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While many studies on AFVC models have emerged, the focus has been on understanding the AFVCs at cross-sectional level- those that are traditional and modern AFVCs. The drivers and nature and extent of these drivers that lead to the transformation from traditional, to transitional, to modern AFVCs are not well documened. There is especially limited understanding of the transitional or the "middle AFVCs", which are important to understand as these essentially serve as stepping stones for expanding to modern AFVCs and key to synergizing the rural-urban links. Understanding the developmental impacts of the AFVC's structural transformations would be a signficant value addition to identifying their contributions to inclusive growth.

One of the instrumental drivers that enable AFVCs to transform is the availability of and access to innovative financing approaches. The array of financing instruments that may be available to AFVCS is not new. Rather, it is the application of various institutional, contractual, managerial, and technological approaches in the use of the financing approaches to adapt to the AFVC needs of ensuring stronger and more demand-driven value chain coordination that are quite innovative. However, for these to be available and ready for application, there would need to undertansd the effective supply and demand for financing AFVC instruments across crops, value segments, and for different AFVC typologies. Asymmetry of information and lack of technical capacities are lacuna that will be addressed in the TA.

The TA will follow on the value chain studies that have been done under TA-6489REG and are currently being worked in-depth for rice markets under TA-7648REG.