An Analytical Study Of Financial Challenges Faced By Farmers In India With Special Reference To Organic Farming
DOI:
https://doi.org/10.69980/yg2eka50Keywords:
Sustainable Entrepreneurship, Organic Farming Enterprises, Financial Constraints, SME Development, Entrepreneurial EcosystemAbstract
This paper examines financial challenges confronting farmers in India with special reference to organic farming, positioning organic producers as sustainability-oriented micro and small enterprises within an emerging entrepreneurial ecosystem. Using a qualitative design based on secondary data (2016–2025) from peer-reviewed studies, policy documents and institutional reports, the study applies thematic content analysis to synthesize constraints across finance, markets and institutions. Findings show that limited access to formal credit, weak collateral and documentation, and cash-flow stress during conversion jointly restrict investment and innovation. High certification and compliance costs act as entry barriers to premium markets, while fragmented value chains and price volatility undermine revenue predictability and discourage scaling. Infrastructure gaps in storage, cold chain, transport and processing reduce value addition and competitiveness, and policy implementation limitations—such as coordination gaps, delays and misaligned incentives—further weaken support for organic enterprises. The discussion interprets these constraints as ecosystem-level failures requiring coordinated solutions rather than isolated subsidies. The paper recommends tailored green finance (patient capital, risk sharing and blended finance), more inclusive certification options (including group/participatory approaches), stronger market linkages through aggregation and contract mechanisms, and targeted investments in logistics, processing, training and extension. By integrating sustainable entrepreneurship and institutional perspectives with agricultural finance, the study offers policy-relevant insights for strengthening organic farming enterprises as scalable, competitive sustainable SMEs in India and comparable Asian contexts.
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