``In this process it may be necessary for banks to fund such activities also,'' he said. The projects submitted to the banks would need scrutiny from all these angles before they (farmers) expect bankers to lend a comprehensive support.

Even in the case of engineering machineries used for agriculture, entrepreneurs do not have the required vision and depth to understand the dynamics of volatility to prevent the extent of damage due to crop failures, he added. In the process of commercialisation of Indian agriculture, entrepreneurs are yet to get acquainted with and overcometechnological, collaborative and exchange risks especially when they embark on export oriented hi-tech projects, he said.

With the onset of globalisation, the Indian entrepreneurs engaged in the business of production, processing, marketing and selling of agro-products in domestic and international markets are exposed to a higher element of risk.

Kannan further said risks involved in the movement of perishable goods, lack of refrigeration and cold chains, warehousing facilities, interruption in the power supply are inherent hi-tech projects. Even in conventional agri products, especially in vegetable and fruit production the post harvest handling, grading and quality are the essential elements deciding market preferences.

While negotiating with the overseas counterparts, corporates are required to sharpen exchange rate risk management techniques, With the hedging technology at the nascent stage, a better understanding of the shift in operating environment will be essential. If the borrowers facesuch risk, it also passes on to the bankers in the form of delay in repayment or in some cases the account becoming non performing assets (NPA).

``Even instances of high level of NPA in agricultural sector cannot be missed to be mentioned,'' said Kannan. According to him the recent experience in floriculture, aquaculture and mushroom projects are evidently of this nature.