Implementation Status & Results India Maharashtra Agricultural Competitiveness Project (P120836)

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1 Public Disclosure Authorized Public Disclosure Authorized The World Bank Implementation Status & Results India Maharashtra Agricultural Competitiveness Project (P120836) Operation Name: Maharashtra Agricultural Competitiveness Project (P120836) Project Stage: Implementation Seq.No: 5 Status: ARCHIVED Archive : 11-Feb-2013 Country: India Approval FY: 2011 Product Line: IBRD/IDA Region: SOUTH ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key s Board Approval 28-Sep-2010 Original Closing Planned Mid Term Review 15-Oct-2014 Last Archived ISR 29-Jul-2012 Effectiveness 20-Dec-2010 Revised Closing Actual Mid Term Review Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective (PDO) is to increase the productivity, profitability, and market access of the farming community in Maharashtra. This would be achieved by strengthening farmers' capacity through technical knowledge, market intelligence, and market networks to support diversification and intensification of agriculture production aimed at responding to market demand. Farmers will also be assisted through farmer organizations, alternative market channels developed outside of regulated markets, and improved services provided by modernizing the promising traditional wholesale markets. Has the Project Development Objective been changed since Board Approval of the Project? Yes No losure Authorized Public Disclosure Authorized Component(s) Component Name Component Cost Component A : Intensification and Diversification of Market-led Production Component B : Improving Farmer Access to Markets Component C : Project Management, Learning and Adjusting Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Implementation Status Overview The critical reforms vis-à-vis allowing the establishment of private agriculture wholesale markets; contract farming; direct purchase from producers by agri businesses and removal of minimum distance criteria are leading to the emergence of alternative market arrangements outside the regulated markets. Though the process started off slowly, in past one year there has been a steady acceleration especially in setting up of Private Wholesale Markets. Maharashtra has been able to attract an investment of Rs 328 million (US$ 6.56 million), Page 1 of 6

2 till date, in private wholesale markets. Licenses for 27 such markets were issued, of which 23 are functional. Most of these markets have come up for cotton and the total annual turnover (FY11-12) of these markets is at Rs million (US$ 215 million), capturing a significant market share of APMCs For example, Sillod APMC and Wani APMC have seen a reduction in the arrival of Cotton once the private markets started to function. This trend of private markets capturing a significant share of APMC trade is seen across various locations where private markets have been successfully established. The emergence of Private markets has forced some traditional regulated markets to reduce market fees / cess. There are instances where the regulated markets have reduced their Cess from 1% to 0.75% in the last one year. Most of the project management issues, especially the appointment of a full time Project Director, and funds flow issues have been resolved, though the real test for funds flow will come later, when payments for contracts start and there is significant progress in the field level implementation. Posts of Chief Financial Controller and Nodal Officer Animal Husbandry Department have been filled and the process of recruitment of M&E specialist at the PCU has been initiated. Funds flow problem has been resolved by and large. Of the budget of Rs million approved for the project for FY 12 13, Rs 530 million has been already received by the project. Field level implementations have started. In physical terms, construction work has started in 52 rural haats against the target of 100 in Phase 1 districts (work order is expected to be issued in a month s time for another 37 rural haats); modernization of 8 APMC markets has started against the target of 30 in Phase 1 district (it is expected that work will be initiate in another 12 markets by end Dec 2012). Work on rehabilitation and improvement of MSWC warehouse is on target (17 warehouses rehabilitated and food grain laboratories established in these warehouses). In agriculture, close to 6600 demonstrations have been conducted on cluster basis in convergence with other GoM schemes. Similarly, the Department of Animal Husbandry (DoAH) has undertaken various activities, including animal health camps, fodder demonstrations, and formation of small ruminant farmers groups. Locations Country First Administrative Division Location Planned Actual India State of Maharashtra Yavatmal India State of Maharashtra Washim India State of Maharashtra Wardha India State of Maharashtra Thane India State of Maharashtra Solapur India State of Maharashtra Shingwe India State of Maharashtra Satara India State of Maharashtra Sangli India State of Maharashtra Ratnagiri India State of Maharashtra Ramtek India State of Maharashtra Rahata India State of Maharashtra Pune India State of Maharashtra Parbhani India State of Maharashtra Palghar India State of Maharashtra Osmanabad Page 2 of 6

3 Country First Administrative Division Location Planned Actual India State of Maharashtra Narayangaon India State of Maharashtra Nanded India State of Maharashtra Nagpur India State of Maharashtra Nagpur India State of Maharashtra Kolhapur India State of Maharashtra Kolhapur India State of Maharashtra Karjat India State of Maharashtra Junnar India State of Maharashtra Jalgaon India State of Maharashtra Indapur India State of Maharashtra Dhule India State of Maharashtra Devgarh India State of Maharashtra Chandrapur India State of Maharashtra Chandrapur India State of Maharashtra Buldana India State of Maharashtra Bhandara India State of Maharashtra Aurangabad India State of Maharashtra Amravati India State of Maharashtra Akola India State of Maharashtra Akola India State of Maharashtra Vashi India State of Maharashtra Washim India State of Maharashtra Jalna India State of Maharashtra Hingoli India State of Maharashtra Ahmednagar Page 3 of 6

4 India State of Maharashtra Gondiya India State of Maharashtra Garhchiroli India State of Maharashtra Latur India State of Maharashtra Bid India State of Maharashtra Sindhudurg India State of Maharashtra Raigarh India State of Maharashtra Nashik India State of Maharashtra Nandurbar India State of Maharashtra Bhigwan Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target The share of wholesale price receivedby the Percentage Value farmer The share of retail price receivedby the farmer Percentage Value Changes in crop yields. Number Value Cereals (Kg / Ha) Number Value Pulses Number Value Oilseeds (kg/ha) Number Value Page 4 of 6

5 Fruits (Kgs/Ha) Number Vegetables (Kgs/Ha) Number Compliance with business standards by office of Director of Marketing Value Value Percentage Value Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target No. of Farmers utilizing the Market Information Number Value Services via SMS. (No.) Volume of sales of market transactions in Rural Metric ton Value Haats (RH) Value of sales of market transactions inrural Amount(USD) Value Haats (RHs) Change in lease value of Rural Haats (RHs) Amount(USD) Value Volume of sales of market transactions in Metric ton Value APMCs Markets Value of sales of market transactions in Amount(USD) Value APMCs (Markets) Data on Financial Performance (as of 12-Dec-2012) Page 5 of 6

6 Financial Agreement(s) Key s Project Ln/Cr/Tf Status Approval Signing Effectiveness Original Closing Revised Closing P IDA Effective 28-Sep Nov Dec-2010 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P IDA Effective XDR Disbursement Graph Key Decisions Regarding Implementation No key decisions for disclosure. Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Page 6 of 6

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