Project Name Horticulture Cold Chain Project
Project Number 46943-014
Country India
Location Gujarat
Approval Number 7389/3016
Type or Modality of Assistance
7389 Loan USD 18.40 million Cancelled
Strategic Agendas
Drivers of Change
Sector / Subsector

Agriculture, natural resources and rural development - Agricultural production

Gender Equity and Mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Infrastructure Finance Division 1
Responsible ADB Officer Martin Lemoine
Project Sponsor(s)
Description The project encompasses the development by Champion Agro of cold chain infrastructure facilities for fresh fruits and vegetables. The project will have the following four components: (i) five collection centers, (ii) a controlled atmosphere cold storage facility, (iii) an individually quick frozen facility, and (iv) five distribution centers. The project will support Champion Agro's horticulture business from the collection of fresh fruits and vegetables from farmers in Gujarat to their distribution to corporate clients in large Indian cities and aboard.
Objectives and Scope

The project will help reduce post-harvest wastage of fruits and vegetables, which is estimated to be as high as 35% in India. Reduction in post-harvest wastage together with better irrigation technologies will contribute to a more efficient use of water resources.

The project will also contribute to reducing rural poverty in Gujarat. Champion Agro will indeed help farmers switch to high-value crops, increase their yields, and capture a higher share of the final price paid by the consumer. More than 6,000 farmers are expected to benefit from the project.

Finally, the project will contribute to improved nutrition in India. A minimum of 400g of fruits and vegetables per day is recommended for the prevention of chronic diseases as well as for the alleviation of several micronutrient deficiencies. In India, only 15% of the population consumed this daily minimum as of 2005. The project is expected to contribute to an increase in that proportion.

Linkage to Country/Regional Strategy

Under the Country Partnership Strategy (CPS) for India (2013-2017), agribusiness is one of the sectors to be supported by ADB''s nonsovereign operations: ADB's private sector operations will explore new investments in agribusiness to support the government''s strategy of developing integrated value chains for high-value segments of agriculture and linking small farmers with markets . The draft CPS also insists on the critical need to improve agribusiness infrastructure to reduce post-harvest losses and increase value-adding processing through the aggregation of horticulture produce, post-harvest (e.g. grading, sorting and packaging), storage, and market facilities in a more integrated manner employing an integrated value chain approach .

The project is fully aligned with ADB''s agriculture sector strategy. In particular, the Operational Plan for Sustainable Food Security (2009) recommends an expanded partnership with the private sector in order to attract more direct investments in productivity enhancement, agro-processing, agro-retailing and other nonfarm rural business. The project also addresses the operational plan's objective of increasing synergy and value addition in the backward and forward linkages along the food and agriculture value chain. Improved linkages along the value chain enhance productivity, employment opportunities, exports and regional trade, but also food security for the poor in both rural and urban areas.

Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The potential environmental impacts of the project have been identified and are limited to wastewater and solid waste generation, noise, odor, occupational health and safety, and community safety; and such impacts can be prevented and mitigated using tested and proven measures in accordance with the relevant World Bank Group guidelines for food and beverage processing. The project facilities will be operated in accordance with the provisions of the Food Safety Act, 2012 of India, and will also adopt pollution prevention including energy efficient measures and occupational health and safety practices. Champion Agro has committed to adopt an Environmental and Social Management System (ESMS) including a corrective action plan before ADB's first disbursement.
Involuntary Resettlement No land acquisition or involuntary resettlement impacts are expected because agricultural products processed and distributed by Champion Agro will be sourced from leased or contracted farmlands. Land required for collection and distribution centers will be purchased on a willing buyer- willing seller principle, so no physical or economic displacement is involved.
Indigenous Peoples The project will be located mainly in Gujarat. If the impacts on Indigenous Peoples communities are adverse and/or significant, the subproject will be excluded from financing. Thus, the project has no impact on indigenous peoples.
Stakeholder Communication, Participation, and Consultation The consultation and participation processes were carried out with relevant project stakeholders, especially with local farmers, who will be providing agricultural products for Champion Agro. The participation of the beneficiaries is handled by conducting village meetings with representatives and focus group discussions. Further consultation and participation with stakeholders are incorporated in the company's Environment and Social Management System and subproject Initial Environmental Examination.
Timetable for assistance design, processing and implementation
Concept Clearance 11 Sep 2012
Due Diligence 19 Sep 2012
Credit Committee Meeting 11 Jul 2013
Approval 23 Aug 2013
PDS Creation Date 11 Jul 2013
Last PDS Update 29 Sep 2014

This project data sheet was generated from on 25 November 2015