New Delhi: The Department of Agriculture and Farmer’s Welfare (DA&FW) organized a pivotal workshop titled “Unleashing India’s Agribusiness Potential through Innovative Agri Value Chain Financing” in New Delhi. The event convened senior officials from the Government of India and State Governments, experts, and key stakeholders to deliberate on the evolving dynamics of agricultural financing.
Highlighting the critical need for a shift in focus, Manoj Ahuja, Secretary DA&FW, stressed the transition from a production-centric to a demand-driven approach in agriculture. “To develop Agricultural Value Chains (AVCs) more holistically and integrate them with global markets, we must shift our focus from merely addressing supply shortages to meeting market demands,” he stated. Ahuja underscored the importance of implementing accountable and digital systems for effective AVC development and called for a comprehensive policy framework to ensure financial inclusivity for all stakeholders.
Ahuja advocated for the introduction of financial instruments such as bill discounting, bridge financing, and risk-hedging to improve liquidity and economic stability. “Creating an enabling environment with simplified application processes and reduced bureaucratic hurdles is crucial for effectively implementing these instruments,” he added.
Dr. Vivek Joshi, Secretary of the Department of Financial Services, highlighted the essential role of Digital Financial Services in providing timely credit within the Agricultural Value Chain Financing (AVCF) framework, noting a significant increase in agricultural credit availability. “Our focus is on ensuring seamless and affordable access to credit to support farmers throughout the value chain,” he stated. He emphasized the crucial role of NBFCs, fintech, and startups in providing last-mile credit access and specialized financial products, particularly in high-value agricultural markets.
The workshop aimed to create awareness, facilitate collaboration, explore solutions, and empower participants with innovative agricultural finance solutions. It saw robust participation from academia, industry, financing agencies, facilitating agencies, and various government departments. The event served as a crucial platform for collaboration and partnership-building, paving the way for transformative initiatives in India’s agricultural sector.
High-level strategic discussions featured notable speakers such as Prof. Ashok Gulati, a Distinguished Professor at ICRIER. He emphasized the importance of transitioning to a demand-driven approach in agriculture to improve farmer incomes, focusing on the nutrition aspect in the food chain, and developing climate resilience in agriculture.
While welcoming the participants, Ajeet Kumar Sahu, Joint Secretary (Credit), DA&FW, highlighted the need for a holistic approach to Agricultural Value Chain Financing (AVCF). He noted that projections indicate agricultural Gross Value Added (GVA) will reach Rs 105 lakh crore by 2030, making value chain financing increasingly vital.
Chairman of NABARD, K.V. Shaji, emphasized the urgent need to improve farmers’ access to finance and ensure reliable data availability for Self-Help Groups (SHGs) and Farmer Producer Organizations (FPOs). He advocated for the development of public infrastructure in rural areas, including facilities for processing, branding, and marketing agricultural products, and strengthening the governance structure of rural cooperatives to facilitate integrated value chain financing.
Ritesh Chauhan, CEO of PMFBY, presented on fostering financial resilience in agriculture through the Pradhan Mantri Fasal Bima Yojana (PMFBY) scheme. Chauhan highlighted the government’s holistic approach to Agri-Value Chain Financing, emphasizing the need for comprehensive risk protection and financial support throughout the agricultural value chain. He underscored the importance of leveraging technology through platforms like SARTHI, AIDE, Kisan Rin Portal, and AGRISTACK to streamline credit availability and enhance agricultural resilience.