World Bank’s US$ 200 million project to help Kerala’s farmers

The World Bank’s US$ 200 million KERA Project aims to help Kerala’s farmers combat climate change through climate-smart practices, agribusiness expansion, and increased market access. The initiative will support 400,000 farmers and enhance opportunities for women-led SMEs, creating productive alliances and fostering innovation in agri-tech to build resilience across Kerala’s agricultural sector.

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The World Bank has approved a US$ 200 million initiative to support Kerala’s farmers in adapting to climate change while modernizing the state’s agriculture sector. Known as the Kerala Climate Resilient Agri-Value Chain Modernization (KERA) Project, this venture will promote climate-smart farming practices, open up new market opportunities, and strengthen networks among agribusinesses across the state. The project also targets leveraging at least US$ 9 million in commercial finance for agri-food SMEs, particularly those led by women.

Kerala, a major producer of spices like cardamom, vanilla, and nutmeg, contributes about 20% of India’s agri-food exports. However, climate-related challenges such as floods and forest fires have increasingly disrupted production, impacting the livelihoods of local farmers. The KERA Project aims to benefit approximately 400,000 farmers by providing access to climate-smart methods suitable for Kerala’s diverse crops, including the replanting of climate-resilient varieties of coffee, cardamom, and rubber. Additionally, the project plans to expand food parks into rural areas, offering essential infrastructure like water, power, and waste management for agribusinesses focused on food processing.

Auguste Tano Kouamé, the World Bank’s Country Director for India, emphasized that this project will foster private sector investment and create integrated agricultural value chains. Special support will be given to women entrepreneurs, with targeted training on business planning and assistance in accessing finance. To enhance market connectivity, the project will also establish productive alliances between farmer groups and agribusinesses, while incubating agri-tech startups to drive innovation.

Task Team Leaders Chris Jackson, Azeb Mekonnen, and Amadou Dem highlight that the KERA Project will improve productivity for crops like rice and reduce greenhouse gas emissions. With a loan maturity of 23.5 years and a 6-year grace period from the International Bank of Reconstruction and Development (IBRD), this project represents a transformative step toward sustainable and resilient agriculture in Kerala.