The World Bank has approved a new project in Uttar Pradesh, India, aimed at increasing farmers' incomes through improved crop productivity, digital technology adoption, climate-resilient practices, and stronger market linkages. The initiative also plans to leverage $15 million in private finance.
Uttar Pradesh has seen significant growth in agriculture over the past decade, leading the country in wheat production and ranking second in rice production. Despite this progress, small farmers still face challenges such as low productivity and inadequate post-harvest infrastructure. Additionally, small landowners often struggle with limited access to investments and modern technologies.
The $325.10 million Uttar Pradesh Agriculture Growth and Rural Enterprise Ecosystem Strengthening (UP-AGREES) Project aims to enhance agricultural value chains, improve financial access, and create opportunities for value addition. Innovative financial instruments will be introduced to make credit more accessible through mechanisms like the Kisan Credit Card (eKCC). The project is expected to benefit one million producers across Eastern UP and Bundelkhand regions.
"The project will promote sustainable practices such as low-methane rice varieties, rice residue collection and conversion into biogas, and optimized fertilizer use," said Auguste Tano Kouame, the World Bank’s Country Director for India. "The project will also establish a dedicated center for building the capacity of government officials and farmers in climate adaptation strategies."
The initiative will strengthen digital services and agriculture finance ecosystems while incentivizing private sector solutions through market-based approaches. It will support geographic clusters for agricultural commodities and fisheries involving networks of producers, agribusinesses, and public institutions within the same subsector. Support is also planned for an integrated agri-export hub near Jewar Airport in Greater Noida.
"The Project will especially work with women farmers and entrepreneurs for adoption of climate-resilient and cutting-edge digital technologies," said Vinayak Ghatate, Andrew Goodland, and Harsh Jhanjaria, Task Team Leaders for the project. "This will help to improve productivity, create jobs and increase incomes."
Resources from various sources including governments of France, Israel, and the Gates Foundation will be leveraged to support these initiatives.
The International Bank of Reconstruction and Development (IBRD) is providing a $325.10 million loan with a final maturity of 33.5 years including a grace period of six years.