India: Himachal Pradesh Subtropical Horticulture, Irrigation and Value Addition

Sovereign Project | 53189-002

Himachal Pradesh is a small state with more than 50% of its areas in mountains and less than 10% in cultivation. The state's economic growth in the 1990s was driven by agriculture and its allied activities, but has gradually shifted to the industrial/manufacturing and services sectors. Still, Himachal Pradesh is the only state in India where 90% of the state's population live in rural areas and nearly 62% of the state population relies on agriculture and its allied sectors for employment. Despite the importance of agriculture in the livelihood of large rural population, there is a distinct agricultural development gap between the northern (or temperate horticulture areas) and southern (or subtropical horticulture areas) parts of Himachal Pradesh. Subtropical horticulture farmers earn only $116 per month while temperate horticulture farmers earn about $1,550 per month.

Project Details

  • Project Officer
    Kim, Sunae
    South Asia Department
    Request for information
  • Country
    India
  • Sector
    • Agriculture, natural resources and rural development
Project Name Himachal Pradesh Subtropical Horticulture, Irrigation and Value Addition
Project Number 53189-002
Country India
Project Status Proposed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan: Himachal Pradesh Subtropical Horticulture, Irrigation and Value Addition
Ordinary capital resources US$ 100.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
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

Gender Equity and Mainstreaming Effective gender mainstreaming
Description Himachal Pradesh is a small state with more than 50% of its areas in mountains and less than 10% in cultivation. The state's economic growth in the 1990s was driven by agriculture and its allied activities, but has gradually shifted to the industrial/manufacturing and services sectors. Still, Himachal Pradesh is the only state in India where 90% of the state's population live in rural areas and nearly 62% of the state population relies on agriculture and its allied sectors for employment. Despite the importance of agriculture in the livelihood of large rural population, there is a distinct agricultural development gap between the northern (or temperate horticulture areas) and southern (or subtropical horticulture areas) parts of Himachal Pradesh. Subtropical horticulture farmers earn only $116 per month while temperate horticulture farmers earn about $1,550 per month. Temperate horticulture in northern Himachal Pradesh has been dominated by the production of apple, which is the most important fruit crop for the state accounting for 79% of the state's fruit production in 2017 -2018. The state recognizes the need to diversity horticulture production. This is because apple production fluctuates due to weather and changing markets, and the potential to reduce income disparity between the northern and southern parts of Himachal Pradesh, benefiting from accessing off-season markets of other fruits and vegetables in the subtropical area. The State Government of Himachal Pradesh requested the Asian Development Bank (ADB) to support development of horticulture in subtropical areas of the state, and reduce income gap between farmers in subtropical and temperate horticulture regions._
Project Rationale and Linkage to Country/Regional Strategy The project aims to increase income of at least 25,000 farm households in seven districts of Bilaspur, Hamipur, Kangra, Mandi, Solan, Sirmour and Una in subtropical areas of Himachal Pradesh. At least 20% of the project's beneficiaries will be poor households. The project will expand irrigation to farmers, increase subtropical horticulture production and its climate resilience, and assure profitability of subtropical horticulture production through value chain development of targeted commodities.
Impact

Rural household income increased (Strategies for Doubling Farmers' Income in Himachal Pradesh)

Climate resilience strengthened (Himachal Pradesh SDG Goals 1,2, 8, 13 and 15)

Outcome Income and climate resilience of targeted households in subtropical areas of Himachal Pradesh improved
Outputs

Irrigated area expanded and sustainably operated.

Climate resilient subtropical horticultural production increased.

Market access for subtropical horticulture farmers developed

Geographical Location Bilaspur, Hamirpur, Kangra, Mandi, Sirmaur, Solan, Una
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Consulting Services Recruitment of team and individual consultants will be conducted by the EA/IA using ADB's Procurement Regulations (2017). Advance procurement action will be done through the Project Readines Financing loan, which will also prepared the bidding documents for the ensuing loan.
Procurement Procurement of goods and works will be conducted by the EA/IA using ADB's Procurement Regulations (2017) and standard bidding documents e-GP system with the required ADB organization application installed will be used. Advance procurement action will be done through the Project Readiness Financing loan, which will also prepared the bidding documents for the ensuing loan.
Responsible ADB Officer Kim, Sunae
Responsible ADB Department South Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, SARD
Executing Agencies
Department of Horticulture, Government of Andhra Pradesh
O/o. Commissioner of Horticulture, TTPC Building, 1st Floor, Old Market Yard, Chuttugunta ( Beside Mini Rythu Bazar), A.P., Guntur.
Department of Horticulture, Government of Himachal Pradesh
O/O Joint Director of Horticulture,
Directorate of Horticulture, HP,
"Naubahar", Shimla 171 002
Timetable
Concept Clearance 22 Jun 2020
Fact Finding 04 Apr 2022 to 11 Apr 2022
MRM 30 Jun 2022
Approval -
Last Review Mission -
Last PDS Update 23 Jun 2020

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Tenders

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Contracts Awarded

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Procurement Plan

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