Background:

Agriculture and MSME are crucial sectors of the Indian economy. In the current pandemic situation, while agriculture has remained largely unaffected, the MSME sector has suffered, impacting output and employment. Acknowledging the role and contribution of MSMEs in our economy, policy makers have identified MSMEs as the critical lever for spurring growth.  Development of the rural economy and social welfare of the rural population on a sustainable basis has also been a thrust area. To boost farm productivity and income of farmers, Government has made policy level changes such as those relating to contract farming and sale of farm produce. In this background, MSMEs in the Agro-industry based sector can potentially create employment and lift the lives of rural India. Besides, there is vast scope for innovations in agri-value chains, both existing and new.

Objective:

Agro-MSMEs, which operate in the intersection of Agriculture and MSME sectors, can be powerful vehicles of growth in the post-pandemic environment. The CAFRAL Virtual Learning Program (VLP) seeks to build a business case for lending profitably to the Agro-MSMEs as they hold promise for the development of the rural economy in a sustainable and impactful manner.

This VLP will deal with Agro-MSME financing broadly from three perspectives: objectives of financing, borrower categories and financed assets or targets. The following topics and issues will be covered: 

• Policy and economic developments relating to agriculture, MSMEs and Agro-MSMEs
• Discussions on financing MSMEs for higher productivity, lower post-harvest losses, climate change adaptation, increasing access to markets, exploration of new markets
• Financing traditional Agri value chains: linkages with MSMEs, FPOs
• Financing super value chains: linkages with Agri-entrepreneurs, AgriTechs and FinTechs
• Financing post-harvest systems and sustainable production systems
• Lending to impact agriculture and social enterprises
• Financing market infrastructure linked to agriculture and MSMEs
• Experience and knowledge sharing with new age Agro MSMEs