Mani / Joshi / Ashok Financing Agriculture Value Chains in India

Challenges and Opportunities
1. Auflage 2017
ISBN: 978-981-10-5957-5
Verlag: Springer Nature Singapore
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 268 Seiten

Reihe: India Studies in Business and Economics

This book examines the successful private, public and civil society models of agriculture value chains in India and addresses relevant challenges and opportunities to improve their efficiency and inclusiveness. It promotes the value-chain approach as a tool to improve access to finance for small holder farmers and discusses the possible structure of and regulatory framework for the 'National Common Agricultural Market'- a term that featured in the Indian Finance Minister's 2014-15 budget speech, and which is aimed towards standardizing and improving transparency in agricultural trade practices across states under a single licensing system. The book deliberates on the potential of developing innovative financial instruments into the value chain framework by supporting tripartite agreements between producers, lead firms and financial institutions. Its fourteen chapters are divided into three parts-Agriculture Value Chain Financing: Theoretical Framework, Agriculture Value Chain Financing in Cases of Select Commodities; and Institutional Framework for Agriculture Value Chain Financing. Since the concept of value chain financing is being considered as a future policy agenda, the book is of great interest to corporations dealing with agricultural inputs and outputs; commercial, regional, rural and cooperative banks; policy makers; academicians and NGOs.

Gyanendra Mani is currently the general manager and officer In-charge of the National Bank for Agriculture and Rural Development (NABARD), Arunachal Pradesh Regional Office (RO). He has a Ph.D. in Agricultural Economics from the G B Pant University of Agriculture & Technology, Pantnagar, Uttarakhand. He has conducted about 40 studies on behalf of the NABARD and published around 40 articles/research papers in Indian and International journals. He has handled several consultancy projects on behalf of the NABARD including 'Evaluation of SGSY Scheme' for the Ministry of Rural Development, Government of India (GOI). He also conceived the idea of and launched the 'THE MICROFINANCE REVIEW' Journal on behalf of the Bankers Institute of Rural Development (BIRD), Lucknow and was its managing editor from 2009 to 2015. As faculty of BIRD, he conducted two exposure visits of senior bankers to Israel and Netherlands. He is also a National Resource Person for the 'Design of Training' programme being conducted by the Department of Personnel and Training (DoPT), Government of India. P.K. Joshi is the director of the International Food Policy Research Institute (IFPRI) South Asia. Dr. Joshi has received several awards, including: the National Academy of Agricultural Sciences' Dr. M.S. Randhawa Memorial Award of (2009-11); and the Indian Society of Agricultural Economics' Prof R C Agarwal Lifetime Achievement Award and DK Desai Award. Dr. Joshi has also served as the chairman of the SAARC Agricultural Centre's governing board in Dhaka, Bangladesh (2006-08); chairman of the United Nations Centre for Alleviation of Poverty through Sustainable Agriculture (UN-CAPSA) governing board in Bogor, Indonesia (2007); and a member of the intergovernmental panel on the World Bank's International Assessment of Agricultural Science and Technology for Development (2007-08). He was a member of the International Steering Committee for the Climate Change, Agriculture and Food Security Challenge Program, led by the Earth System Science Partnership (ESSP) Science Community and the Consultative Group on International Agricultural Research (CGIAR) (2009-11). He is also president of the Agricultural Economics Research Association (India).  M.V. Ashok is currently the chief general manager heading the Department of Economic Analysis & Research at the National Bank for Agriculture and Rural Development (NABARD) Head Office, Mumbai. He is a postgraduate in Agriculture from the Indian Agricultural Research Institute (IARI), New Delhi with additional qualifications in financing micro-enterprises from the UK, as well as financing agri-business management from the USA. His development banking experience spans 34 years with different banks like Canara Bank, Reserve Bank of India (RBI) and he has been with the NABARD since 1983. He has extensive contact with the rural finance sector in several countries including Thailand, Kenya, China, Germany, England and the USA.

Autoren/Hrsg.

Mani, Gyanendra

Joshi, P. K.

Ashok, M. V.

Inhaltsverzeichnis

1;Foreword;6
2;Acknowledgements;8
3;Contents;10
4;Editors and Contributors;12
5;Agriculture Value Chain Financing: Theoretical Framework;15
6;1 Financing Agricultural Value Chains: An Overview of Issues, Lessons Learnt, and Policy Implications;16
6.1;1 Introduction;16
6.2;2 Conceptual Framework;17
6.3;3 Agricultural Value Chains in India: Efficiency, Inclusiveness, and Sustainability;19
6.3.1;3.1 Types of Value Chain;20
6.3.2;3.2 Efficiency;21
6.3.3;3.3 Inclusiveness;21
6.3.4;3.4 Competitiveness;22
6.3.5;3.5 Financing;22
6.3.6;3.6 Infrastructural Support;23
6.3.7;3.7 Warehouse Receipt Financing;23
6.4;4 Key Lessons;24
6.5;5 Policy Implications;25
6.6;Acknowledgements;26
6.7;References;26
7;2 Elements of Agriculture Value Chain Financing: A Review;28
7.1;1 Introduction;28
7.2;2 Value Chain Financing: A Review;30
7.3;3 Type of Value Chain Finance;31
7.3.1;3.1 Self-finance Value Chain Finance;31
7.3.2;3.2 Direct Informal ‘Within Chain’ Value Chain Finance;32
7.3.3;3.3 Indirect Formal Financial Services ‘From Outside the Chain’ Value Chain Finance;32
7.4;4 Value Chain Models and Financial Instruments;33
7.4.1;4.1 Product Financing;33
7.4.1.1;4.1.1 Aggregator Credit;33
7.4.1.2;4.1.2 Input Supplier Credit;34
7.4.1.3;4.1.3 Marketing Company Credit;34
7.4.2;4.2 Lead Firm Financing;34
7.4.2.1;4.2.1 Some Examples of Contract Farming by Firms in India;35
7.4.3;4.3 Receivable Financing;36
7.4.3.1;4.3.1 Trade Receivable Financing;36
7.5;5 Risk Mitigation Products;37
7.5.1;5.1 Crop/Weather Insurance;37
7.5.2;5.2 Forward Contract;38
7.6;6 Innovations;38
7.6.1;6.1 Microfinance and Revolving Loan Initiatives;38
7.6.1.1;6.1.1 The Traditional Targeting Approach to Rural Lending;38
7.6.1.2;6.1.2 Innovations in the Form of Kisan Credit Card Scheme (KCC);39
7.6.1.3;6.1.3 Using Firm Farm Linkages for Value Chain Financing;40
7.6.2;6.2 Technological Innovations;42
7.7;7 Conclusions;42
7.8;References;43
8;3 Different Models of Financing Small Farmers’ Agricultural Value Chains;46
8.1;1 Introduction;46
8.1.1;1.1 The Concept of Agri-value Chain;47
8.1.2;1.2 Defining Agri-value Chain Finance;48
8.2;2 Benefits of Agri-value Chain Financing;51
8.2.1;2.1 Supports Sustainable Agriculture Development;51
8.2.2;2.2 Increases Financial Inclusion;52
8.2.3;2.3 Enables Value Addition and Exports;52
8.2.4;2.4 Helps in Poverty Reduction;53
8.3;3 Value Chain Models;53
8.3.1;3.1 Producer-Driven Models;54
8.3.2;3.2 Buyer-Driven Models;55
8.3.3;3.3 Facilitated Value Chains;56
8.3.4;3.4 Integrated Value Chains;57
8.4;4 Financing Mechanism and Instruments;57
8.4.1;4.1 Product Financing;57
8.5;5 Examples of Access to Finance for Small Farmers;60
8.5.1;5.1 Credit Guarantee Fund—SFAC;60
8.5.2;5.2 Producers Organization Development Fund—NABARD;60
8.5.3;5.3 Commodity Exchange Platforms and Warehouse Receipts—NBHC;61
8.6;6 Case Studies of Small Farmers’ Agri-value Chain Finance;62
8.6.1;6.1 Warehouse Financing for Small Farmers;62
8.6.2;6.2 Cascade Financing Loans Across the Value Chain;64
8.7;7 Conclusions;65
8.8;References;66
9;Agriculture Value Chain Financing in Case of Select Commodities;67
10;4 Formal Versus Informal: Efficiency, Inclusiveness and Financing of Dairy Value Chains in Indian Punjab;68
10.1;1 Introduction;68
10.2;2 Dairy Sector Status and Policies;71
10.3;3 Data;72
10.4;4 Production Structure and Marketed Surplus;74
10.5;5 Farmers’ Choice of Value Chains;75
10.6;6 Productivity, Price and Profitability;78
10.7;7 Econometric Estimates of Farm Performance Under Different Value Chains;81
10.8;8 Mechanisms of Financing Value Chains;89
10.9;9 Concluding Remarks;96
10.10;References;97
11;5 Smallholder Participation in Supermarket-Driven Agri-Food Supply Chain: A Case Study of Reliance Fresh;99
11.1;1 Introduction;99
11.2;2 Diffusion of Supermarkets in India;101
11.3;3 Agrarian Context of Rajasthan;103
11.4;4 Emergence of Supermarkets in Rajasthan;103
11.5;5 Description of Survey Area and Survey Design;105
11.6;6 Analytical Framework;106
11.7;7 Descriptive Statistics;106
11.8;8 Farmers’ Perceptions of Different Marketing Channels;109
11.9;9 Determinants of Participation in Supermarket Channel;111
11.10;10 Conclusion and Policy Implication;114
11.11;References;115
12;6 Innovations in Agricultural Marketing in India: A Case Study of Supermarket in Punjab;119
12.1;1 Introduction;119
12.2;2 Reliance Fresh and Its Operation Process;120
12.3;3 Who Supply to the Selected Supermarket and Who Do not?;121
12.4;4 Do Farmers Benefit from Their Association with Supermarket?;122
12.5;5 Dynamics in Prices of Cauliflower and Cabbage;124
12.6;6 Technical Advice;124
12.7;7 Technical Efficiency and Scale Efficiency;124
12.8;8 Farmers’ Opinion on the Role of Supermarket in Vegetable Marketing;126
12.9;9 Supermarkets and Crop Diversification;128
12.10;10 Conclusions and Policy Implications;130
12.11;Appendix;131
12.12;References;133
13;7 Tomato Value Chain in Karnataka;134
13.1;1 Introduction;134
13.2;2 Analytical Framework;135
13.3;3 Mapping Tomato Value Chain;137
13.3.1;3.1 Channel I: Traditional Market Channel;137
13.3.2;3.2 Channel II: Organized Retailers/ Supermarket Channel;139
13.3.3;3.3 Channel III: Processed Tomato Products Channel;139
13.4;4 Actors in Tomato Value Chain;140
13.5;5 Costs and Returns Along Tomato Value Chains;141
13.6;6 Constraints at Different Stages of Tomato Value Chain;144
13.6.1;6.1 Growers’ Constraints in Production and Marketing of Tomato;144
13.6.2;6.2 Constraints Faced by Different Market Functionaries;145
13.7;7 Financial Requirements of Value Chain Actors;147
13.8;8 Summary and Policy Recommendations;147
13.9;References;149
14;8 Value Chain Analysis of Dry Fish in North-East Region of India;151
14.1;1 Introduction;151
14.2;2 Selection of Value Chain Actors;152
14.3;3 Mapping of Dry Fish Value Chain Activities;154
14.3.1;3.1 Fish Processing;154
14.3.2;3.2 Marketing of Dry Fish;155
14.3.3;3.3 Distribution;156
14.4;4 Dry Fish Value Chain Map;156
14.5;5 Infrastructural Facilities Along the Dry Fish Value Chains;158
14.6;6 Cost and Margins in Dry Fish Value Chain;159
14.6.1;6.1 Cost and Margins of Dry Fish Processors;159
14.6.2;6.2 Cost and Margins of Processors in Matka Shidal;160
14.6.3;6.3 Cost and Margins of Processors of Smoked Fish;161
14.6.4;6.4 Cost and Margins of Wholesalers;161
14.6.5;6.5 Cost and Margins of Retailers;162
14.7;7 Value Chain Performance of Dry Fish;164
14.8;8 Financing Dry Fish Value Chain;164
14.9;9 Conclusions and Policy Implications;167
14.10;References;169
15;9 Broiler Value Chain Model for Empowerment of Poor Tribal Women: A Case Study in Jharkhand;171
15.1;1 Introduction;171
15.2;2 Value Chain Model;172
15.3;3 Financial and Institutional Support to Value Chain;174
15.3.1;3.1 Poultry Cooperative Federation;174
15.3.2;3.2 Central Government;175
15.3.3;3.3 State Government;175
15.3.4;3.4 National Bank for Agriculture and Rural Development (NABARD);175
15.3.5;3.5 Commercial Banks;175
15.4;4 Conclusions;175
15.5;Bibliography;176
16;10 Strengthening Value Chain of Compound Cattle Feed;178
16.1;1 Introduction;178
16.2;2 Selection of Value Chain Actors;179
16.2.1;2.1 Selection of Feed Manufacturing Units;179
16.2.2;2.2 Selection of Other Actors in Value Chain;180
16.2.3;2.3 Selection of Dairy Farmers;180
16.3;3 Value Chain of Compound Cattle Feed;181
16.4;4 Interaction of Actors and Stakeholders;182
16.4.1;4.1 Dynamic Dairy Production System;182
16.4.2;4.2 Transient Dairy Production System;185
16.5;5 Production Costs and Margins;186
16.6;6 End-use Analysis: Adoption and Efficacy of Compound Cattle Feed;187
16.7;7 Strengthening Value Chain: Desired Interventions;190
16.8;8 Conclusions;191
16.9;References;191
17;11 Potato Value Chain Analysis in Selected States: Tamil Nadu, Uttar Pradesh and Bihar;193
17.1;1 Introduction;193
17.2;2 Data and Analytical Framework;194
17.3;3 Major Findings;195
17.3.1;3.1 Current Practices of Production and Marketing of Potato;196
17.3.2;3.2 Potato Production: Cost and Returns and Efficiency;197
17.3.3;3.3 Producer’s Share in Consumer Rupee;203
17.3.4;3.4 Value Addition by Processor;205
17.3.5;3.5 Value Addition by Cold Storage Units;205
17.3.6;3.6 Value Addition—Export and Its Competitiveness;206
17.3.7;3.7 Credit Gaps;207
17.3.8;3.8 Credit Requirement of Market Intermediaries;207
17.3.9;3.9 Financial Products for Further Development of Potato Value Chain;209
17.4;4 Potential for Value Addition and Investment Needed;212
17.5;5 Information Exchange/Sharing for Value Addition;213
17.6;6 Conclusions;213
17.7;References;214
18;Institutional Framework for Agriculture Value Chain Financing;215
19;12 Elements of a National Agricultural Market in India;216
19.1;1 Introduction;216
19.2;2 Elements of a Functional Marketing Platform;218
19.3;3 Agricultural Markets in India: Common or Single? NAM from Market Integration Perspective;220
19.4;4 Spatial Integration in Indian Agricultural Markets;222
19.5;5 Data and Market Selection;223
19.5.1;5.1 Time Series Analysis of Market Integration;226
19.5.2;5.2 Market Integration: Johansen’s Cointegration Approach;228
19.5.3;5.3 Johansen Cointegration Test: Pairwise Cointegration Test Between the Local and Central Markets;229
19.6;6 State of Wholesale Markets in India;231
19.6.1;6.1 Market Density;233
19.6.2;6.2 Market Density Mapping;234
19.7;7 Basic Indicators of Backend Infrastructure;236
19.8;8 Conclusions;240
19.9;References;241
20;13 Optimal Institutional Architecture of Farmer Producer Organizations for Sustainable Value Creation for Small and Marginal Farmers;244
20.1;1 Introduction;244
20.2;2 Industrial Model of Value Chain in Agriculture;246
20.3;3 Characteristic of Agriculture and Small Farmers in India;247
20.4;4 Value Chain, Technology, Capital and Ownership Lock-Ups;248
20.5;5 Value Addition as Value Destruction of Agricultural Produce;248
20.6;6 Income for Small Farmers or Gross Turnover of FPO;249
20.7;7 Value Chain or Value Network for Agricultural Produce;249
20.8;8 Optimal Institutional Architecture of FPOs;252
20.9;9 Conclusions;254
20.10;References;254
21;14 Impact of Market Reforms on Integration of Food Markets in India;256
21.1;1 Introduction;256
21.2;2 The Model APMC Act and the Reforms;258
21.3;3 Analytical Approach;261
21.3.1;3.1 Co-integration;261
21.3.2;3.2 Data;263
21.4;4 Impact of Agricultural Policy Reforms;264
21.5;5 Summary and Conclusions;266
21.6;References;267