Announcement of World Bank Lends Twenty-Five Million for Seed Production in India on May 28, 1976

• World Bank 1818 H Street, N.W. 1 Washington, D.C. 20433, U.S.A. • Telephone: (202) 393°6360 BAMK NEWS RELEASE NO. 76/68 May 28, 1976 WORLD BANK LENDS $25 MILLION FOR SEED PROC~CTION IN iNDIA India will implement the first phase of a national seeds program with the assistance of a World Bank loan of $25 million. The main purpose of the project is to increase food grain pro- duction through increasing the availability of high-quality cereal seed. However, cotton and vegetable seed are also included in the project. It will cover development of seed production and processing facilities in four states: Andhra Pradesh, Haryana, Maharashtra and Punjab. The proj- ect will help improve storage, .marketing, breeder and foundation seed pro- duction, and seed technology research. This is the second operation of the World Bank in support of seed production in India. ln 1969, the Bank made a loan of $13 million • for the Tarai Seeds project. The Tarai experience has been a significant factor in the development of the present project . The project is designed to increase cereal seed output by 73,000 tons a year or 60% of present output. Estimates are that the annual incremental cereal production at full development of the project will be 200,000 tons of wheat, 170,000 tons of paddy, 95,000 tons of maize, 200,000 tons of sorghum and 250,000 tons of pearl millet. Total value of these crops will be about $145 million a year. The project will also increase and improve the production of cotton seed, valued at $3.7 million a year. The Bank loan to India is for 20 years, including 5 years of grace, with interest at Bi% per annum. The proceeds of the loan will be channelled two ways. About $18 million will be channelled through the Agricultural Refinance and Development Corporation for investments in seed processing, production and storage facilities. Bank funds for seed technology research, quality control, training and technical assistance will be channelled through the Indian Government. The Food and Agriculture Organization of the United Nations (FAO} joined the Bank and India in the preparation of the project under the Bank/FAQ cooperative program. • NOTE: Money figures are expressed in U.S. dollar equivalents .  T ECHN I CAL DAT A PROJECT: COUNTRY: TOTAL COST: National Seed India $52.7 million • BANK FINANCING: $25 million, for 20 years, ~ncluding 5 years of grace, with interest at Bl% per annum. OTHER FINANCING: Governments of India, Andhra Pradesh, Haryana, Maharashtra and Punjab; the Agricultural Refinance and Development Cor- poration and participating commercial banks. IMPLEMENTING ORGANIZATION: The Project Management and Monitoring Committee (PMMC), Ministry of Agriculture, Government of India, Krishi 6havan, New De 1hi , In id i a. PROJECT DESCRIPTION: It includes: 1) reorganization of the National Seeds Corpo- ration (NSC) to carry out its major responsibilities for over- all coordination and development of India's seed industry and interstate seed marketing; pro- vision of equipment for NSC's vegetable seed operation; 2) expansion of seed storage capacitt and establishment of a reserve stock for certified and foundation seed; 3) establishmen~ an equipment of 4 State Seed Corporations (SSC); 4) development of about 8 large-scale farms o agricultural universities, State Farms Corporation of India, and Haryana Land Development and Reclamation Corporation for certified seed production; 5) development of university facilities for foundation seed production, processing and storage; 6) improvement of breeder seed pro- duction facilities at agricultural universities and ICAR institutes; 7) development of seed technology research programs at agricultural universities; 8) provJsion of equipment and other facilities for private seed processing corporations; 9) expansion of quality control and cer- tification facilities; and 10) provision of training and technical assistance. PROCUREMENT: Procurement will be coordinated by the Project Monitoring and Management Committee (PMMC). Contracts for equipment and machinery valued at $50,000 or more will be procured on the basis of international competitive bidding except in cases where procurement will be widely dispersed among institutions and over time and it will not be practicable to bulk items. CONSULTANTS: Consultants required will be as follows: 1) Seed technology research (2 man-months); 2) Processing plant design (6 man- months); 3) Quality control administration (2 man-months); and 4) Marketing, marketing traini.ng and demand analysis (18 man- months). • ECONOMIC RATE OF RETURN: 65% ESTIMATED COMPLETION DATE: 1981 - 0 -