Agriculture, undoubtedly is one of the most important aspect of the Indian economy. Agri-financing and storage of crops i.e. warehousing are the two foundations of the post-harvest agriculture in India.
Lack of infrastructure and scientific ways of the storage of crops leads to reduction in the quality and quantity of stored crops. According to the GOI data, approximately 10% of the stored crops which is worth 1 lakh crores is being wasted due to inadequate storage facilities and non-scientific ways of storing crops in India. This has a significant impact on the agricultural economy of India.
Agri-financing includes different types of financial services which are focused on promoting various agricultural activities. This funding helps farmers to carry on their agricultural activities. The Government of India sets a lending target for various banks, but some times they fail to achieve the set lending target. At one hand, there are lot of farmers who are not able to get this funding which results in reduced agricultural outputs and on the other hand there are banks which could not met the lending targets set by government.
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