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Formal versus informal: Efficiency, inclusiveness and financing of dairy value chains in Indian Punjab
This paper highlights that 1) Both formal and informal value chains coexist in the dairy sector of Indian Punjab, but formal value chains are prominent, 2) Resource-rich farmers partner with formal value chains; and smallholders are more dependent on informal chains, 3) Farmers in the cooperative value chains earn more profit per unit of output, and 4) Chain-based financing is limited to informal value chains., and the external financing by commercial banks or other such institutions is limited and biased towards resource-rich farmers.
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