| Project Detail |
Himachal Pradesh is a small state with more than 50% of its areas in mountains and less than 10% in cultivation. The states economic growth in the 1990s was driven by agriculture and its allied activities, but has gradually shifted to the industrial/manufacturing and services sectors. Still, Himachal Pradesh is the only state in India where 90% of the states population live in rural areas and nearly 62% of the state population relies on agriculture and its allied sectors for employment. Despite the importance of agriculture in the livelihood of large rural population, there is a distinct agricultural development gap between the northern (or temperate horticulture areas) and southern (or subtropical horticulture areas) parts of Himachal Pradesh. Subtropical horticulture farmers earn only $116 per month while temperate horticulture farmers earn about $1,550 per month.
Project Name Himachal Pradesh Subtropical Horticulture, Irrigation, and Value Addition Project
Project Number 53189-002
Country / Economy India
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 4291-IND: Himachal Pradesh Subtropical Horticulture, Irrigation and Value Addition
Ordinary capital resources US$ 130.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector
Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development - Agricultural production - Agriculture research and application - Agro-industry, marketing, and trade - Irrigation - Rural market infrastructure
Gender Equity and Mainstreaming Effective gender mainstreaming
Description Himachal Pradesh is a small state with more than 50% of its areas in mountains and less than 10% in cultivation. The states economic growth in the 1990s was driven by agriculture and its allied activities, but has gradually shifted to the industrial/manufacturing and services sectors. Still, Himachal Pradesh is the only state in India where 90% of the states population live in rural areas and nearly 62% of the state population relies on agriculture and its allied sectors for employment. Despite the importance of agriculture in the livelihood of large rural population, there is a distinct agricultural development gap between the northern (or temperate horticulture areas) and southern (or subtropical horticulture areas) parts of Himachal Pradesh. Subtropical horticulture farmers earn only $116 per month while temperate horticulture farmers earn about $1,550 per month. Temperate horticulture in northern Himachal Pradesh has been dominated by the production of apple, which is the most important fruit crop for the state accounting for 79% of the states fruit production in 2017 -2018. The state recognizes the need to diversity horticulture production. This is because apple production fluctuates due to weather and changing markets, and the potential to reduce income disparity between the northern and southern parts of Himachal Pradesh, benefiting from accessing off-season markets of other fruits and vegetables in the subtropical area. The State Government of Himachal Pradesh requested the Asian Development Bank (ADB) to support development of horticulture in subtropical areas of the state, and reduce income gap between farmers in subtropical and temperate horticulture regions.
Project Rationale and Linkage to Country/Regional Strategy The project aims to increase income of at least 15,000 farm households in seven districts of Bilaspur, Hamipur, Kangra, Mandi, Solan, Sirmour and Una in subtropical areas of Himachal Pradesh. At least 20% of the projects beneficiaries will be poor households. The project will expand irrigation to farmers, increase subtropical horticulture production and its climate resilience, and assure profitability of subtropical horticulture production through value chain development of targeted commodities.
Impact
Rural household income increased in Himachal Pradesh (Strategies for Doubling Farmers Income in Himachal Pradesh)
Climate resilience strengthened in Himachal Pradesh (Himachal Pradesh: Sustainable Development Goal 1) |
