World Bank approves USD 200 million project for Kerala's agri sector
The loan from the International Bank of Reconstruction and Development (IBRD), the multilateral development bank World Bank's lending arm, has a final maturity of 23.5 years, including a grace period of 6 years.
ANI
Nov 05, 2024 17:37 IST
New Delhi [India], November 5 (ANI): The World Bank has approved a loan worth USD 200 million to support farmers in Kerala to adapt to climate change and promote agri-entrepreneurs to market value-added products.
The loan from the International Bank of Reconstruction and Development (IBRD), the multilateral development bank World Bank's lending arm, has a final maturity of 23.5 years, including a grace period of 6 years.
As the leading producer of spices such as cardamom, vanilla and nutmeg, Kerala accounts for about 20 per cent of the India's total agri-food exports.
However, climate change is impeding these achievements. Natural disasters like floods and forest fires, as well as challenges to reach broader markets, have been impacting farmer households.
The USD 200 million Kerala Climate Resilient Agri-Value Chain Modernization (KERA) Project will help strengthen the resilience of the state's agricultural sector to climate change. About 400,000 farmers will benefit through better access to climate-smart practices. These include replanting of climate-resilient varieties of coffee, cardamom and rubber.
"This project will further infuse private sector investment and integrate agricultural value chains for the benefit of farmers and SMEs," said Auguste Tano Kouame, the World Bank's Country Director for India, in a statement.
"Moreover, it will support agri-based SMEs--especially women who currently own only 23 per cent of MSMEs in the state--to gain access to commercial finance by providing training for business plans and to strengthen their commercial viability," said the World Bank official.
The World Bank said it will also leverage at least USD 9 million in commercial finance, including for agri-food small and medium enterprises (SMEs), especially for women.
"This Project will help to increase productivity for staple food crops such as rice while reducing GHG emissions," said Chris Jackson, Azeb Mekonnen, and Amadou Dem, the Task Team Leaders for the project.
"The increase in productivity and strengthening of agricultural value chains will help maintain the competitiveness of Kerala's agricultural sector and will help create jobs and increase incomes." (ANI)
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