Announcement of a Million Farmers in India to Benefit from IDA Assisted Agricultural Project on May 26, 1977

World Bank 1818 H Street, N. W., Washington, D:C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO: 77/61 MAY 26, 1977 A MILLION FARMERS IN INDIA TO BENEFI.T FROM IDA ASSISTED AGRICULTURAL PROJECT -----------------~--------~------------~-~------~--------------------------- A million farmers in India will benefit from an agricultural project being supported by a credit of $200 million fr.om the International Develop- ment Associatfon (IDA), an affiliate of the World Bank. The IDA credit will support the Agricultural Refinance. and Development Corporat,ion's(ARDC) on- farm investment program over a two-year period involving a total of $583 mi 11 ion. The proceeds of the I DA. credit wi 11 be channe 11 ed th rough ARDC to cooperative and commercial banks for lending to farmers. At full development in 1984, the project is expected to result in annual incremental production valued at $367 miJ lion a year. • The IDA credit wi 11 assist in providing loans to farmers for on-farm development purposes, mainly minor frrigation; but also for development of tree crops, dairy and poultry, ·sericulture, fisheries and several other agricultural activities. About $100 million of the credit wfll be reserved for smal'f farmers who wi 11 qua] i fy for preferential borrowing, terms provided their income was adequate to repay the loan over a prescribed period. About 175 million man-days of additional employment will be generated. The project also seeks to build stronger institutiops in the rural credit field. The IDA credit to India ts for 50 years, including 10 years' grace. It is interest-free except for service charge of 3/4 of 1% to meet IDA's · administrative costs. The Government will lend the proceeds of the credit to ARDC (Shri Niketan, F. Block, Shiv Sagar Estate, Or. Annie Besant Road, Wor-1 i, Bombay, India) for 9 and.15 years at not less than 6.5% and 7.5% interest per annum, respectively, depending on the type of investments to be refinanced by ARDC . • NOTE: Money figures are expressed in U.S. dollar equivalents.