$250 mn World Bank credit for West Bengal farmers

[1]

The World Bank has approved a $250 million credit and loan to the West Bengal Accelerated Development of Minor Irrigation Project (ADMIP) for increasing agricultural production of small and marginal farmers.

About 139,000 hectares of irrigated area are expected to be developed under the project, benefitting an estimated 166,000 farm families.

The credit from the International Development Association (IDA), the World Bank's concessionary lending arm, has a 25 year maturity, including 5 years grace period.

The loan from the International Bank for Reconstruction and Development (IBRD) has a repayment period of 18 years, including 5 years grace period.

"Irrigation will continue to be critical to increasing agricultural production, incomes, and rural livelihood," in India, said Roberto Zagha, World Bank Country Director for India citing a recent World Bank study.

"The study makes the case for continuing support for investments in improving both access and quality of irrigation," he said.

In West Bengal, the average yield of paddy, which accounts for more than half the annual cultivated area in the state, is about 70 per cent of the India average and less than half of what is obtained in more advanced agricultural states.

An important reason behind the low productivity is that large cultivated areas are still rainfed and exposed to weather fluctuations, the Bank said.

The Water Users Associations (WUA) will be the focal point for both organization and implementation of all schemes. They will play an active role in the planning and supervision of the schemes, and the subsequent management, operation and maintenance of the systems.