AGRICULTURAL VALUE CHAIN FINANCE: A CASE STUDY OF ABC FINANCIAL INTERMEDIATION AND SERVICES PVT. LTD IN GUJARAT

V.A. PATEL¹*, Y.A. LAD², J.H. PATEL³, P.B. PATEL⁴, V.D. PATEL^5
1Department of Human Resource Development, International Agribusiness Management Institute, Anand Agricultural University, Anand, 388110, Gujarat, India
²Department of Human Resource Development, International Agribusiness Management Institute, Anand Agricultural University, Anand, 388110, Gujarat, India
³Department of Human Resource Development, International Agribusiness Management Institute, Anand Agricultural University, Anand, 388110, Gujarat, India
⁴Department of Human Resource Development, International Agribusiness Management Institute, Anand Agricultural University, Anand, 388110, Gujarat, India
⁵Department of Human Resource Development, International Agribusiness Management Institute, Anand Agricultural University, Anand, 388110, Gujarat, India
* Corresponding Author : visheshpatel6@gmail.com

Received : 25-06-2020     Accepted : 02-07-2020     Published : 15-07-2020
Volume : 12     Issue : 13       Pages : 10004 - 10007
Int J Agr Sci 12.13 (2020):10004-10007

Keywords : Agricultural value chain, Agri-Finance, Processors, Traders
Academic Editor : Ammayappan L, Monpara B A
Conflict of Interest : None declared
Acknowledgements/Funding : Authors are thankful to Department of Human Resource Development, International Agribusiness Management Institute, Anand Agricultural University, Anand, 388110, Gujarat, India
Author Contribution : All authors equally contributed

The study was conducted to analyze the value chain finance of ABC Intermediation and Services Pvt. Ltd. It has covered Ahmedabad region of Gujarat state consisting of 5 talukas. For this study, 60 traders and 10 processors were selected based on purposive sampling technique. Both primary as well as secondary data were used to achieve the stipulated objective of the study. Primary data were collected with the help of structured schedule. Descriptive statistics and Garrett ranking were applied to achieve the stipulated objective of the study. The most of the traders were dealing with cereals and they procure the cereals from farmers on cash basis and sell it to processors on credit basis. Here, traders have to give payment to farmer on the same day of purchase but he receives the finance from processors after 10 to 15 days of selling. So, brokers and traders require finance for 10 to 15 days to run their business effectively. Processors procure cereals from APMC and from some farmers on direct basis also. Traders purchase agri produce from farmers at prevailing price in the market but, they sell the agri produce to the processor at different price which includes the procurement price, commission (here in this case average 1.5%), market access, labour charge for loading and unloading the produce.

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