New Delhi
The World Bank has approved a new initiative aimed at helping farmers in Kerala adapt to climate change and boost agri-entrepreneurs in marketing value-added products. This program will also unlock at least $9 million in commercial financing for small and medium enterprises (SMEs) in the agri-food sector, with a focus on supporting women.
Kerala is a major producer of spices, contributing about 20% of India’s agri-food exports. However, climate change poses significant challenges, with natural disasters like floods and wildfires affecting farming households and limiting access to larger markets.
The $200 million Kerala Climate Resilient Agri-Value Chain Modernization (KERA) Project is designed to enhance the resilience of the state’s agriculture to climate change. Approximately 400,000 farmers will benefit from improved access to climate-smart practices, including the replanting of resilient coffee, cardamom, and rubber varieties, as well as the expansion of “food parks” into rural areas. These parks will provide essential infrastructure such as water, power, and waste management to support food processing and value-added activities.
The project will also promote productive partnerships between farmer groups and agribusinesses, strengthen ties between producers and buyers, and encourage agri-tech startups. With the support of a $200 million loan from the International Bank for Reconstruction and Development (IBRD), this initiative aims to boost productivity for staple crops while reducing greenhouse gas emissions, ultimately enhancing the competitiveness of Kerala’s agricultural sector and creating new jobs.
