ADB Backs ETC Group to Support Small Farmers With $50 M Agriculture Loan

The funding will provide working capital that allows ETG to purchase sustainably produced coffee and cashew crops from participating farmers.

Thousands of smallholder farmers in India and Viet Nam are set to benefit from a new $50 million sustainability-linked loan from the Asian Development Bank (ADB) to ETC Group (ETG), one of the world's largest agricultural supply chain companies. The financing is designed to improve access to markets, strengthen exports and support the sustainable sourcing of coffee and cashew products. Around 5,700 farmers are expected to benefit directly from the programme, with women making up roughly a quarter of those involved.

For many small-scale growers, securing stable buyers and fair prices remains a constant challenge. Limited access to financing, quality agricultural inputs and long-term contracts can make it difficult to expand production or invest in improvements.

Support Extends Beyond Financing

The funding will provide working capital that allows ETG to purchase sustainably produced coffee and cashew crops from participating farmers. The initiative will also help producers obtain sustainability certifications, which often open doors to higher-value markets and better prices. Farmers will receive support in securing fair legal agreements that reduce exposure to market fluctuations and provide greater income stability. This approach is expected to help rural households plan for the future with more confidence and financial security.

ADB is also providing an additional $850,000 in technical assistance to help farmers adapt to increasingly unpredictable weather conditions. Training will focus on regenerative agroforestry techniques and other climate-smart practices that can improve soil health, increase resilience and support long-term productivity.

Climate Challenges and Gender Barriers Remain Key Issues

Coffee and cashew farming are important industries in both countries. India is one of the world's major producers of these crops, while Viet Nam is the leading exporter of processed cashew kernels and the second-largest coffee exporter globally. Despite their importance, many farming communities continue to face challenges that limit productivity and income growth. Ageing coffee trees, declining soil quality, outdated farming methods and changing climate conditions have all affected production levels in recent years. Women farmers often encounter additional barriers, including limited access to land ownership, financial resources, agricultural information and specialised training opportunities.

The loan has been structured as a sustainability-linked financing package, meaning borrowing costs are tied to environmental and social performance targets. Independent sustainability assessments and annual audits will monitor progress against these goals. ADB says the investment reflects its broader commitment to strengthening food systems across Asia and the Pacific while encouraging private-sector investment in sustainable agriculture. The loan also forms part of a larger financing facility involving several international development finance institutions, highlighting growing global support for resilient and sustainable agricultural supply chains.