Government inks $200 million Loan Agreement for Assam Agribusiness and Rural Transformation Project
The Union Government and World Bank have signed $200 million Loan Agreement for Assam Agribusiness and Rural Transformation Project.
The $200 million loan from World Bank’s International Bank for Reconstruction and Development (IBRD) has a 7-year grace period, and a maturity of 16.5 years.
Assam Agribusiness and Rural Transformation Project
The Project will support Assam Government to facilitate agri-business investments, increase agriculture productivity and market access and enable small farm holders produce crops that are resilient to recurrent floods or droughts in state. It will help state to increase agricultural productivity by strengthening farming systems, raise private sector investments to promote agri-enterprises to create better job opportunities for youth in state.
The Project will be implemented in over 16 Districts of Assam. Over 500,000 farming households will directly benefit from it and at least 30% women are expected to participate in project activities. Specific focus will be given to women-led enterprises and their participation in decision-making process of farmer producer organizations.
The project will promote market-led production that can deal with vagaries of climate change. Market-led production system will take advantage of rapidly changing market, introduce crops that are resilient to climate change, increase production and manage risks for farmers
Besides, it will focus on geographic clustering of production base for certain commodities which will help agri-enterprises take advantage of existing and future market opportunities that they may not necessarily achieve alone. Successful clusters will help to innovate and adapt ‘best practices’ across agricultural value chains.