Financing Value Chains for Developing Rural Livelihoods

Abstract

The aim of the paper is to find out the critical points in value chain practice existing in rural farm and nonfarm sectors. The paper tries to find out a possible solution so that these value chains can be linked to financial service providers for the betterment of the rural mass. It is perceived that strengthening the value chain as well as promoting coordination between public and private players’ results in benefitting the farmers and workers of rural areas. Financing the agricultural value chains means that small holders can have ready financial products available to invest in their value chain. Careful analysis and selection of value chains can contribute to identify opportunities for inclusive growth of small holders. In Assam, agricultural farmers sell to the nearest dealer/buyers and mostly immediately after harvesting when the price is at the lowest (Bhuyan, 1990; Bhuyan, et al., 1990). They do not get the return they should have earned. Therefore, access to market acts as constrain for their growth. The present study wants to bring out the directions in which the policy makers can focus to impose financial activity on value chain practices to strengthen the rural livelihoods.