Chief EditorArvind kumar
Print ISSN 0253-150X
Online ISSN 0976-0547
NAAS Rating 4.75
Value Chain Finance to Dairy Sector-A Case Study of Eastern Uttar Pradesh
First Online 26-02-2021|
Method: The value chain actors including milk producers have identified purposively and interviewed with well-constructed scheduled. The study has analysed on the data collected from 64 milk producers in 8 villages, 3 inputs suppliers, 8 milk collectors/assemblers, 4 milk transporters, 1 milk processor and 12 distributers for the year 2019-20.
Result: The study observed that there is vast network of financing institutions have engaged in the financing of dairy value chain in the study area. Financing agencies have identified the set of activities associated with milk value chain and determine the structure of finance accordingly, in order to minimize costs, to maximize efficiency and to reduce risk. However, there are several informal mechanism of value chain financings also existed parallel to institutional finance due to informal sources are willing to lend money more easily without collateral. Relationships between actors in the value chain facilitate informal financial flows directly to his client actors is also observed in the study. The study has further inferred that among all the actors involved in milk value chains, the processor, producer and distributer have added greater value addition in comparison to other actors in the value chain.
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