The World Bank has launched a new project to increase farm income in Uttar Pradesh through improved crop productivity, adoption of digital technologies and climate-resilient practices, and strengthened market linkages.
The Project will benefit a million producers across Eastern UP and Bundelkhand regions of UP.
Over the last decade, UP’s output in agriculture has steadily climbed, leading the country in wheat production, ranking second in rice production, and becoming the third-highest agri exporter.
However, small farmers face low productivity and inadequate post-harvest infrastructure which continues to limit their incomes. In addition, small landowners have limited access to investments and modern technologies.
The $325 million UP Agriculture Growth and Rural Enterprise Ecosystem Strengthening (UP-AGREES) Project will strengthen agri value chains, improve access to finance, and create opportunities for value addition.
Further, innovative financial instruments will be launched to make access to credit such as the Kisan Credit Card (eKCC) more timely, affordable, and transparent.
“The project will promote sustainable practices such as low-methane rice varieties, rice residue collection and conversion into biogas, and optimised fertiliser use, reducing agriculture’s impact on climate change and boosting productivity,” said Auguste Tano Kouame, World Bank’s Country Director for India.
The project will establish a dedicated center for building the capacity of government officials and farmers in climate adaptation strategies as envisioned by the Yogi Adityanath government in UP.
The Project will help to strengthen the ecosystem for digital services and agriculture finance. It will also incentivise private sector entities to provide solutions through market-based approaches.
It will support geographic clusters for agricultural commodities and fisheries – networks of producers, agribusinesses, and public institutions – all engaged in the same subsector.
It will provide support for the proposed Integrated agri-export hub near Jewar Airport, Greater Noida.
“The Project will work with women farmers and entrepreneurs for adoption of climate-resilient and cutting-edge digital technologies, enhancing farmgate infra, and strengthening market linkages both locally and globally,” said Vinayak Ghatate, Andrew Goodland, and Harsh Jhanjaria, the Task Team Leaders for the project.
The Project will leverage resources from various sources, including the governments of France, Israel, and the Gates Foundation, to support its initiatives.
The $325 million loan from the International Bank of Reconstruction and Development (IBRD) has a final maturity of 33.5 years, including a grace period of 6 years.