India: Maharashtra Agribusiness Network Project

Sovereign Project | 53264-001

The project targets to support FPOs by improving a network of post-harvest marketing and value chains focusing on the horticulture crops identified in the pre-feasibility study. The project design reflects the lessons learned from the previous projects and comprises separate components for public sector infrastructure development and private sector investment support. ADB will add value through an integrated approach addressing capacity development, financial support, and infrastructure development.

Project Details

  • Project Officer
    Nishimura, Masahiro
    South Asia Department
    Request for information
  • Country
    India
  • Sector
    • Agriculture, natural resources and rural development
Project Name Maharashtra Agribusiness Network Project
Project Number 53264-001
Country India
Project Status Active
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 4117-IND: Maharashtra Agribusiness Network Project
Ordinary capital resources US$ 100.00 million
TA 6782-IND: Enhancing Market Linkages for Farmer Producer Organizations
Technical Assistance Special Fund US$ 500,000.00
Japan Fund for Poverty Reduction US$ 2.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development - Agro-industry, marketing, and trade - Rural market infrastructure

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The project targets to support FPOs by improving a network of post-harvest marketing and value chains focusing on the horticulture crops identified in the pre-feasibility study. The project design reflects the lessons learned from the previous projects and comprises separate components for public sector infrastructure development and private sector investment support. ADB will add value through an integrated approach addressing capacity development, financial support, and infrastructure development.
Project Rationale and Linkage to Country/Regional Strategy Maharashtra is the second largest state in India in terms of population and ranks third by geographical area. The state is also the leading contributor to the national gross domestic product accounting for 14.4% in FY2017/18 and demonstrated rapid economic growth averaging 10.0% per year between FY2013/14 and FY2018/19 driven by industrial and service sector outputs. However, the state is also ranked among the highest in the income and development inequality as economic development is concentrated around major cities and rural poverty is still prevailing. The average income per capita in the poorest district is merely 25.6% of Mumbai, the district with the highest income. The poverty rate is 24.2% and gets as high as 40% in poor districts, and 23 out of 36 districts have higher poverty rates than the national average of 18%. About 53% of the state's population depend on agriculture for their livelihood and subsistence. About 80% of the farmers are marginal farmers with small landholdings. Increasing the income of marginal farmers impacts significantly on poverty reduction of rural Maharashtra.
Impact Average agriculture sector growth rate of 5% achieved; export of agricultural produce promoted; and fair, competitive, and accessible agriculture markets established (Vision 2030)
Project Outcome
Description of Outcome Maharashtra's horticultural production values increased, and post-harvest losses reduced
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Institutional, technical, and marketing capacities of agribusiness institutions and FPOs strengthened

Access to finance of FPOs and VCOs strengthened

Agriculture value chain infrastructure improved and operational for the target horticulture crops

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Maharashtra
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects The environmental risks and impacts from the infrastructure development are only site specific and temporary, and an initial environmental examination was prepared. Due diligence and review for an irradiation facility under output 3 was also performed, and the activity was found to be compliant with the prohibited investment activities list and other requirements of ADB's Safeguard Policy Statement. Provision of access to finance for farmer producer organizations (FPOs) and value chain operators (VCOs) will only apply to subprojects that are category B or C. This will be ensured through environmental and social management system arrangements with the MAGNET Society for matching grants and with financial intermediaries for financial intermediation loans (FILs).
Involuntary Resettlement The project's infrastructure development will not result in physical or economic displacement, as confirmed by the social safeguard due diligence report. The three new post-harvest facilities will be constructed on government land free of encumbrances. For the FIL component, only subprojects not requiring any involuntary resettlement will be financed. All subprojects under FILs and matching grants will be screened, implemented, and monitored based on the selection criteria and ensured through environmental and social management system arrangements.
Indigenous Peoples About 15% of Maharashtra's rural population are indigenous peoples, and the majority are part of mainstream society. The capacity building and financial support will positively impact FPOs that have indigenous peoples as members. Prior to conducting the trainings and providing financial support, consultations will be carried out in a culturally sensitive manner to ensure that genuine suggestions and concerns of the potential beneficiary indigenous peoples communities are incorporated in the design and implementation of training and subprojects. An indigenous people's plan is not prepared as the positive benefits are incorporated in the project design and gender equality and social inclusion (GESI) action plan, including prioritization targets for vulnerable groups.
Stakeholder Communication, Participation, and Consultation
During Project Design Extensive analysis of accessible markets, horticultural value chains, and local post-harvest conditions as well as stakeholder consultations were carried out to assess the existing conditions and identify the attainable targets and required interventions during the mapping study, the post-harvest study, and the project processing.
During Project Implementation Active communication, participation, and consultation will continue with relevant stakeholders such as FPOs, VCOs, and women and socially vulnerable groups.
Business Opportunities
Consulting Services Procurement will be undertaken following the ADB Procurement Policy (2017, as amended from time to time) and the Procurement Regulations for ADB Borrowers (2017, as amended from time to time).
Procurement Procurement will be undertaken following the ADB Procurement Policy (2017, as amended from time to time) and the Procurement Regulations for ADB Borrowers (2017, as amended from time to time).
Responsible ADB Officer Nishimura, Masahiro
Responsible ADB Department South Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, SARD
Executing Agencies
Maharashtra Agribusiness Network - MAGNET Society
[email protected]
Plot No. R-7, Market Yard,
Gultekadi, Pune - 411037
Timetable
Concept Clearance 04 Dec 2019
Fact Finding 12 Oct 2020 to 22 Oct 2020
MRM 13 May 2021
Approval 27 Sep 2021
Last Review Mission -
Last PDS Update 27 Sep 2021

Loan 4117-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Sep 2021 - - 31 Mar 2028 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 142.90 Cumulative Contract Awards
ADB 100.00 18 Nov 2021 0.00 0.00 0%
Counterpart 42.90 Cumulative Disbursements
Cofinancing 0.00 18 Nov 2021 0.00 0.00 0%

TA 6782-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Sep 2021 03 Nov 2021 03 Nov 2021 31 Aug 2024 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
500,000.00 2,000,000.00 0.00 0.00 0.00 0.00 2,500,000.00 18 Nov 2021 0.00

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.


Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

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Tenders

Tender Title Type Status Posting Date Deadline
Facility Management and Maintenance Specialist Individual - Consulting Closed 07 Sep 2021 17 Sep 2021
Enhancing Market Linkages for Farmer Producer Organizations Firm - Consulting Closed 21 May 2021 11 Jun 2021
53264-IND: Maharashtra Agribusiness Network Project [CW2] Invitation for Bids Closed 12 Jan 2021 22 Feb 2021
Project Implementation Support Consultant (PISC) Firm - Consulting Closed 09 Dec 2020 11 Jan 2021
53264-IND: Maharashtra Agribusiness Network Project Advance Notice Active 30 Oct 2020

Contracts Awarded

No contracts awarded for this project were found


Procurement Plan