Indian agricultural development has focused on food security over the past decade. While the food security concerns have been allayed to some extent, Indian agriculture is still confronted with serious challenges. Lack of financing is one of them.
Policy guidance and institutional reforms have been launched to tackle the problems related to inadequate financing of agricultural development in India. This paper discusses India's experience in regulations of agricultural value chain financing and assesses the related impacts on agricultural value chain development in India.
The paper is focused on the institutional framework governing agricultural finance and various instruments available for financing agricultural development at several stages along a specific value chain. Various enabling policy and regulatory aspects that have evolved over the past decade are then discussed.
Also discussed are some of the disabling acts, the lacunae in some of laws and provisions that need reforms in Indian agriculture. Recommendations are made in the end and some lessons are drawn for financing agricultural value chains in Africa.