business development analyst – ADB, India sign $100 million loan
business development analyst – agribusiness – development in Maharashtra
27 OCT 2021,
ADB, India sign $100 million loan for agribusiness development in Maharashtra
The Asian Development Bank (ADB) and the Government of India today signed a $100 million loan
to promote agribusiness network to boost farm incomes and reduce food losses in the State of Maharashtra.
Shri Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs in the Ministry of Finance
signed for the Government of India, the agreement for the Maharashtra Agribusiness Network (MAGNET)
Project, while Takeo Konishi, Country Director of ADB’s India Resident Mission signed for ADB.
After the signing of the loan agreement, Shri Mishra stated that the project supports agribusiness
development in Maharashtra with holistic support to on-farm improvement in productivity,
up-gradation of post-harvest facilities, and establishing efficient marketing structures to benefit horticulture producers.
“The project will help small and marginal farmers in Maharashtra improve their post-harvest and
marketing capacity, reduce food losses, and increase incomes through access to finance, capacity building,
and horticulture value chain infrastructure development,” said Mr Konishi. “The project interventions
also align with ADB’s ongoing support to rural sector transformation in the state through mutually
complementary projects for improving irrigation efficiency through rural electrification and for enhancing rural connectivity.”
Though Maharashtra produces 11% and 6% of India’s fruit and vegetable production, respectively,
and accounts for about 8% of the country’s floriculture exports, most smallholder farmers lack
capital to scale up and do not have direct access to emerging high-value markets. The ADB loan
will help provide financing opportunities for farmer producer organizations (FPOs) and value
chain operators (VCOs) through matching grants and financial intermediation loans to support 300 subprojects.
The project will upgrade 16 existing post-harvest facilities and construct 3 new ones to provide
individual farmers and FPOs clean, accessible, and sustainable crop storage and processing facilities.
It will also build the capacity of FPOs and VCOs on value chain acceleration and post-harvest
handling and management, especially those owned and led by women.
The project is expected to benefit 200,000 farmers.
ADB will provide a $500,000 technical assistance (TA) grant from its Technical Assistance
Special Fund and $2 million from the Japan Fund for Poverty Reduction on a grant basis to improve market
linkages for FPOs. The TA will establish crop-based centers of excellence networks, promote innovative
technologies in agribusiness and agriculture value chains, and support capacity building, including the
asset and financial management capabilities of the MAGNET Society and the Maharashtra State Agriculture Marketing Board.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific,
while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members 49 from the region.
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