World Bank Approves $325 Million Agriculture Project in Uttar Pradesh to Increase Farmers Income

World Bank has approved a $325.10 million project to transform agriculture in Uttar Pradesh (UP), aiming to boost farmers' incomes through improved crop productivity, digital integration, and climate-resilient practices. The Uttar Pradesh Agriculture Growth and Rural Enterprise Ecosystem Strengthening (UP-AGREES) Project will benefit one million farmers, primarily in the Eastern UP and Bundelkhand regions, by addressing longstanding challenges in agricultural productivity and post-harvest infrastructure.

Over the past decade, UP has emerged as a leading force in Indian agriculture, holding top ranks in wheat and rice production while achieving significant milestones in exports. Yet, small farmers continue to struggle with low yields, outdated infrastructure, and limited access to credit and modern farming tools. This project seeks to bridge these gaps by introducing innovative solutions, including timely and affordable credit mechanisms like the digital Kisan Credit Card (eKCC).

The UP-AGREES initiative will enhance agricultural value chains and encourage private sector participation, leveraging $15 million in private finance. Geographic clusters focused on key agricultural commodities and fisheries will be developed, fostering collaboration among farmers, agribusinesses, and public institutions. Notably, the project will support the proposed Integrated Agri-Export Hub near Jewar Airport in Greater Noida, positioning UP as a global player in agri-exports.

Sustainability is central to this initiative. By promoting low-methane rice varieties, converting rice residue into biogas, and optimizing fertilizer use, the project aims to reduce the environmental impact of agriculture on climate change while enhancing crop yields. Farmers and officials will receive training in climate adaptation strategies at a dedicated center, strengthening the state’s ability to implement sustainable agricultural practices.

Women farmers and entrepreneurs will play a crucial role in this transformation. Through targeted initiatives, they will adopt climate-resilient technologies, access advanced digital tools, and strengthen farmgate infrastructure. These efforts aim to enhance productivity, create jobs, and establish strong market connections both locally and globally.

The project’s financial backing includes a $325.10 million loan from the International Bank for Reconstruction and Development (IBRD) with a 33.5-year maturity period, including a six-year grace period.

Additional support will come from international partnerships, including France, Israel, and the Gates Foundation, ensuring a multi-faceted approach to agricultural advancement.