World Bank Approves $325M Agriculture Project to Boost Farmers’ Incomes in Uttar Pradesh

Over the past decade, UP has become a major agricultural producer in India, ranking first in wheat production, second in rice production, and third in agricultural exports.

The World Bank’s Board of Executive Directors has approved a new $325.10 million project aimed at increasing farmers' incomes in Uttar Pradesh (UP) by improving agricultural productivity, adopting climate-resilient practices, and strengthening market linkages. The Uttar Pradesh Agriculture Growth and Rural Enterprise Ecosystem Strengthening (UP-AGREES) Project will also leverage $15 million in private finance to support these initiatives, benefiting one million farmers in the eastern and Bundelkhand regions of the state.

Over the past decade, UP has become a major agricultural producer in India, ranking first in wheat production, second in rice production, and third in agricultural exports. However, small farmers in the state continue to face challenges such as low productivity, inadequate post-harvest infrastructure, and limited access to modern technologies and investments.

“Small landowners and farmers in Uttar Pradesh are grappling with low agricultural productivity and insufficient post-harvest infrastructure,” said Auguste Tano Kouame, the World Bank’s Country Director for India. “This project will promote sustainable practices and leverage digital technologies to boost productivity, increase income, and mitigate the environmental impacts of agriculture.”

The UP-AGREES Project will focus on strengthening agricultural value chains and improving access to finance for small farmers. Innovative financial tools, such as the Kisan Credit Card (eKCC), will be introduced to provide more timely, affordable, and transparent access to credit. The project also aims to enhance farmgate infrastructure, develop digital services for agriculture, and promote climate-smart practices, such as low-methane rice varieties, rice residue collection for biogas production, and optimized fertilizer use.

A key component of the project is the establishment of a dedicated center to build capacity in climate adaptation strategies for both government officials and farmers. Additionally, the project will support the creation of agricultural commodity clusters and fisheries networks, connecting producers, agribusinesses, and public institutions to enhance value addition and market access. It will also provide assistance to the proposed Integrated Agri-Export Hub near Jewar Airport in Greater Noida.

"The project will empower women farmers and entrepreneurs by promoting the adoption of cutting-edge digital technologies, climate-resilient farming practices, and enhancing market linkages,” said Vinayak Ghatate, Andrew Goodland, and Harsh Jhanjaria, the Task Team Leaders for the project. “These efforts will increase productivity, create job opportunities, and ultimately raise incomes for farmers in Uttar Pradesh."

The initiative will also receive support from international partners, including the governments of France, Israel, and the Gates Foundation. The project is expected to have a transformative impact on agriculture in UP by fostering sustainable growth and creating a more resilient and profitable rural economy.

The $325.10 million loan from the International Bank for Reconstruction and Development (IBRD) comes with a final maturity of 33.5 years, including a six-year grace period, to support long-term agricultural development in the region.