Announcement of Thirty Million Dollars IDA Credit for Tree Crop Development in India on February 18, 1977

•World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 77/28 February 18, 1977 $30 Mi_l_lion_lDA Credit for Tree Crop Development in ..India The International Development Association (IDA), the World Rank's affiliate, has approved a $30 million credit for an agricultural development project to help smallholder farmers in Kerala State, South India. The project •,·j 11 help improve the income of some 75,000 farm families dependent on coconut, rubber, pepper, cashew and other tree crops. • Major benefits wi 11 accrue from increased output resulting from intensified and improved agricultural practices on 30,000 hectares of coconut rehabilitation and 10,000 hectares of pepper rehabilitation, and on 5,000 hectares of new coconut planting. Improved processing facilities to be provided in ten rubber crumb factories (nine will be new) will yield higher income to 50,000 smallholders by uograding the quality of some 25,000 tons of }QI.Al-grade rubber a year. Seed gardens to be established under the project and the provision of research and extension activities wil 1 yield far-reaching benefits to smaJ t farmers in the South Indian state. The IDA credit to India is for 50 years, including 10 years of grace. It is interest free, except for a service charge of 3/4 of 1% per • annum . ----------------------------------------- Note: Money figures are expressed in US dol~:;,r equivalents. FORM NO. 1121 (5-76) T E C HN I CA L D A T A • PROJECT: Kera 1a Ag ri cu 1tu ra 1 Deve 1opment COUNTRY: India TOTAL COST: $69 mi I 1i on IDA FINANCING: $30 million, standard IDA terms. OTHER FINANCING: Government of India - $39 million IMPLEMENTING ORGANIZATION: Kerala Agricultural Oevelonment Project Coordination Committee Agriculture Department Secretariat Tri vandrurn Kerala, India PROJECT DESCRIPTION: The project will improve the productivity of tree crop agriculture, and consequently improve the economic situation of smallholder farmers. It 1dll cover ne\\ planting and rehabilitation of coconut with 1 1 systematic intercropping; pepper rehabilitation; cashew development; establishment of seed gardens; and processing of smallholders rubber. Support to smallholders for agricu·ltural development is provided mainly in the form of long-term institutional creA and special extension services. Other support services included are research, technic;r" assistance and training. PROCUREMENT: Equipment for new crumb rubber factories (S2.2 million) will be procured by international coMpetitive bidding in accordance VJi th I DA Guidelines. Contracts valued at $100,000 or more for equirrnent for the expansion of Palai crumb rubber factory, farm equipment, vehicles, laboratory and office supplies and equipment ($3.l million) will also be awarded under international comr,etitive bidding. Where bulk._ing into groups of $100,000 is not possible, contracts will be awarded in accordance with local procurement procedures. Civi 1 works contracts of $4.8 mil lion wi 11 be let under local competitive bidding procedures. Domestic manufacturers wi 11 receive a 15% preference or the prevai 1 inf1 customs duty l'-'hichever is lrn.ver. Tender documents and bid evaluations for al 1 contracts in excess of $200,000 ~111 require prior approval of IDA. On-farm development for cashew and seed gardens wit 1 be carried out on force account. Consultants' services wil 1 be enga~ed in accordance with IDA t,uidelines. CONSULTAIJTS: Consultants for 18 r,an-months wil 1 be provided to assist Central Plantation Crons Research Institute in tree crops research. Consultants for 27 man-months···ill be provided to assist in the establishment of the crumb rubber processing factories. Services of a crumb rubber processinq specialist wil 1 be engaged for a total of 12 man-months to ~,,ork vdth the Indian Rubber Board in the operation of crumb rubber factories. ECONot11 C RATE OF RETURN: ESTIMATED COMPLEnON DATE: 30% 19e. 1;. •