Through market linkage Samunnati facilitates connectivity between the players in the value chain finance.There are a wide range of challenges such as Access to Information, Information Asymmetry, Lack of Collaterals, Agriculture specific risks, that agri-value chains face when it comes to accessing credit. Because of the fractured supply chains and broken market linkages, enterprises in the agri value chains run the risk of under utilization on investments made, keeping prospective financiers at a distance. But all the above challenges can be dealt with by leveraging relationships between suppliers & buyers and financial institutions can play a critical role in making these value chains more proficient.
Work to promote market linkages in developing countries is often based on the concept of “inclusive value chains”, which usually places emphasis on identifying possible ways in which small-scale farmers can be incorporated into existing or new value chains or can extract greater value from the chain, either by increasing efficiency or by also carrying out activities further along the chain.
We at Samunnati work to promote market linkages in developing countries keeping in mind the core concept of “inclusive value chains”. Emphasis is given on identifying possible ways to incorporate small-scale farmers into existing or new value chains. To increase the value of even the small-scale players in the value chain finance, there is work towards either increasing efficiency or by also carrying out activities further along the chain.
Read one of our success stories here.
“Samunnati has given us a market linkage to procure short duration Pratibha Seeds for turmeric cultivation, which helped us reduce the crop duration from 9 to 6 months. This provided an opportunity to our farmers to cultivate other crops during the remaining months of the year. We are also exploring if more our farmers can go for back to back turmeric cultivation” – Mr. Bhanu Singh, Director, Mahila Aajeevika, , Madhya Pradesh