Dwindling public sector control support for critical extension related activities and programme for land development and soil conservation are major gaps that need urgent redressal. These disparities in rural infrastructure too need to be addressed. 11. One significant component of rural finance is the value chain finance.
It derives its significance from the fact that there are about 140 million farming households of which more than 80 per cent are small and marginal farmers. Linking these farmers to formal financial services is a significant challenge. If agriculture has to support investment for the small and marginal farmers, promoting agri-business through development of value chains looks very promising.