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The loan will enhance agricultural productivity, irrigation access, and horticulture agribusinesses
The Government of India and the Asian Development Bank (ADB) have teamed up with a USD 130 million loan intended to increase agricultural output, provide access to irrigation, and support horticulture agribusinesses in the Indian state of Himachal Pradesh.
The agreement was signed on June 8, 2023, by Takeo Konishi, Country Director of the ADB's India Resident Mission, on behalf of the ADB, and Rajat Kumar Mishra, Additional Secretary of the Department of Economic Affairs, Ministry of Finance, on behalf of the Government of India.
After the agreement was signed, Mishra stated his belief that encouraging subtropical horticulture in the southern parts of Himachal Pradesh, which have historically relied on temperate horticulture in the north, offers chances for crop diversification, climate resilience, and more equitable economic and social development throughout rural areas of the state. He also added that developing horticultural value chains would also aid in the growth and food security of the country.
"The project builds upon a pilot financed by ADB’s project readiness facility which demonstrated the subtropical horticulture production over 200 hectares and prepared the draft water user association (WUA) act and the draft state horticulture development strategy," said Konishi.
According to information provided by the Ministry of Finance, the project's interventions are intended to increase the income and climate change resilience of at least 15,000 agricultural households in the Himachal Pradesh districts of Bilaspur, Hamirpur, Kangra, Mandi, Sirmour, Solan, and Una. These households have either ceased farming or reduced their farming activities due to inadequate irrigation facilities and crop damage caused by wild and stray animals.
To address these challenges, the project will focus on enhancing on-farm irrigation and water management across approximately 6,000 hectares of farmland. This will involve rehabilitating existing irrigation schemes, constructing new ones, and strengthening the capacity of Water User Associations (WUAs) to manage micro-irrigation systems. The efforts will be a collaborative undertaking between the state's Jal Shakti Vibhag (Water Resources Department) and the Department of Horticulture (DOH).
Furthermore, the project aims to create an ecosystem that enhances farmers' access to markets for subtropical horticulture. To achieve this, farmers will be organized into cluster-wide Community Horticulture Production and Marketing Associations (CHPMAs) and district-wide CHPMA cooperative societies.
Overseeing these endeavors will be a CHPMA apex institution in the form of a farmer producer company (FPC), which will lead state-wide agribusiness development. The FPC will play a pivotal role in business plan development, agribusiness promotion, and designing value-added facilities such as sorting and packaging centers, storage facilities, and collection centers. It will also provide assistance to CHPMAs in managing these facilities effectively.
In order to enhance plant health, the project will also upgrade governmental and private subtropical horticulture nurseries. Moreover, it will boost recipient farmers' access to ICTs and other digital agri-technology systems, enabling them to get real-time farm advisories and better CHPMA management.
The agreement was signed on June 8, 2023, by Takeo Konishi, Country Director of the ADB's India Resident Mission, on behalf of the ADB, and Rajat Kumar Mishra, Additional Secretary of the Department of Economic Affairs, Ministry of Finance, on behalf of the Government of India.
After the agreement was signed, Mishra stated his belief that encouraging subtropical horticulture in the southern parts of Himachal Pradesh, which have historically relied on temperate horticulture in the north, offers chances for crop diversification, climate resilience, and more equitable economic and social development throughout rural areas of the state. He also added that developing horticultural value chains would also aid in the growth and food security of the country.
"The project builds upon a pilot financed by ADB’s project readiness facility which demonstrated the subtropical horticulture production over 200 hectares and prepared the draft water user association (WUA) act and the draft state horticulture development strategy," said Konishi.
According to information provided by the Ministry of Finance, the project's interventions are intended to increase the income and climate change resilience of at least 15,000 agricultural households in the Himachal Pradesh districts of Bilaspur, Hamirpur, Kangra, Mandi, Sirmour, Solan, and Una. These households have either ceased farming or reduced their farming activities due to inadequate irrigation facilities and crop damage caused by wild and stray animals.
To address these challenges, the project will focus on enhancing on-farm irrigation and water management across approximately 6,000 hectares of farmland. This will involve rehabilitating existing irrigation schemes, constructing new ones, and strengthening the capacity of Water User Associations (WUAs) to manage micro-irrigation systems. The efforts will be a collaborative undertaking between the state's Jal Shakti Vibhag (Water Resources Department) and the Department of Horticulture (DOH).
Furthermore, the project aims to create an ecosystem that enhances farmers' access to markets for subtropical horticulture. To achieve this, farmers will be organized into cluster-wide Community Horticulture Production and Marketing Associations (CHPMAs) and district-wide CHPMA cooperative societies.
Overseeing these endeavors will be a CHPMA apex institution in the form of a farmer producer company (FPC), which will lead state-wide agribusiness development. The FPC will play a pivotal role in business plan development, agribusiness promotion, and designing value-added facilities such as sorting and packaging centers, storage facilities, and collection centers. It will also provide assistance to CHPMAs in managing these facilities effectively.
In order to enhance plant health, the project will also upgrade governmental and private subtropical horticulture nurseries. Moreover, it will boost recipient farmers' access to ICTs and other digital agri-technology systems, enabling them to get real-time farm advisories and better CHPMA management.
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