India: Maharashtra Agribusiness Network Project
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.
South Asia Department
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- Agriculture, natural resources and rural development
|Project Name||Maharashtra Agribusiness Network Project|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
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)|
|Description of Outcome||Maharashtra's horticultural production values increased, and post-harvest losses reduced|
|Progress Toward Outcome|
|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)|
|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.|
|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|
Maharashtra Agribusiness Network - MAGNET Society
Plot No. R-7, Market Yard,
Gultekadi, Pune - 411037
|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|
|Approval||Signing Date||Effectivity Date||Closing|
|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%|
|Cofinancing||0.00||18 Nov 2021||0.00||0.00||0%|
|Approval||Signing Date||Effectivity Date||Closing|
|27 Sep 2021||03 Nov 2021||03 Nov 2021||31 Aug 2024||-||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|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.
|Title||Document Type||Document Date|
|Maharashtra Agribusiness Network Project: Initial Environmental Examination||Initial Environmental Examination||Jun 2021|
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
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Requests for information may also be directed to the InfoUnit.
ADB, India Sign $100 Million Loan for Agribusiness Development in MaharashtraThe Asian Development Bank and the Government of India today signed a $100 million loan to promote agribusiness network to boost farm incomes and reduce food losses in the state of Maharashtra.
ADB Approves $100 Million Loan for Agribusiness Development in IndiaThe Asian Development Bank approved on 27 September a $100 million loan to improve agribusiness network and productivity in Maharashtra, India.
Improving Productivity and Lives of Farmers in India’s Maharashtra StateThe innovative Maharashtra Agribusiness Network project will increase the incomes of small and marginal farmers in India's Maharashtra State by providing holistic agribusiness and value chain support in horticulture.
|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|
No contracts awarded for this project were found
|Title||Document Type||Document Date|
|Maharashtra Agribusiness Network Project: Procurement Plan||Procurement Plans||Aug 2021|