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|
|Country / Economy||India
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Operational Priorities||OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP5: Promoting rural development and food security
OP6: Strengthening governance and institutional capacity
OP7: Fostering regional cooperation and integration
|Sector / Subsector||
Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development - Agro-industry, marketing, and trade - Rural market infrastructure
|Gender||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.|
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)||
Workshops and trainings were held with more than 200 participants.
Some financial agreements with financial intermediaries and matching grant beneficiaries were signed. The first set of subprojects were identified.
Works are ongoing in 4 packages out of 7.
|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
|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||02 Jun 2022|
|Approval||Signing Date||Effectivity Date||Closing|
|27 Sep 2021||26 Oct 2021||31 Dec 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||27 Apr 2023||13.49||0.00||64%|
|Cofinancing||0.00||27 Apr 2023||6.18||0.00||29%|
|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||27 Apr 2023||513,330.20|
|Status of Covenants|
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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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.
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||Apr 2023|
|Maharashtra Agribusiness Network Project: Initial Environmental Examination||Initial Environmental Examination||Jun 2021|
Evaluation Documents See also: Independent Evaluation
None currently available.
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.
ADB, India Sign $100 Million Loan for Agribusiness Development in MaharashtraThe Asian Development Bank and the Government of India today signed a $100 million loan to promote agribusiness network to boost farm incomes and reduce food losses in the state of Maharashtra.
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|Tender Title||Type||Status||Posting Date||Deadline|
|Facility Management and Maintenance Specialist||Individual - Consulting||Closed|
|Enhancing Market Linkages for Farmer Producer Organizations||Firm - Consulting||Closed|
|53264-IND: Maharashtra Agribusiness Network Project [CW2]||Invitation for Bids||Closed|
|Project Implementation Support Consultant (PISC)||Firm - Consulting||Closed|
|53264-IND: Maharashtra Agribusiness Network Project||Advance Notice||Active|
|Contract Title||Approval Number||Contract Date||Contractor | Address||Executing Agency||Total Contract Amount (US$)||Contract Amount Financed by ADB (US$)|
|CW7: Strengthening of National Institute of Postharvest Technology, Talegaon (Dabhade), Taluka, Maval Disctrict, Pune||Loan 4117||10 Feb 2023||Dyna Filters Pvt. Ltd. | Industrial Estate Road, Hadapsar, Pune 411028||Maharashtra Agribusiness Network||1,678,640.95||1,277,634.14|
|CS1 - Project Implementation Support Consultant (PISC)||Loan 4117||14 Jan 2022||Grant Thornton India LLP | 3rd Floor, Unit No. 309 to 312, West Wing, Nyati Unitree, Nagar Road, Yerwada, Pune - 411 006, Maharashtra||Maharashtra Agribusiness Network||4,192,487.78||4,865,214.46|
|CW6 - Erection of New Facility Centre at Baramati, District Pune||Loan 4117||14 Jan 2022||Sudarshan Construction | 723/27 Shivajinagar, Sudarshan Niwas, Police Ground, Barshi, Solapur 413411||Maharashtra Agribusiness Network||5,807,329.52||4,340,595.02|
|CW2 - Upgradation/expansion of the existing MSAMB facilities at Aurangabad & Latur Division and erection of a new custard apple facility||Loan 4117||14 Jan 2022||Sudarshan Construction | 723/27 Shivajinagar, Sudarshan Niwas, Police Ground, Barshi, Solapur 413411||Maharashtra Agribusiness Network||1,632,663.34||1,220,307.95|
|CW5 - Erection of New Facility Centre for Sweet Orange at Pachod, Taluka Paithan, District Aurangabad||Loan 4117||14 Jan 2022||Sudarshan Construction | 723/27 Shivajinagar, Sudarshan Niwas, Police Ground, Barshi, Solapur 413411||Maharashtra Agribusiness Network||2,070,285.27||1,547,401.42|
|Capacity Development Technical Assistance||Technical Assistance 6782||11 Nov 2021||KPMG Advisory Services Private Limited (INDIA) | Lodha Excelus, Apollo Mills Cmpd, NM Joshi Marg, Mala xmi, Mumbai 400011/Kamala Mills Compound, 448, Senapati Bapat Marg, Lower Parel Mumbai 400013 INDIA||Maharashtra Agribusiness Network||2,394,190.00||—|
|Title||Document Type||Document Date|
|Maharashtra Agribusiness Network Project: Procurement Plan||Procurement Plans||Jun 2022|