September 17, 2023
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5 min read
Strengthening Last Mile Supply Chain for Smallholder Farmers
According to a publication by the International Fund for Agricultural Development (IFAD), smallholder farmers manage over 80% of the world’s estimated 500 million small farms and supply more than 80% of the food to the world. Yet, these farmers are often neglected because they reside in remote and environmentally fragile locations.While technological innovations are transforming the agriculture sector in a revolutionary way, the last mile supply chain is still the weak link. As a result, smallholder farmers continue to grapple with resource constraints and farm inefficiency both of which could have serious implications on growing population and climate change challenges.The entire agricultural ecosystem needs to come together to improve the last mile supply chain. Here are some strategies to do it right:Market AccessSmallholder farmers usually rely on local markets in their vicinity to procure seeds, fertilizers, and farm machinery and tools and sell their harvest. One of the main reasons is that they lack access to semi-urban and urban markets due to poor road connectivity and inadequate transport alternatives.The public and private entities should build roads and transport services to reduce the supply chain gap. Quality input resources can be made available to the farmers at their village shops or exclusive agro-kiosks.Financial AccessA majority of smallholder farmers do not have access to institutional credit and insurance services. There are either no financial institutions in their areas or they lack inclusion in formal banking and insurance. The financial institutions are apprehensive about taking risks with farmers due to a lack of proper documentation and credibility. Even if they do provide credit or insurance, it is expensive for farmers.It is necessary to set up easy-to-access, easy-to-understand, easy-to-afford financial services for the farmers. There is a need to come up with a mechanism that clears land titles/disputes and gives digital identities to farmers to eliminate documentation-related issues for availing credit.
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