AFTER the launch of agricultural value-chain financing last October, banks have begun using this tool to boost their risk-mitigated lending to the agriculture sector. But the journey seems to be long and arduous.
Right now, the bulk of value-chain financing (VCF) is concentrated in crop-growing and animal farming, as it is easier for banks to identify and classify value-chain partners (VCPs) and commodity or input suppliers who act as guarantors for the farmers.