Role of supply chain finance in shaping the future of agri finance

India plays a vital role in the global agriculture sector, providing a livelihood for a large portion of its population. In 2022-23, the agriculture sector employed around 45% of the workforce and contributed 18% to India’s gross value added (GVA), according to report by PRS India. Yet, the complexity of agricultural supply chains remains a significant challenge. This value chain starts from suppliers and extends through production, trading, processing, food logistics, and finally, the retail sector. At each stage, the need for funding is both imperative and significantly challenging. For example, farmers need substantial capital to buy essential inputs like seeds, fertilisers, and equipment—costs that can be particularly burdensome for small and marginal farmers. During production, they must also manage ongoing expenses, including labour, water, and machinery maintenance. These financial demands often create cash flow problems as farmers struggle to meet their obligations while waiting for their crops to be harvested. The financial challenges don't just end there. A prominent issue is the difficulty in achieving economies of scale. Large-scale agricultural innovations require extensive farming areas to be cost-effective and justify their high initial investments. This presents substantial financial hurdles for small and marginal farmers, limiting their ability to grow and improve productivity. They also face difficulties due to poor credit