India and the Asian Development Bank, ADB, have signed a 67.6-million US Dollars loan agreement to support agriculture and boost investment for agri-business infrastructure in Bihar. The loan will help expand agricultural value chains and facilitate better linkages for small scale farmers with processors, agri-business entrepreneurs and service providers in Muzaffarpur and Patna-Nalanda regions of the state.

This will help farmers, traders and other value chain stakeholders to improve their products and processes, become competitive and adapt to changes in end markets. The programme will also enhance livelihoods by benefitting farmers, the landless poor and women through creation of additional employment opportunities.

The loan is the first tranche of a 170-million US Dollars multi tranche financing facility under the Agribusiness Infrastructure Development Investment Programme. The programme was approved by the ADB Board in September 2010 to boost private sector investment in agri-business infrastructure in selected regions of Bihar and Maharashtra.

According to an official release, the loan agreement was signed between Joint Secretary in the department of Economic Affairs Venu Rajamony and ADB country director Hun Kim. Speaking on the occasion, Mr Rajamony said, the programme will promote a more inclusive agri-business value chain and efficient market-oriented farming among small landholder farmers. He said that the programme aims to leverage private sector investment and management into agri-business infrastructure through a public-private partnership mode.

Mr. Kim said the investment programme will help scale-up future models for agribusiness operations in the country