IFAD and India Launch $217.2 Million Project to Revolutionize Agriculture in J&K

IFAD's Country Director and Representative for India, Ulaç Demirag, emphasized the project's potential to bring about a profound agricultural transformation in Jammu and Kashmir.

Indian Prime Minister Narendra Modi has unveiled a transformative agricultural initiative worth $217.2 million aimed at bolstering rural livelihoods and enhancing agricultural competitiveness in Jammu and Kashmir. The "Competitiveness Improvement of Agriculture and Allied Sectors Project in Jammu and Kashmir (JKCIP)" marks a collaboration between the Government of Jammu and Kashmir (GoJ&K) and the International Fund for Agricultural Development (IFAD) of the United Nations.

This ambitious project targets 300,000 families encompassing 1.5 million individuals across all 20 districts of the region. It seeks to promote climate-smart farming practices and market-driven production by advocating for good agricultural practices, encouraging diversification into high-value crops suitable for the region's climate, and expanding cultivation areas for niche and horticultural crops.

IFAD's Country Director and Representative for India, Ulaç Demirag, emphasized the project's potential to bring about a profound agricultural transformation in Jammu and Kashmir. "By prioritizing climate-resilient techniques, fostering innovation, sustainability, and empowering rural communities, this investment aims to foster a more prosperous, inclusive, and resilient future for the region," Demirag stated.

Aligned with GoJ&K's Holistic Agriculture Development Programme, JKCIP seeks to unlock the untapped agricultural potential of the region, historically constrained by factors such as remoteness, limited connectivity, inadequate agricultural management practices, and insufficient investment in value chains. The project aims to overcome these challenges by promoting the establishment of robust farmer producer organizations, enhancing productivity in niche and horticultural crops, improving market access for farmers, and building resilience among vulnerable groups.

Furthermore, JKCIP will nurture the agribusiness ecosystem by supporting the growth of agricultural enterprises and startups, with a strong emphasis on initiatives led by young women entrepreneurs. This strategic approach aims to create new market opportunities and strengthen economic connectivity. The project will also assist vulnerable communities in diversifying their livelihood options, focusing on enhancing animal breeding practices and securing better prices for wool, thereby generating additional income and fostering a more inclusive rural economy.

IFAD's contribution of $100 million to the project underscores its commitment to climate action, with $50.77 million allocated specifically for climate resilience initiatives. The Government of Jammu and Kashmir is contributing $26.4 million, while private banks and the private sector are providing $20.8 million and $20.7 million, respectively. Project participants will also contribute $45.8 million from their own resources.

India, a founding member of IFAD, has benefited significantly from IFAD's support through various rural development projects totaling $1,364.58 million. These initiatives have directly benefited over 6.3 million families across the country, aligning closely with the government's efforts to promote sustainable and resilient smallholder agricultural systems amidst challenges posed by climate change and market fluctuations.