VALUE CHAIN FINANCING STRATEGY FOR AGRO PROCESSING INDUSTRY – A STUDY OF APICULTURE IN KODAGU DISTRICT

Value chain financing is a method of financing which enables low income producer to bring up their businesses with the help of a systematic chain of financial institutions there by increasing their lifestyle. Apiculture or Beekeeping is the process which aims at collecting pure honey and making it available to the ultimate consumers. Main focus of this study is to suggest how the value chain finance is useful in meeting the financial needs of beekeepers in kodagu district so that it can emerge as a cooperative agro processing Industry. Bee keeping is an activity conducted at households in kodagu district in order to supplement their earnings from agriculture labour. Most of the bee keepers are not the farm owners. The main purpose for the production of Honey bee is income generation and for domestic consumption. Because of lack of financial support most of the beekeepers hesitate to upgrade and still use the traditional way of beekeeping for the concerned study Primary data is collected with the help of questionnaire from 50 beekeepers. Interview method is also used to collect information from a training institute active in the area. Percentage analysis and chi square test were used to analyze the data collected. The study suggest value chain financing involving micro financial institutions, entrepreneurial training institute and State Finance corporations which gives overall development options for the bee keepers.