Regional : Spice Value Chain Development

Nonsovereign Project | 48901-014

The project will support Akay''s investments across the spice value chain, from climate-resilient and inclusive farming models to processing and export of high-value spice products.

Project Details

  • Project Officer
    Lemoine, Martin
    Private Sector Operations Department
    Request for information
  • Approval Date
    4 September 2014
  • Country/Economy
  • Modality
  • Sector
    • Agriculture, natural resources and rural development
Project Name Spice Value Chain Development
Project Number 48901-014
Borrower / Company Akay Flavours & Aromatics Private Limited
Country / Economy Regional
Location Regional
Type or Modality of Assistance
Loan Strategic Climate Fund - PPCR (Collaborative Cofinancing) USD 5.00 million Approved
3162 Loan Ordinary capital resources USD 0.00 Cancelled
7415 Debt Security Ordinary capital resources USD 10.00 million Approved
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Knowledge solutions
Private sector development
Sector / Subsector

Agriculture, natural resources and rural development / Agricultural production - Agro-industry, marketing, and trade

Gender Effective gender mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Infrastructure Finance Division 1
Responsible ADB Officer Lemoine, Martin
Project Sponsor(s)

The project will support Akay''s investments across the spice value chain, from climate-resilient and inclusive farming models to processing and export of high-value spice products.

The project will be developed in two phases. In phase 1, starting in FY2015 and with a total project cost of up to $10.4 million, Akay will invest in (i) expansion of sterilized spices business in India, (ii) expansion of its nutraceuticals plant in India, and (iii) investment in climate-resilient farming technologies for its organic farm in Cambodia. Phase 2 will begin after 31 March 2015, subject to satisfactory performance in Phase 1 implementation. The total phase 2 project cost will be $18.6 million, with Akay investing in (i) expansion of its seasonings plant in India, (ii) construction of an oleoresin extraction plant in Cambodia, and (iii) implementation of contract farming model in Cambodia. ADB will provide $16.5 million financing to Akay for the project. In addition, ADB will administer up to $5.0 million loans from the ADB Strategic Climate Fund.

The project will help sustain high value-added agriculture growth in India and Cambodia. The project will promote regional integration, trade, and investment, particularly spice exports from India and Cambodia to the rest of Asia, and foreign direct investment in Cambodia from the rest of Asia. The project will also contribute to rural poverty reduction by including farmers in the global spice value chain.

Akay is a leading high-value spice producer and exporter in India. Since its establishment in 1993, Akay has grown to one of the top five exporters of spice oleoresins in the world. It is headquartered in Cochin, Kerala and operates five processing plants in India with total capacity of 42,000 tons of raw material per year. It has a distribution network in 70 countries. Akay primarily exports to the United States, Europe, and the People's Republic of China.

Objectives and Scope
Linkage to Country/Regional Strategy
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The financing of the project is considered as corporate finance in accordance with ADB's Safeguard Policy Statement (2009). The subprojects are classified as category B for the environment, which are likely to have low to medium environmental impacts and risks during construction and operation.
Involuntary Resettlement The project is classified as category C for involuntary resettlement.
Indigenous Peoples The project is classified as category C for indigenous peoples.
Stakeholder Communication, Participation, and Consultation
Timetable for assistance design, processing and implementation
Concept Clearance 27 Jan 2014
Credit Committee Meeting 21 Jul 2014
Approval 04 Sep 2014
Last PDS Update 20 Aug 2014

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.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Spice Value Chain Development: Extended Annual Review Report Extended Annual Review Reports Jun 2023
Spice Value Chain Development Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Dec 2014
Spice Value Chain Development: Report and Recommendation of the President Reports and Recommendations of the President Aug 2014

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.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

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  • 14 May 2015 | Project Result / Case Study

    Akay Flavours & Aromatics: Why We Work with ADB

    ADB is investing $16.5 million in Akay, an Indian spice company that engages directly with farmers and buyers, opening up income opportunities for poor farmers.
  • 14 May 2015 | Project Result / Case Study

    Private Enterprises Spice Up India's Rural Incomes

    Smallholder spice farmers in India receive training, advice, and financial support through a private sector initiative aimed at making the production of chilies, cloves, turmeric, and other food condiments into a sustainable and profitable activity.