The Government of India, the Government of Odisha and the World Bank on Thursday signed a US$165 million loan agreement to support smallholder farmers strengthen the resilience of their production systems as well as diversify and improve the marketing of their produce for increased income.
The Odisha Integrated Irrigation Project for Climate-Resilient Agriculture will be implemented in rural areas vulnerable to droughts and largely dependent on rainfed agriculture. It will benefit about 125,000 smallholder farmer households from 15 districts of managing 128,000 hectares (ha) of agricultural land.
The loan agreement was signed by Additional Secretary, Department of Economic Affairs Sameer Kumar Khare on behalf of the Government of India, Principal Secretary, Water Resources Department, Surendra Kumar, on behalf of the Government of Odisha and Country Director, India on behalf of the World Bank Junaid Ahmad.
In recent years, climate variability has seriously affected agriculture in Odisha, where farming is largely dominated by farmers with landholdings of less than two ha. More and more agricultural areas are coming under the ambit of extreme weather events. Since 2009, the frequency of droughts in the State has increased from 1 in 5 years to 1 in 2 years. Today, about 70 per cent of total cultivated area is prone to droughts compared to 40 per cent in the 1970s. In fact, since 2013, floods are now devastating areas beyond the traditional flood zone. Drier areas are projected to become drier, while wetter areas will become wetter. Agriculture is also a major source of Greenhouse Gas (GHG) emissions in Odisha, responsible for about 25 percent of the GHG emissions in the State.
“The project is intended to be a game-changer for the State; creating a more resilient agricultural sector, enhancing food security, increasing farmers’ incomes and reducing the GHG footprint of the sector,” Ahmad said.
The project will support the rehabilitation of 532 water tanks - expected to irrigate 91,435 ha; promote productivity improvements at the farm level; support farmers to reduce the current emphasis on food grains (especially paddy and wheat) and increase the share of high-value and more nutritious products like fruits and vegetables; and provide marketing support to farmers who are able to generate a marketable surplus.
The project will also support aquaculture in rehabilitated tanks, help farmers access affordable and quality fingerlings, and disseminate improved aquaculture practices and post-harvest management.