NEW DELHI New Delhi: The World Bank has approved a USD 200 million loan to encourage Kerala farmers to adapt to climate change and agri-entrepreneurs to market value-added products.World Bank for Multilateral Development branch, the loan taken from the International Bank for Reconstruction and Development (IBRD) has a final maturity period of 23.5 years, including a grace period of 6 years. As a leading producer of spices like cardamom, vanilla and nutmeg, Kerala is the largest producer of spices in India's total Agro-food accounts for about 20 percent of exports. However, climate change is hindering these achievements.
Natural disasters such as floods and forest fires, as well as challenges in accessing wider markets, are impacting farming families. The US$200 million Kerala Climate Resilient Agriculture-Value Chain Modernization (KERA) Project will address climate change in the state's agricultural sector. will help strengthen resilience to climate change. Nearly 400,000 farmers will benefit through improved access to climate-resilient practices. These include replanting climate-friendly varieties of coffee, cardamom and rubber.
“This project will further enhance private sector investment and integrate agricultural value chains for the benefit of farmers and SMEs,” Auguste Tano Koume, World Bank country director for India, said in a statement. Additionally, it will help agri-based SMEs–especially women, who currently own only 23 percent of MSMEs in the state–gain access to commercial finance by providing training for business plans and strengthening their business viability. Will help to do this.” The World Bank said it will leverage at least US$9 million in commercial finance, including for agri-food small and medium enterprises (SMEs), particularly women.
Chris Jackson, Ajeb Mekonnen and Amadou Dame, task team leaders for the project, said, “This project will help increase the productivity of staple food crops such as rice, while reducing GHG emissions.” “Increasing productivity and strengthening agricultural value chains will help maintain the competitiveness of Kerala’s agriculture sector and thereby help in employment generation and income generation.” (ANI)
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