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
    Rautela, Krishan S.
    Sectors Group
    Request for information
  • Country/Economy
    India
  • Sector
    • Agriculture, natural resources and rural development
Project Name Maharashtra Agribusiness Network Project
Project Number 53264-001
Country / Economy 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 Prosperous and Resilient Asia and the Pacific US$ 2.00 million
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.
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 As of December 2023, a total of 85 GAP trainings have been completed on Pomegranate, Orange, Strawberry, Okra, Chili, Custard Apple, Banana, flowers, Strawberry, Guava, Mango, Cashew, Sapota and lemon; a total of 16,677 farmers including 4,288 women. 47 matching grant subprojects sanctioned. Construction activities to upgrade the agriculture value chain facilities of Maharashtra State Agricultural Marketing Board are ongoing at 18 project locations and 6 have been completed.
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)

GAP training modules for all crops, with 14 GAP training modules have been finalized. 85 GAP trainings have been completed on Pomegranate, Orange, Strawberry, Okra, Chili, Custard Apple, Banana, flowers, Strawberry, Guava, Mango, Cashew, Sapota and lemon; a total of 16,677 farmers including 4,288 women (25.71%) participated.

Business Development Plans (BDPs) of 62 FPOs have been prepared by TA consultant. Total 11 Buyers procured total 270 MTs of fruits and vegetables amounting Rs. 1.06 Cr from 12 different sellers i.e. (10 FPOs & 2 VCOs).

47 matching grant subprojects sanctioned (31 FPOs and 16 VCOs). Out of 47 subprojects 10 are owned or led by women). 2 proposals cancelled due non-start of activities. Total grant sanctioned to 47 subprojects INR 124.66 crore of which INR 16.06 crore for these 10 women owned/led subproject. (12.88 % of sanctioned grant amount)

3 Financial Intermediaries (i) Samunnati Financial Intermediation and Services Private Ltd, (ii) Bank of India, and (iii) The Federal Bank have signed financing agreements with MAGNET Society for extending financial intermediary loans to FPOs and VCOs. Samunnati has extended finance to 41 beneficiaries amounting to INR 30 crore.

Construction activities initiated at 18 project locations. Gender-responsive features identified. Out of 18 sites 6 sites have been completed.

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 Rautela, Krishan S.
Responsible ADB Department Sectors Group
Responsible ADB Division Agriculture, Food, Nature, and Rural Development Sector Office (SG-AFNR)
Executing Agencies
Maharashtra Agribusiness Network - MAGNET Society
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 19 Feb 2024

Loan 4117-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
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 22 Apr 2024 8.97 0.00 11%
Counterpart 42.90 Cumulative Disbursements
Cofinancing 0.00 22 Apr 2024 18.55 0.00 24%

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 22 Apr 2024 1,486,306.57
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Satisfactory - Satisfactory

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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Title Document Type Document Date
Maharashtra Agribusiness Network Project: Maharashtra State Agricultural Marketing Board Audited Project Financial Statements (April 2022-March 2023) Audited Project Financial Statements Sep 2023
Maharashtra Agribusiness Network Project: Maharashtra Agribusiness Network (MAGNET) Society Audited Project Financial Statements (April 2022-March 2023) Audited Project Financial Statements Sep 2023
Maharashtra Agribusiness Network Project: Procurement Plan Procurement Plans Jul 2023
Maharashtra Agribusiness Network Project: Maharashtra State Agricultural Marketing Board Audited Project Financial Statements (April 2021-March 2022) Audited Project Financial Statements Dec 2022
Maharashtra Agribusiness Network Project: Maharashtra Agribusiness Network Project Society Audited Project Financial Statements (April 2021-March 2022) Audited Project Financial Statements Dec 2022
Loan Agreement (Ordinary Operations) for Loan 4117-IND: Maharashtra Agribusiness Network Project Loan Agreement (Ordinary Resources) Oct 2021
Project Agreement for Loan 4117-IND: Maharashtra Agribusiness Network Project Project/Program Agreements Oct 2021
Maharashtra Agribusiness Network Project: Report and Recommendation of the President Reports and Recommendations of the President Sep 2021
Maharashtra Agribusiness Network Project: Gender Equality and Social Inclusion Action Plan Gender Action Plans Sep 2021
Maharashtra Agribusiness Network Project: Project Administration Manual Project/Program Administration Manual Sep 2021
Enhancing Market Linkages for Farmer Producer Organizations: Technical Assistance Report Technical Assistance Reports Aug 2021
Maharashtra Agribusiness Network Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Dec 2019

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

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.

Tenders

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

Contracts Awarded

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
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
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
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

Procurement Plan

Title Document Type Document Date
Maharashtra Agribusiness Network Project: Procurement Plan Procurement Plans Jul 2023