The World Bank’s Board of Executive Directors has approved a US$325.1 million project to support one million farmers in Uttar Pradesh (UP) by enhancing agricultural productivity, adoption of digital technologies, promoting climate-resilient farming practices and improving market linkages. The project also aims to attract US$15 million in private finance to support these initiatives.
World Bank’s Project Overview
Uttar Pradesh has seen consistent growth in agricultural output over the past decade, becoming the leading state in wheat production, second in rice production, and the third-largest agricultural exporter in India. Despite these achievements, small-scale farmers continue to face challenges such as low productivity, inadequate post-harvest infrastructure, and limited access to modern technologies and investment.
The Uttar Pradesh Agriculture Growth and Rural Enterprise Ecosystem Strengthening (UP-AGREES) Project is designed to address these challenges by strengthening agricultural value chains, improving access to finance, and creating opportunities for value addition. The project will benefit one million producers across Eastern UP and the Bundelkhand regions, and aims to improve productivity, reduce costs, and create jobs.
To make access to finance more efficient, the World Bank’s project will introduce innovative financial tools, including the Kisan Credit Card (eKCC), to provide timely, affordable, and transparent credit options to farmers.
Climate-Resilient and Sustainable Agricultural Practices
A key feature of the project is the promotion of climate-resilient practices that will help farmers adapt to changing weather patterns. This includes the introduction of low-methane rice varieties, rice residue collection for conversion into biogas, and optimized fertilizer use. These measures are aimed at reducing the environmental impact of agriculture while boosting productivity.
“The project will promote sustainable practices such as low-methane rice varieties, rice residue collection and conversion into biogas, and optimized fertilizer use, reducing agriculture’s impact on climate change and boosting productivity. The project will also establish a dedicated center for building the capacity of government officials and farmers in climate adaptation strategies.”
Focus on Digital Services and Private Sector Engagement
The World Bank’s project will work to strengthen the ecosystem for digital services and agricultural finance in the state. It will encourage private sector entities to offer market-based solutions, enhancing agricultural practices and connecting farmers with broader markets. Additionally, the project will support geographic clusters of agricultural commodities and fisheries, creating networks of producers, agribusinesses, and public institutions engaged in the same subsector.
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Support for Women Farmers and Entrepreneurs
“The project will especially work with women farmers and entrepreneurs for adoption of climate-resilient and cutting-edge digital technologies, enhancing farmgate infrastructure, and strengthening market linkages both locally and globally,” said Vinayak Ghatate, Andrew Goodland, and Harsh Jhanjaria, the Task Team Leaders for the project. “This will help to improve productivity, create jobs and increase incomes.”
International Support and Funding
The UP-AGREES project will leverage resources from the governments of France, Israel and the Bill & Melinda Gates Foundation to support its initiatives. The total project cost is US$ 500.00 million. The project will be funded by a loan of US$325.1 million from the International Bank for Reconstruction and Development (IBRD), with a maturity period of 33.5 years, including a six year grace period. The project will be implemented by the Uttar Pradesh Diversified Agriculture Support Project Society (UPDASP), a government agency in UP. The project is expected to close by September 30, 2030, and will begin in fiscal year 2025.
The UP-AGREES project marks a pivotal initiative to strengthen Uttar Pradesh’s agricultural sector by tackling critical challenges faced by farmers. As the project moves forward, it aims to change the agricultural landscape, create jobs, and improve livelihoods for millions of people in Uttar Pradesh.