Value Chain Financing: Strategy towards augmenting growth in agriculture sector in India

Abstract

Value chain¹ has been an important concept in management offering improvement over the traditional supply or distribution chain, with an aim to optimize the chain and reduce it to limited links with each one performing an activity to enhance the value of the product and not merely the cost. Further, management of such value chain network should focus on cohesively taking the stake-holders along and sharing / spreading the benefits among them, such that the network becomes symbiotic and sustainable, and the process of value-addition & delivery gets ethical. In this research article researcher aims to highlight the key value chain activities in context to agricultural products and suggests the importance of value chain financing which requires due attention from National and Regional level financing corporations.

Keywords: Value Chain, Value Chain Financing, Financial Economics, Management Economics.

¹ Value Chain – Concept from business management first described by Michael Porter in Competitive Advantage: Creating and Sustaining Superior Performance, 1985.