Announcement of IDA Assists Agricultural Extension Project in India on May 23, 1980

FOR IMMEDIATE RELEASE 'A/orld Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 80/79 May 23, 1980 IDA ASSISTS AGRICULTURAL EXTENSION PROJECT IN INDIA Some 2.5 million farm families in India's Keral State will be served by an agricultural extension project being financed by a credit of $10 million from the International Development Association (IDA), an affiliate of the World Bank. The $15.3 million project seeks to achieve early and sustained increases in agricultural production in Kerala through a reorganization and strengthening of the State's extension services·. The principal benefit • will be an increase in crop production and farm incomes . The credit is the eighth oper •tion for IDA in sµpport of ~gricultura1 extension services in several states in India. These projects are designed to increase production by improving basic agricultural practices through frequent and systematic visits to farmers bv trained village level extension workers. The training and visit system (i & V system) of extension facilitates the transfer of know-how to small farmers and concentrates on stmple practices like proper spacing of plants, timely sowing, seed treatment and better weeding. The T & V system was first tried in India in the canal command areas of three World Bank/lDA assisted projects in the states of Rajasthan and Madhya Pradesh. The results of the Chambal irrigation scheme, where the T & V system has been in operation since 1974, are impressive. 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 to meet IDA's administrative costs. Note: Money figures are expressed in U.S. dollar equivalents . • FOAM NO. 1121 (5-76) T EC HN I CAL DA T A PROJECT: COUNTRY: TOTAL COST: Kerala Agricultural Extens·ion India • IDA FINANCING: $10 million credit on standard IDA terms OTHER FI NANCI N'G: Governments of India and Kerala IMPLEMENTING ORGANIZATION: Department of Agriculture Government of Kerala Trivandrum Ker a 1a , Ind i a PROJECT DESCRIPTION: The project will reorganize and strengthen an agricultural extension service in Kerala. PROCUREMENT: Contracts for civil works ($2.9 million) will be small, and dispersed and therefore not suitable for international competitive bidding (ICB). One hundred sixteen motor vehicles ($0.9 million) of various types will be procured by local competitive bidding. • Motorcycles and bicycles ($0.4 million) will be purchased by individual staff. ECONOMIC RATE OF RETURN: 50% ESTIMATED COMPLETION DAT£: 1986 - 0 - •