The Government of India and the Asian Development Bank (ADB) Signed a Loan Agreement of 130 Million

The Government of India and the Asian Development Bank (ADB) signed a loan of 130 million on 08 June 2023 to promote horticulture agribusinesses in the state of Himachal Pradesh to increase agricultural productivity, improve access to irrigation and increase farmers' income . The project aims to increase farmers' income and resilience to climate change in seven districts of the state.

The Himachal Pradesh Subtropical Horticulture, Irrigation and Value Addition Project was signed by Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs, Ministry of Finance, and Takeo Konishi, Director, Resident Mission, ADB, India, on behalf of the Government of India.

Project Benefits

• The project intervention will help at least 15,000 agricultural households in 7 districts of the state namely Bilaspur, Hamirpur, Kangra, Mandi, Sirmaur, Solan and Una to increase their income and cope with the effects of climate change. These families have stopped farming or reduced their cultivated areas due to lack of irrigation facilities and crop damage by wild and stray animals.
• The project will improve agricultural irrigation and water management in about 6,000 hectares of agricultural land by strengthening the capacity of WUAs to manage micro-irrigation and renovate or construct new irrigation schemes through joint efforts of the state's Department of Jal Shakti (DOH).
• It will also help create an ecosystem to improve farmers' access to subtropical horticulture markets. Farmers will be organized into cluster based Community Horticulture Production and Marketing Associations (CHPMAs) and district based CHPMAs cooperatives. The Farmer Producer Company (FPC), the apex body of the CHPMA, will lead statewide agribusiness development aimed at ensuring profitability and access to markets for subtropical horticulture.
• FPC, business plan development; Will handle agribusiness promotion and design of value addition facilities such as sorting and packaging facilities and storage and collection centres. It will also assist the CHPMA in managing these facilities.
• The collaboration between the Government of India and ADB through this project will play an important role in increasing agricultural productivity and improving the livelihood of farmers in Himachal Pradesh. By focusing on irrigation, horticulture agribusiness and climate resilience, the initiative aims to uplift farmer families and create sustainable agricultural systems in the region.