivering financial services to empower those involved in the agricultural value chain.
- Under this initiative, ten financial service providers supported by the Xamahar Challenge Fund, with Ernst & Young India as the Challenge Fund Manager, will collaborate and deploy various business models and instruments with innovative approaches to deliver financial services such as credit, savings, insurance, payment, etc.
- The Conclave will bring together relevant stakeholders under one roof and collectively explore the potential for expanding financial services to empower the farming community.
What is Agricultural Value Chain Financing?
Agricultural Value Chain Financing is a financial approach and set of financial instruments that can be applied for agricultural and agribusiness financing. Agricultural Value Chain Financing can facilitate increased financial access and lower agricultural costs and financing risks.
What is the Agricultural Value Chain Financing Model?
- The strategy for developing or strengthening value chains depends on the business model.
- The term “business model” in value chains refers to the way value is added within a network of producers, suppliers and consumers.
- The business model includes the drivers, processes and resources of the entire value chain system, even if the system is composed of multiple enterprises.