Announcement of IDA Assists Fruit Processing and Marketing Project in India on May 22, 1978

FOR IMMEDIATE RELEASE .World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 78/72 MAY 22, 1978 IDA ASSISTS FRUIT PROCESSING AND MARKETING PROJECT IN INDIA The International Development Association (IDA), an affiliate of the Wor1d Bank, is providing a credit of $14 million for a project to improve· the marketing and production of apples, walnuts, and establish a small re- search component for mushroom development in India's Jammu-Kashmir state. Jammu and Kashmir is the leading apple producing state in India, with an annual turnover of about $60 mill ion. Walnut production in the state is estimated at 23,000 tons a year. Mushroom cultivation was intro- duced on an experimental basis 10 years ago. There are about 500 farmers producing 95 tons of mushrooms per year, mostly for canning by local pro- cessors. The $27.6 mill ion project being assisted by IDA includes the construction of a plant to produce apple juice concentrate and the pro- vision of improved marketing facilities, credit for crop production research and technical assistance. The IDA credit to India is for a term of 50 years, including 10 years of grace. It wi 11 be interest free, except for a service charge of 3/4 of 1% per annum to meet IDA's administrative costs. The major portion of the proceeds of the credit will be channelled through the Agricultural Refinance and Development Corporation. - 0 - • NOTE: Money figures are expressed in U.S. dollar equivalents . FORM NO. 1121 (5-76) T E C HN I CAL DA T A PROJECT: COUNTRY: TOTAL COST: Jammu-Kashmir Horticulture India $27.6 mill ion • IDA FINANCING: $14 mill ion credit, standard IDA terms OTHER FINANCING: (a) Government of India (b) Jammu-Kashmir Agricultural Refinance and Development Corporation of India; and (c) participating banks and fruit growers lMPLEMENTING ORGANIZATION: The Jammu-Kashmir Horticultural Produce Marketing and Processing Corporation Secretary to the Government of Jammu and Kashmir Agriculture Production Department Secretariat Srinagar/Jammu INDIA. PROJECT DESCRIPTION: The purpose of the project is to improve marketing and ~ production of· apples, walnuts, and research on mushrooms by providing improved marketing facilities, credit for crop production and technical assistance for project implementation. PROCUREMENT: Ci vi 1 "'"° rks for app 1e, wa 1nut, and research fac i 1 it i es, costing about $7.4 mill ion will be carried out at about 45 sites and be phased over five years. As contracts for such work will not attract foreign bidders they will be awarded through local competitive bidding. Grading, hulling, cold storage and drying equipment for apple and walnut facilities, machinery and equipment for the juice plant, for fruit and mushroom research will be procured through international competitive bidding. A 15% preference on equipment bids based on the c. i.f. price of each item or the actual custom tariff, whichever is lower, will be granted to domestic manufacturers. ECONOMIC RATE OF RETURN: 21% ESTIMATED COMPLETION DATE: 1983 - 0 - •