Read the following passage carefully:
To check distress sales of perishable produce and reduce reliance on unorganized informal lenders during post-harvest gluts, several state agricultural marketing boards have initiated a pilot scheme establishing solar-powered micro-warehouses managed by local Farmer Producer Organizations (FPOs). Under this framework, smallholder farmers depositing their harvest receive negotiable digital warehouse receipts. These receipts can be instantly pledged on an integrated banking portal to secure short-term operational credit at subsidized interest rates, allowing farmers to delay sales until market prices stabilize. Promoters argue that this institutional mechanism directly strengthens farmers' bargaining power and eliminates distress liquidation. However, agricultural economists point out that the financial viability of this model hinges on the continuous accuracy of digital quality-grading sensors and the physical security of decentralized storage structures. If quality degradation occurs undetected within micro-warehouses or if warehouse receipts are issued against compromised stock, lending institutions face severe default risks. Consequently, without robust third-party verification protocols and localized insurance coverage against post-harvest storage losses, commercial banks will remain reluctant to disburse credit against micro-warehouse receipts.
Based on the passage above, evaluate whether the following claim represents an essential underlying assumption made by the author:
Statement: The primary factor forcing smallholder farmers into distress sales during post-harvest gluts is an immediate liquidity requirement that cannot be adequately met through existing formal financial channels.
Answer: Answer