Germany funds IFAD with 13.7 million euros to promote agroecological value chains in India


Rome, 28 November 2022 - The German Federal Ministry for Economic Cooperation and Development (BMZ) has signed a supplementary agreement with the International Fund for Agricultural Development (IFAD).

Landnutzungswandel im Himalaya 
Landnutzungswandel im Himalaya © IFAD

With this, Germany is funding the project “Promotion of agroecological value chains in India and the Himalayan region” with 13.7 million euros.

Smallholder farmers who produce in an ecologically sensitive way often lack access to markets and income.

The project therefore aims to increase the incomes of small, agroecologically producing farmers and their associated rural micro/small and medium enterprises (MSMEs) by

  • facilitating their access to markets,
  • stimulating investments to increase value addition, and
  • improving the marketing of sustainable food in local, regional, and national urban markets.

is achieved. The objective is not only to strengthen and increase local agroecological value chains, but also to obtain healthier and increasingly sustainably produced food.

The medium- to long-term goal is to build a stable organic production system in the Indian Himalayan region and parts of central and western India.

Target groups are small-scale agricultural producers, women, youth and agricultural entrepreneurs who invest in agroecological production methods.

Background information

Since IFAD's inception in 1977, Germany has provided a total of $711 million in core funding for IFAD's work on climate change, gender equality, and food and nutrition security, and has advocated for equitable and sustainable food systems.

In addition, Germany has provided promotional loans of up to EUR 800 million through the Kreditanstalt für Wiederaufbau (KfW).

With its latest contributions, Germany has provided a total of EUR 167 million in additional funding to support the development of inclusive sustainable value chains, climate adaptation and youth employment. 

Germany is thus making important additional structural and sustainable contributions at a time when food security is under pressure around the world and climate change is increasingly being felt by farmers.

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