India signs $98 million loan agreement with Asian Development Bank to boost horticulture productivity

India and the Asian Development Bank (ADB) have signed a $98 million loan agreement to enhance horticulture crop productivity in the country.

The Ministry of Finance on Friday stated that the funding will support the establishment of disease-free planting material systems, boosting crop yields, quality, and resilience to climate change.

“The Government of India and the Asian Development Bank (ADB) today signed a $98 million loan to improve horticulture crop farmers’ access to certified disease-free planting materials, which will boost their crops’ yield, quality, and resilience to climate impacts,” it said.

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The loan agreement, part of the “Building India’s Clean Plant Programme,” was signed by Juhi Mukherjee, Joint Secretary, Department of Economic Affairs, Ministry of Finance, and Kai Wei Yeo, Officer-in-Charge of ADB’s India Resident Mission.

Speaking on the occasion, Mukherjee emphasised the importance of plant health in improving farmers’ productivity. “ADB funding will promote plant health that is vital for improving productivity of farmers,” she said.

Yeo highlighted that the project aligns with the Government of India’s Atmanirbhar Clean Plant Programme (CPP), which focuses on improving plant health management.

“It will help develop regulatory framework and institutional systems to effectively implement the CPP for horticulture in India. The project will involve close consultation with private nurseries, researchers, state governments, and growers’ associations to ensure its success and sustainability,” he added.

As per the ministry the project aims to establish clean plant centres equipped with state-of-the-art laboratories for disease diagnostics and staffed by trained experts.

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These centres will maintain disease-free foundation materials and roll out a clean plant certification scheme. Accredited private nurseries will be tested and certified to ensure farmers have access to high-quality planting materials.

In addition to increasing crop productivity, the project is also expected to help farmers adapt to the challenges of climate change. Rising temperatures are affecting pest and disease behaviour, and the initiative’s focus on disease-free materials will contribute to long-term resilience.

“The plant health management promoted through the project will also help farmers adapt to climate change, as rising temperatures not only cause extreme weather events but also affect pest and disease behaviour” said the ministry. The Ministry of Agriculture and Farmers Welfare, in collaboration with the National Horticulture Board and the Indian Council of Agricultural Research, will oversee the project’s implementation.