Does Core Live provide subsidies for large-scale commercial farmers?
No. The subsidy element of finance provided to support early-stage agricultural enterprises is used for two purposes: i) to overcome legitimate “market failures”; and ii) to provide infrastructure services to smallholder farmers at reduced cost. Any large scale commercial farmers who receive access to infrastructure services have to pay full cost recovery rates. Capital invested by Core Live in early-stage agricultural development will create value over time. Businesses will be sold on to investors at the market price, and any value created through Core Live’s activities will be paid to Core Live and reinvested in further agricultural development in India. Therefore subsidies do not accrue to the commercial farmers. However, their entry costs and risks are reduced and therefore there will be a lot more private investment in the sector.
