World Bank okay $325.10 million loan for U P to boost farmer income

The World Bank has approved a $325.10 million loan to the Uttar Pradesh government to boost the farmers' income in the state. The loan will finance the Rs 3,903 crore or $ 500 million. Uttar Pradesh Agricultural Growth and Rural Enterprises Ecosystem Strengthening (UP-AGREES) Project. The project aims to improve crop productivity and increase farmer's income in the state.

The loan was approved by the World Bank’s Board of Executive Directors in a meeting in Washington, D.C. United States on 12 December 2024.

Funding of the UP-AGREES Project 

• The total cost of the UP-AGREES project is Rs 3,903 crore or $ 500 million.
• The World Bank will provide a $325.10 million loan or Rs 2,737 crore.
• The state government will provide Rs 1,166 crore.
• The private sector is expected to contribute $15 million to the project.
• The Project is also supported by the governments of France, Israel and the Gates Foundation.

World Bank Loan through IBRD

The World Bank loan of  $325.10 million will be provided through its subsidiary, the International Bank for Reconstruction and Development (IBRD).

The loan repayment period is 33.5 years, including a grace period of  6 years.

Duration of  UP-AGREES Project

The Yogi Adityanath government in Uttar Pradesh has launched the state's World Bank-funded Uttar Pradesh Agriculture Growth and Rural Enterprise Ecosystem Strengthening (UP-AGREES). 

The duration of the UP-AGREES scheme is six years.

Aim of the UP-AGREES Project 

The aims of the UP-AGREES Projects are as follows ;

• To increase farmers’ incomes through improved crop productivity, adopting digital technologies and climate-resilient practices, and strengthening market linkages. 
• To strengthen agricultural value chains, improve farmers' access to finance, and create opportunities for value addition. 
• To ensure the timely availability of high-quality seeds to farmers.
• Development of a comprehensive digital platform for the agriculture sector.
• Development of an integrated agri-export hub near Jewar Airport, Greater Noida, to facilitate the export of high-value agricultural products like peanuts, Kala Namak rice, vegetables and sesame.

Target Area of the UP-AGREES Project 

The UP-AGREES Project aims to increase agricultural productivity and farmers' income in the state's eastern Uttar Pradesh and Bundelkhand areas.

According to the Uttar Pradesh Government, Western Uttar Pradesh currently contributes 50% to the state’s agricultural output. Eastern Uttar Pradesh accounts for just 28 per cent of the population, and Bundelkhand accounts for a mere 5.5 per cent.

• The Project will be implemented in the 21 districts of eastern Uttar Pradesh and seven districts of Bundelkhand.
• It will directly assist 10 lakh farmers, of which one-third will be women.
• It will support one lakh fisherman families.
• The government will send 500 farmers abroad to learn about advanced agricultural techniques.

Districts Covered Under UP-AGREES

The UP AGREES project will be launched in 21 districts of eastern Uttar Pradesh — Azamgarh, Mau, Bahraich, Balrampur, Gonda, Siddharthnagar, Deoria, Basti, Maharajganj, Sant Kabir Nagar, Kushinagar, Shravasti,, Gorakhpur,, Jaunpur, Ballia, Ghazipur, Varanasi, Chandauli, Mirzapur, Sonbhadra and Sant Ravidas Nagar.

In Bundelkhand, it will be implemented in Jalaun, Hamirpur, Mahoba, Jhansi, Lalitpur, Banda, and Chitrakoot.

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