India–IFAD Sign $45.78M Deal to Expand Climate-Resilient, Market-Oriented Farming in Mizoram

By integrating local policy frameworks with global development expertise, the programme aims to create a locally rooted yet globally informed agricultural transformation model.

In a major boost to sustainable agriculture and rural livelihoods in India’s Northeast, the Government of India and the International Fund for Agricultural Development (IFAD) have signed a $45.78 million financing agreement to expand climate-resilient, market-oriented farming systems in Mizoram.

The project, titled Fostering Climate Resilient Upland Farming Systems in the Northeast (FOCUS 2.0), aims to transform agriculture in the state by integrating climate-smart practices with improved market access—moving farmers from subsistence-based cultivation to income-generating agribusiness models.

Scaling Up a Proven Success Model

FOCUS 2.0 builds on the success of its first phase (2018–2024), during which participating farmers recorded a 43% increase in income through integrated farming systems that combined:

• Climate-resilient agricultural practices

• Livestock support

• Enhanced access to markets

The new phase will expand coverage from 6 to all 11 districts of Mizoram, targeting 150,000 beneficiaries over six years (2026–2032).

“This programme scales up successful models from Phase I and links them to structured markets such as farmer-producer organisations and formal buyer arrangements,” said Marc de Sousa-Shields, IFAD Country Director for India.

Aligning with National and State Priorities

The initiative is closely aligned with:

• Mizoram’s Bana Kaih policy, which promotes self-reliance and sustainable livelihoods

• India’s broader agenda for inclusive and climate-resilient growth

By integrating local policy frameworks with global development expertise, the programme aims to create a locally rooted yet globally informed agricultural transformation model.

Addressing Structural Challenges in Mizoram

Agriculture in Mizoram faces multiple constraints:

• Small and fragmented landholdings

• Low productivity levels

• Heavy dependence on shifting cultivation (jhum farming)

• Vulnerability to extreme weather events

• Weak market linkages

Shortened fallow cycles in shifting cultivation have reduced yields and limited farmers’ ability to participate in formal markets.

FOCUS 2.0 is designed to address these challenges holistically by strengthening both production systems and market ecosystems.

From Subsistence to Market-Driven Agriculture

The programme will enable farmers and rural enterprises to transition toward market-oriented production systems by:

• Improving crop and livestock productivity

• Establishing aggregation and processing centres

• Enhancing storage and supply chain infrastructure

• Strengthening farmer producer organizations (FPOs) and self-help groups

• Facilitating linkages with agribusinesses and formal markets

This shift is expected to unlock higher value realization and stable incomes for rural households.

Climate Resilience at the Core

Given the region’s vulnerability to climate variability, FOCUS 2.0 places strong emphasis on climate-resilient agriculture, including:

• Adoption of sustainable farming practices

• Infrastructure designed to withstand extreme weather

• Diversification of livelihoods to reduce risk

These interventions aim to enhance both productivity and resilience, ensuring long-term sustainability.

Strengthening Rural Infrastructure and Inclusion

The project also prioritizes:

• Market infrastructure development

• Financial inclusion for farmers and rural entrepreneurs

• Digital integration to improve access to information and markets

These measures are expected to support the growth of small and medium agribusinesses, creating employment and boosting the rural economy.

A Longstanding India–IFAD Partnership

The agreement reflects nearly five decades of collaboration between India and IFAD. Over the past 49 years, the partnership has delivered:

• 36 rural development projects

• Total investment of $4.60 billion

• IFAD contribution of $1.52 billion

Currently, India and IFAD are implementing four ongoing projects, with investments totaling $325.6 million.

Toward Inclusive Growth in the Northeast

FOCUS 2.0 represents a significant step toward transforming agriculture in Mizoram into a resilient, market-linked, and income-generating sector.

By combining climate-smart practices, institutional strengthening, and market integration, the initiative is expected to serve as a replicable model for sustainable rural development in India’s Northeast and beyond.