India

Competitiveness Improvement of Agriculture and Allied Sectors Project in Jammu and

Kashmir (J&KCIP)

Project Design Report

Main report and annexes

Mission Dates: 03 Oct 2023 to 20 Oct 2023

Document Date: 08/03/2024
Project No. 2000003933
Report No. 6741-IN

Asia and the Pacific Division

Programme Management Department
Abbreviations and Acronyms
Currency equivalents
Monetary = Indian Rupees (INR)
Unit
1 US$ = 83.24 INR

Weights and measures

1 kilogram (kg) = 1000 g (2.204 pounds)
1 kilometre (km) = 0.62 mile
1 metre = 1.09 yards
1 square metre = 10.76 square feet
1 acre = 0.405 hectare
1 hectare = 2.47 acres or 20 kanal
1 hectare = 10,000 m2 (0.01 km2 )

AWPB Annual Work Plan and Budget

BCR Benefit cost ratio
CAAA Controller of Aid Accounts and Audit
CAG Comptroller and Auditor General
CoE Centre of Excellence
COSOP Country Strategic Opportunities Programme
CPE Country Programme Evaluation
DA Designated Account
DAP&FW Department of Agriculture production and farmers Welfare
DEA Department of Economic Affairs
DioA Directorate of Agriculture
DioH Directorate of Horticulture
DioSH Directorate of Sheep Husbandry
DioF Directorate of Floriculture
EC Executive Committee
EFA Economic and Financial Analysis
FIG Farmer Interest Group
ERR Economic rate of return
ESMP Environment and Social Management Plan
FM Financial management
FPO Farmer Producer Organization
FY Financial year
GAP Good Agricultural Practices
GDP Gross Domestic Product
GoI Government of India
GoJ&K Government of Jammu and Kashmir
GRM Grievance redressal mechanism
HADP Holistic Agriculture Development Programme
IFAD International Fund for Agricultural Development
IFR Interim Financial reporting
ILSP Integrated Livelihoods Support Project
INR Indian Rupee
IT Information technology
JKCIP Jammu and Kashmir Competitiveness Improvement Project
JKCIP- JKCIP-Project Management Unit
PMU

LAMP Livelihood and Access to Markets Project

M&E Monitoring and Evaluation
MIS Management Information System
MoF Ministry of Finance
MTR Midterm review
PA Project Account
PIM Project Implementation Manual
POs Promoting Organizations
SC/ST Scheduled caste and Scheduled Tribe
SDGs Sustainable Development Goals
SEA Sexual harassment and sexual exploitation and abuse
SKUAST- Sher e Kashmiri University of Agricultural Science and Technology – Jammu
J
SKUAST- Sher e Kashmiri University of Agricultural Science and Technology – Kashmir
K
US$ United States Dollar
J&K Jammu and Kashmir
In line with IFAD mainstreaming commitments, the project has been validated as:

☐ Be gender transformative ☑ Be youth sensitive ☐ Be nutrition sensitive ☐ Prioritize persons with disabilities ☐ Prioritize
indigenous peoples ☑ Include climate finance ☑ Build adaptive capacity

Executive Summary

Context and rationale: India is the world's second most populous country, and the third-largest economy in purchasing power
terms. Despite strong economic growth, there is uneven progress in reducing poverty, with an extreme poverty rate of about 13.8
percent. India has made significant strides in food production, but crop yields are still lower than global and regional standards.
However, between 2005-2006 and 2020-21, India lifted 415 million people out of poverty. In J&K (Jammu and Kashmir),
approximately 13 percent of the population are considered poor, and the literacy rate is 67.2 percent, with a notable gender literacy
gap of 20.3 percentage points.[1] The project's focus on high-value agricultural and horticultural crops aligns with the Government of
India's strategy to double farmers' income and the J&K Development Report.

Special aspects relating to IFAD's corporate mainstreaming priorities. This project aims to address multiple challenges in the
J&K region, including poverty reduction, gender inequalities, youth engagement, climate change, and environmental issues, all
aligned with IFAD's priorities. It emphasizes broadening the definition of poverty to include human poverty[2] due to isolation,
remoteness and lack of infrastructure investment. About 56.4 percent of women in J&K are literate compared to 76.8 percent of men.
J&K is bestowed with a predominantly young population with about 69 percent of the population below the age of 35 years[3]. With
limited opportunities for employment in traditional sectors, youth are increasingly opting for self-employment and entrepreneurship.
The region, situated in the fragile Himalayan Ecosystem, faces urbanization-driven warming[4], leading to biodiversity loss and
water-related challenges due to climate change. Developing agriculture and allied sectors, especially focused on high-value crops,
has the potential to increase farmer’s income sustainably and address the concerns of poverty, gender and youth while also
addressing climate and environment related issues. The JKCIP's focus on economic empowerment through productivity
enhancement, value addition, and enterprise development aligns with IFAD's strategic objectives and the government’s priorities.

Rationale for IFAD involvement: IFAD's involvement in this project is justified by several factors: (i) Experience with Smallholder
Farmers - IFAD has a successful track record of working with smallholder farmers and value chain strategies in India, which have
effectively increased farmers' income over time, especially in the Himalayan region; (ii) Global Expertise - IFAD can tap into crop-
specific global technical expertise to enhance the capabilities of the project in J&K; (iii) Strong Network of Partners-IFAD has a well-
established network of partnerships in India and elsewhere, allowing it to harness the strength of community organizations in order to
develop group response models; (iv) Alignment with Geographic Targeting-The project aligns with the geographic targeting outlined
in the Country Strategic Opportunities Programme (COSOP), focusing on disadvantaged regions, particularly those with significant
rainfed areas; and (v) Supporting Government Efforts -IFAD's involvement provides an opportunity to collaborate with the
government and introduce innovative solutions to double the income of impoverished and marginalized farming communities. It also
provides an opportunity to unlock the full potential of the GoJ&K’s flagship programme on Holistic Agriculture Development
Programme (HADP) aimed at transforming the agriculture in J&K from subsistence to a sustainable and commercial agri-economy.
Above all, with a large population of youth and a high potential for improving its agriculture and horticulture sector competitiveness
J&K provides an opportunity for a strong partnership with IFAD to bring timely and appropriate technical and financial support to
catalyse dynamic rural transformation.

Lessons Learned: This project design has considered the recommendations of the Country Programme Evaluation (CPE), 2016 and
the Country Strategic Opportunities Programme (COSOP), 2011-2017 completion report and Mid Term Results Review of COSOP
2018-24 (May 2023). Likewise, the International best practices and lessons learned from various projects of IFAD within India and
abroad have been considered. They include: (i) Alternative Marketing Channels - Opening alternative marketing channels can lead to
increased efficiencies in traditional marketing channels, and investing in market infrastructure can lead to increased farm sales and
better market prices for farmers; (ii) FPO Mobilization - Successful FPO mobilization should prioritize building businesses as a
starting point with sustainability of the business as a key consideration; (iii) Beneficiary Participation- The participation of beneficiaries
and local stakeholders in project implementation ensures smooth execution, success, and sustainability, especially in conflict-
affected areas; (iv) Integrated Approach- An integrated system, linking production, processing & value addition and marketing, is
essential for resource optimization and maximizing benefits; (v) Climate Resilience- JKCIP encourages adaptive practices and
provides incentives for public and private farm-based investments; (vi) Business Partnerships- Building business partnerships
between smallholders, private entities, farmer cooperatives, and government are crucial for sustainable and mutually beneficial
agribusinesses; and (vii) cost sharing is critical to buy down risk and meet immediate cash flow needs leading to the success of the
project promoted interventions.

Project goal and objectives: The goal of the project is to contribute to the sustained increase in incomes of rural households by
improving the competitiveness and climate resilience of farming operations. The project objective is to improve the competitiveness
and climate resilience of the farmers through a value chain approach, covering production, value addition and marketing of high-value
niche commodities from agriculture, horticulture, and allied sectors of J&K.

Geographic areas of intervention: The project will be implemented in all 20 districts of J&K. The project design has adopted an
exclusion strategy to minimize environmental safeguards and other related challenges by excluding Blocks/ Villages that fall adjacent
to the border and are ecologically sensitive including forest buffer zone areas, and biodiversity hotspots. The project will be
implemented in 90 out of 285 Blocks finalized by (Agriculture Production Department (APD) using a scoring system based on Block
level data on key value chains, levels of poverty, contiguity of blocks, existence of vulnerable communities and higher levels of
vulnerability to climate change events.

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Targeting and target groups: The total number of direct beneficiaries of the project will be 300,000 of which 141,000 will be women
(47 percent), 90,000 youth (30 percent) and 30,000 vulnerable communities (SCs/STs) (10 percent) corresponding to 300,000
households and in total reaching 1.5 million individuals[5] The main target group would comprise resource-poor farmers and rural
households, involved in farming in areas with the potential for cultivation of high-value niche crops and horticultural crops, using
climate-resilient and environment-friendly technologies. The target group will also comprise the vulnerable communities including
pastoralists, fishermen and other Scheduled Caste (SC) and Scheduled Tribe (ST) communities.

Project Components/Outcomes: The project will have four interlinked components: (i) Climate-smart and market-led production; (ii)
Agri-business ecosystem development support; (iii) Support to vulnerable communities; and (iv) Project Management.

Climate-smart and market-led production. Under this component, the project will take up three major activities: upscaling of
collectivization, niche crop support and horticultural crop support. The main aim of this component is to address the value chain
constraints of small and marginal farmers related to production and productivity by introducing better management practices and
expanding the area under cultivation of climate-resilient and high-value agriculture and horticulture crops.

Collectivization of farmers/ small producers is the core on which the cost-effective service delivery and aggregation of inputs and
outputs for achieving economies of scale will be built to ensure market-oriented production. The project will shift from target oriented
FPO promotion[6] to building sustainable businesses as the core of FPO mobilization process. The project will support the
establishment of 45 new FPOs and strengthening of 56 existing FPOs. The main outcome of this intervention is the provision of new
or improved services by 70 percent of the supported FPOs.

J&K’s agro-climatic conditions offer potential for revival and expansion of high-value niche crops, such as saffron, black cumin (kala
jeera), off-season vegetables, etc. Farmers in the region had traditionally been growing these crops but due to low returns on these
crops for a variety of reasons, their interest in growing these crops had diminished. The main value chain constraints include low
productivity and production, high cost of production and non-availability of good quality planting materials[7]. The project will build
capacity and introduce climate smart and good agricultural practices (GAP), support farmers for area optimization and diversification
under high-value niche agricultural crops with improved water management systems, nursery development and protected cultivation.
The project will mainly support the training of 1,085 trainers and 16,200 farmers, support 800 water management systems, 1,650
protected cultivation units and the expansion of niche crops in approx. 2,800 ha covering over14,000 farmers. The main outcome of
this intervention is the adoption of new/improved inputs and services by 70 percent of households supported for niche crops.

Horticulture remains the mainstay of J&K economy and produces large quantities of temperate fruits and nuts. The value chain
constraints include poor management practices including lack of understanding and implementation capacity of climate adaptative
measures, inadequate availability of quality planting materials, low productivity and production and high cost of production. The
project will build capacity and introduce climate smart and good agricultural practices, better management practices in a business
mode for existing orchards, expand and intensify area under diversified horticultural crops (nuts, stone fruits and pome fruits in
addition to apple), and introduce measures to transform CoEs into resilient, market driven commercial entities. The project will
support the training of about 3,250 trainers and 16,200 farmers, establish 320 nurseries, 550 water management systems, expansion
of fruit and nut crops in 1,545 ha covering 7,725 farmers and 375 ha of rejuvenation covering 875 farmers. The main outcome of the
intervention is the adoption of new/improved inputs and services by 70 percent of households supported for horticultural crops
intensification and diversification.

Agri-business ecosystem development: This component is linked with Component 1 and builds on production and productivity
enhancement. It will cover market led enterprise promotion in processing, value addition, and marketing of agri and allied sector
produce to enable better price realization for the small producers/farmers. The main value chain constraint related to value addition
and marketing is the inadequate levels of private investment in agribusiness.

Enterprise promotion by the private sector with a focus on generating corresponding bank finance is the key to enhancing
investment. In consideration of women’s key role in processing, this activity will largely focus on youth and women, particularly young
women. The climate risk assessment will be carried out as a part of risk assessment procedure and adequate adaptation and/or
mitigation measures will be ensured. The project will provide matching grants (for establishing agri-business enterprises with special
preference for women and youth in terms of differential matching grant and intensive business planning support. In order to reduce
elite capture, the percentage grant will decline as the size of investment increases (capped) and will be tied to access to finance. The
project will work with banks for financial product/model development to improve the quality of financial proposals, enhance
qualification, introduce collateral alternatives, cash flow-based lending and improve affordability for medium to long-term financial
products. The project will provide business development services and support the establishment of over 85 business-led enterprises
that will act as mentors to over 1,100 individual enterprises. The main outcome of this intervention is the improved profitability of the
agri-enterprise with 70 percent of the enterprises reporting an increase in their profits.

Market promotion is the key to improving market linkages and thereby, enhancing price realization. The project will introduce the
concept of Multi-Stakeholder Platforms (MSPs) in J&K to enable the establishment of sustained relationships of farmers and FPOs
with the private sector. The project will also establish/ improve market outlets, conduct buyer-seller meets and support brand
development and promotion. The project will support 12 state-level MSPs, participation in trade fairs by 150 entrepreneurs, 28 Buyer-
Seller meets and product development, J&K brand development and brand promotion. The main outcome of this intervention is
establishing improved market linkages for 70 percent of the enterprises.

Incubation and start-up activity aims to create a vibrant ‘agri-tech start-up culture’ in J&K with a focus on youth. They will contribute to
strengthening the agri-business ecosystem. The project will mentor business ideas that emanate from rural areas and from
vulnerable communities through the creation of business incubator spokes at the district level. In addition, the project will organize
ideathons/boot camps at each district, provide mentoring support and seed funds, and scaling-up support to link the start-ups with
finance from banks and other programmes. The project will support 350 start-ups, and it is expected that at least 120 of them will
scale up by accessing funds from banks and other financial institutions. The main outcome of this intervention is the establishment of

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start-ups with 70 percent youth ownership.

Support to vulnerable communities: The project, in consonance with the targeting priorities of IFAD, supports the most vulnerable
groups comprising STs, SCs and fisher folks to diversify their livelihood options and to increase their levels of income.

Pastoralists comprising largely STs are migratory and have large herds of sheep and goats. Significant support is being provided to
them by the government. The main constraints include low wool prices and limited efforts on equine and goat breed improvement.
The project will support a market assessment of the wool sector in J&K and based on the recommendations of this study establish
required facilities for wool harvesting and marketing with the private sector. The project will also support an equine and goat breed
improvement programme. The main outcome of this intervention is improved wool prices with 50 percent of the pastoralists reporting
an increase.

Other vulnerable communities, comprising semi-settled STs including Gujjars, Bakerwals and Gaddis, SCs and fisher folks, will be
supported to diversify their livelihood options. The project will support 800 goat/sheep units, the establishment of 12 milk collection
units linked to milk processing plants, the introduction of 10,000 ice boxes, and the establishment of 1,250 enterprises with technical
support for business plan preparation and mentoring. The main outcome of this intervention is the diversification of livelihood options
by 30 percent of the vulnerable households.

The project aims to integrate youth into the overall activities related to enterprise promotion. In addition, under this component, the
project will support the existing youth clubs at the panchayat level to develop awareness generation activities for protecting the
environment. The activities that these youth clubs will undertake include indigenous tree plantation drives, desilting village
ponds/tanks, organizing cleanliness drives in the villages, etc. The project will support 2,700 youth clubs for these activities each
comprising about 20 members. The youth clubs with at least 30 percent women members will receive higher levels of support. The
main outcome of this intervention is that 60 percent of youth clubs participate in community actions related to the environment.

Project Management: The project will support incremental staff, procurement of office equipment and furniture, internal and external
audits, reviews, committee meetings and operating costs. The project will support the establishment of a M&E unit within the PMU.
The project will also fund the establishment of a computerised and GIS-linked Management Information System (MIS). Allocations for
knowledge generation and dissemination, thematic studies, baseline survey, midline survey, end-line survey and project completion
report will be made. The project will support fostering an enabling policy environment for the development of agri and allied sectors,
which include policy related to walnut tree felling (harvesting), documentation needs to access government schemes by the
pastoralists, and public-private partnership development modalities, etc.

Theory of Change: There are challenges to sustainable agriculture growth in J&K, due to isolation, remoteness, higher cost of
production etc. Efforts to enhance production and productivity, with a focus on comparative advantage, remain critical to improving
the income levels of smallholder farmers. The other main challenges are: (i) poor management practices with limited focus on
intensification and diversification; (ii) insufficient investments in value addition, processing and enterprise promotion and market
development efforts; and (iii) limited livelihood diversification options for the vulnerable communities.

These challenges will be addressed by: (i) introducing GAP, water management systems, and expansion of the area under
cultivation of niche crops; (ii) introducing GAP, improved tree management practices, nursery development and expansion of area
and intensification under diversified horticultural crops; (iii) establishing agri-enterprises and start-ups; (v) establishing market
linkages, market development, and brand development and promotion, (vi) providing support to vulnerable/ nomadic /semi-nomadic
communities to diversify their livelihood options; and (vii) supporting policy dialogue and formulation, and standards development.
These interventions are expected to generate outcomes, which include improved performance of community institutions, improved
production and productivity, improved price realisation on account of value addition, and marketing and policy development relevant
to the sector. These outcomes will contribute to the project goal of contributing to a sustained increase in the incomes of rural
households.

Alignment, ownership and partnership: The project focuses on niche and high-value crops to support marginal and small farmers
in adapting to climate change events. It contributes to SDGs 1 - end poverty; SDG 2 - zero hunger; SDG 5 - gender equality; and
SDG 13 - combat climate change. The project aligns with the GoI's and GoJ&K’s (Government of Jammu and Kashmir) strategy of
doubling farmers' income, focusing on comparative advantage, productivity gains, value capture, and connectivity to new markets.
The project is also aligned with IFAD policies for mainstreaming. In addition, the three objectives of IFAD’s Strategic Framework
(2016-2025) are at the core of this project: (i) increasing the productive capacity of poor rural people; (ii) increasing their benefits from
market participation; and (iii) strengthening the environmental sustainability and climate resilience of their economic activities. The
project also adheres to the recommendations of the Mid Term Results Review of the India COSOP, specifically (i) Prioritize
interventions in promoting climate-resilient agriculture; and (ii) Lay more emphasis on building grassroots institutions and supporting
rural producers that help making rural economy more resilient. The project is gender mainstreamed, youth sensitive and contributes
to climate financing apart from supporting the Indigenous Peoples. APD has been involved in the project design and management
from the very beginning.

Project costs and financing: The total JKCIP incremental investment and recurrent costs, including price and physical
contingencies over seven years implementation period (spread over eight financial years) are estimated at US$ 217.2 million.
JKCIP will be financed as follows: IFAD financing is projected at US$100 million (46 percent of the total project costs);
Domestic financing from GoJ&K and beneficiaries is US$26.4 million & US$ 45.7 million (12 percent and 21 percent
respectively). Beneficiary contribution will be both in cash and in-kind (raw materials and labour). Convergence support is
US$3.4 million (2 percent), Private Sector comprising entrepreneurs from the J&K : US$20.7 million. Contribution from the
banks will be US$20.8 million. The climate finance is 7 percent of the total IFAD project amount .
Benefits and Economic Analysis: The total outreach of the project will be 300,000 households reaching 1.53 million
individuals. Cost-benefit analysis yields an overall IRR of 24 percent. The estimated NPV for a 7 percent discount rate is US$
480.4 million (INR 39.8 billion) and the BCR of 13.3. A positive NPV under the current opportunity cost of capital (OCC) of 7

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 percent indicates that the project investments are sound and robust. Under a scenario of costs increase by 20 percent and
benefits decline by 20 percent over the base-case, a 23 percent and 22 percent IRR respectively with a NPV of US$ 462.85
million and US$ 366.74 million are expected confirming the robustness and soundness of the project investments.

Exit strategy and sustainability: JKCIP's exit strategy builds on three key pillars of the project: (i) FPO Promotion and Support; (ii)
Niche Agricultural and Horticultural Crop Enhancement; and (iii) Enterprise and Market Promotion. The project will train FPO
members in sustainable agricultural practices, efficient resource management, while capitalizing on market trends. FPO mobilization
will begin with community-centric businesses, with support tied to performance against a graduated classification system, aiming for
self-sustainability, market ties, and increased services to membership. The project will boost production, productivity, and quality of
produced niche crops, expand agricultural areas, introduce GAP, and diversify horticultural crops. The project will support agri-
enterprises with business services, bank linkages, and matching grants to buy down risks, facilitating profitability and sustainability
and ensure a smooth exit. Systems will be established to utilize government grants for community benefit, fostering self-reliance and
sustainability for an easier project exit.

Project Risks: The overall project risk probability is rated “Moderate” and the residual risk is rated “Low”. The risk probability from
political and governance, macro-economic, sector strategies, technical soundness, institutional capacity for implementation and
sustainability, monitoring and evaluation arrangements, sector strategies and policies and environment are rated “Moderate”, and the
residual risk is rated “Low”. The financial management and procurement risks are rated “Substantial”.

Environment and social category: The environmental and social risk category for JKCIP is assessed as “Moderate[8]”. The project
is youth-sensitive, climate-adaptive and gender mainstreamed, and includes activities for indigenous people in select geographies.
The project will implement ‘Free, Prior, and Informed Consent (FPIC) to enhance tribal communities’ ownership. JKCIP will not work
in the Blocks with protected areas and will strictly adhere to ‘zero’ deforestation and forest encroachment with no risk to natural
habitat and biodiversity. The project is expected to improve farm diversity, regulate/ reduce chemical inputs, and improve farm health
through promoting good agricultural practices.

Climate risk classification [9]: The climate risk category of the project is determined as “Moderate”. The main climate risks for the
project include (i) a decrease in productivity and quality of produce due to hailstorms; (ii) increased incidences of new and existing
pests and diseases, and (iii) landslides. The project will promote climate-resilient production approaches. The capacity of government
line agencies and FPOs will be enhanced to access, interpret, and wisely implement weather-related information. SECAP-related
responsibilities are included in the terms of references of thematic specialists.

Organisational Framework: At the central level, DEA will be the nodal agency for the project and the APD of GoJ&K would be the
Lead Project Agency. The project implementation will be fully integrated into the Directorates and Universities under APD. Two broad
principles would govern the management structure for this project. They include: (i) alignment to the existing government structure;
and (ii) flexibility to make changes based on the requirements that may arise during the implementation phase. A PMU of JKCIP will
be established within the PMU of HADP as the overall priorities of the two projects are aligned and JKCIP is complimentary to HADP.
The JKCIP-PMU will be responsible for the project management, administration and coordination with GoI and IFAD. PMU will report
to a Secretary-level Officer of APD, who will be nominated as the Mission Director reporting to the Principal Secretary, APD.

The project’s governance will be harmonized with the existing four-tier project coordination structure of HADP comprising: (i) a
Central Apex Committee; (ii) an Empowered Committee; (iii) an Executive Committee; and (iv) District Level Committees
(DLC). Under JKCIP, the Executive Committee of HADP will convene a meeting on a quarterly basis and if necessary, by
region/province. This committee will be vested with the responsibility to provide strategic and policy guidance and overall
supervision and management of the project. The DLC will be responsible for implementing JKCIP at the district level, including
its supervision and monitoring and ensuring convergence. Harmonization between HADP and JKCIP is necessary to ensure
that communities have access to optimal and unified services as both work for the same goal. Hence it is essential that both
adopt similar principles and work in tandem to avoid sending conflicting messages to the stakeholders and prevent duplication
while learning from each other’s experience with the overall objective of creating sustainable solutions for the rural poor
communities.

Financial Management (FM), Procurement and Governance: The JKCIP-PMU will be responsible for the overall financial
management. GoJ&K will pre-finance project expenditures. JKCIP-PMU will consolidate the AWPB and incorporate into the budget of
APD. GoJ&K will release funds to the nodal account of APD maintained at a commercial bank with online banking services. The
JKCIP-PMU will release the budget to implementing partners for the implementation of project activities based on approved AWPB.
The project will submit to IFAD through CAAA quarterly WAs to reimburse IFAD’s share of project expenditures. The Federal Ministry
of Finance will maintain the Designated Account at the Indian Central Bank. All project implementing partners will have separate sub-
accounts of the project bank account of the APD PMU. The project accounting will be computerized and customized. Retroactive
financing will be provided to finance eligible project expenditures. Independent internal auditors will be engaged, and CAG
will conduct annual statutory audits to ensure compliance with GoJ&K and IFAD requirements. The resources required for
the project will be initially provided by GoJ&K and IFAD will reimburse the approved project expenditure as is the standard
practice with operations in India. Convergence funds are from existing schemes of GoI.

Procurement of goods, works and services shall be undertaken as per the provisions of IFAD Procurement Guidelines and IFAD
Procurement Handbook, as amended from time to time. Procurement arrangements under the project will be strengthened by
establishing a Procurement unit within JKCIP-PMU, headed by a Senior Procurement Specialist and engaging Procurement Officers
with all the implementing partners.

Planning, M&E, Knowledge Management and Communication: JKCIP-PMU will be responsible for the preparation of a
consolidated AWPB, which shall be based on the AWPBs of the implementing partners. The project will establish computerised and
GIS-linked MIS to monitor physical and financial progress, and achievement towards output targets. The project will conduct
baseline, mid-line and end-line surveys and thematic studies. A comprehensive KM action plan will be developed in the early stage

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of implementation. The project will generate and disseminate knowledge through a variety of knowledge products and events and the
creation of a website which will be regularly updated.

Innovations and Scaling up: The main innovations that have been considered in this project design include: (i) Business-led FPO
promotion; (ii) Holistic production support through a sub-project model of production expansion support; (iii) Agri-business incubation
and start-up support; (iv) Business leader-led enterprise promotion; (v) Entrepreneur-led service delivery and (vi) Digital climate
information and extension delivery.

Project Target Group Engagement and Feedback, and Grievance Redressal : In line with IFAD’s Framework for Operational
Feedback from Stakeholders, the project will promote transparency, governance, accountability, and full and effective participation of
stakeholders throughout the project cycle. JKCIP will engage with a range of stakeholders and use APD’s established systems in
place to check whether the resources of GoJ&K are spent in the targeted areas, transparency in the decision-making process is
maintained, and public rights and entitlements are adhered to and effectively implemented with the participation of targeted
beneficiaries and stakeholders. JKCIP will establish MSP, which will facilitate the preparation of production plan based on market
demand, ensuring the participation and concerns of women, poor, youth and Indigenous people (IP). JKCIP will regularly monitor the
FPOs and the participatory monitoring tools, such as the focus group discussions and surveys, and environmental and social
safeguard, will be used for regular tracking of the problems and progress. The project will also seek FPIC to ensure mutual respect
and full and effective participation in decision-making by the IPs.

Grievance redress: JK-IGRAMS, the GRM of GoJ&K will be strengthened in line with IFAD requirements for processing complaints
received from the community, aiming at identifying issues of conflict that may arise during project implementation. The project shall
immediately report to IFAD any allegations or reports of sexual harassment received in connection with the implementation of the
project and further actions will be initiated in line with the established procedures of IFAD.

Implementation plans: All activities under the project will be implemented by the officials of the Directorates and Universities under
APD, assisted by the technical assistance teams and Consultants, procured using an open and transparent procedure and calls for
proposals. The project will develop and support Farmers Interest Groups (FIGs) and FPOs who will implement grassroots-level
project activities[10]The project will build on the existing FPOs and develop value chain-specific FIGs and FPOs, who will be the
direct partners in implementing value chain related project activities. The activities related to agri-enterprise promotion, markets and
marketing will be largely private-sector oriented and will be implemented through them.

This project implementation will be spread over seven years. All the capacity-building efforts will be front-loaded. The project will
start regular implementation during the financial year, 2024-25 with initial capacity building activities during 2023-24. The APD has
shown its keenness for a rapid start-up and has set up a core team to be part of the detailed design mission.

Supervision, Mid-terms review and completion plans : This project will be directly supervised by IFAD, and annual Supervision
Missions will be conducted. A mid-term review (MTR) will be conducted by the end of the third year of the project to review project
achievements and implementation constraints. Close to the project completion point, the project will prepare a draft Project
Completion Report, and IFAD and GoJ&K will then carry out a Project Completion Review.

1. Context

A. National context and rationale for IFAD involvement

a. National Context

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1. National Context

2. India is the world's second-most populous country, and the third-largest economy in purchasing parity terms. India’s growth
continues to be resilient despite some signs of moderation. India was one of the fastest growing economies in the world with real
GDP growing at 7.7 percent year-on-year during financial year (FY) 2022-23. The overall growth momentum remains robust and
real GDP growth for FY 2022-23 is estimated to be 6.9 percent. [11] Despite resilience amid slowing global growth, there are
headwinds to India’s growth which includes faster-than expected inflation. Between 2011 and 2019, India is estimated to have
halved the share of the population living in extreme poverty.[12] Extreme poverty rate stands at about 13.8 percent. Challenges
to reduction in extreme poverty persist. Inequality in consumption continues, with a Gini index of around 35 over the past two
decades and high child malnutrition rates of about 35.5 percent.

3. Poverty (SDG 1), food security and nutrition (SDG 2), and smallholder agricultural and rural development context: The
Multidimensional Poverty Index (MPI) of India was down from 55 percent to 16.4 percent and India moved 415 million people out
of poverty during 2005-2006 – 2020-2021.[13] India’s rank is 66 out of 109 countries with an MPI score of0.069.[14] India’s
aspiration to become a high-income country by 2047 will require a climate-resilient growth process that delivers broad-based
gains to the bottom half of the population. Over the past six decades, India has been able to comfortably produce food for 1.25
billion people, but crop yields are still relatively low by global and regional standards. India has made rapid strides in lowering the
incidence of malnutrition; stunting in children below five years declined from 48 to 35.5 percent between 2006 and 2021.[15] The
National Food Security Act 2013 aims to ensure food and nutrition security for the most vulnerable.[16]

4. In India, the focus was on less profitable field crops due to food security concerns. This focus on field crops without considering
the comparative advantage of the production area to diversify into high-value crops remained one of the reasons for continued
high levels of poverty amongst smallholders. This is however changing, with greater support to smallholders to diversify into
more remunerative agriculture. About 70 percent of farmers in India are smallholder and they contribute about 41 percent of the
total food production. The Doubling of Farmers Income (DFI)[17] Committee, established by the Government of India also
recommends comparative advantage linked production and productivity enhancement and value addition to enhance the income
of farmers.

5. Jammu and Kashmir (J&K) context: About 12.8 percent of the population of J&K is “multidimensionally poor”. Literacy rate is
67.2 percent; one of the lowest in the country with a gap of 20.3 percentage points between male and female literacy rates. A
set of inter-related factors such as remoteness, limited connectivity, security concerns and low levels of investments
constrained the economic growth of the state of Jammu and Kashmir over the past decades. The Gross domestic product (GDP)
growth from 2004-05 to 2013-14 was 12 percent per annum, at least 2 percentage points lower than the national average.[18]
Following an improvement in the security situation and an upswing in economic activity since 2019, Jammu and Kashmir’s GDP
is expected to grow at 8 per cent between 2022 and 2023 at constant prices.

6. Government of Jammu and Kashmir (GoJ&K), in 2022, constituted an Apex Committee under the Chair of Dr Mangla Rai, former
Director General, Indian Council for Agricultural Research with a view to build a technology-driven, sustainable and remunerative
agro-economy by identifying the priority areas for interventions through improved policy and capital support.

7. The ambitious Holistic Agriculture Development Programme (HADP) with a total outlay of US$ 650 million came into effect in
April 2023. The design of JKCIP complements and supplements HADP by addressing existing aspects which are either not
covered or only partially covered such as support for vulnerable/nomadic/semi-nomadic communities, strengthening of FPOs/
collectives, and introducing orchard management practices on a business mode, etc. Additionally, the project focuses on the
“how to” part of implementation by proposing to introduce innovative business practices such as public-private-producer
partnerships (4Ps), processes for successful promotion of start-ups and incubation; systems for engaging more youth and
women in ongoing activities, utilizing grants to drive financial inclusion, etc.

b. Special aspects relating to IFAD's corporate mainstreaming priorities

8. Development of the agriculture and allied sectors in J&K with a focus on high-value niche crops and horticultural crops has
significant potential for significantly and sustainably increasing the income of farmers with reduced stress on the environment
and at the same time addressing poverty and challenges related to gender, youth, climate and environment.

9. Poverty: Though the extent of poverty (12.8 percent) in J&K is not high relative to other regions of India but groups of poor popu-
lations across the J&K exist. The conventional definition of poverty in terms of income poverty will have to be broadened in J&K
with the inclusion of “human poverty” in terms of denial of choices and opportunities for living a tolerable life on account of isola-
tion and lack of investment in infrastructure due to an environment of insecurity.[19] GoJ&K has been making serious efforts to
address these issues and this project will contribute to reducing the income poverty of J&K farmers by targeting a sustained in-
crease in farm income.

10. Gender: India ranked 91 out of 144 countries in a new index that measures global gender equality looking at aspects such as
poverty, health, education, literacy, political representation and equality at the workplace[20]. The female share in agriculture
labour force in India is rather high at 62.9 percent[21]. The agricultural and allied sectors hold a central position in J&K's
economy. The project will implement gender-inclusive strategies in relevant project intervention areas. The selection of some of
the value chains such as medicinal and aromatic plants (e.g. lavender and lemon grass), dairy, etc. have been done to maximize

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 greater involvement of women as women play a major role in these value chains. The project will support community institution
promotion and development with gender-inclusive policies. Activities such as start-ups, processing and other enterprises with
women in the lead resulting in women’s control over resources will be promoted with a higher level of incentivization for women.

11. The project will integrate gender considerations throughout the project cycle to promote Gender Equality and Women’s
Empowerment (GEWE) and ensure equitable development outcomes. The project will engage a Manager- Gender and Youth
who will prepare a Gender Strategy during the first year of project implementation in consultation with all the stakeholders
including project team. The Strategy will draw on the three pillars of the IFAD Corporate Gender Strategy (viz. Economic
empowerment; Equal Voice / equitable decision making and Equitable distribution of workload). A general outline to be adopted
while preparing Gender Inclusion Strategy and a Gender Action Plan are provided in PIM-Chapter 1-Appendix C1A4 and PIM-
Chapter 1-Appendix C1A5 respectively. The gender roles in key value chains are provided in Annex 14. The key aspects of the
Gender Strategy to promote gender inclusivity will include: (i) preferential treatment to women without compromising on
qualification and experience while engaging staff at all levels; (ii) targets for inclusion of women in leadership roles while
mobilizing FPOs and other community institutions; (iii) higher levels of incentives/matching grants/subsidies to women/youth
amongst the farmers/entrepreneurs for niche agri/ horticultural crop production and enterprise establishment ; (iv) higher levels of
support to youth groups with more than 40 percent women members for taking up environment related community activities; (v)
mechanisms to collect and analyse gender-disaggregated data instituted in MIS; and (vi) systems/ surveys to track progress in
gender inclusivity measures. The project intends to reach 141,000 women; 47 percent of the total beneficiaries and 27,000
women-headed households.

12. Youth: Jammu & Kashmir is bestowed with a predominantly young population with about 69 percent of the population being
below the age of 35 years. Low agricultural and associated sector productivity has hurt employment and per capita income
growth. The relatively higher rate of youth unemployment in J&K can be attributed to a number of interconnected factors,
including remoteness, extreme weather conditions in some parts, low savings and investment rates, high population growth,
declining small-scale industries, slow growth of infrastructure etc. further aggravated by the disruptions caused by acts of
terrorism. This situation has changed considerably over the last 3-4 years with the intervention of the government. Youth are
now interested in becoming entrepreneurs and seeking to become part of the mainstream. In order to provide a platform for
holistic implementation of all youth engagement and outreach initiatives, and to bring the interests and empowerment of youth to
the centre of policy making, government of Jammu & Kashmir has rolled out a pioneering initiative - Mission Youth where the
youths have been provided grants from the governments to start their own business/ enterprises. JKCIP will support youth
involvement in community institution promotion to achieve higher levels of participation by the youth in the process of decision-
making and implementation at the local and higher levels. In addition, the project will also support start-ups to enable the youth
to transform their innovative ideas into businesses. All interventions with the youth will include strategies for engaging young
women in particular. The project intends to reach 90,000 youth being 30 percent of the total number of persons receiving project
services.

13. Nutrition: India grows sufficient food and has the world’s largest public distribution system for food delivery. Malnutrition indic-
ator of J&K measured in terms of stunting has decreased from 35 percent to 28 percent to 27 percent from 2005-06 to 2015-16
to 2019-20 respectively. However, the percentage of underweight children decreased from 27 percent to 19 percent and slightly
increased to 21 percent during the same timeframe while wasting has fluctuated between 15 percent to 19 percent. Though an-
aemia has seen a rise J&K’s situation is comparatively lower than the country’s averages during 2005-06 and 2015-16, as stated
in the National Family Health Survey (NFHS-5) conducted by the International Institute for Population Sciences (IIPS) in 2019-
21. Undernutrition prevails notably among younger age brackets, particularly those aged 15-19, individuals residing in rural
areas, and women from scheduled tribes. On the other hand, overweight and obesity are notably higher among older adults,
urban residents, and well-educated men[22]. GoJ&K is implementing several initiatives to address malnutrition[23]. This project
will primarily work towards improving the socio-economic status of the J&K farmers by focusing on sustained income increase
as well as the production and productivity enhancement of horticulture and food crops which will result in their ability to access
improved diets for the family.

14. Climate and environment: India is among the countries most vulnerable to climate change. India's Nationally Determined
Contributions under the United Nations Framework Convention on Climate Change (UNFCCC) have been substantial. India is
on track to overachieve Paris Agreement targets after adopting its final National Electricity Plan in 2018 as per Climate Action
Tracker. J&K nestles in the fragile Himalayan Ecosystem. Large-scale urbanization drives the warming trend. Orography and
land use influence spatial distribution of rainfall and temperature. Human-induced landscapes and human activities play a key
role in altering the climate at a local and regional level. The projected climate change indicate hotter and moderately wetter
future for most of the districts in J&K. Heat waves are expected to become more common. Precipitation is expected to rise
slightly to moderately in the future, with much of the increase attributed to heavy downpours. The districts are more at risk due to
spatial and temporal heterogeneity. Rising temperatures and changing precipitation patterns could have effect on available
water resources. Floods and droughts are projected to become more common. Farmers are currently facing impacts of
hailstorms. The biodiversity loss and water owing to climate change are the greatest challenges for J&K over the coming
decades.[24] Smallholder farmers and target groups display a moderate awareness of climate risks and related adaptive and
mitigation measures. The project will address the climate change risks with investments in the promotion of climate-resilient
crops, the use of technology for reduced use of water, and the promotion of climate smart and good agricultural practices in
production support. The project will also promote technologies and practices for reducing the use of chemical fertilizers and
pesticides and will create appropriate environment for bio inputs production and use.

15. IFAD’s overall and country-specific results framework. The overarching goal for the IFAD country programme in India from
2018 to 2024 is to maximize its contribution to the government strategy for doubling farmers’ income. To achieve this goal, the
country programme has a single, focused strategic objective: Smallholder food and agricultural production systems are
remunerative, sustainable and resilient.[25] JKCIP’s focus is on the economic empowerment of smallholder farmers through
more productive farm systems and more profitable participation in agricultural markets and through the generation of agro-

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 related enterprises that create jobs and serve smallholder farmers along value chains which is in line with IFAD’s strategic
objectives. The project is also aligned to two of the key recommendations of the COSOP Midterm Results Review, notably (i)
prioritize interventions in promoting climate-resilient agriculture; and (ii) lay more emphasis on building grassroots institutions
and supporting rural producers that help making rural economy more resilient.

c. Rationale for IFAD involvement

16. The constantly growing demand for food combined with increased pressure on available farmland means investing in agriculture
is a necessity. The projections indicate that by 2050, population and economic growth will result in a doubling of demand for
food globally. Agricultural production is constrained by growing scarcity and diminished quality of land and water resources.
Building more sustainable agriculture and food systems is a priority to address these challenges.[26] Inability of the smallholders
to take advantage of their micro-climatic conditions and diversify into high value niche crops due to lack of support especially in
productivity enhancement and market access, impacts the overall income levels of smallholders as they continue to be fully
dependent only on food crops. The unique agro- climatic conditions of J&K offers opportunities for smallholders to earn enough
from high value niche agriculture and horticulture crops to be able to procure food as well as improve their overall economic well-
being. This requires sustained investment in agriculture and allied sectors and JKCIP plans its entire investment around this to
enhance their ability to improve production and productivity and will converge with the GoJ&K’s flagship HADP initiative.

17. The objectives of IFAD financing are to: (i) increase the climate resilient productive capacity of poor people; (ii) increase benefits
of poor people from market participation; and (iii) strengthen the environmental sustainability and climate resilience of their
economic activities. To achieve these objectives, IFAD supports projects that connect poor rural people to markets and services
to transform rural communities economically and socially, and foster gender equality and inclusiveness. JKCIP’s proposed
interventions are in full compliance with the objectives of IFAD and with the strategic objectives of IFAD’s India COSOP. Above
all, with a large population of youth and a high potential for improving its agriculture and horticulture sector competitiveness J&K
offers an opportunity for IFAD to bring timely and appropriate technical and financial support to catalyse dynamic rural
transformation.

18. This project concept is an outcome of an agreement between IFAD and GoI and several rounds of discussions between the
officials of the GoJ&K. Overall, the rationale for IFAD's involvement in this project is related to IFAD’s (i) extensive and
successful experience of working with smallholder farmers and value chain modalities in India to generate sustained income for
farmers, especially in the Himalayan regions; (ii) ability to leverage crop-specific global/technical expertise to strengthen the
capacities in J&K; (iii) strong network of partners in the country and elsewhere that has enabled leveraging the strength of
community organizations for developing group response models; (iv) alignment with geographic targeting identified in the
COSOP namely the disadvantaged areas particularly regions with large rainfed areas; and (v) opportunity to support
government efforts by innovating to develop smarter solutions for doubling the incomes of poor and marginalized farming
communities. This project fits well with the biodiversity strategy of IFAD to protect, restore and promote biodiversity and its
sustainable use in rural systems ensuring multiple benefits for both nature and the livelihoods of rural people by working on
diversification of existing climate resilient crops, and the introduction of good agricultural practices and water management
systems. The project area excludes biodiversity hotspots of J&K.

19. JKCIP contributes to the UN framework in the country. The project will contribute to three out of six outcomes of The United
Nations Sustainable Development Cooperation Framework (UNSDCF) signed for the period 2023-27. They include: (i) increased
access and consumption of adequate, affordable and diverse nutritious food, and quality services year-round by all; (ii) people
particularly women and youth benefit from and contribute to sustainable and inclusive growth through higher productivity,
competitiveness and diversification; and (iii) all stakeholders to take informed actions to address climate change.

20. IFAD has been actively involved in the agriculture working group of the G20 consultation under India’s presidency and has
presented on topics covering inclusive value chains, sharing its experience on how to promote stable and fair linkages between
small-scale producers and the private sector. JKCIP presents IFAD with an opportunity to support implementation of activities
related to value chains and private sector participation that are part of its core strength. It also provides an opportunity to unlock
the full potential of the GoJ&K’s flagship HADP programme aimed at transforming the agriculture in J&K from subsistence to a
sustainable and commercial agri-economy.

21. HADP of J&K is being planned for implementation across all the 285 Blocks of J&K and JKCIP intends to build synergy with this
programme in 90 Blocks as well as provide inputs from best practices to optimise the operations of HADP. This requires JKCIP
to act in tandem with the modalities of HADP particularly related to provision of matching grant. The grant component in J&K
remain high (50 percent) and the risks related to this such as elite capture, inability of the project’s target group comprising
smallholders, women and youth to access the grants and overall impact on the sustainability of grant making capacity of the
Government are anticipated. GoJ&K has indicated its interest to work with IFAD to develop new modalities and products for
grant making and reduce the grant component over a period by drawing on the best practices of IFAD funded projects and
experience from implementation of JKCIP. This will provide a window of opportunity to IFAD to provide inputs into the policies of
GoJ&K which help smallholders and entrepreneurs move towards self sustenance and ensure an equitable, broad based
approach and results.

B. Lessons learned

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22. Evaluation results: The Independent Office of Evaluation’s 2016 Country Programme Evaluation (CPE) and the 2011-2017
COSOP completion report concluded that most IFAD-funded projects in India achieved their objectives. The CPE concluded that
the traditional agricultural development approaches of IFAD were instrumental in improving basic subsistence conditions, but the
aspects related to the analysis of constraints and opportunities for rainfed agriculture development, and organization of
interventions around territorial and product clusters, which also facilitate connectivity to markets and value chains received
limited focus during the project design in the past. The 2023 COSOP Mid Term Results Review also suggested the need to
prioritize interventions on climate-resilient agriculture and the need to build grassroots institutions and support rural producers in
order to help rural economy become more resilient. JKCIP intends to address the issues of rainfed farming and value chains in
consonance with CPE findings as well as the issues of collectivisation and climate-resilient agriculture as per the COSOP
Review recommendations. The identification of value chains and geographic locations/ production clusters has been done
through a structured analysis of data available with Line departments and consultations with stakeholders and will be further
finetuned during implementation.

23. Opening alternative marketing channels leverages the increased efficiencies in traditional marketing channels. The field
reports from the IFAD-funded Livelihood and Access to Markets Project (LAMP) and studies from other donor agencies suggest
that the transaction costs in the traditional wholesale market reduce within a year of the emergence of a real alternative market
channel. The Integrated Livelihoods Support Project (ILSP) funded by IFAD has found that investing in market infrastructure led
to an increase in farm sales and a positive correlation between better market infrastructure and improved market prices received
by farmers. [27] Even if the project does not directly invest in creating market infrastructure refurbishing and upgrading existing
market outlets have similar impact.

24. Farmer Producer Organization (FPO) mobilization around a business that benefits the members is a critical need for
success. FPO formation in J&K has been target-oriented and mobilisation-focused without giving due priority to sustainability.
Successful FPO promotion requires Promoting Organizations with capacity to identify and build businesses as a starting point
for FPO promotion with sustainability as the key consideration for ongoing support[28].

25. Participation of beneficiaries and other local stakeholders ensures smooth implementation, success and sustainability
and facilitates implementation in conflict-affected areas. The demand-driven approach to be adopted by JKCIP requires that
its design, preparation, and implementation be driven by the smallholder farmers. The project recognizes the need for
considerable and sustained long-term support to community institutions comprising Farmer Interest Groups (FIGs) and FPOs.
Experience indicates that sustained outreach in remote areas, actively engaging local institutions such as youth clubs helps
build trust of the communities resulting in reduction/disappearance of apprehensions and impediments for implementation[29].

26. The establishment of an integrated system that links production, processing and marketing is necessary for optimum
utilization of resources and to maximize benefits. This lesson is evident from the implementation of both LAMP and ILSP
projects. This project addresses the issues related to market-linked production, processing, and marketing by placing a strong
emphasis on an integrated approach which combines investments in infrastructure with market-led production systems and is
supported by policy reforms where needed. For JKCIP the investment in infrastructure will primarily be done through ongoing
schemes of the government including HADP and the NABARD supported Rural Infrastructure Development Fund (RIDF).

27. Lack of operating and institutional mechanisms constrain implementation of state action plans on Climate Change. The
multiple State Action Plans on Climate Change for India provide a compilation of existing state government programs that
contribute to climate resilience, however they lack the operating and institutional mechanisms required for implementation[30].In
the case of JKCIP this will be undertaken by the project.

28. Need for business partnerships for sustainable and mutually beneficial agribusinesses: Innovative Poverty Reduction
Programme in Sichuan and Ningxia (IPRAD-SN) in China and the Rural Competitiveness Development Programme in Bosnia
and Herzegovina demonstrate the need to promote business partnerships between smallholders, private entities, farmer
cooperatives and the government for sustainable and mutually beneficial agribusinesses. Private investments in the organized
production base supported by the project have increasingly leveraged the engagement of farmer cooperatives and agro- entities/
Business Leaders. Functional partnerships with various networks and resources help in training, cooperative promotion and
market linkage.

29. Cost sharing is critical for success: The key lessons of the World Bank from implementing the Participatory Watershed
Development Project in Jammu and Kashmir include : (i) cost-sharing is critical for ensuring ownership and continued operations
of project-financed assets and hand-outs and full subsidies are to be discouraged; (ii) transparency of decision-making and
resource allocation is important to ensure that all community members are fully aware of project activities and benefit; and (iii)
watershed development project needs to take into account marginal groups (women, landless, nomadic tribes) who may not
directly benefit from project interventions unless targeted efforts are made by the project to cater to their unique needs.[31]

30. Challenges of resource poor households to access financial services. The experience with Tejaswini project in
Maharashtra indicates that considerable capacity building and demonstration of financial discipline is required to enable resource
poor households to access finance and particularly loans for agriculture related activities. India is developing digital infrastructure
to partly address the access related issues. The digital infrastructure of India is widening access to financial services in an
economy where retail transactions are heavily cash-based. It includes digital identification, interoperable payments, trust through
consent.[32] This digital infrastructure in India support not just open banking but open finance as well. As a result, the clients are
able to easily access financial services including loans. The Banks in J&K use core banking software and are digitally
interconnected between the financial institutions and also with other payment applications.

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2. Project Description

C. Project objectives, geographic area of intervention and target groups

Project Goal and Objectives:The goal of the project is to contribute to the sustained increase in incomes of rural
households by improving the competitiveness and climate resilience of farming operations. The project objective is to
improve the competitiveness and climate resilience of the farmers through the value chain approach covering production,
value addition and marketing of high-value niche commodities from agriculture, horticulture, and allied sectors of J&K.

31. Geographic areas of intervention: The project will be implemented in all 20 districts of J&K. A two-step approach was adopted
to finalise the list of Blocks where the project would be implemented. First, through an exclusion strategy to minimize
environmental safeguards-related and other challenges the Blocks/villages that fall adjacent to the border and are ecologically
sensitive including forest buffer zone areas, and biodiversity hotspots were excluded which comprised five national parks, 14
wildlife sanctuaries, 37 conservation reserves and 4 Ramsar sites. Thereafter, a list of 90 out of 285 Blocks were shortlisted/
finalized by APD using a scoring system based on Block level data on key value chains covering area under cultivation,
production, productivity and the number of farmers as well as the following key selection criteria: (i) higher levels of poverty as
per the socioeconomic indicators; (ii) potential for building value chain interventions for niche high-value and horticultural crops in
clusters; (iii) contiguity of blocks for operational ease; (iv) existence of vulnerable communities; and (iv) higher levels of
vulnerability to climate change events. A list of Blocks selected in consultation with the GoJ&K officials is provided in the Project
Implementation Manual (PIM), Chapter 1 - Appendix C1A1.

32. Targeting and target groups: The project will directly benefit 159,000 men and 141,000 women of which 90,000 would be
youth and 30,000 vulnerable communities (SCs/STs) corresponding to 300,000 households in total reaching 1.5 million
individuals.[33] The main target group would comprise resource-poor farmers and rural households involved in farming in areas
with the potential for cultivation of high-value niche crops and horticultural crops using climate-resilient and environment-friendly
technologies. The target group will also comprise the vulnerable communities covering pastoralists, fisherfolks and other SC and
ST communities as well as women and youth. JKCIP will target three categories of smallholders, namely; (i) poor; (ii) relatively
poor who have the potential to sell the products in the local market and gradually engage with the market; and (iii) commercially
oriented ‘non-poor’ smallholder farmers. The target group includes smallholder farmers and landless, and labourers involved in
agriculture and horticulture value chains. As the project plans to work on a value chain modality, it requires the involvement of all
the value chain actors including some non-poor who have the capacity to act as “lead farmers”. Their role will be to act as first
adopters, demonstrating innovative profitable technologies for small scale production and post-harvest handling, and to act as
intermediaries and/or nucleus farmers, as well as to ensure the critical aggregate volumes in specific locations to enable
effective access to markets. The level of support the project gives to this target group, will depend on their ability and
commitment to deliver the above noted services. The involvement of these farmers will thus enable economies of scale in
production and reduce transaction costs for aggregation and marketing Among all, 10 percent of beneficiaries will be of the poor
category, 70 percent in the relatively poor category and balance 20 percent will be non-poor. The target group for enterprise
promotion activities under Component 2 will be entrepreneurs who are residents of J&K and preference will be given to
smallholders, women and youth.Inclusion of smallholder producers, poor and vulnerable rural populations will be ensured by
selecting value chains that have evidence to deliver the biggest benefits to the largest number of poor and through extension of
agroecology-based climate-smart agriculture and good agriculture practices (GAP) technologies that benefit the intended target
group effectively. The focus will be given to the selection of a value chain with high returns on labour, high nutrition value and
high profitability. Labour-saving technology, tools and equipment will be facilitated in reducing the drudgery of women.
Approximately 47 percent of the total project target groups/ beneficiaries will be women and about 30 percent will be youth.

33. Of the total target group, it is envisaged that some 90 percent of the target group beneficiaries have the potential to improve their
economic well-being through agriculture and horticulture value chain interventions. A further 10 percent of the beneficiaries
comprising vulnerable groups will be supported to expand their livelihood options. JKCIP will sensitize and build the skills and
capacity of staff on targeting, gender and inclusion. Staff will orient and sensitize the stakeholders who will work with project
beneficiaries. The target group categorization and development pathways for each of the target groups is provided in PIM,
Chapter 1, Appendix C1A3.

34. Direct targeting: The project will support four main target groups adopting differentiated targeting strategies and packages of
interventions: (i) small and marginal farmers with less than 1.0 ha of land involved in only field crops; (ii) horticultural farmers with
less than 0.5 ha of horticultural farms; (iii) women and youth; (iv) isolated and migratory communities, women headed and
Scheduled Caste and Scheduled Tribe (SC&ST) households.

35. Self-targeting: The project will create opportunities for the community, especially the youth and women to start their own
enterprises in the processing and marketing of agricultural and horticultural produce. The project also aims to establish
incubation centres where support will be provided to young men and women for startups.

36. The project will also establish enabling measures to promote: (i) a favourable policy and institutional environment among
stakeholders and partners for inclusive economic prosperity; (ii) procedural measures to facilitate transparency in administrative
procedures and remove unintended obstacles that may hinder social inclusion and gender equality; (iii) empowering and
capacity-building measures to develop the capacity and self-confidence of those with lesser voice and power so that they can
articulate their needs and participate in planning, decision-making and project activities; and (iv) measures and activities to
enable sustained access to finance for medium to long term on-farm and off-farm investments.

1. The project intends to promote GEWE by supporting women smallholder farmers to improve production and productivity and

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 women entrepreneurs to establish enterprise. In total the project will support 141,000 women. The main activities of support
include the following:
1. The project will directly support 9,720 women to access production inputs and technological packages to diversify into
niche agricultural and horticultural crop, 360 women to establish enterprises and 105 women for establishment of start-
ups.
2. The project will support increase in the membership of women in FPOs by providing additional share capital support.
It is expected that about 9,090 women will become members of these FPOs. In addition, women’s inclusion will be
promoted in youth clubs and multi-stakeholder platforms and at least 30 percent participation is expected.
3. The project will support mechanization of activities that are dominated by women labour force. These include
nurseries, water management, harvesting, grading and sorting. These activities will help reduce the workload of
women.

D. Components/outcomes and activities

37. The project's main objective is to increase farmer incomes by improving the competitiveness of their agriculture and horticulture
economy keeping in mind the sensitivity of environmental and natural resources in the project area and adaptation practices that
strengthen the climate resilience of all beneficiaries involved. An ecosystem-based value chain approach which allows for
enhanced production of niche agriculture and horticulture crops to align themselves with integrated production and landscape
approaches and management practices that help diversify, protect, and enhance biodiverse ecosystems and their services will be
promoted. Promotion of climate smart and good agricultural practices, reduced and appropriate use of fertilizer and pesticide,
better water management practices promoting traditional varieties of crops and diversification of cropping have been integrated.

38. JKCIP’s primary focus is to address the production and productivity constraints of high value niche crops and horticultural crop
value chains through climate resilient technologies, and value addition, through grading, packing, storing and processing with
market linkages for improved price realization. GoJ&K has rolled out HADP with an investment outlay of INR 50,000 million and
covers the entire agriculture and allied sector ecosystem. JKCIP complements HADP by addressing thematic and financing
gaps to address the value chain constraints. The agro-climatic analysis, cropping system and livelihood and value chain
pathways are provided in PIM, Chapter 1-Appendix C1A6, Selection of value chains in PIM, Chapter 1-Appendix C1A7, value
chain profiles in PIM, Chapter1-C1A8 and details of select value chains in PIM, Chapter1-C1A9. It is to be noted that the agro
climatic zones are distinct for horticulture and niche agriculture crops with no overlaps expected between the farmers.

39. This project will have four inter-linked components: (i) Climate-smart and market-led production; (ii) Agri-business ecosystem
development support; (iii) Support to vulnerable communities; and (iv) Project Management.

40. Component 1: Climate-smart and market-led production

41. The main aim of this component is to address the value chain constraints of small and marginal farmers related to production and
productivity by introducing better management practices and expanding the area under cultivation of climate-resilient and high-
value agriculture and horticulture crops. The farmers will diversify into niche crops using a part of their land holding while
continuing with cereal cropping in other parts of their landholding. The food and nutrition security of the households will be
ensured in this way as well as through the wide range of government schemes being implemented in J&K.[34] J&K has a
comparative agro-ecological advantage to grow many high-value crops. It is to be noted that farmers in J&K have been
traditionally growing high value/niche crops such as saffron, aromatic rice, black cumin etc. However, due to lack of adequate
support and technical guidance, the farmers could not get high returns on these crops and over the years farmers’ interest in
growing these crops diminished. Through JKCIP the government aims to revive and optimise the production and productivity of
these crops and provide support for value addition and access to better markets to motivate more farmers to grow these crops.
Some of this support will also be under HADP which will be implemented across the whole of J&K . Hence it is important to align
the implementation with HADP so that the results and lessons could feed into the larger HADP programme. The project will
follow a participatory and demand-driven approach through analysis of market demand and feasibility to determine the
investment levels in these select value chains. The project intends to introduce modalities of grants coupled with access to
finance to introduce financial products for improving and sustaining access of smallholders to credit for agriculture and allied
investments. The grant modality will be blended financing through matching grant that will complement bank loans for the
entrepreneurs. The banks operating in J&K have required financial products and last mile access through branch network but the
risk perception for lending to agriculture and allied activities is high. However, with the uptick in the economic growth of J&K, the
performance of the banks is improving and their interest to expand loan portfolio remains high. Additionally, the project has made
allocations for developing risk mitigation measures during project implementation.

42. This will increase inclusivity for those farmers who may not be able to generate the “match” for the grants and make the grants
work harder to stimulate affordable finance.

43. The main outcomes expected from this component include: (i) improved productivity; and (ii) improved quality of production. The
outcome targets are provided below:

Indicator Baseline Target

Expected results: Improved productivity

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Productivity of Saffron (Kg/Ha) 3.0 7.5

Productivity of Kashmiri Chilli ((Kg/Ha) 5,000 15,000

Productivity of Apple (MT/Ha) 12.0 16

Productivity of Walnut (MT/Ha) 6.25 7

Productivity of Mango (MT/Ha) 5.5 7

Productivity of Citrus (MT/Ha) 2.5 4

Productivity of Stone fruits (MT/Ha) 11.25 14

Expected result: Percentage of production marketed as A grade/premium product

Saffron (Percentage) TBD 95

Vegetables (Percentage) TBD 65

Kashmiri Chilli (Percentage) TBD 65

Apple (Percentage) 40 60

Mango (Percentage) 30 30

Stone fruits (Percentage) 20 45

Citrus (Percentage) 20 30

44. Upscaling collectivization: Collectivization of farmers/ small producers is the core on which cost-effective service delivery and
aggregation of inputs and outputs for achieving economies of scale can be built to ensure market-oriented production. This will
also form the basis for broad based community engagement/ farmers’ participation in the project. The current FPO promotion
efforts in J&K are target-oriented and start with registering/creating organizations without a focus on the need for such
institutions. Experience from other areas shows that when mobilization is done with a business idea that has the potential to
bring benefits to the community such a mobilization has a higher chance of success. Three modalities will be followed to support
FPOs: (i) support for existing FPOs; (ii) FIG promotion to allow them to organically grow into FPOs[35]; (iii) support of existing
Cluster Level Federations (CLFs)/Cooperatives and associations to grow into FPOs. The project will invest in a three-pronged
strategy to promote FPOs which include: (i) building the capacity of the Promoting Organizations (POs) to build the core
competence of promoting FPOs around a viable business; (ii) provision of support on a tapering basis to inculcate the principle of
climate resilience and sustainability from the very beginning; and (iii) participatory business planning for the establishment of
businesses and facilitation for bank finance designed for FPO business activities. These elements will be implemented through a
systematic delivery of services tailored to the needs of the FPOs, using a graduation model approach ultimately leading to
sustainable and “fit for purpose” FPOs. The FPOs will be rated on a regular basis against a scorecard to assess their progress
towards sustainability using grading tools developed in IFAD supported projects in India and elsewhere.

45. Upscaling of collectivization will start with a business proposition that will help the farmers to move into organized farming such
as aggregation of inputs for reducing cost of cultivation and aggregation of output for accessing markets and to get better prices.
Improved collectives will enhance farmers’ capacity to tackle climate disaster such as road blockage due to flood or landslides
by ensuring proper processing and storage facility. In addition, the FPOs will also act as building blocks to develop structured
value chains and as buffers to address cashflow fluctuations and variability in harvest performance. The expected outcomes
include improved performance of the FPOs and the outcome targets are provided below:

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Indicator Target

Expected results: Improved performance of Rural Producers’ Organizations

Percentage of Rural Producers’ Organizations reporting new or improved services

70
offered by their organization

Percentage of Rural Producers’ Organizations reporting an increase in sales 70

46. The project will support 101 FPOs (including mobilization of 45 new FPOs) covering 30,300 members at 300 members per FPO
covering capacity building, management cost, matching equity and business establishment.

47. Niche agricultural crop support: J&K’s agroclimatic conditions offer the potential for expansion of specialty area specific
crops that are high value and with high market demand and generally called niche crops. The main value chain constraints
related to niche-crops include low productivity and production, high cost of production and non-availability of good quality
planting materials. This project will improve the climate resilient production systems and productivity as well as the quality of the
produce of the niche agri-crops. The project will support the introduction of climate resilient and improved management practices
with the introduction of Good Agricultural Practices (GAP) and promote area optimization and diversification of niche crop
cultivation. The focus will be on select value chains of climate resilient niche crops. Saffron, off-season vegetables and aromatic
rice (mushk budji) are the core/primary agricultural value chains and other secondary value chains include spices and medicinal
and aromatic plants.

48. The major activities will include: (i) capacity building to introduce GAP including farm and pest (insect, disease and weeds)
management best practices; (ii) seed system development and support for the development of vegetable seed production and
seed certification systems with private sector participation; (iii) introduction of GAP coupled with area optimization and
diversification; and (iv) support for the introduction of business practices into the Centre of Excellence (CoE) and development of
a Tulip focused CoE.

49. The project support in introducing better management practices such as production and use of quality planting materials,
harvesting practices and post-harvest handling will improve quality. The expected outcomes include improved use of GAP
coupled with area optimization and diversification under high value and niche agricultural crops and the outcome targets are
provided below:

Indicator Target

Expected results: Improved adoption of new/improved inputs and technologies and increased area under niche crops

Percentage of persons/ households reporting adoption of environmentally sustainable and climate resilient
70
technologies and practices for niche crops

Area optimization and diversification under niche agricultural crops (Ha) 2,805

50. In total, the project will: (i) support training 1,085 trainers and field staff and 16,200 farmers; (ii) develop seed systems in 50
villages; (iii) 16 seed businesses; (iv) 800 water management systems; (v) 1,650 protected cultivation units; and (vi) expansion of
niche crops in 2,805 ha covering 14,025 farmers.

51. Horticultural crop support: Horticulture remains the mainstay of J&K economy and produces large quantities of temperate
fruits. The value chain constraints related to production include poor management practices, inadequate availability of quality
planting materials, low productivity and production and high cost of production. This project will support horticultural crops
(apple, plums, cherry, pear, mango, litchi, walnut, almond and pecan nut) to take advantage of the agroecological zones in J&K.
Apple, walnut, almond, litchi and mango are the core/primary horticultural value chains and other secondary value chains include
plums, cherry, pear and pecan nut.

52. The major activities will include: (i) capacity building to introduce GAP including tree and pest management best practices in a
business mode using specialists from the private sector; (ii) establishment of weather advisory services; (iii) nursery
development to supply quality planting materials suitable to predicted climate change scenarios; (iv) introducing business
orientation to horticultural CoEs; (v) study of the issues related to the expansion of area under HD/MD apple cultivation; (vi)
support for the introduction of tree management practices for enhancing climate resilience and improving yields including
rejuvenation of existing orchards; (iv) horticultural crop area optimization, intensification and diversification with a focus on
diversified fruit and nut crops.

53. The expected outcomes include improved use of GAP coupled with better tree management practices, improved climate

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 resilience, area optimization, intensification and diversification of fruit crops. The outcome targets are provided below:

Indicator Target

Expected results: Improved adoption of new/improved inputs and technologies and increased area under horticultural
crops

Percentage of project participant persons/ households reporting adoption of

environmentally sustainable and climate resilient technologies and practices for 70
horticultural crops.

Area optimization, intensification and diversification under horticultural crops (Ha) 1,545

54. In total, the project will: (i) support training 3,256 trainers and field staff, and 16,200 farmers in GAP; (ii) introduce business
orientation to business to 2 horticultural CoEs; (iii) 320 nurseries; (iv) 550 water management systems; (v) 200 ha of solar
fencing; (vi) expansion of fruit and nut crops in 1,545 ha covering 7,725 farmers; and (v) 375 ha of rejuvenation covering 1875
farmers.

55. Climate resilient technology development: The project will support: (i) the development of climate resilient technologies for
both niche agricultural crops and horticultural crops by providing support to SKUASTs to develop these technologies and to
conduct field trials; and (ii) support to community institutions/youth clubs to implement pilots related to use of climate resilient
technologies.

56. Component 2: Agribusiness ecosystem development

57. Agricultural production to be meaningfully developed has to happen in response to market opportunities, and, vice-versa,
productivity and quality gains will enable farmers to access, and compete in new markets. It is therefore essential that
components 1 and 2 are implemented in close coordination, and that services are tallied with respect to the varying needs of the
farmers in the different locations etc. This will be achieved through a participatory and demand driven approach and efforts will
be undertaken to systematically expand outreach of the activities to ensure high level of community participation in the proposed
activities. Farmers will be involved in planning project interventions and guiding about their preferences and short to medium
term priorities. This will involve the transition to a greater focus on commercial production, while ensuring continued household
food and nutrition security. Concerned households will be best placed to assess crop choices and the level of diversity in view of
achieving income targets and managing production and market risks.

58. The main outcome expected from this component is an increase in farm gate price and the outcome target is provided below:

Indicator Target

Expected results: Improved farm gate price

Percentage of farmers reporting increase of at least 20 percent in farm gate prices 70

59. Enterprise promotion support: As a part of agri-business ecosystem development, the project will support enterprise
promotion by the private sector with a focus on generating corresponding bank finance. This activity will largely focus on youth
and women, particularly young women, with adequate measures to address climate change impacts and improve environmental
sustainability. It is expected that 30 percent of the clients under enterprise promotion will be women. The project will introduce
high tech machinery and care will be taken to introduce machineries that have been proven effective and economical. The
project will provide business development services for facilitating joint business planning by the entrepreneurs with the project
and bank officials, provide matching grants for establishing agri-business enterprises and facilitate bank loans. The grant regime
and the financing plan for various investments proposed under the project matching grant is provided in PIM-Chapter 2-
Appendix C2A1. Two key modalities to promote enterprise will be followed: (i) a Business-led enterprise development model
wherein the Business Leader becomes the mentor and provides market linkages and mentors a group of farmers or small
entrepreneurs; and (ii) an individual entrepreneur model wherein the individual entrepreneur establishes an independent
business with B2B and B2C facilitation and support for participatory business planning. These modalities will be farmer centric
with a view to increase the farm gate prices and will systematize transfer of knowledge and experience. The project will work with
banks leading towards (i) a common understanding of the requirements of the banks for applications and financial proposals and
production of the same; and (ii) financial product/model development to enhance possibility of qualification, introduce collateral
alternatives, cash flow-based lending and improve affordability for medium to long term loan products.

60. The main outcome expected from this sub-component is improved profitability of the agri-enterprise.

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Indicator Target

Expected results: Improved farm gate price and improved profitability of agri-enterprise

Percentage of rural enterprises reporting an increase in profit at an annual rate of at least

70
10 percent

61. The project will provide business development services and support the establishment of 87 business-led enterprises that will act
as mentors and 1,117 individual enterprises.

62. Market promotion support: The project will introduce the concept of Multi-Stakeholder Platforms (MSPs) to enable the
establishment of relationships with the private sector for promoting production based on the market requirement. MSPs are
helpful in exchanging learning and solving producers’ issues, including climate impacts, and familiarizing them with new and
improved technologies. MSPs will facilitate the identification of market players interested in working with the farmers/FPOs to
shift to the premium product category, for example, by producing vegetable seeds instead of vegetables. MSPs can also be
useful in addressing industry issues, such as traceability, certification, standards, and even types and uses of contracts between
stakeholders. MSPs will also ensure that voices of all stakeholders are heard and taken into consideration.

63. Most niche crops have well-established market systems, but it is necessary to keep exploring newer markets to absorb
additional quantities. The project will also establish market outlets, conduct buyer-seller meets, and support brand development
and promotion.

64. The main outcome expected from this sub-component is improved profitability of the agri-enterprise.

Indicator Target

Expected results: Improved market linkages

Percentage of supported enterprises benefiting from improved market linkages 70

65. The project will support: (i) 12 state-level MSPs;(ii) participation in trade fairs by 150 entrepreneurs; (iii) 28 Buyer-Seller meets;
and (iv) product development, J&K brand development and brand promotion coupled with ICT4D solutions to enhance
traceability and transparency of pricing and product. Since premiumization is the key to increasing the income of farmers,
GoJ&K has requested support for the establishment of an Export/Logistic Hub to focus on the export/domestic market for
agriculture, horticulture, and allied products. This plan needs further deliberations and feasibility assessments. The project will
support the engagement of highly experienced Consultant(s) from the sector to further develop the concept of Export/Logistic
Hub with a feasibility study considering the prioritized value chains and target commodities, export/domestic market potential,
and current constraints of the exporters/traders including lack of suitable logistic infrastructure and phytosanitary and quality
certification requirements, private sector participation requirements and ownership and management structure of the
Export/Logistic Hub. Once this study is finalized, the project will develop and implement a plan for operationalizing Export
Hub/Logistic Park in consultation with IFAD.

66. Incubation and start-up: The main aim is to create a vibrant agri-tech start-up culture in J&K with a focus on youth and
contribute to strengthening the agri-business ecosystem. The youths will be attracted to engage in environmentally sustainable
and climate resilient solutions. The entrepreneurs will be able to assess climate and environmental risk to the business, from
production to marketing, and come up with innovative solutions to practice and upscale. Youth will be selected using a
competitive process through ideathons and hackathons conducted at the level of incubator spokes. The details of this selection
process and mentoring support are provided in PIM-Chapter 2- Section C- Incubation and Start-up. SKAUST-Jammu and
SKUAST-Kashmir have established Incubation Centres and started the process of incubating start-ups that can disrupt the
markets with innovations. These incubation centres have infrastructure and provide physical space to entrepreneurs to meet and
share ideas and to operate during the initial phase. The project will expand this programme to mentor business ideas that
emanate from rural areas and from vulnerable communities through the creation of business incubator spokes at the district
level. The project will support: (i) mentoring of the Incubation Centres with SKUAST-J and SKUAST-K; (ii) establishment of
Business Incubator spokes in each of the KVKs; (ii) conducting ideathons/boot camps at each district; (iii) providing mentoring
support and seed funds with requisite training for conducting market surveys and developing business plans; (iv) scaling up
support to linking the start-ups with finance from banks and other programmes such as Rashtriya Krishi Vikas Yojana – Raftar
(RKVY-Raftar)[36].

67. The project in conjunction with interested financial institutions and other project partners and based on a rural finance strategy to
be created at onset, will develop at minimum 4 pilots to drive access to finance for different target clients, including but not
limited to: project smallholders and their organizations. These pilots will have four closely related elements to address the
identified demand and supply constraints for rural finance: (i) DEMAND- a) Facilitate linkages of FPOs, MSMEs and producers
to financial institutions providing credit and insurance products; and 2) Business and financial literacy and capacity building for
farmer members, FPOs and MSMEs in the target VCs, and (ii) SUPPLY – a) Development of retail accessible financial products

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 (not limited to credit) with financial institutions, utilizing complementary and alternative collateral and risk sharing instruments
and partnerships, including options for a more effective and catalytic use of project’s matching grants and potentially including
private sector through VC co-finance and customized to the market demand, including climate-smart investments and
investments by youth and women-led businesses; and b) improve outreach and footprint of partner financial institutions, utilizing
VC actor/FPO marketing, screening and delivery mechanisms including supporting ICT4D designed to improve outreach, reduce
costs and minimize risks. Underpinning these pilots will be the assumption that the project is building good businesses and
therefore attractive investment/lending opportunities.

68. The main outcome expected from this sub-component is improved youth participation in start-ups.

Indicator Target

Expected results: Improved youth participation in enterprise development

Percentage of start-ups supported with youth ownership achieving sustainability 60

69. The project will support 350 start-ups and it is expected that at least 120 of them will scale up by accessing funds from banks
and other financial institutions. Young women will be encouraged especially to come up with ideas for start-ups and will be
provided preferential financial support from the project.

70. Component 3: Support to vulnerable communities

71. The STs comprising pastoralists and semi-settled livestock grazers, SCs and fisherfolks are the most vulnerable communities of
J&K and they are at the forefront of experiencing impacts of climate change. The project in consonance with the mainstreaming
priorities of both GoJ&K and IFAD intends to support them. As a first step in implementing these activities, the project will
conduct a Free, Prior and Informed Consent (FPIC) to solicit the approval of the STs prior to project implementation. Details are
provided in FPIC implementation Plan in Annex 12.

72. Support to pastoralists: Pastoralists (Bakerwalas) are migratory communities moving in search of pastures according to
seasonal pasture availability and weather conditions. GoJ&K has several schemes and programmes to support the pastoralists
that include basic health and education, animal health, transit camp facilities and the recently introduced transport of animals
from higher altitudes to lower areas. The main constraint that remains to be addressed is the issue related to the low-price
realization of wool. GoJ&K has introduced high-quality wool-producing animals, but the quality of the wool and the resultant price
realization remains unremunerative. Equines (ponies, horses and mules) are the main mode of transport and goats are also part
of the herd of pastoralists with limited investments in breed improvement.

73. The project will support a study of the demand and supply of wool and a market assessment of the wool sector in J&K and
based on the recommendations of this study establish required facilities for wool harvesting and marketing with the private
sector. The project will also support an equine breed improvement feasibility study and will establish necessary facilities based
on the recommendations of this study. In addition, support will be provided for goat breed improvement. For this, the project will
establish partnerships with ICAR-Central Institute for research on Goats, Farah, Mathura.

74. The main outcome from this sub-component is increase in wool prices and the outcome target is provided below:

Indicator Target

Expected results: Improved wool price

Percentage of pastoralists reporting improvements in wool prices 50

75. Support to other vulnerable communities: Gujjar are one of the largest Scheduled Tribe (ST) communities which is largely
settled but seasonally migrates to the neighbouring districts in search of fodder for their cattle. The Bakerwals, Gaddis,
Scheduled Caste (SC) and the fisherfolk communities are also vulnerable on account of their isolation from the mainstream
communities and dependence on common property resources. These communities depend on livestock and fishing. The project
will support diversification of their livelihood options. The main outcome expected from this sub-component is diversification of
the livelihoods of the vulnerable and the outcome target is provided below:

Indicator Target

Expected results: Diversified livelihoods of vulnerable communities

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Percentage of vulnerable households reporting diversification of livelihood options 30

76. The project will support: (i) the provision of 800 goat/sheep units; (ii) the establishment of 12 milk collection units linked to milk
processing plants; (iii) the supply of 10,000 ice boxes for preserving and selling fish in the market; and (iv) the establishment of
1,250 small scale enterprises with technical support for business plan preparation and mentoring to diversifying livelihoods.
Focus will be given to engage primarily women and youth. The project will engage with suitable technical agencies including
NGOs to implement the planned activities. It will link the enterprises to services and initiatives promoted under component 2,
including enterprises and market promotion support, financial partners,business incubation and start-up support.

77. Integration of youth: The project will support the integration of youth into project activities. The young men and women will be
encouraged and capacitated to create their own enterprises. The project will also focus on incubation and start-ups where the
young men and the women will be given special focus. In addition to these, the project will support the existing youth clubs at the
panchayat level to develop awareness generation activities for protecting the environment. The activities these youth clubs will
undertake include indigenous tree plantation drives, desilting village ponds/tanks, organizing cleanliness drives in the villages,
etc. These clubs will also be working as the focal points for disseminating the climate-related advisories at the village level. They
will increase awareness of the community to use these advisories in their day-to-day life and their farming practices. The project
will support 2,700 youth clubs for this activity. The project will provide additional support to youth clubs with more than 30
percent young women members. The project will build the capacity of the youth clubs using both technically qualified NGOs and
also private sector service providers as needed.

78. The main outcome expected from this sub-component is improved youth participation and the outcome target is provided below:

Indicator Target

Expected results: Improved participation of youth

Percentage of youth clubs participating in community action related to environment 60

79. Component 4: Project Management

80. Project Management: The project would allocate funds for engagement of incremental staff to largely manage compliance and
mainstreaming related domains. The project implementation will be mainstreamed into the working of the participating
Directorates and Universities who will be the project parties. The Directorates of Agriculture, the Directorates of Horticulture and
the Universities of Agricultural Science and Technology will be the main project parties. APD will be able to bring in other project
parties in consultation with IFAD. The project has made allocations for incremental compliance related staff in the
Directorates/Universities, procurement of office equipment and furniture, internal and external audits, surveys, reviews,
committee meetings and operating costs. A separate JKCIP PMU will be established within the PMU of HADP with clear
responsibilities for implementing JKCIP related activities.

81. Monitoring and Evaluation (M&E) and Knowledge Management (KM) : The project will support the establishment of an M&E
Unit and KM Unit within the JKCIP-PMU and will facilitate a shift from only output-based monitoring by embedding outcome-
based monitoring into the M&E system of the project. The project outcomes and outputs as well as the business plans will be
monitored at the field level. The project will support staff costs, procurement of office equipment and operating costs for M&E.
The project will also fund the establishment of a computerized and GIS-linked Management Information System (MIS) for
collecting and analyzing data. The project will implement some innovative pilots to reduce dependence on grants which will be
monitored and the lessons will be integrated into implementation of JKCIP as well as the larger HADP initiative. Allocations for
knowledge generation and dissemination, thematic studies, baseline survey, mid-line survey, end-line survey and project
completion report preparation have been made.

82. There are many potential areas for South-South Triangular Cooperation (SSTC) such as: (i) introducing and improving the
cultivation of high-value crops suited to the region's climate and soil conditions through sharing best practices, technology
transfer, and expertise in the cultivation; (ii) sharing successful water conservation techniques, efficient irrigation methods, and
sustainable water resource management strategies; (iii) sharing lessons and technology on establishing cold storage facilities,
improving transportation logistics, and implementing effective post-harvest technologies to reduce losses and increase the shelf
life of agricultural produce; (iv) developing collaborative projects to transfer advanced agricultural technologies, precision
farming methods, and the use of digital tools for crop monitoring and management; and (v) developing triangular cooperation that
can help establish connections with international markets, improve value chains, and enhance the overall competitiveness of
agricultural products from J&K. Prospects of SSTC with the countries that are strategically fit such as Bhutan, Nepal and Israel
for agriculture and horticultural products will be explored during implementation. Central Asian countries such as Kyrgyzstan are
best suited for SSTC covering the wool sector.

83. Policy support: The project will work towards fostering an enabling policy environment for the development of agri and allied
sectors which will be evidence based. The project will support studies on identified policy issues and organize consultations to
deliberate on the recommendations and prepare action plans to facilitate the government to address policy bottlenecks. The
policy issues identified include: (i) policy related to walnut tree harvesting; (ii) documentation needs to access government
schemes by the pastoralists; and (iii) public-private partnership development modalities. The project during implementation will

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 also identify other relevant issues and undertake thematic studies. Once the thematic studies are prepared, the project will
E. Theory of findings
present the Change and hold consultations to prepare and agree on relevant policy and process notes for consideration by the
Government. A policy engagement strategy will be detailed in the early stages of project implementation.
84. Despite record production of various food grains, and commercial and horticultural crops in India, crop productivity is much lower
than in other advanced and emerging market economies. The main issues are fragmented landholdings, lower farm
mechanisation and lower public and private investment in agriculture resulting in low levels of income for the farmers. This
situation is exacerbated by climate change-related losses in crop productivity and production. The situation in J&K is similar.
Despite favourable agro-climatic conditions for diversifying into more remunerative horticultural and agricultural niche crops,
small-scale producers have been constrained from optimising their land use due to limited access to information and services as
well as market inefficiencies.

85. The major challenges of J&K’s farmers include: (i) small and fragmented landholding and inadequate economies of scale; (ii)
slow process of change owing to a history of conflict and security challenges resulting in the inability to optimally benefit from the
comparative advantage of their geography; (iii) apple-centric horticulture promotion with poor management practices and limited
focus on intensification, better management practices, and expansion into other fruit and nut crops; (iv) insufficient investments
and focus on value addition, processing and enterprise promotion; (v) limited market development efforts, large number of
marketing intermediaries, and inadequate aggregation, storing and transportation facilities; (vi) limited livelihood diversification
options for vulnerable/nomadic/semi-nomadic communities living in isolated and remote locations; (vii) increasing climate
induced risks and lack of smallholders adaptation capacity and access to climate smart tools and technologies; (viii) youth
unemployment and unwillingness to engage in agricultural activities; and (ix) evolving sector strategies, and regulatory and
policy framework.

86. After 2019, conflict and security concerns were significantly reduced, and the environment has become more conducive for pro-
gressive change. Concerted efforts to address the existing challenges have been initiated and the development pathway envi-
sioned by the GoJ&K includes optimization and diversification of cultivable lands of small farmers to produce high-value niche
crops in a value chain mode and diversification and intensification of horticultural crop production coupled with climate sensitive
package of practices with support for value addition. To support the farmers in enhancing their productivity and output prices
and to attract more youth to the agri and allied sectors, a vibrant agri-business ecosystem comprising agri-enterprises, start-ups
and market promotion is needed. In addition, the development pathway for pastoralists/livestock rearers requires improvements
to existing livelihood options and diversification of their income sources.

87. The challenges in J&K will be addressed through (i) promotion of FPOs to address the issues of economies of scale and high
levels of transaction costs; (ii) support for the promotion of climate-resilient high-value niche crops to harness agroclimatic
advantages with GAP to introduce environment-friendly farming practices; (iii) support for expansion, quality improvement of
produce, diversification of horticultural crops with a focus on improved varieties, farm advisory and new technologies for
sustainable yield and production coupled with improved tree management environment-friendly GAP; (iv) support for
establishment of enterprises in the agriculture and horticulture sectors with support for start-ups with focus on youth; (v)
facilitation of market linkages, quality certification and develop and deepen the markets for agriculture and horticulture products
of J&K; (vi) support to vulnerable/nomadic/semi-nomadic communities to diversify their livelihood options; (vii) support to start
up, incubation for employment and income opportunity generation, and engage youth in local level environmental and climate
issues solution and (vii) support to policy dialogue and consultations.

88. These interventions are expected to generate outcomes, which include: (i) improved capacity of community institutions (FIGs
and FPOs) to support the interests of smallholder farmers; (ii) improved climate resilient production and productivity of select
niche agricultural and horticultural crops; (iii) better price realization through improved productivity and quality from better tree
management practices, post-harvest practices such a grading, packing and storage and value addition and processing; (iv)
improved marketing linkages for wool and milk with enterprise creation for livelihood diversification of vulnerable communities;
(v) increase in women and youth-led agri-enterprises, and (vi) policy development on gender, youth and climate mainstreamed
into sectoral policies and implementation modalities. These outcomes will improve competitiveness and climate resilience of
farmers through a value chain approach covering production, value addition, and marketing of high value agriculture, horticulture
and allied sector products supporting the project goal of contributing to a sustained increase in the incomes of rural households.

F. Alignment, ownership and partnerships

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89. Alignment with SDGs. With its focus on niche and high value and horticultural crops, the project will support marginal and small
farmers to adapt to climate change events by promoting climate-resilient farming techniques and crop varieties. The project will
contribute significantly to the achievement of SDG 1 - end poverty; SDG 2 - zero hunger; SDG 5 - gender equality; and SDG 13 -
combat climate change and its impacts.

90. Alignment with GoI: The project is aligned with the GoI’s strategy on doubling of Farmers Income which amongst others has
recommended focus on comparative advantage in terms of agro-climatic and techno-economic potential specific crops of the
region, production enhancement through productivity gains, value capture through value addition activities and connectivity to
new markets and exports. These remain the guiding principles of this project design.

91. Alignment with IFAD policies and corporate priorities. At corporate level, the project is aligned with IFAD policies for
mainstreaming. This includes Youth Action Plan, the IFAD Policy on Engagement with Indigenous Peoples, the IFAD Strategy
on Biodiversity (2022-2025. The project is gender mainstreamed, youth sensitive and contributes to climate financing apart from
supporting the Indigenous People. In addition, the three objectives of the IFAD strategic framework (2016-2025) are at the core
of this project: (i) increasing the productive capacity of poor rural people; (ii) increasing their benefits from market participation;
and (iii) strengthening the environmental sustainability and climate resilience of their economic activities.

92. Ownership: APD has been directly involved since inception in the design of the project.This project will be embedded APD
which will be responsible for project management and will be aligned with the HADP. The project implementation will be
integrated into the activities of various Directorates and Universities under APD and have been vested with the task of
undertaking all preparatory activities related to project design. This is also the model being followed by HADP.

93. Partnerships. The project's approach and implementation modalities are in harmony with the vision and strategies of GoJ&K as
also the agenda of the GoI to double farmers’ income. The project will converge with the ongoing schemes of the government to
bring maximum benefits to the communities and work in close co-ordination with HADP and the SRLM. It will build on the
existing platforms of FPOs and SHGs created under various government programmes. The project will work in partnership with
the two Agriculture Universities in Jammu and Kashmir to leverage their technical expertise as well as for promotion of
enterprises and start-ups. The project will also actively engage private sector partners primarily through Multi Stakeholder
Platforms. Partnership with technical and specialised organisations will be undertaken to provide specialised services, training
and handholding to various stakeholders/ end users. Banks and other Financing Institutions will be active partners in the project
to leverage financing for farmers/ entrepreneurs. Costs, benefits and financing

G. Costs, benefits and financing

a. Project costs

94. The total JKCIP incremental investment and recurrent costs, including price and physical contingencies over seven years
implementation period (spread over eight financial years) are estimated at US$ 217.2 million. This includes base costs of
US$160.5 million and estimated price and physical contingencies of US$ 56.6 million. The overall investment costs have been
estimated at US$153.1 million (95 percent of base costs) with recurrent costs at US$7.3 million (5 percent of base costs). The
breakdown of the costs by component and sub-component and financier in US$ is shown in Table 1 below.

95. Table 1: Total project costs by components & sub-components, and financier.

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96. Table 2 shows the breakdown of the costs by expenditure category including base costs and contingencies.

97. Table 2: Total project costs by expenditure category and financier

98. Table 3 shows the cost breakdown by component and sub-component and by year.

99. Table 3: Total project costs by component & sub-component and by year

b. Project financing/co-financing strategy and plan

100. JKCIP will be financed as follows: IFAD financing is projected at US$100 million (46 percent of the total project costs); Domestic
financing from GoJ&K and beneficiary contribution will be US$26.4 million and US$ 45.7 million (12 percent & 21 percent)
respectively. Beneficiary contribution will be in-kind (raw materials and labour). Convergence support is US$3.4 million (2
percent), Private Sector: US$ 20.7 million. Contribution from the banks will be US$ 20.8 million. The climate change finance is
estimated at US$ 50,776,000 which represents 50.7 percent of the total IFAD project amount against a corporate target of 40
percent.

101. Allocation of costs by component: Out of the overall project costs, component 1-Climate-smart and market-led production has
been allocated the biggest proportion of 52 percent, equivalent to US$ 113.4 million. Component 2-Agri-business ecosystem
development accounts for 34 percent equivalent to US$ 74.1 million, while component 3-Support to vulnerable communities
account for 10 percent which is equivalent to US$ 20.7 million. The Project Management component has been allocated US$ 9.0
million, (4 percent of the total costs).

102. The project legal documents will include retroactive financing provisions for US$ 5 million to finance consultancy and other
contracts. The retroactive financing facility will fund project activities for the period from PDR approval until entry into force.

c. Disbursement

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 1. GoJ&K will pre-finance JKCIP expenditures and request reimbursement from IFAD every quarter. DEA/CAAA (MOF) will
maintain the project Designated Account (DA) at the federal level and use it to transmit funds from IFAD. A Project Account
(PA) will be maintained by APD in a commercial bank operating in J&K with existing online banking services. JKCIP-PMU in
ADP will have a specific sub-account of the PA for each implementing partner. Once all supporting documents sent by project
partners are approved by the Head of Departments (HoD) of the APD, the JKCIP-PMU will release only necessary funds for
that specific transaction via the relevant sub-account of the partner. Project partners will make the final payment to contractors
and beneficiaries. There will be no advances to project partners.
2. Cost categories. The project will have six cost categories: (i) Training and Workshops; (ii) Consultancies; (iii) Goods,
Services, and Inputs; (iv) Equipment and Materials; (v) Grants and Subsidies; and (vi) Salaries and Allowances and Operating
expenses. For the IFAD loan, the ratio of recurrent expenditures to total project financing is 8 percent, which is within the 15
percent limit. The project management costs are only 5 percent of the total costs.
3. Interim Financial Reporting (IFR). Report-based disbursement modality will be applied to request funds from IFAD. The
JKCIP-PMU will submit consolidated quarterly IFRs within 30 days from the end of the relevant quarter. CAAA (MoF) will
submit a WA for reimbursement for the IFAD’s share of the amount spent each quarter.
4. Supporting documentation. The most recent IFRs will be attached to each WA. IFAD may ask for additional supporting
documents as deemed necessary.

d. Summary of benefits and economic analysis

103. Economic and Financial Analysis (EFA): The economic and financial analysis for JKCIP has been carried out mainly basing
on the project development objective. The objective of JKCIP is to improve the competitiveness and climate resilience of the
farmers through the value chain approach covering production, value addition and marketing of high-value niche commodities
from agriculture, horticulture, and allied sectors of J&K. Therefore, the models that have been developed for this EFA have
productivity metrics such as:

Increase in yields because of implementation of outcome 1, climate-smart and market led production which aims at improving
productivity and the quality of production.
Increase in farm-gate prices as a result of implementation of outcome 2, Agribusiness ecosystem development,
Reduction in post-harvest losses because of improved marketing linkages for wool and milk with enterprise creation for
livelihood diversification of vulnerable communities. These metrics are also linked to the project theory of change (TOC)

104. Beneficiary outreach & adoption rates: The direct target household (HH) beneficiaries for JKCIP for the proposed investment
are projected at 300,000 (HH) translating into 1,530,000 household members with an average HH size of 5.1 per HH. The
endline adoption rate is assumed at 49 percent according to log-frame indicator 1.2.2, Percentage of households reporting
adoption of new/improved inputs and technologies or practices. This corresponds to about 155,813 HH using gradual adoption
in the initial project years. The summary is presented in the table below.

105. Table 4: Aggregation No Phasing

106. Cost per beneficiary: The cost per beneficiary has been derived from total project costs divided by the target number of
households. The proposed total financing for JKCIP is US$217.2 million, and the estimated number of beneficiary households is
300,000. The cost per beneficiary HH is therefore computed at US$725 and US$142 for each household member assuming 5.1
people per HH. The analysis is presented in a summary table below.

107. Table 5: Programme costs and log-frame indicators

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108. Summary of Financial Analysis: The models for this EFA include: Saffron, aromatic rice and tomatoes (agri-niche crops),
cherry, plum, pear, apricot, peach, walnut, almond and apple (horticulture crops). Only the production models have been
considered without taking into account value addition. For crop models like apple, almond and walnut, analysis has been carried
out for both high and medium density production. All models show an increase in financial returns (per hectare) resulting from
the implementation of the proposed project intervention. Increased yields and farm-gate prices will be the key drivers for
increasing cash-flows. In the with-project (WP) scenario, it is assumed that yields and prices will increase, thanks to the project,
compared to the baseline (without project). The financial analysis demonstrates that all project scenario models are profitable
from a farmer perspective illustrating the financial effectiveness of project investments aimed at supporting innovation
adoption.The summary results are presented in Annex 4-Table 1. All models present positive financial viability in terms of
measurement using benefits cost ratio, financial internal rate of return and financial net present value. All financial incremental
cash-flows have been discounted for 10 years using a rate of 3.5 percent.[37]

109. Economic analysis: JKCIP is projected to yield a baseline Economic Rate of return of 24 percent with a positive Net Present
Value of US$480.4 million (INR 39.8 billion). All quantifiable economic benefits have been discounted over a period of 20 years
including 7 years of project implementation using a rate of 7 percent which is the current interest rate on long term
bonds/treasury bills in India.[38]The baseline ERR of 24 percent is higher than the discount rate used for economic analysis
which confirms the justification of the proposed investment. The benefits/cost ratio for the whole investment is estimated at 13.3.
The overall project economic analysis is provided in Annex 4-Table 5.

110. Results of the sensitivity analysis: A change in project benefits by 20 percent increase in costs and decrease in benefits
using the same proportion yields an ERR of 23 percent and 22 percent with a positive NPV of US$462.8 million and US$366.7
million respectively. An increase in project benefits by 10 percent & 20 percent yields a higher level of NPV by 25 percent and
26 percent respectively. A delay in project benefits by 1 & 2 years still yields positive results as it yields 22 percent and 20
percent both posting positive net present values. Results of the sensitivity analysis indicate that the project remains economically
viable under the various assumptions considered. The summary of the sensitivity analysis is presented in the table below.

111. Table 6: Summary of sensitivity analysis

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e. Exit Strategy and Sustainability

112. JKCIP’s exit strategy revolves around the sustainability of three major activities of the project: (i) FPO promotion and support for
collectivization; (ii) value chain support for niche agricultural and horticultural crops; and (iii) enterprise support for expanding
value addition and marketing. As the first step, the project will support continuous training and capacity-building programs for
FPO members to enhance their skills and knowledge related to sustainable agricultural practices, efficient resource
management, and market trends. FPO mobilization will start around a business of interest to the community. The project will
support the establishment of businesses with required market linkages. FPO support will be tied to the achievement of
performance standards and continuous performance assessment with tapering support to drive sustainability. These measures
are expected to make the FPOs sustainable thereby reducing the dependence on the government and the project.

113. The project will support production, productivity, and quality enhancement of niche agricultural crops such as Saffron, Black
Cumin, Offseason vegetables, etc. The project will support area optimization, intensification and diversification and build the
capacity of the farmers to introduce GAP. Similarly, the project will support the expansion of area under horticultural crops,
introduce diversified horticultural crops and improve tree management practices of existing orchards. Systems will be built to
recover the government matching grant support for revolving the same for the benefit of the community to develop self-reliance
for making project exit easy. Similarly, in the case of agri-enterprise development, the project will support the provision of
business development services, bank linkages and matching grant support for reducing the investment level risks. These efforts
will make the progression of the enterprise towards profitability and sustainability easy and make exit seamless.

3. Risks

H. Project risks and mitigation measures

114. The overall project risk probability is rated “Moderate” and the residual risk is rated “Low” (Details in Annex 9). The risk
probability from political and governance, macro-economic, sector strategies, technical soundness, Institutional capacity for
implementation and sustainability, monitoring and evaluation arrangements, sector strategies and policies and environment are
rated “Moderate” and the residual risk is rated “Low”

115. The Financial management (FM) arrangements for JKCIP were assessed and it concluded that the Inherent FM Risk is
Substantial due to no previous experience of the APD in IFAD-funded projects and potential low FM staff capacity at APD to
deal with projects funded by International Financial Institutions. JKCIP design will include recruiting two qualified consultants,
developing PIM and Financial management Manual (FMM) with clear roles for supporting documents filing and accounting
record keeping for all implementing partners and introducing and customizing Tally accounting software for accounting record
keeping and financial reporting.

116. APD should undertake the following actions to ensure that solid FM arrangements are in place before the project enters into
force: (i) Purchase and customize Tally accounting software for JKCIP needs, including automatic IFRs generation; (ii) Develop
and finalize PIM and FMM which should include detailed roles and responsibilities for project partners and staff; and (iii)
Complete the competitive selection of adequately qualified and experienced two FM consultants.

117. Another potential risk is that there could be unforeseen delays for implementing project activities after entry into force. The
project legal documents will include retroactive financing provisions to finance contracts from PDR approval until entry into force.
The amount of the retroactive financing will be US$ 5.00 million, subject to adjustments during project negotiations. JKCIP-PMU
consultants will prepare Annual Workplan and Budget (AWPB) and other procurement documents for the retroactive financing
period and initial year of project activities.

1. The Financial management (FM) arrangements for JKCIP were assessed and it concluded that the Inherent FM Risk is
Substantial due to no previous experience of the APD in IFAD-funded projects and potential low FM staff capacity at APD to
deal with projects funded by International Financial Institutions. JKCIP design will include recruiting two qualified consultants,
developing PIM and Financial management Manual (FMM) with clear roles for supporting documents filing and accounting
record keeping for all implementing partners and introducing and customizing Tally accounting software for accounting record
keeping and financial reporting.
2. APD should undertake the following actions to ensure that solid FM arrangements are in place before the project enters into
force: (i) Purchase and customize Tally accounting software for JKCIP needs, including automatic IFRs generation; (ii)
Develop and finalize PIM and FMM which should include detailed roles and responsibilities for project partners and staff; and
(iii) Complete the competitive selection of adequately qualified and experienced two FM consultants.
3. Another potential risk is that there could be unforeseen delays for implementing project activities after entry into force. The
project legal documents will include retroactive financing provisions to finance contracts from PDR approval until entry into
force. The amount of the retroactive financing will be US$ 5.00 million, subject to adjustments during project negotiations.
JKCIP-PMU consultants will prepare Annual Workplan and Budget (AWPB) and other procurement documents for the
retroactive financing period and initial year of project activities.

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I. Environment and Social category

118. The environmental and social category for JKCIP is determined as moderate, based on the screening tool of SECAP 2021. The
project aims to generate overall positive environmental and social benefits in a comprehensive manner. Good Agricultural
Practices (GAP) will be promoted to improve agro-biodiversity and enhance farm health. JKCIP will a) capacitate FPOs and staff
including from Krishi Vigyan Kendra (KVK) to regulate and reduce chemical inputs, b) promote inter and mix cropping, and
integrated pest management to maintain soil health and minimize the damage of disease and pest outburst, c) support water
management and efficient water use technologies to reduce water stress, and d) minimize waste. The program targeted blocks
don’t have protected or conservation areas. JKCIP will strictly adhere ‘zero’ forest degradation and forest encroachment
approach, ensuring that all project activities will be confined in private and non-forested lands. Since the project will not involve
any construction activities, extensive screening questions exercise, consultations with communities and stakeholders, and field
visits confirmed that the environmental and social impacts will remain at moderate level.

119. JKICP is a youth sensitive project that places a significant emphasis on social inclusion. It adopts proactive measures to
specifically target women, youth, and marginalized communities. The project will support Gujjars, Bakerwals, Gaddis, and other
pastoralists, to improve their livelihood. A Free, Prior, and Informed Consent (FPIC) implementation plan has been developed
as a part of this design and will be implemented as soon as the project becomes effective (Annex 5). The project will ensure the
preparation of Environment and Social Management Plans (ESMP) and labour management plans in case of requirement to
comply with SECAP requirements. JKCIP will not have any impact on cultural heritage, however, a national chance find
procedure will be applied. Child labour, sexual harassment, and gender violence are not foreseen in value chain activities,
although, these will be strictly prohibited and carefully monitored in all project activities. Moreover, the project, overall, will have
positive impacts on community health, safety, and security. JKCIP will not create physical and economic resettlement.

J. Climate Risk classification

120. Following SECAP screening tool, the climate risk category of the program is determined as Moderate. Following are the key
themes and steps followed to assess climate risks: (i) Hazard identification: As per the ThinkHazard tool and design field visits;
JKCIP intervention area is likely to experience river flood, landslides, and hailstorm. Moreover, foreseen future climate scenario
predicts changes in temperature, climate variability and alterations in intensity and frequency of extreme events. (ii) Exposure
Assessment: The project targets agriculture and horticulture systems or livelihoods that are exposed to weather-related hazards.
Agriculture system is often affected by the impact of climate change(iii)Sensitivity: Major income of the target population
predominantly comes from agriculture, horticulture, and livestock. (iv) Adaptation capacity and climate resilience: India is good on
disaster coping capacity and climate and weather information services are effectively being delivered to farmers, rural dwellers,
and end users.

121. The project will capacitate and promote climate resilient farming practices. SECAP related responsibilities will be included in the
terms of references of thematic specialists in PMU. The capacity of government line agencies and FPOs will be enhanced to
access, interpret, and wisely implement weather-related information. SECAP-related responsibilities are included in the terms of
references of thematic specialists. An Environmental, Social and Climate Management Plan (ESCMP) in Annex 5, a Stakeholder
Engagement Plan in PIM Chapter 1, Appendix C1A2., and an FPIC implementation plan in Annex 12 are included in the design
and will be implemented for relevant activities. During implementation, the project might encounter technological and process-
related challenges such as infestation of new pests and diseases, a reduction in productivity, etc. In these instances, the project
will conduct thematic assessments or studies to assess the issues and identify implementable solutions to address climate and
environmental challenges, ensuring full adherence to SECAP compliances as needed.

4. Implementation

K. Organizational Framework

a. Project management and coordination

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122. Project Management: At the central level, DEA will be the Principal Borrower for the IFAD Loan and the nodal agency for the
project. DEA will undertake periodic tripartite review of the project to monitor progress and address any challenges. Jammu and
Kashmir comes under the purview of the Ministry of Home Affairs (MHA). The budget of the GoJ&K forms part of the budget of
MHA and is tabled in the Parliament. The Division of Jammu, Kashmir and Ladakh Affairs within MHA coordinates with various
Ministries/ Departments for the accelerated implementation of various flagship schemes as well as major projects of economic
and social importance in J&K. MHA will be engaged in the periodic monitoring and review of the progress of the project and will
also participate in the Tri-partite Portfolio Review Meeting (TPRM). Additionally, the Ministry of Agriculture and Farmers Welfare
and the NITI Aayog (the apex Policy making body in India) will also be invited to the TPRM. They will also be regularly apprised
of the project innovations and developments. APD of GoJ&K would be the Lead Project Agency and responsible for project im-
plementation.
123. The major project parties for the implementation of the JKCIP are: (i) Directorates of Agriculture - Jammu and Kashmir; (ii)
Directorates of Horticulture - Jammu and Kashmir; and (iii) Sher e Kashmir Universities of Agricultural Science and Technology –
Jammu and Kashmir. The other project parties with limited roles include: (i) Directorates of Sheep Husbandry; (ii) Directorates of
Animal Husbandry; (iii) Indian Institute of Management, Jammu; and (iv) any other agency as decided by the GoJ&K in
consultation with IFAD. An assessment of the capacity of these institutions has been carried out. These institutions have the
required capacity to implement project activities. Incremental staff including staff for compliance-related (finance, procurement
and M&E) tasks will be engaged.

124. Two broad principles would govern the management structure for this project. They include: (i) alignment to the existing
government structure; and (ii) flexibility to make changes based on the requirements that may arise during the implementation
phase. A schematic presentation of the project management structure is provided in PIM, Chapter 3-Appendix C3A1.

125. A PMU of JKCIP will be established within the PMU of HADP. The JKCIP-PMU will be responsible for overall technical,
coordination and financial management support and other compliance requirements of the project comprising consolidated
AWPB and procurement plan preparation, consolidated M&E and MIS, preparation of withdrawal application, audit, procurement
guidance and support, overall project management and administration and co-ordination with GoI and IFAD. JKCIP-PMU will
report to a Secretary-level officer of APD who will be nominated as the Mission Director reporting to the Principal Secretary,
APD.

126. The JKCIP-PMU will be supported with staffing related to overall technical domains, financial management, Planning and M&E,
Procurement and Knowledge management and other mainstreaming priorities. The terms of reference for incremental staff are
provided in in PIM, Chapter 3-Appendix C3A2. Overall, JKCIP-PMU would be responsible for undertaking tasks related to
compliance with the stipulation of the Financing Agreement to be signed between GoI and IFAD.

127. Governance. The project’s governance will be harmonized with the existing four-tier project coordination structure of HADP
comprising: (i) a Central Apex Committee; (ii) an Empowered Committee; (iii) an Executive Committee; and (iv) District Level
Committees. The Central Apex Committee is chaired by the Lieutenant Governor of J&K, the Empowered Committee (EC) by
the Chief Secretary, the Executive Committee by the Principal Secretary, APD and the district-level committees by the respective
District Magistrate. The details of their membership and functions are provided in the PIM, Chapter 3-Section C.

128. Under JKCIP, the Executive Committee of HADP will convene a meeting on a quarterly basis and if necessary, by
region/province. This committee will be vested with the responsibilities to provide strategic and policy guidance, approve PIM
and its amendments, approve project staff selection, approve AWPB, procurement plan, fund allocation, review project progress,
approval of manuals of procedures, coordination and communication with DEA and IFAD on project related matters including
requesting changes loan allocation within the initially approved categories, oversee the external and internal audit process and
take action on findings, ensure coordination among all stakeholders, and provide guidance to project management. The
Chairperson, on the advice of the Member Secretary, may convene special meetings of the Executive Committee.

129. The DLC will be responsible for: (i) implementing JKCIP at the district level including its supervision and monitoring; (ii) ensuring
convergence of activities with activities and interventions of other schemes and programs at the district level; and (iii) facilitating
linkages with Banks/Financial Institutions to the beneficiaries.

b. Financial Management, Procurement and Governance

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 1. Funds Flow and Disbursement: GoJ&K will pre-finance project expenditures. The project will submit to IFAD through CAAA
quarterly WAs to reimburse IFAD’s share of project expenditures. Report-based disbursement modality will be applied to
request funds from IFAD. The JKCIP-PMU will submit consolidated quarterly IFRs within 30 days from the end of the relevant
quarter. CAAA (MOF) will submit WA for reimbursement for IFAD’s share of the amount spent each quarter. The Federal
Ministry of Finance will maintain the Designated Account at the Reserve Bank of India. The Project Account (PA) of the APD
will be maintained in a commercial bank with existing online banking services. APD will have a specific sub-account of the PA
for each implementing partner. Once all supporting documents sent by project parties are approved by the APD, the JKCIP-
PMU will release only necessary funds for that specific transaction via the relevant sub-account of the project party. Project
parties will make the final payment to contractors and beneficiaries.
2. JKCIP will employ the existing FM staff of APD and its departments and other project partners for payments and record
keeping at their level. However, JKCIP-PMU, to be established at the APD, will have two additional FM consultants with
adequate experience and educational background to maintain project accounting records in the accounting software and
financial reporting. The Finance Division of APD will lead the FM team for JKCIP. The responsibilities of the finance staff of
implementing partners will be limited to collecting supporting documents, their submission to Head of Departments (HoDs),
and the release of final payments to project contractors and beneficiaries.
3. Planning and Budgeting. The budgeting for JKCIP will be fully integrated into the overall government budgeting process.
The draft and final budgets for the GOJ&K will include JKCIP-related expenditures as a separate budget line item. JKCIP-
PMU will collect data from project partners, prepare consolidated JKCIP budgets in IFAD-approved formats, and agree on
them with IFAD. The draft AWPB, split by components, categories, and sources of funds, will be sent to IFAD 60 days before
the start of the relevant FY for “No Objection.”
4. Upon approval of the project AWPB, the JKCIP-PMU will enter the AWPB activities of each Implementing Partner into Tally
accounting software. The JKCIP-PMU will use an online banking system to allocate funds to each implementing partner
based on approved AWPB.
5. Internal control. JKCIP-related financial operations and transactions will be subject to GoJ&K’s internal approval procedures,
which are strong and duly followed by APD staff. In addition, JKCIP-specific internal controls and policies will be included in
the Project Implementation Manual (PIM) and Financial Management Manual (FMM). Moreover, private sector internal
auditors will prepare semi-annual internal audit reports to the Steering Committee. The project will provide Grants and
Subsidies to agri-businesses in line with pre-agreed eligibility criteria and funds flow arrangements.
6. Accounting systems, policies, procedures, and financial reporting. JKCIP will adhere to the GoI budgeting and
accounting rules. Tally Accounting Software will be used for accounting record-keeping and financial reporting to meet IFAD
requirements. The project will need to install and customize Tally accounting software that will include automatic IFRs
generation. The JKCIP-PMU will apply Indian National Accounting Standards, compatible with International Accounting
Standards and deemed acceptable to IFAD, to prepare project financial statements and reports.
7. External Audits. The J&K level Comptroller and Auditor General (CAG) office will audit project annual financial statements to
expand the use of country systems in India. CAG of J&K has been auditing World Bank-funded operations for the last five
years, and their reports have been found to be acceptable to IFAD. The J&K’s CAG office will issue audit reports within six
months of the end of the FY.
8. Country systems. Government staffing, budgeting, funds flow, accounting and audit standards, and the local statutory audit
institution (CAG) will be used to implement JKCIP.
9. Lessons learned. IFAD-funded projects in India have issues with maintaining accurate financial records and supporting
documents for the accounting transactions of a multitude of implementing partners. However, JKCIP will have a central PA
with a unique sub-account for each implementing partner to release funds for each transaction instead of advancing funds. As
a result, there will be no outstanding advances with Implementing partners, and all supporting documents will be electronically
collected at the JKCIP-PMU level, minimizing the risk of missing accounting supporting documents.

130. Retroactive financing: In addition, projects start very slowly in India due to a lack of adequate arrangements at the beginning
of implementation. Therefore, JKCIP will have a retroactive financing facility to help with the start of the project implementation
and fund project activities until the entry into force of the project. The maximum retroactive financing amount is US$ 5 million.
Specific activities to be financed under retroactive financing must be agreed upon with IFAD. The retroactive financing period
start date should be from the date QA approves the project design until entry into force of the project. GoJ&K must pre-finance all
retroactive financing amounts. Activities to be financed by retroactive financing and their procurement/selection methods will be
prior reviewed by IFAD, irrespective of the value of the contract.

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131. Procurement: The project procurement under JKCIP will be undertaken as per IFAD Procurement Guidelines, 2020 and
Procurement Handbook, 2020 as amended and using IFAD Standard Bidding Documents and other document templates. J&K
follows General Financial Rules of GoI. Department of Expenditure (DOE), MoF, GoI has issued procurement manuals and
model tender documents with guidance that “Manuals issued by DOE are to be taken as generic guidelines, which have to be
necessarily broad in nature. Ministries/ Departments are advised to supplement this manual to suit their local/specialized needs,
by issuing their own detailed manuals (including customized formats); Standard Bidding Documents and Schedule of
Procurement Powers to serve as detailed instructions for their own procuring officers”. J&K uses the manuals, standard bid
documents, or standard contract documents prescribed by the funding agency but has not notified the standard bid documents
or standard contract documents for public procurement in J&K so far.

132. Procurement arrangements under the project will be strengthened by establishing a Procurement unit headed by a Senior
Procurement Specialist and assisted by a Procurement Officer and an Assistant. A procurement officer will be engaged for each
of the implementing parties. The procurement risk assessment identified knowledge gaps at the APD and there is a need to
orient the current and new staff on IFAD Procurement Guidelines and other systems. These gaps will be addressed through a
comprehensive training programme. Other mitigation measures proposed include (i) procurement through GeM can be made up
to a shopping limit of US$ 35,000; (ii) adoption of e-procurement systems for receiving bids and proposals above a certain
threshold for shopping (GoJ&K IT systems at https://jktenders.gov.in/nicgep/app); (iii) use of IFAD End-to-End procurement
system (OPEN) for procurement planning, implementation and other subsequent upgrade modules; (iv) adopting an e-office
suite for approvals and storing of documentation; (v) adopting community participation procurement only for low-value
procurement of goods and works and (vi) IFAD prior review of engagement and appointment process of procurement staff.

133. The inherent risk rating for procurement at design is ‘substantial’. (as per the assessment at design mainly on account of human
resource capacity and non-exposure to IFAD’s procurement compliance requirements). This risk will be largely mitigated by
GoJ&K’s agreement to assign staff experienced in multilateral agency-funded procurement from the Economic Reconstruction
Agency to JKCIP. Procurement thresholds as per the risk assessment will be informed in the Project Procurement Arrangements
letter. The procurement activities will be carried out at three levels – all high-value and technical assistance procurement will be
conducted at JKCIP-PMU, low-value procurement of goods, works and non-consultancy services will be conducted at the
implementing parties’ level and the community participation procurement through community institutions with a maximum
threshold of US$ 5,000 equivalent. The procurement powers of JKCIP-PMU and implementing parties are indicated in the PIM. It
is also recommended to undertake a procurement audit through a qualified service provider annually.

134. Qualified and experienced procurement staff will be engaged immediately following due process with no objection from IFAD. In
compliance with the Project Readiness Checklist of the Ministry of Finance, at least 30 percent of the consultancy contracts
should be awarded prior to entry into force. Hence, engagement of at least one procurement staff as per the organogram agreed
is essential to comply with the requirement.

135. The project shall adhere to the IFAD Anti-corruption policy and Policy on preventing sexual harassment, exploitation and abuse
(SH/EA) including contracted service providers, suppliers, and individual consultants. Other good governance measures are
incorporated into the PIM. Procurement considerations for SECAP requirements are assessed and included in the PIM. GoJ&K
should also designate and inform IFAD about the Independent Investigative Authority to receive, investigate and proceed for
action, for the complaints of prohibitive practices in the project during Loan negotiations.

L. Planning, M&E, Learning, KM and Communication

a. Planning, M&E, Learning, Knowledge Management and Communication

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136. Monitoring and evaluation: The project’s M&E system will be designed to measure performance against the project logframe
as well as show the contribution of project outcomes to the government’s strategic objectives for the agriculture and allied
sectors. The M&E system will offer comprehensive and reliable information to improve planning and decision-making for results-
based management. The project will link the business plans of the FPOs and entrepreneurs with the computerized MIS system
to introduce real time outcome based monitoring. The logical framework will constitute the basis for results-based M&E. The
M&E system will have a three-tier structure: (i) output monitoring with a focus on physical and financial inputs, activities and
outputs; (ii) outcome monitoring for the use of outputs and measurement of benefits at household and community levels; and (iii)
impact assessment evaluating project impact for the target groups in comparison with objectives. All M&E data, analysis, and
reporting will be disaggregated by gender, vulnerable groups (SC/ST) and youth.

137. Output monitoring will measure the progress of activities and achievement of outputs against annual targets in AWPB for each
project component. This can be linked to the financial expenditure on the concerned activities. Data would be collected by the
project parties and consolidated using a computerised MIS system.

138. Outcome monitoring measures the immediate changes coming about because of project interventions. A baseline survey will be
conducted during the first year of project implementation to assess the socio-economic status of households and define the
benchmark for the outcome indicators in general and the Core Outcome Indicators in particular against which project
performance will be assessed. The baseline study will be a sample survey that will be based on a random selection of
households from the target villages. These surveys will be repeated at mid-line and end-line to assess the impact of the project
on the beneficiaries.

139. Core Outcome indicators: The Results and Impact Monitoring System of IFAD generates annual report tables on a few first and
second-level results indicators that correspond to the output and core outcome indicators. The core Outcome indicators for this
project are provided in the Logframe. Prior to the mid-term review, the project will report on only the first-level results
(corresponding to outputs), but after the mid-term review, it will report on second-level indicators (corresponding to outcomes).

140. Management Information System (MIS): The project will establish an MIS system in the first year of project implementation. The
project will integrate outcome monitoring into the overall M&E framework of the project. The MIS would generate, monthly,
quarterly and annual progress reports on physical and financial progress and on project outputs and outcomes. The project will
develop GIS tagging for ascertaining the location, ownership and other details.

141. Reporting: The project will develop a reporting system, with some reports used internally and for reporting to its partner agencies
within J&K, and others to external stakeholders – GoJ&K and IFAD. Progress reports for GoJ&K and IFAD will be produced at
six-monthly intervals. Reporting from Financial Institutions (Fis) will also be required on a six monthly basis as part of the MOUs
between the project and the FIs.

142. Learning and knowledge management: The project's KM activities will support the effective flow of relevant information
between project staff, beneficiaries and other stakeholders. A comprehensive KM action plan will be developed in the early
stage of implementation. The objective of knowledge management is to ensure the project units can generate and document the
knowledge that is useful to build practical know-how that helps to improve project performance and results. Output, outcome and
impact data generated by the M&E system will inform high-quality case studies, briefs and reports.

143. The project operations are expected to create valuable knowledge on key development themes of relevance in India. It will be
important for the JKCIP-PMU to document the emerging experiences, lessons and best practices and share them widely with
public entities and development partners. The JKCIP-PMU will be supported with technical assistance in managing knowledge
and producing knowledge products. It will organize a series of workshops on themes related to agri-horti sectors. The JKCIP-
PMU will also disseminate knowledge and experiences with the wider community of agriculture development practitioners in
Asia through the IFAD Asia knowledge management portal as well as through practitioners’ international networks and publica-
tions.

b. Innovation and scaling up

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144. Scaling up will be planned in line with the new IFAD’s operational framework for scaling results (2023). The project will promote
innovations primarily to address constraints in production productivity and marketing of the agricultural and allied sectors. These
include business-centric FPO promotion, breed and varietal improvement, climate-smart crop selection and production
technologies, creation of an agribusiness incubation and start-up ecosystem. Lessons learned and best practices from other
IFAD-supported projects have been considered to formulate innovative strategies for this project. These include:

145. Business-led FPO promotion: The project will introduce a business-led FPO promotion strategy as against the target-led FPO
expansion. The FPO promotion will be centred around the creation of a business in which the community is interested in
participating and allow for an organic evolution of FPOs. Fund release to FPO will be linked to outcomes related to the
establishment and promotion of viable businesses.

146. Holistic production support: The project will introduce a sub-project model of production expansion support particularly for
agricultural crops wherein the community group/FPO will prepare a sub-project by subsuming (and modifying where needed) the
existing government schemes and funding under JKCIP to fill in the gaps for the development of a comprehensive package for
the community.

147. Agri-business incubation and start-up support: The project will introduce a hub and spoke model for developing an agribusiness
ecosystem which will cover not only the educated youth but also the rural youth. This will be promoted by conducting boot
camps/ideathons in rural areas and end to end support for promoting start-ups.

148. Business leader-led enterprise promotion: The project proposes a Business-led enterprise promotion. The emerging
entrepreneurs will be linked to a lead entrepreneur with market access. This will enable the emerging rural entrepreneurs to
initially focus on contract manufacturing/ production for lead entrepreneurs. Once the contract manufacturing business stabilizes,
the entrepreneurs will be able to venture into independent marketing based on their investment ability and risk profile.

149. Entrepreneur-led service delivery: This modality will build efficient last-mile service delivery to farmers wherein the
entrepreneur/FPO will be able to provide services related to tree management and pesticide management in collaboration with
large agro-chemical companies such as UPL and Bayers who run the Unimart and Better Life Farming models respectively.
These will be managed as businesses creating a mutually dependable relationship.

150. Digital climate information and extension delivery: The project will establish weather stations coupled with the delivery of climate
warning systems to the farmers. Extension delivery to the smallholders remains a major challenge for the line departments. This
will be addressed by developing user-friendly technology. Extension messages relevant to producers will be generated and sent
to the field staff and farmers through phones.

M. Project Target Group Engagement and Feedback, and Grievance Redress

a. Project Target Group Engagement and Feedback.

151. Project target group Engagement and Feedback

152. In line with IFAD’s Framework for Operational Feedback from Stakeholders, the project will promote transparency, governance,
accountability, and full and effective participation of stakeholders throughout the project cycle. JKCIP will engage with a range of
stakeholders including government line agencies, implementation partners, technical agencies for services, bank and financial
institutions and private sector partners for market linkages and the beneficiaries. APD has established systems in place to check
whether the resources of GoJ&K are spent in the targeted areas, transparency in the decision-making process is maintained,
and public rights and entitlements are adhered to and effectively implemented with the participation of targeted beneficiaries and
stakeholders.

153. JKCIP will establish Multi-stakeholders Platforms (MSP) which will facilitate the preparation production plan based on market
demand ensuring the participation and concerns of women, poor, youth and IP. Moreover, JKCIP will regularly monitor the
governance and accountability mechanisms of FPOs to facilitate compliance and improve governance, transparency and
accountability. Participatory monitoring tools like focus group discussions and surveys, and environmental and social safeguard
monitoring will be used for regular tracking of the problems and progress.

154. The project intends to work with the most vulnerable communities comprising SCs, STs and fishermen. In compliance with
IFAD’s guidelines on engagement with the Indigenous Peoples, JKCIP will conduct an awareness-raising campaign on FPIC to
ensure mutual respect and full and effective participation in decision-making on the proposed investment and development
interventions that may affect their rights, access to land and resources and the livelihoods of STs. Full details on FPIC are
available in the FPIC implementation plan.

b. Grievance redress.

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155. Grievance redress

156. GoJ&K in 2018 launched the Jammu and Kashmir Integrated Grievance Redress and Monitoring System (JK-IGRAMS) in a bid
to create an interface with the public and focus on governance issues in J&K with a view to provide an effective grievance
redressal mechanism. This Grievance redressal mechanism (GRM) is designed to make it easier for residents of J&K to register
and track their complaints and grievances related to various government services and programs. IFAD has established
procedures to receive and facilitate the resolution of grievances regarding alleged non-compliance with its environmental and
social policies and the mandatory aspects of its Social, Environmental and Climate Change Assessment Procedures (SECAP),
in the context of IFAD-financed projects.

157. The GRM of GoJ&K will be strengthened in line with IFAD requirements for processing complaints received from the community,
aiming at identifying issues of conflict that may arise during project implementation. Issues to be channelled through the GRM
include: (i) noncompliance with its environmental and social policies and mandatory aspects of its SECAP; and (ii) proven acts of
sexual harassment and sexual exploitation and abuse (SEA). The GRM shall be shared with project stakeholders, and with the
SCs/STs as part of the overall community engagement strategy and FPIC process.

158. Sexual harassment and sexual exploitation and abuse (SEA):

159. The project must immediately report to IFAD any allegations or reports of sexual harassment received in connection with the
implementation of the project. If IFAD receives evidence based on substantiated and credible acts that project personnel have
engaged in such conduct in connection with the implementation of the project, it may take appropriate measures, including
immediate removal of the persons involved, pending further action. In such cases, IFAD may request investigations by national
authorities for the purpose of initiating legal proceedings. All contracts of project staff, contractors, service providers and third
parties receiving project financing must include provisions: (i) prohibiting acts of sexual harassment; (ii) establishing the
obligation to immediately report incidents of harassment in connection with the actions and activities set forth in the contract; and
(iii) allowing the termination of the contract based on proven acts of sexual harassment and or SEA.

N. Implementation plans

a. Supervision, Mid-term Review and Completion plans.

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160. All activities under the project will be implemented by the officials of the Directorates and Universities under APD assisted by the
technical assistance teams and Consultants procured using an open and transparent procedure and calls for proposals. The
project will develop and support FIGs and FPOs who will implement grassroots-level project activities. The project will build on
the existing FPOs and develop value chain-specific FIGs and FPOs who will be the direct partners in implementing value chain
related project activities. The activities related to agri-enterprise promotion, markets and marketing and start-ups will be largely
private-sector oriented and will be implemented through them. The project will be implemented in a phased manner. All capacity
building activities have been front loaded and followed by institution building. Value chains and enterprise development activities
will be implemented after capacity building and institution mobilization. The project implementation phasing is provided in PIM-
Chapter 2 - Appendix C2A2.

161. This project implementation will be spread over seven (covering eight financial years) years. All the capacity-building efforts will
be front-loaded. The project will start regular implementation during the FY 2024-25 with initial capacity building activities during
2023-24. The APD has shown its keenness for a rapid start-up and has set up a core team to be part of the detailed design
mission. In addition, APD is in the process of engaging staff for the PMU of HADP who will do the groundwork for to the
implementation of JKCIP. The project has incorporated substantial capacity-building efforts which will be front-loaded to ensure
adequately trained human resources. JKCIP has made allocations for engaging staff required for mainstreaming priorities,
finance, procurement and M&E in addition to technical staff. The cabinet constituted the J&K ERA (J&K Economic
Reconstruction Agency) a society registered under the JK Societies Act in 2004 to implement externally aided projects. JKCIP
proposes to onboard some staff for procurement, financial management and SECAP from JKERA for quick transition. Capacity
will be reassessed at start up to check for any additional requirements.

162. Implementation readiness: The activities required to be completed for compliance with the readiness requirements of GoI and
IFAD include:

Obtain approval from the GoJ&K to implement this project by 15 December 2023.
Allocation of INR 50 million to APD for start-up activities during 2023-24.
Issuance of a notification nominating a Secretary level officer of APD as the Mission Director reporting to the Principal
Secretary, APD.
Finalizing terms of reference and Request for Proposals for baseline survey.
Preparation and approval of implementation plan and project readiness check list and submission of the same to DEA by 15
February 2024
Constitution of a delegation authorised by the Chief Secretary to negotiate and initial the negotiated text of the financing
agreement on behalf of GoJ&K by 4 March 2024.
There is a likelihood of providing project funding to financial intermediaries; it is necessary that these intermediaries have an
ESMP before receiving project support. GoI has already issued instructions to Financial Institutions of J&K to prepare an
ESMP and the preparation of ESMPs are expected to be completed before the project activities become operational.
However, it was agreed that a suitable clause would be included in the Financing Agreement stipulating the flow of funds to
financial intermediaries that have prepared and operationalized an ESMP.

163. Start-up Plans: IFAD will support APD to organize a start-up workshop. This opportunity will be used to provide training to the
staff of the project parties on project implementation modalities, IFAD’s financial management and procurement procedures,
AWPB and M&E. IFAD will provide backstopping to APD during the first 18 months on project implementation through required
technical assistance to streamline implementation modalities. Special attention will be provided to establish a robust financial
management, procurement system, and planning, M&E and MIS systems.

164. Supervision, Mid-term Review and Completion plans

165. Supervision: The project will be directly supervised by IFAD. Annual Supervision Missions will be conducted, and the first
supervision mission will take place towards the end of the first year from entry to enforce the project. It will include specialists in
agriculture, horticulture, enterprise promotion, financial management and procurement.

166. Mid-Term Review: IFAD in cooperation with GoJ&K will undertake a mid-term review (MTR) by the end of the third year of the
project to review project achievements and implementation constraints. It will review: (i) the performance of the
Directorates/Universities in project implementation, (ii) the progress of the project in achieving the target outcomes; (iii) the
impact of project interventions on production and productivity, (iii) progress in enterprise promotion and sustainability of FPOs;
(iv) management, fiduciary and procurement performance of the project. The findings and recommendations of the MTR will be
used to adjust the project design and improve the exit strategy and sustainability of the project.

167. Project Completion Review: As the project reaches the completion point, the JKCIP-PMU in collaboration with the project
parties will be required to prepare a Project Completion Report. IFAD and GoJ&K will then carry out a Project Completion Review
based on the information provided in the Project Completion Report and other data.

Footnotes

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 1. Census 2011
2. Human poverty is a term that defines that poverty in J&K is not just limited to the economic status of the people but rather
spreads in various other sectors which include lack of education, negligence of health care system, discrimination and
disparity
3. 2011 Census of India
4. Urbanization is salient to India's climate contribution for a variety of reasons including increase in traffic, increased use of
energy, more infrastructure etc.
5. Average family size of 5.1 in J&K as per National health and family welfare survey, 2015-16.
6. In Feb 2021 the Ministry of Agriculture and Farmers Welfare, Govt of India launched a central sector scheme for Formation
and Promotion of 10,000 FPOs across the country.
7. Refer to the report ‘Jammu & Kashmir Towards Sustainable and Self reliant Agricultural Revolution. Dec 2023'.
More information in PIM.
8. This was rated as Substantial at PCN stage and has subsequently been reviewed by ECG and a downgrade is suggested
based on desk review, findings from field visits and meetings with stakeholders. This needs to be validated by OPR.
9. This was rated as Substantial at PCN stage and has subsequently been reviewed by ECG and a downgrade is suggested
based on desk review, findings from field visits and meetings with stakeholders. This needs to be validated by OPR
10. FIGs are generally a group of 10-20 persons undertaking similar activities residing close by. Several FIGs together will form
an FPO to achieve economies of scale in factor and output markets.
11. India Development update, The World Bank, Spring 2023
12. The World Bank, Poverty and Inequality Portal and Macro Poverty Outlook, Spring 2023.
13. Global Multidimensional Poverty Index 2023, United Nations Development Programme, Human Development Reports.
14. Global Multidimensional Poverty Index 2022, Unpacking deprivation bundles to reduce multi-dimensional poverty, United
Nations Development Programme and Oxford Poverty and Human Development Initiative
15. Source: Nutrition and Food Security, United Nations in India
16. NITI Aayog. Nourishing India. National Nutrition Strategy. Government of India. 2017.
17. Report of the Doubling of Farmers Income committee headed by Dr Ashok Dalwai, IAS, Additional Secretary, Ministry of
Agriculture and Farmers Welfare, Government of India
18. About Jammu and Kashmir: Information on Tourism, Industries, Economy & Geography (ibef.org)
19. UNDP, Human Development Report, Oxford University Press, New York, 1997
20. SDG Gender Index 2022. https://www.equalmeasures2030.org/2022-sdg-gender-index/
21. Annual Periodic Labour Force Survey (PLFS) Report 2021-22.
22. International Institute for Population Sciences (IIPS) and ICF. 2021. National Family Health Survey (NFHS-5), India, 2019-21:
Jammu & Kashmir. Mumbai: IIPS.
23. https://kashmirscanmagazine.com/2023/09/nutrition-interventions-path-forward-for-jk/
24. State Action Plan on Climate Change, Jammu and Kashmir, Department of Ecology Environment and Remote Sensing. GoJK
25. India, Country Strategic Opportunities Programme 2014-2024
26. The future of food and agriculture – Alternative pathways to 2050
27. Stimulating the Growth of Agribusiness Activities in India, joint report by The World Bank, IFC and ADB (2014)
28. Livelihood collective promotion under ILSP and FPO promotion under Nav Tejaswini followed the strategy of business
focused mobilization.
29. Experience from the implementation of the Northeastern Region Community Resources Management Project (NERCOMP).
30. State Action Plans on climate change
31. Project Information Document- Concept stage, Report No. AB2171, The World bank
32. The India Stack is Revolutionizing Access to Finance - IMF F&D
33. Average family size of 5.1 in J&K as per National health and family welfare survey, 2015-16.
34. Food and Nutrition security related schemes being implemented in J&K include the National Food Security Program, Food
Supplementation for Priority Households Schemes in J&K, the PM POSHAN, Supplementary Nutrition Programme,
Integrated Child Development Services, Nutritional Rehabilitation Centres, Mid day Meals schemes etc .
35. Experience from other projects in India such as the Integrated Livelihoods Support Project in Uttarakhand (ILSP) show that
the two stage group formation of grassroots institutions helps in forming strong and sustainable organisations. Smaller groups
of farmers when organised into FIGs or Producer Groups can engage in input and output aggregation, be provided targeted
interventions and develop cohesion which helps when organising them into larger groups such as Federations, FPOs or
Cooperatives.
36. The new J&K Start up Policy 2023 will also provide guidance to the initiative.
37. Interest rate on deposit accounts in India - Search (bing.com)
38. India IN: Long-Term Interest Rate: Government Bonds | Economic Indicators | CEIC (ceicdata.com)

32/32
India

Competitiveness Improvement of Agriculture and Allied Sectors Project in Jammu and

Kashmir (J&KCIP)

Project Design Report

Annex 1: Logframe

Mission Dates: 03 Oct 2023 to 20 Oct 2023

Document Date: 08/03/2024
Project No. 2000003933
Report No. 6741-IN

Asia and the Pacific Division

Programme Management Department
Competitiveness Improvement of Agriculture and Allied Sectors Project in Jammu and Kashmir (J&KCIP)

Logical Framework

Results Hierarchy Indicators Means of Verification Assumptions

Name Baseline Mid- End Source Frequency Responsibility

Term Target

Outreach 1 Persons receiving services promoted or supported by the M&E data (Results Annual M&E and KM (R) Political
project Framework) Manager instability and terror
related disruptions
Males 79500 159000 not impacting
project
Females 70500 141000
implementation
Young 45000 90000

Not Young

Indigenous people 15000 30000

Non-Indigenous people

Total number of persons 150000 300000

receiving services

Male 53 53

Female 47 47

Young 30 30

1.b Estimated corresponding total number of households

members

Household members 765000 1530000

1.a Corresponding number of households reached

Women-headed households 13500 27000

Non-women-headed 136500 273000

households

Households 150000 300000

Project Goal Households with more than 70 percent increase in income Household Level Baseline, At baseline, PMU/ External Relatively stable
Contribute to the sustained increase in incomes of rural Mid-term Review, Impact midterm and agency security and
households by improving the competitiveness of the farming Study, and Project completion economic
operations Completion Study conditions exist and
continued

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 continued
Results Hierarchy Indicators Means of Verification Assumptions
government support
Name Baseline Mid- End Source Frequency Responsibility for the project
Term Target

Households 30 70

CI 1.2.4 - Households with an increase in production by more Baseline survey, mid-term At baseline, PMU/ External
than 30% (niche field crops and horticultural crops) survey and end-line survey midterm and agency
completion
Household 30 70

Households with an increase in productivity by more than15% Baseline survey, mid-term At baseline, PMU/ External
- (niche field crops and horticultural crops) survey and end-line survey midterm and agency
completion
Households 35 80

Development Objective Increase in productivity of crops, spices and horticultural Baseline survey, mid-term At baseline, PMU/ External Relatively stable
Improve the competitiveness of the famers through a value chain produce survey midterm and agency security and
approach covering production, value addition of high value niche completion economic
crops, spices and horticulture produce Saffron Kg/ha 3 5 7.5 conditions exist and
continued
Kashmiri Chilli Kg/ha 5000 8000 15000
government support
Apple (MT/Ha) 12 14 16 for the project

Walnut (MT/Ha) 6.25 6.5 7

Mango (MT/Ha) 5.5 6 7

Citrus (MT/Ha) 2.5 3 4

Stone fruits(MT/Ha) 11.25 12 14

Percentage of select niche and horticulture produce marketed Baseline survey, mid-term At baseline, PMU/ External
as A grade/premium product survey and end-line survey midterm and agency
completion
Saffron (percentage) 70 95

Vegetables (percentage) 50 65

Kashmiri Chilli (percentage) 50 65

Apple (percentage) 40 45 60

Stone fruits (percentage) 30 35 45

Mango (percentage) 20 25 30

2/7
 Results Hierarchy Indicators Means of Verification Assumptions

Name Baseline Mid- End Source Frequency Responsibility

Term Target

Citrus (percentage) 20 25 30

Outcome 2.2.1 Persons with new jobs/employment opportunities MIS, Baseline survey, mid- Monthly and at PMU/External Community support
Outcome 1: Expansion and improved performance of Rural term survey and end-line baseline, agency to collectivization
Producers' Organizations (FPOs) Males 1595 3190 survey midterm and efforts to reduce
Females 1415 2830 completion costs and increase
production
Indigenous people 625 1250

Young 900 1805

Total number of persons with 3010 6020

new jobs/employment
opportunities

Persons with disabilities 36 72

2.2.4 Supported rural producers’ organizations providing new MIS, Baseline survey, mid- Monthly and at PMU/External
or improved services to their members term survey and end-line baseline, agency
survey midterm and
Number of POs 56 70 101 completion
Total number of POs members 16800 21000 30300

Males POs members 8904 11130 16059

Females POs members 7896 9870 14241

Young POs members 5040 6300 9090

2.2.5 Rural producers’ organizations reporting an increase in MIS, Baseline survey, mid- Monthly and at PMU/External
sales term survey and end-line baseline, agency
survey midterm and
Percentage of rural POs 30 70 completion

Output No. of FPOs supported MIS Monthly PMU Community support

Output 1.1: Scaling up collectivization to collectivization
Number 50 101 efforts to reduce
2.1.4 Supported rural producers that are members of a rural MIS Monthly PMU costs and increase
producers' organization production

Total number of persons 15000 30300

3/7
 Results Hierarchy Indicators Means of Verification Assumptions

Name Baseline Mid- End Source Frequency Responsibility

Term Target

Outcome 3.2.2 Households reporting adoption of environmentally MIS, Baseline survey, mid- Monthly and at PMU/External Households
Outcome 2: Enhanced productivity and production (niche and sustainable and climate-resilient technologies and practices term survey and end-line baseline, agency respond to
horticultural crops) survey midterm and opportunities in
Total number of household 4500 21210 completion productivity and
members production
expansion of niche
Households 30 70
and agricultural
Households 4500 21210 crop

Area expansion under niche crops MIS, Baseline survey, mid- Monthly and at PMU/External
term survey and end-line baseline, agency
Hectares of land 1403 2805 survey midterm and
completion

Area expansion under horticultural crops MIS, Baseline survey, mid- Monthly and at PMU/External
term survey and end-line baseline, agency
Hectares of land 773 1545 survey midterm and
completion

Output No. of farmers trained in GAP (niche and horticultural crops) MIS Monthly PMU
Output 2.1: GAP training
Farmers 16200 32400

Output 1.1.3 Rural producers accessing production inputs and/or MIS Monthly PMU
Output 2.2: Access to inputs/technology packages technological packages

Males 8029 16059

Females 7121 14241

Young 4545 9090

Total rural producers 15150 30300

3.1.4 Land brought under climate-resilient practices MIS Monthly PMU

Hectares of land 773 1545

Output No. of water management systems established MIS Monthly PMU

Output 2.3: Water management systems established
Water systems 675 1350

Output No. of Nurseries established MIS Monthly PMU

Output 2.4: Nurseries established
Nurseries 160 320

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 Results Hierarchy Indicators Means of Verification Assumptions

Name Baseline Mid- End Source Frequency Responsibility

Term Target

Outcome Percentage of farmers reporting increase in farm gate prices MIS, Baseline survey, mid- Monthly and at PMU/External Stable market
Outcome 3: Improved price realization of Agri and allied farmers term survey and end-line baseline, agency conditions for
Farmers 30 70 survey midterm and domestic and export
completion trade

2.2.2 Supported rural enterprises reporting an increase in MIS, Baseline survey, mid- Monthly and at PMU/External
profit term survey and end-line baseline, agency
survey midterm and
Percentage of enterprises 30 70 completion

Percentage of supported enterprises benefiting from improved MIS, Baseline survey, mid- Monthly and at PMU/External
market linkages term survey and end-line baseline, agency
survey midterm and
Enterprises 30 70 completion

Percentage of start-ups supported with youth ownership MIS, Baseline survey, mid- Monthly and at PMU/External
term survey and end-line baseline, agency
Start-ups 30 60 survey midterm and
completion

Output Number of enterprises supported MIS Monthly PMU Stable market

Output 3.1: Enterprise promotion conditions for
Enterprises 602 1204 domestic and export
2.1.2 Persons trained in income-generating activities or MIS Monthly PMU trade
business management

Males 319 638

Females 283 566

Young 180 361

Persons trained in IGAs or BM 602 1204

(total)

Output Number of MSP conducted MIS Monthly PMU Stable market

Output 3.2: Market promotion conditions for
MSP 6 12 domestic and export
trade
Number of Buyer-Seller meets conducted MIS Monthly PMU

Meets 14 28

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 Results Hierarchy Indicators Means of Verification Assumptions

Name Baseline Mid- End Source Frequency Responsibility

Term Target

Output Number of start-ups supported with seed funds MIS Monthly PMU Stable market
Output 3.3: Incubation and start-up conditions for
Start-ups 175 350 domestic and export
Number of start-ups accessing scale up funds MIS Monthly PMU trade

Start-ups 60 120

Outcome Percentage of pastoralists reporting improvements in wool MIS, Baseline survey, mid- Monthly and at PMU/External Vulnerable
Outcome 4: Improved resilience of vulnerable groups prices term survey and end-line baseline, agency households have
survey midterm and the ability to
Percentage 25 50 completion diversify their
livelihood options
Percentage of vulnerable households reporting diversification MIS, Baseline survey, mid- Monthly and at PMU/External
of livelihood options term survey and end-line baseline, agency
survey midterm and
Percentage 15 30 completion

Percentage of youth clubs participating in community action MIS, Baseline survey, mid- Monthly and at PMU/External
related environment term survey and end-line baseline, agency
survey midterm and
Percentage 30 60 completion

Output Percentage of pastoralists reporting improvements in wool MIS Monthly PMU Vulnerable
Output: 4.1: Pastoralists support price households have
the ability to
Percentage 25 50 diversify their
livelihood options

Output No. of persons from vulnerable community members MIS Monthly PMU Vulnerable
Output 4.2: Support to other vulnerable groups supported for enterprise development households have
the ability to
Number 625 1250 diversify their
Number of youth clubs supported MIS Monthly PMU livelihood options

Number 1300 2700

Outcome SF.2.1 Households satisfied with project-supported services Adequate capacity

Outcome 5: Project Management systems strengthened within the
Household members 52500 105000 implementing
Indigenous households 5250 21000 agencies to
implement the
Women-headed households 4725 18900 project

6/7
 Results Hierarchy Indicators Means of Verification Assumptions

Name Baseline Mid- End Source Frequency Responsibility

Term Target

Households (%) 35 70

Households (number) 52500 105000

SF.2.2 Households reporting they can influence decision-

making of local authorities and project-supported service
providers

Household members 52500 105000

Indigenous households 5250 21000

Women-headed households 4725 18900

Households (%) 35 70

Households (number) 52500 105000

Output Policy studies conducted MIS Monthly PMU Adequate capacity

Output 5.1: Policy engagement within the
Studies 2 4 implementing
agencies to
Policy workshops conducted MIS Monthly PMU
implement the
Workshops 2 4 project

Output 100 % recruitment of agreed human resources MIS Monthly PMU Adequate capacity
Output 5.2: Staff training of staff of Agri and allied Directorates within the
Positions in place 100 100 implementing
agencies to
implement the
project

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India

Competitiveness Improvement of Agriculture and Allied Sectors Project in Jammu and

Kashmir (J&KCIP)

Project Design Report

Annex 2: Theory of change

Mission Dates: 03 Oct 2023 to 20 Oct 2023

Document Date: 08/03/2024
Project No. 2000003933
Report No. 6741-IN

Asia and the Pacific Division

Programme Management Department
 Annex 2: Theory of Change

Goal
Strategies to address
Key challenges Proposed Interventions Outcomes Impact /Objectiv
challenges
e
Promotion of CIs, support for

Sustained increase in incomes by improving competitiveness of the farmers through a value chain approach
Small and marginal farmers Collective purchase of

covering production, value addition and marketing of high value niche products from agriculture and allied
Mobilize Community Institutions aggregation, storing and Improved farm gate price
with fragmented inputs and sale of outputs
(Cis) to realise the potential of primary value addition and of outputs and reduction
landholding and inadequate and shift improved farming
collectivisation. service delivery in business in input cost.
economies of scale. practices.
mode.
Introduce good agriculture
Inadequate focus on
practices and expand high- Expansion of area under
comparative advantage due Improved price
Shift to climate-resilient high value niche crops with support niche crops and increase in
to self-sufficiency and food realization from niche
value niche crops to harness for addressing value chain productivity with climate
security focussed cereal- crops compared to
agroclimatic advantages. constraints related to resilient good agriculture
centric agriculture regular cereal crops.
production expansion and practices.
production systems.
productivity enhancement.
Apple-centric horticulture
coupled with poor Expansion of area under
Intensification with better Intensification and expansion of
management practices and horticultural crops and Improved price
management practices and area under fruit and nut crops
limited focus on increase in productivity realization from
diversification into other fruit coupled with better
intensification, better with climate resilient good horticultural crops
and nut crops management practices
management practices and agriculture practices.
diversification
Support for the establishment
Inadequate investments in Private sector-led support for
of enterprises in Agri Horti Increased value addition
post harvest activities with enterprise development, Improved farm gate price
sectors and establishment of and resultant increased
inadequate efforts for value provision of incubation and and increased job
Business Incubators and demand for Agri-allied

sectors
addition, processing and business development services opportunities
Business Development Services produce
enterprise promotion to start-ups and entrepreneurs
for start-ups
Limited market
development efforts, large
Conduct MSP to establish Improved demand for
number of marketing Market linkage establishment,
market linkages, develop the Improved marketing and agriculture and
intermediaries, and market development and market
Jammu and Kashmir brand and better value realization horticulture products fro
inadequate aggregation, promotion
make foray into new markets Jammu and Kashmir
storing and transportation
facilities

Limited livelihood
Improved price
diversification Support for the wool sector Improved wool utilization,
realization by vulnerable
opportunities coupled with based on a feasibility study, breed improvement of
Private sector participation in group for wool and milk,
low price of wool, breed breed improvement and ponies and goats, and
marketing-related efforts and income diversification by
deterioration of ponies and enterprise support to vulnerable improved milk marketing
create opportunities for enterprise promotion and
goats, milk marketing communities and support for channels, enterprise
livelihood diversification improved youth action in
issues for vulnerable environmental-related creation and youth
environment related
groups and low community action by youth. engagement.
activities.
engagement with the youth

Develop and formulate Improved stakeholder

Evolving sector strategies, appropriate sector strategies and Support to policy dialogue, and Formulation and review of participation in policy
and regulatory and policy regulatory and policy framework policy and standards policies, regulations, and formulation with
framework related to production, price and formulation standards improved focus on
climate risks. climate risks
India

Competitiveness Improvement of Agriculture and Allied Sectors Project in Jammu and

Kashmir (J&KCIP)

Project Design Report

Annex 3: Project cost and financing: Detailed costs tables

Mission Dates: 03 Oct 2023 to 20 Oct 2023

Document Date: 08/03/2024
Project No. 2000003933
Report No. 6741-IN

Asia and the Pacific Division

Programme Management Department
 Annex 3: Project Costs and Financing
A. Introduction
1. This annex provides information on the assumptions made to estimate Project costs
and presents the actual Project costs of JKCIP as well as the financing plan,
prepared using the COSTAB software.

2. The summary tables of the total costs of the Project are available both in the PDR
and annex. The detailed costs tables per component/sub-component are available
in the annex, where each detailed table includes: (i) the quantities, unit costs (in
US$ and Rupee),and total costs including contingencies (in US$’000).

3. Project Components: The project has been designed with 4 components:

1Climate-smart and market-led production, 2: Agri-business ecosystem
development, 3: Support to vulnerable communities and 4: Project Management.

B. Project costs:

4. The total JKCIP incremental investment and recurrent costs, including price and
physical contingencies are estimated at US$217.2 million. This includes base costs
of US$160.5 million and estimated price and physical contingencies of US$56.6
million. The overall investment costs have been estimated at US$153.1 million (95
per cent of base costs) with recurrent costs at US$7.3 million (5 per cent of base
costs). JKCIP will be implemented over a period of 7 years but spread over 8
financial years.

C. Price Contingencies

5. Price contingency allowances reflect expected increases in Project costs due to

changes in unit prices for the various resources that the Project will require. They
are taken into account by the COSTAB software in the calculation of the total costs
of the Project. Price contingencies include the impact of expected inflation and
alterations in the exchange rate.

D. Physical contingency

6. Physical contingency allowances reflect expected increases in the base cost

estimates due to changes in quantities and/or methods of implementation.

7. The breakdown of the costs by component and sub-component showing base costs
and contingencies both in US$ and Rupee is shown in table 1 below. Table 2 shows
the breakdown of the costs by expenditure category including base costs and
contingencies both in US$ and Rupee.
 Table 1: Summary of costs by components & sub-components: base costs
& contingencies
India
Competitiveness Improvement of the Agriculture and Allied
Sectors Project in Jammu and Kashmir % % Total
Components Project Cost Summary (INR '000) (US$ '000) Foreign Base
Local Foreign Total Local Foreign Total Exchange Costs
A. Climate-smart and market-led production
Upscaling collectivization 471,672 36,280 507,952 5,666 436 6,102 7 4
Agri-niche crop promotion 2,650,482 229,242 2,879,724 31,841 2,754 34,595 8 22
Horticulture crop promotion 3,387,630 286,179 3,673,810 40,697 3,438 44,135 8 27
Subtotal 6,509,784 551,701 7,061,485 78,205 6,628 84,833 8 53
B. Agri-business ecosystem development
Enterprise promotion support 3,051,309 265,331 3,316,640 36,657 3,188 39,844 8 25
Market promotion support 172,408 14,992 187,400 2,071 180 2,251 8 1
Incubation and start-up 893,848 72,832 966,680 10,738 875 11,613 8 7
Subtotal 4,117,565 353,155 4,470,720 49,466 4,243 53,709 8 33
C. Support to vulnerable communities
Support for pastoralists 57,040 4,960 62,000 685 60 745 8 -
Support for other vulnerable communities 1,122,400 97,600 1,220,000 13,484 1,173 14,656 8 9
Subtotal 1,179,440 102,560 1,282,000 14,169 1,232 15,401 8 10
D. Project Management
Project Management 451,965 1,920 453,885 5,430 23 5,453 - 3
M&E and MIS 54,809 4,766 59,575 658 57 716 8 -
KM and Policy 31,464 2,736 34,200 378 33 411 8 -
Subtotal 538,238 9,422 547,660 6,466 113 6,579 2 4
Total BASELINE COSTS 12,345,026 1,016,839 13,361,865 148,306 12,216 160,522 8 100
Physical Contingencies 1,209,912 100,734 1,310,646 14,535 1,210 15,745 8 10
Price Contingencies 3,139,818 265,681 3,405,499 37,720 3,192 40,912 8 25
Total PROJECT COSTS 16,694,756 1,383,254 18,078,010 200,562 16,618 217,179 8 135

Table 2: Summary of costs expenditure accounts: base costs &

contingencies
India
Competitiveness Improvement of the Agriculture and Allied
Sectors Project in Jammu and Kashmir % % Total
Expenditure Accounts Project Cost Summary (INR '000) (US$ '000) Foreign Base
Local Foreign Total Local Foreign Total Exchange Costs
I. Investment Costs
A. Training and Workshops 174,567 13,617 188,185 2,097 164 2,261 7 1
B. Consultancies 211,099 18,356 229,455 2,536 221 2,757 8 2
C. Goods, Services and Inputs 6,861,185 586,201 7,447,386 82,427 7,042 89,469 8 56
D. Equipment and Materials 307,085 25,540 332,625 3,689 307 3,996 8 2
E. Grants and Subsidies 4,187,633 364,142 4,551,775 50,308 4,375 54,683 8 34
Total Investment Costs 11,741,569 1,007,857 12,749,425 141,057 12,108 153,165 8 95
II. Recurrent Costs
A. Salaries and Allowancies 425,200 5,760 430,960 5,108 69 5,177 1 3
B. Operating Costs 178,258 3,222 181,480 2,141 39 2,180 2 1
Total Recurrent Costs 603,458 8,982 612,440 7,250 108 7,358 1 5
Total BASELINE COSTS 12,345,026 1,016,839 13,361,865 148,306 12,216 160,522 8 100
Physical Contingencies 1,209,912 100,734 1,310,646 14,535 1,210 15,745 8 10
Price Contingencies 3,139,818 265,681 3,405,499 37,720 3,192 40,912 8 25
Total PROJECT COSTS 16,694,756 1,383,254 18,078,010 200,562 16,618 217,179 8 135

E. Project financing/co-financing strategy and plan

8. JKCIP will be financed as follows: IFAD financing is projected at US$100 million (46
per cent of the total project costs); Domestic financing from GoJ&K and
beneficiaries is US$26.4 million & US$ 45.7 million (12 per cent & 21 per cent
respectively). Beneficiary contribution will be both in cash and in-kind (raw
materials and labour). Convergence support is US$3.4 million (2 per cent), Private
Sector: US$20.7 million. Contribution from the banks will be US$20.8 million.

9. Allocation of costs by component: Out of the overall project costs, component

1; Climate-smart and market-led production has been allocated the biggest
proportion of 52 percent, equivalent to US$113.4 million. Component 2; Agri-
business ecosystem development accounts for 34 percent equivalent to US$74
million, while component 3; Support to vulnerable communities accounts for 10 per
cent which is equivalent to US$20.6 million. The Project Management component
has been allocated US$ 8.9 million, 4 percent of the total costs. The summary of
project financing by component, expenditure categories and component by year is
presented in table 3,4&5 below.
Table 3: Total project costs by components & sub-components, and
financier.
India
Competitiveness Improvement of the Agriculture and Allied
Sectors Project in Jammu and Kashmir
Components by Financiers
(US$ '000) IFAD GoJ&K Convergence Beneficiary Private Sector Bank Total
Amount % Amount % Amount % Amount % Amount % Amount % Amount %
A. Climate-smart and market-led production
Upscaling collectivization 5,419 73 1,534 21 - - 517 7 - - - - 7,470 3
Agri-niche crop promotion 20,016 43 5,042 11 - - 21,504 46 - - - - 46,562 21
Horticulture crop promotion 24,246 41 6,062 10 - - 22,945 39 6,162 10 - - 59,415 27
Subtotal 49,681 44 12,638 11 - - 44,966 40 6,162 5 - - 113,446 52
B. Agri-business ecosystem development
Enterprise promotion support 22,261 41 6,590 12 - - - - 10,316 19 15,422 28 54,589 25
Market promotion support 2,249 80 562 20 - - - - - - - - 2,811 1
Incubation and start-up 4,678 28 1,170 7 3,255 20 - - 2,170 13 5,424 33 16,696 8
Subtotal 29,188 39 8,322 11 3,255 4 - - 12,486 17 20,846 28 74,096 34
C. Support to vulnerable communities
Support for pastoralists 453 49 113 12 195 21 - - 171 18 - - 931 0
Support for other vulnerable communities 13,504 68 3,555 18 - - 785 4 1,893 10 - - 19,737 9
Subtotal 13,957 68 3,669 18 195 1 785 4 2,064 10 - - 20,668 10
D. Project Management
Project Management 5,934 80 1,484 20 - - - - - - - - 7,418 3
M&E and MIS 825 80 206 20 - - - - - - - - 1,031 1
KM and Policy 416 80 104 20 - - - - - - - - 520 0
Subtotal 7,175 80 1,794 20 - - - - - - - - 8,969 4
Total PROJECT COSTS 100,000 46 26,422 12 3,449 2 45,751 21 20,711 10 20,846 10 217,179 100

Table 4: Total project costs by expenditure accounts and financier

India

Competitiveness Improvement of the Agriculture

and Allied Sectors Project in Jammu and Kashmir
Expenditure Accounts by Financiers
(US$ '000) IFAD GoJ&K Convergence Beneficiary Private Sector Bank Total
Amount % Amount % Amount % Amount % Amount % Amount % Amount %
I. Investment Costs
A. Training and Workshops 2,287 80 572 20 - - - - - - - - 2,859 1
B. Consultancies 2,829 78 707 19 115 3 - - - - - - 3,652 2
C. Goods, Services and Inputs 46,464 38 11,835 10 3,334 3 44,535 37 8,829 7 5,915 5 120,911 56
D. Equipment and Materials 3,452 69 935 19 - - 634 13 - - - - 5,020 2
E. Grants and Subsidies 36,944 50 10,368 14 - - 581 1 11,882 16 14,932 20 74,707 34
Total Investment Costs 91,976 44 24,416 12 3,449 2 45,751 22 20,711 10 20,846 10 207,149 95
II. Recurrent Costs
A. Salaries and Allowancies 5,648 80 1,412 20 - - - - - - - - 7,060 3
B. Operating Costs 2,376 80 594 20 - - - - - - - - 2,970 1
Total Recurrent Costs 8,024 80 2,006 20 - - - - - - - - 10,030 5
Total PROJECT COSTS 100,000 46 26,422 12 3,449 2 45,751 21 20,711 10 20,846 10 217,179 100

Table 5: Total project costs by component & sub-component and by year

India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in
Jammu and Kashmir
Project Components by Year -- Totals Including Contingencies
(US$ '000) Totals Including Contingencies
2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total
A. Climate-smart and market-led production
Upscaling collectivization 23 1,493 2,430 1,896 1,035 288 303 - 7,470
Agri-niche crop promotion 38 3,462 8,672 9,743 9,982 8,442 6,184 39 46,562
Horticulture crop promotion 70 7,118 13,931 14,295 14,624 6,166 3,210 - 59,415
Subtotal 132 12,073 25,034 25,934 25,641 14,896 9,698 39 113,446
B. Agri-business ecosystem development
Enterprise promotion support - 6,206 13,323 17,459 14,026 2,107 1,467 - 54,589
Market promotion support - 363 1,012 1,113 217 51 54 - 2,811
Incubation and start-up 5 750 2,936 3,833 3,791 3,857 1,348 176 16,696
Subtotal 5 7,318 17,272 22,406 18,034 6,015 2,869 176 74,096
C. Support to vulnerable communities
Support for pastoralists - 194 328 161 162 85 - - 931
Support for other vulnerable communities - 2,087 3,551 3,743 3,912 3,666 2,779 - 19,737
Subtotal - 2,281 3,879 3,904 4,074 3,752 2,779 - 20,668
D. Project Management
Project Management 230 1,063 1,041 1,090 1,068 1,126 1,186 614 7,418
M&E and MIS 10 98 75 79 50 53 667 - 1,031
KM and Policy 32 192 92 104 27 35 28 10 520
Subtotal 272 1,352 1,208 1,273 1,145 1,213 1,881 624 8,969
Total PROJECT COSTS 410 23,024 47,392 53,517 48,894 25,876 17,227 839 217,179
F. IFAD Financing

10. IFAD financing of US$100 million (46% of total project costs)will be spread among
all the four components and the various activities. Component 1; Climate-smart
and market-led production accounts for US$49.6 million of the IFAD financing while
component 2; Agri-business ecosystem development takes US$29.1 million.
Component 3; Support to vulnerable communities has been allocated US$14 million
and component 4; Project Management, US$7.1 million.
India
Competitiveness Improvement of the Agriculture and Allied
Sectors Project in Jammu and Kashmir
Components by Financiers
(US$ '000) IFAD
Amount %
A. Climate-smart and market-led production
Upscaling collectivization 5,419 73
Agri-niche crop promotion 20,016 43
Horticulture crop promotion 24,246 41
Subtotal 49,681 44
B. Agri-business ecosystem development
Enterprise promotion support 22,261 41
Market promotion support 2,249 80
Incubation and start-up 4,678 28
Subtotal 29,188 39
C. Support to vulnerable communities
Support for pastoralists 453 49
Support for other vulnerable communities 13,504 68
Subtotal 13,957 68
D. Project Management
Project Management 5,934 80
M&E and MIS 825 80
KM and Policy 416 80
Subtotal 7,175 80
Total PROJECT COSTS 100,000 46
APPENDIX A: Summary of Cost Tables
Table of Contents
Table 1:Components by Financiers
Table 2:Expenditure Accounts by Financiers
Table 3:Disbursements by Semesters and Government Cash Flow
Table 4: Components Project Cost Summary
Table 5: Expenditure Accounts Project Cost Summary
Table 6: Expenditure Accounts by Components - Totals Including Contingencies
Table 7: Project Components by Year -- Totals Including Contingencies
Table 8: Project Components by Year -- Investment/Recurrent Costs
Table 9: Expenditure Accounts by Years -- Totals Including Contingencies
Table 1: Components by Financiers
India
Competitiveness Improvement of the Agriculture and Allied
Sectors Project in Jammu and Kashmir
Components by Financiers Local
(US$ '000) IFAD GoJ&K Convergence Beneficiary Private Sector Bank Total For. (Excl. Duties &
Amount % Amount % Amount % Amount % Amount % Amount % Amount % Exch. Taxes) Taxes
A. Climate-smart and market-led production
Upscaling collectivization 5,419 73 1,534 21 - - 517 7 - - - - 7,470 3 533 6,508 429
Agri-niche crop promotion 20,016 43 5,042 11 - - 21,504 46 - - - - 46,562 21 3,727 42,834 -
Horticulture crop promotion 24,246 41 6,062 10 - - 22,945 39 6,162 10 - - 59,415 27 4,659 54,756 -
Subtotal 49,681 44 12,638 11 - - 44,966 40 6,162 5 - - 113,446 52 8,919 104,098 429
B. Agri-business ecosystem development
Enterprise promotion support 22,261 41 6,590 12 - - - - 10,316 19 15,422 28 54,589 25 4,386 43,652 6,551
Market promotion support 2,249 80 562 20 - - - - - - - - 2,811 1 226 2,585 -
Incubation and start-up 4,678 28 1,170 7 3,255 20 - - 2,170 13 5,424 33 16,696 8 1,268 15,302 127
Subtotal 29,188 39 8,322 11 3,255 4 - - 12,486 17 20,846 28 74,096 34 5,880 61,539 6,678
C. Support to vulnerable communities
Support for pastoralists 453 49 113 12 195 21 - - 171 18 - - 931 0 75 856 -
Support for other vulnerable communities 13,504 68 3,555 18 - - 785 4 1,893 10 - - 19,737 9 1,588 17,851 299
Subtotal 13,957 68 3,669 18 195 1 785 4 2,064 10 - - 20,668 10 1,663 18,707 299
D. Project Management
Project Management 5,934 80 1,484 20 - - - - - - - - 7,418 3 31 7,374 13
M&E and MIS 825 80 206 20 - - - - - - - - 1,031 1 83 939 9
KM and Policy 416 80 104 20 - - - - - - - - 520 0 42 478 -
Subtotal 7,175 80 1,794 20 - - - - - - - - 8,969 4 156 8,791 22
Total PROJECT COSTS 100,000 46 26,422 12 3,449 2 45,751 21 20,711 10 20,846 10 217,179 100 16,618 193,135 7,426
Table 2: Expenditure Accounts by Financiers
India

Competitiveness Improvement of the Agriculture

and Allied Sectors Project in Jammu and Kashmir
Expenditure Accounts by Financiers Local
(US$ '000) IFAD GoJ&K Convergence Beneficiary Private Sector Bank Total For. (Excl. Duties &
Amount % Amount % Amount % Amount % Amount % Amount % Amount % Exch. Taxes) Taxes
I. Investment Costs
A. Training and Workshops 2,287 80 572 20 - - - - - - - - 2,859 1 209 2,606 44
B. Consultancies 2,829 78 707 19 115 3 - - - - - - 3,652 2 294 3,342 16
C. Goods, Services and Inputs 46,464 38 11,835 10 3,334 3 44,535 37 8,829 7 5,915 5 120,911 56 9,576 110,664 671
D. Equipment and Materials 3,452 69 935 19 - - 634 13 - - - - 5,020 2 387 4,313 320
E. Grants and Subsidies 36,944 50 10,368 14 - - 581 1 11,882 16 14,932 20 74,707 34 6,005 62,411 6,291
Total Investment Costs 91,976 44 24,416 12 3,449 2 45,751 22 20,711 10 20,846 10 207,149 95 16,471 183,337 7,341
II. Recurrent Costs
A. Salaries and Allowancies 5,648 80 1,412 20 - - - - - - - - 7,060 3 94 6,900 66
B. Operating Costs 2,376 80 594 20 - - - - - - - - 2,970 1 52 2,898 19
Total Recurrent Costs 8,024 80 2,006 20 - - - - - - - - 10,030 5 147 9,798 85
Total PROJECT COSTS 100,000 46 26,422 12 3,449 2 45,751 21 20,711 10 20,846 10 217,179 100 16,618 193,135 7,426
Table 3:Disbursements by Semesters and Government Cash Flow
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project
in Jammu and Kashmir Costs to
Disbursements by Semesters and Government Cash Flow Financing Available be
(US$ '000) Private Financed GoJ&K
IFAD Convergence Beneficiary Sector Bank Project Cumulative
Amount Amount Amount Amount Amount Total Costs Cash Flow Cash Flow
1 164 - - - - 164 205 -41 -41
2 164 - - - - 164 205 -41 -82
3 5,733 - 1,867 1,508 876 9,985 11,512 -1,527 -1,609
4 5,733 - 1,867 1,508 876 9,985 11,512 -1,527 -3,137
5 11,071 273 4,721 2,395 2,292 20,752 23,696 -2,944 -6,080
6 11,071 273 4,721 2,395 2,292 20,752 23,696 -2,944 -9,024
7 12,036 417 5,079 2,888 3,115 23,536 26,758 -3,223 -12,247
8 12,036 417 5,079 2,888 3,115 23,536 26,758 -3,223 -15,470
9 10,627 440 5,266 2,629 2,663 21,625 24,447 -2,822 -18,292
10 10,627 440 5,266 2,629 2,663 21,625 24,447 -2,822 -21,114
11 5,693 442 3,623 696 1,018 11,473 12,938 -1,465 -22,580
12 5,693 442 3,623 696 1,018 11,473 12,938 -1,465 -24,045
13 4,341 152 2,318 239 459 7,509 8,614 -1,105 -25,150
14 4,341 152 2,318 239 459 7,509 8,614 -1,105 -26,255
15 335 - - - - 335 419 -84 -26,338
16 335 - - - - 335 419 -84 -26,422

Total 100,000 3,449 45,751 20,711 20,846 190,757 217,179 -26,422 -26,422
Table 4: Components Project Cost Summary
India
Competitiveness Improvement of the Agriculture and Allied
Sectors Project in Jammu and Kashmir % % Total
Components Project Cost Summary (INR '000) (US$ '000) Foreign Base
Local Foreign Total Local Foreign Total Exchange Costs
A. Climate-smart and market-led production
Upscaling collectivization 471,672 36,280 507,952 5,666 436 6,102 7 4
Agri-niche crop promotion 2,650,482 229,242 2,879,724 31,841 2,754 34,595 8 22
Horticulture crop promotion 3,387,630 286,179 3,673,810 40,697 3,438 44,135 8 27
Subtotal 6,509,784 551,701 7,061,485 78,205 6,628 84,833 8 53
B. Agri-business ecosystem development
Enterprise promotion support 3,051,309 265,331 3,316,640 36,657 3,188 39,844 8 25
Market promotion support 172,408 14,992 187,400 2,071 180 2,251 8 1
Incubation and start-up 893,848 72,832 966,680 10,738 875 11,613 8 7
Subtotal 4,117,565 353,155 4,470,720 49,466 4,243 53,709 8 33
C. Support to vulnerable communities
Support for pastoralists 57,040 4,960 62,000 685 60 745 8 -
Support for other vulnerable communities 1,122,400 97,600 1,220,000 13,484 1,173 14,656 8 9
Subtotal 1,179,440 102,560 1,282,000 14,169 1,232 15,401 8 10
D. Project Management
Project Management 451,965 1,920 453,885 5,430 23 5,453 - 3
M&E and MIS 54,809 4,766 59,575 658 57 716 8 -
KM and Policy 31,464 2,736 34,200 378 33 411 8 -
Subtotal 538,238 9,422 547,660 6,466 113 6,579 2 4
Total BASELINE COSTS 12,345,026 1,016,839 13,361,865 148,306 12,216 160,522 8 100
Physical Contingencies 1,209,912 100,734 1,310,646 14,535 1,210 15,745 8 10
Price Contingencies 3,139,818 265,681 3,405,499 37,720 3,192 40,912 8 25
Total PROJECT COSTS 16,694,756 1,383,254 18,078,010 200,562 16,618 217,179 8 135
Table 5: Expenditure Accounts Project Cost Summary
India
Competitiveness Improvement of the Agriculture and Allied
Sectors Project in Jammu and Kashmir % % Total
Expenditure Accounts Project Cost Summary (INR '000) (US$ '000) Foreign Base
Local Foreign Total Local Foreign Total Exchange Costs
I. Investment Costs
A. Training and Workshops 174,567 13,617 188,185 2,097 164 2,261 7 1
B. Consultancies 211,099 18,356 229,455 2,536 221 2,757 8 2
C. Goods, Services and Inputs 6,861,185 586,201 7,447,386 82,427 7,042 89,469 8 56
D. Equipment and Materials 307,085 25,540 332,625 3,689 307 3,996 8 2
E. Grants and Subsidies 4,187,633 364,142 4,551,775 50,308 4,375 54,683 8 34
Total Investment Costs 11,741,569 1,007,857 12,749,425 141,057 12,108 153,165 8 95
II. Recurrent Costs
A. Salaries and Allowancies 425,200 5,760 430,960 5,108 69 5,177 1 3
B. Operating Costs 178,258 3,222 181,480 2,141 39 2,180 2 1
Total Recurrent Costs 603,458 8,982 612,440 7,250 108 7,358 1 5
Total BASELINE COSTS 12,345,026 1,016,839 13,361,865 148,306 12,216 160,522 8 100
Physical Contingencies 1,209,912 100,734 1,310,646 14,535 1,210 15,745 8 10
Price Contingencies 3,139,818 265,681 3,405,499 37,720 3,192 40,912 8 25
Total PROJECT COSTS 16,694,756 1,383,254 18,078,010 200,562 16,618 217,179 8 135
Table 6: Expenditure Accounts by Components - Totals Including Contingencies
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu
and Kashmir Support to vulnerable
Expenditure Accounts by Components - Totals Including Contingencies Agri-business ecosystem communities
(US$ '000) Climate-smart and market-led production development Support for
Agri-niche Horticulture Enterprise Market Incubation other Project Management
Upscaling crop crop promotion promotion and Support for vulnerable Project M&E and KM and
collectivization promotion promotion support support start-up pastoralists communities Management MIS Policy Total
I. Investment Costs
A. Training and Workshops 146 357 545 363 88 922 15 - - - 422 2,859
B. Consultancies 173 1,259 140 132 88 226 259 - 314 965 97 3,652
C. Goods, Services and Inputs 3,515 42,890 57,667 1,672 1,760 10,966 657 1,695 27 62 - 120,911
D. Equipment and Materials 1,571 661 841 - 876 230 - 793 44 4 - 5,020
E. Grants and Subsidies 461 1,163 - 52,422 - 3,413 - 17,249 - - - 74,707
Total Investment Costs 5,867 46,330 59,193 54,589 2,811 15,756 931 19,737 385 1,031 520 207,149
II. Recurrent Costs
A. Salaries and Allowancies 1,174 - - - - 662 - - 5,225 - - 7,060
B. Operating Costs 429 232 223 - - 279 - - 1,808 - - 2,970
Total Recurrent Costs 1,602 232 223 - - 941 - - 7,033 - - 10,030
Total PROJECT COSTS 7,470 46,562 59,415 54,589 2,811 16,696 931 19,737 7,418 1,031 520 217,179

Taxes 429 - - 6,551 - 127 - 299 13 9 - 7,426

Foreign Exchange 533 3,727 4,659 4,386 226 1,268 75 1,588 31 83 42 16,618
Table 7: Project Components by Year -- Totals Including Contingencies
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in
Jammu and Kashmir
Project Components by Year -- Totals Including Contingencies
(US$ '000) Totals Including Contingencies
2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total
A. Climate-smart and market-led production
Upscaling collectivization 23 1,493 2,430 1,896 1,035 288 303 - 7,470
Agri-niche crop promotion 38 3,462 8,672 9,743 9,982 8,442 6,184 39 46,562
Horticulture crop promotion 70 7,118 13,931 14,295 14,624 6,166 3,210 - 59,415
Subtotal 132 12,073 25,034 25,934 25,641 14,896 9,698 39 113,446
B. Agri-business ecosystem development
Enterprise promotion support - 6,206 13,323 17,459 14,026 2,107 1,467 - 54,589
Market promotion support - 363 1,012 1,113 217 51 54 - 2,811
Incubation and start-up 5 750 2,936 3,833 3,791 3,857 1,348 176 16,696
Subtotal 5 7,318 17,272 22,406 18,034 6,015 2,869 176 74,096
C. Support to vulnerable communities
Support for pastoralists - 194 328 161 162 85 - - 931
Support for other vulnerable communities - 2,087 3,551 3,743 3,912 3,666 2,779 - 19,737
Subtotal - 2,281 3,879 3,904 4,074 3,752 2,779 - 20,668
D. Project Management
Project Management 230 1,063 1,041 1,090 1,068 1,126 1,186 614 7,418
M&E and MIS 10 98 75 79 50 53 667 - 1,031
KM and Policy 32 192 92 104 27 35 28 10 520
Subtotal 272 1,352 1,208 1,273 1,145 1,213 1,881 624 8,969
Total PROJECT COSTS 410 23,024 47,392 53,517 48,894 25,876 17,227 839 217,179
Table 8: Project Components by Year -- Investment/Recurrent Costs
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project
in Jammu and Kashmir
Project Components by Year -- Investment/Recurrent Costs
(US$ '000) Totals Including Contingencies
2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total
A. Climate-smart and market-led production
Upscaling collectivization
Investment Costs 23 1,260 2,184 1,637 762 - - - 5,867
Recurrent Costs - 233 246 259 273 288 303 - 1,602
Subtotal 23 1,493 2,430 1,896 1,035 288 303 - 7,470
Agri-niche crop promotion
Investment Costs 38 3,434 8,642 9,711 9,949 8,407 6,148 - 46,330
Recurrent Costs - 28 30 31 33 35 37 39 232
Subtotal 38 3,462 8,672 9,743 9,982 8,442 6,184 39 46,562
Horticulture crop promotion
Investment Costs 44 7,089 13,901 14,263 14,591 6,131 3,173 - 59,193
Recurrent Costs 27 28 30 32 33 35 37 - 223
Subtotal 70 7,118 13,931 14,295 14,624 6,166 3,210 - 59,415
Subtotal 132 12,073 25,034 25,934 25,641 14,896 9,698 39 113,446
B. Agri-business ecosystem development
Enterprise promotion support
Investment Costs - 6,206 13,323 17,459 14,026 2,107 1,467 - 54,589
Recurrent Costs - - - - - - - - -
Subtotal - 6,206 13,323 17,459 14,026 2,107 1,467 - 54,589
Market promotion support
Investment Costs - 363 1,012 1,113 217 51 54 - 2,811
Recurrent Costs - - - - - - - - -
Subtotal - 363 1,012 1,113 217 51 54 - 2,811
Incubation and start-up
Investment Costs - 635 2,816 3,706 3,657 3,715 1,199 27 15,756
Recurrent Costs 5 114 121 127 134 141 149 149 941
Subtotal 5 7,318 17,272 22,406 18,034 6,015 2,869 176 74,096
C. Support to vulnerable communities
Support for pastoralists
Investment Costs - 194 328 161 162 85 - - 931
Recurrent Costs - - - - - - - - -
Subtotal - 194 328 161 162 85 - - 931
Support for other vulnerable communities
Investment Costs - 2,087 3,551 3,743 3,912 3,666 2,779 - 19,737
Recurrent Costs - - - - - - - - -
Subtotal - 2,281 3,879 3,904 4,074 3,752 2,779 - 20,668
D. Project Management
Project Management
Investment Costs 64 46 40 42 44 47 49 52 385
Recurrent Costs 166 1,017 1,001 1,047 1,023 1,079 1,137 562 7,033
Subtotal 230 1,063 1,041 1,090 1,068 1,126 1,186 614 7,418
M&E and MIS
Investment Costs 10 98 75 79 50 53 667 - 1,031
Recurrent Costs - - - - - - - - -
Subtotal 10 98 75 79 50 53 667 - 1,031
KM and Policy
Investment Costs 32 192 92 104 27 35 28 10 520
Recurrent Costs - - - - - - - - -
Subtotal 32 192 92 104 27 35 28 10 520
Subtotal 272 1,352 1,208 1,273 1,145 1,213 1,881 624 8,969
Total PROJECT COSTS 410 23,024 47,392 53,517 48,894 25,876 17,227 839 217,179
Total Investment Costs 212 21,603 45,965 52,020 47,397 24,299 15,564 89 207,149
Total Recurrent Costs 198 1,421 1,427 1,497 1,497 1,578 1,663 750 10,030
Table 9: Expenditure Accounts by Years -- Totals Including Contingencies
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in
Jammu and Kashmir
Expenditure Accounts by Years -- Totals Including Contingencies
(US$ '000) Totals Including Contingencies
2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total
I. Investment Costs
A. Training and Workshops 137 706 745 567 236 226 231 10 2,859
B. Consultancies 20 406 680 1,018 591 141 739 56 3,652
C. Goods, Services and Inputs 7 11,502 25,853 28,126 28,159 17,213 10,028 23 120,911
D. Equipment and Materials 47 1,103 1,953 1,492 250 176 - - 5,020
E. Grants and Subsidies - 7,886 16,733 20,817 18,161 6,543 4,567 - 74,707
Total Investment Costs 212 21,603 45,965 52,020 47,397 24,299 15,564 89 207,149
II. Recurrent Costs
A. Salaries and Allowancies 71 1,045 1,031 1,078 1,056 1,113 1,173 495 7,060
B. Operating Costs 127 377 397 418 441 465 490 255 2,970
Total Recurrent Costs 198 1,421 1,427 1,497 1,497 1,578 1,663 750 10,030
Total PROJECT COSTS 410 23,024 47,392 53,517 48,894 25,876 17,227 839 217,179
 Appendix B: Detailed Cost Tables
Component A:Climate-smart and market-led production
Table 1: Up-scaling collectivization
• Quantities and Costs
• Financing Rule
Table 2: Agri-niche crop promotion
• Quantities and Costs
• Financing Rule
Table 3: Horticulture crop promotion
• Quantities and Costs
• Financing Rule
Component B:Agri-business ecosystem development
Table 4: Enterprise promotion support
• Quantities and Costs
• Financing Rule
Table 5: Market promotion support
• Quantities and Costs
• Financing Rule
Table 6: Incubation and start-up
• Quantities and Costs
• Financing Rule
Component C:Support to vulnerable communities
Table 7: Support for pastoralists
• Quantities and Costs
• Financing Rule
Table 8: Support for other vulnerable communities
• Quantities and Costs
• Financing Rule
Component D: Support to vulnerable communities
Table 9: Project Management, M&E and MIS, and KM & Policy
• Quantities and Costs
• Financing Rule
Component 1 :Climate-smart and market-led production
Table 1A: Up-scaling collectivization – Quantities and Unit Costs
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir
Table 1.1. Upscaling collectivization Unit Cost
Detailed Costs Quantities (INR Unit Cost Totals Including Contingencies (US$ '000)
Unit 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total '000) (US$) 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total
I. Investment Costs
A. Capacity building of FPO Development Officer
Exposure visit to well managed FPOs /a per person 10 10 - - - - - - 20 60 721 8 8 - - - - - - 16
Assessment of FPO business opportunities /b Person Days 20 10 10 - - - - - 40 24 288 6 3 4 - - - - - 13
Preparation of curriculum for training of FPO-DO /c Ls 7 - - - - - - - 7
Capacity building of FPO-DO ( sessions of 5 days and two sessions per person) /d Person Days 100 200 100 100 - - - - 500 2 24 3 6 3 3 - - - - 14
Training of FPO staff /e Per Person - 1,010 1,010 - - - - - 2,020 1 12 - 14 15 - - - - - 29
Training of FPO leaders /d ( 4 per FPO for 1 day and three sessions) /f Per Person - 404 404 404 - - - - 1,212 1 12 - 6 6 6 - - - - 18
Training in fruit tree management /e (5 per FPO for 5 days for 60 FPOs) /g per FPO - 30 40 - - - - - 70 28 336 - 12 16 - - - - - 28
FPO Business plan preparation per FPO - 101 101 - - - - - 202 25 300 - 35 37 - - - - - 72
Technical Assistance - FPO Support /h Ls - 17 18 - - - - - 35
FPO-bankable sub-project preparartion /i Per FPO - 101 101 101 - - - - 303 15 180 - 21 22 23 - - - - 66
FPO-Bank/ Insurance interaction Per FPO - 101 101 101 - - - - 303 5 60 - 7 7 8 - - - - 22
Subtotal 23 128 128 40 - - - - 319
B. FPO Support
FPO mobilization support /j Per FPO - 15 30 - - - - - 45 100 1,201 - 21 45 - - - - - 66
Management cost support - first three year /k Per FPO - 15 45 45 - - - - 105 400 4,805 - 85 270 285 - - - - 640
Management cost support - fourth year Per FPO - - - - 45 - - - 45 200 2,403 - - - - 150 - - - 150
Office equipments Per FPO - 15 30 - - - - - 45 200 2,403 - 43 90 - - - - - 133
Matching Equity support /l Per FPO - 15 30 - - - - - 45 750 9,010 - 148 313 - - - - - 461
Apex Cooperative Support /m Ls - 2 2 2 2 - - - 8 15,000 180,202 - 379 379 379 379 - - - 1,515
Subtotal - 676 1,096 663 529 - - - 2,965
C. Business vertical support
Farm mechanization and drudgey reduction Per FPO - 10 20 20 - - - - 50 200 2,403 - 28 60 63 - - - - 152
Water management support Per FPO - 10 20 20 - - - - 50 1,000 12,013 - 142 300 316 - - - - 759
Aggregation support Per FPO - 10 20 20 - - - - 50 300 3,604 - 43 90 95 - - - - 228
FPO managed ASC Per FPO - 10 20 15 - - - - 45 1,000 12,013 - 142 300 237 - - - - 680
FPO Orchard Management Business Per FPO - 10 20 20 20 - - - 70 400 4,805 - 57 120 127 133 - - - 437
Other emerging businesses Per FPO - 10 20 20 20 - - - 70 300 3,604 - 43 90 95 100 - - - 328
Subtotal - 456 960 933 233 - - - 2,583
Total Investment Costs 23 1,260 2,184 1,637 762 - - - 5,867
II. Recurrent Costs
A. Capacity building of FPO Development Officer
Salary of FPO Development Officer Per Month - 240 240 240 240 240 240 - 1,440 50 601 - 171 180 190 200 211 222 - 1,174
FPO Development Officer Operating costs Per Month - 240 240 240 240 240 240 - 1,440 12 144 - 41 43 46 48 51 53 - 282
PO Management costs Lumpsum - 1 1 1 1 1 1 - 6 1,500 18,020 - 21 23 24 25 26 28 - 147
Total Recurrent Costs - 233 246 259 273 288 303 - 1,602
Total 23 1,493 2,430 1,896 1,035 288 303 - 7,470

_________________________________
\a 5 day visit within the country for the perons responsible for developing curriculum for FPO Dev Officer training
\b A team of two consultants for each province
\c to be undertaken by the Universities for capacity building of FPO Development Officers
\d 20 FPO Dev Officer, 2 sessions of 5 days for first two years and one session per year for next 2 years
\e 2 per FPO for 101 FPOs - session of 5 days and two sessions per person
\f 4 per FPO to be conducted a KVKs
\g 5 persons per FPO, 1 week training
\h for developing an approach and porcess for training, technical assistance, investment proposal design and developing linakges for FPOs,. This would include FPO assessment methodology .
\i To be prepared in collaboration with the respective line department
\j Moblization support for 45 New FPO including registration expenses
\k 45 New FPO - 15 to be mobilized during the 24-25 and 30 during 25-26
\l 300 members per FPO, Rs 2000 per member and Rs 3000 per youth and women assuming 50% youth and women
\m To establish Multi-state cooperatives as Apex of FPOs
 Table 1B: Up-scaling collectivization – Financing Rule
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir
Table 1.1. Upscaling collectivization Expenditures by Financiers (US$ '000)
Detailed Costs Other Accounts IFAD GoJ&K Beneficiary
Fin. Rule 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total
I. Investment Costs
A. Capacity building of FPO Development Officer
Exposure visit to well managed FPOs /a IFAD ( 80% ) 6 7 - - - - - - 13 2 2 - - - - - - 3 - - - - - - - - -
Assessment of FPO business opportunities /b IFAD ( 80% ) 5 3 3 - - - - - 10 1 1 1 - - - - - 3 - - - - - - - - -
Preparation of curriculum for training of FPO-DO /c IFAD ( 80% ) 5 - - - - - - - 5 1 - - - - - - - 1 - - - - - - - - -
Capacity building of FPO-DO ( sessions of 5 days and two sessions per person) /d IFAD ( 80% ) 2 4 2 2 - - - - 11 1 1 1 1 - - - - 3 - - - - - - - - -
Training of FPO staff /e IFAD ( 80% ) - 11 12 - - - - - 23 - 3 3 - - - - - 6 - - - - - - - - -
Training of FPO leaders /d ( 4 per FPO for 1 day and three sessions) /f IFAD ( 80% ) - 4 5 5 - - - - 14 - 1 1 1 - - - - 4 - - - - - - - - -
Training in fruit tree management /e (5 per FPO for 5 days for 60 FPOs) /g IFAD ( 80% ) - 9 13 - - - - - 22 - 2 3 - - - - - 6 - - - - - - - - -
FPO Business plan preparation IFAD ( 80% ) - 28 29 - - - - - 57 - 7 7 - - - - - 14 - - - - - - - - -
Technical Assistance - FPO Support /h IFAD ( 80% ) - 14 14 - - - - - 28 - 3 4 - - - - - 7 - - - - - - - - -
FPO-bankable sub-project preparartion /i IFAD ( 80% ) - 17 18 19 - - - - 53 - 4 4 5 - - - - 13 - - - - - - - - -
FPO-Bank/ Insurance interaction IFAD ( 80% ) - 6 6 6 - - - - 18 - 1 1 2 - - - - 4 - - - - - - - - -
Subtotal 19 103 102 32 - - - - 256 5 26 26 8 - - - - 64 - - - - - - - - -
B. FPO Support
FPO mobilization support /j IFAD ( 80% ) - 17 36 - - - - - 53 - 4 9 - - - - - 13 - - - - - - - - -
Management cost support - first three year /k IFAD ( 80% ) - 68 216 228 - - - - 512 - 17 54 57 - - - - 128 - - - - - - - - -
Management cost support - fourth year IFAD ( 80% ) - - - - 120 - - - 120 - - - - 30 - - - 30 - - - - - - - - -
Office equipments IFAD ( 80% ) - 34 72 - - - - - 106 - 9 18 - - - - - 27 - - - - - - - - -
Matching Equity support /l IFAD ( 80% ) - 119 250 - - - - - 369 - 30 63 - - - - - 92 - - - - - - - - -
Apex Cooperative Support /m IFAD ( 80% ) - 293 293 293 293 - - - 1,172 - 86 86 86 86 - - - 343 - - - - - - - - -
Subtotal - 531 867 521 413 - - - 2,332 - 145 229 143 116 - - - 633 - - - - - - - - -
C. Business vertical support
Farm mechanization and drudgey reduction IFAD ( 60% ), BENEFICIARY ( 20% ) - 17 36 38 - - - - 91 - 6 12 13 - - - - 30 - 6 12 13 - - - - 30
Water management support IFAD ( 60% ), BENEFICIARY ( 20% ) - 85 180 190 - - - - 455 - 28 60 63 - - - - 152 - 28 60 63 - - - - 152
Aggregation support IFAD ( 60% ), BENEFICIARY ( 20% ) - 26 54 57 - - - - 137 - 9 18 19 - - - - 46 - 9 18 19 - - - - 46
FPO managed ASC IFAD ( 60% ), BENEFICIARY ( 20% ) - 85 180 142 - - - - 408 - 28 60 47 - - - - 136 - 28 60 47 - - - - 136
FPO Orchard Management Business IFAD ( 60% ), BENEFICIARY ( 20% ) - 34 72 76 80 - - - 262 - 11 24 25 27 - - - 87 - 11 24 25 27 - - - 87
Other emerging businesses IFAD ( 60% ), BENEFICIARY ( 20% ) - 26 54 57 60 - - - 197 - 9 18 19 20 - - - 66 - 9 18 19 20 - - - 66
Subtotal - 273 576 560 140 - - - 1,550 - 91 192 187 47 - - - 517 - 91 192 187 47 - - - 517
Total Investment Costs 19 907 1,545 1,113 553 - - - 4,137 5 262 447 337 162 - - - 1,214 - 91 192 187 47 - - - 517
II. Recurrent Costs
A. Capacity building of FPO Development Officer
Salary of FPO Development Officer IFAD ( 80% ) - 137 144 152 160 169 178 - 939 - 34 36 38 40 42 44 - 235 - - - - - - - - -
FPO Development Officer Operating costs IFAD ( 80% ) - 33 35 36 38 40 43 - 225 - 8 9 9 10 10 11 - 56 - - - - - - - - -
PO Management costs IFAD ( 80% ) - 17 18 19 20 21 22 - 117 - 4 5 5 5 5 6 - 29 - - - - - - - - -
Total Recurrent Costs - 187 197 207 218 230 243 - 1,282 - 47 49 52 55 58 61 - 320 - - - - - - - - -
Total 19 1,094 1,742 1,320 771 230 243 - 5,419 5 309 496 389 217 58 61 - 1,534 - 91 192 187 47 - - - 517
 Table 2A: Agri-niche crop promotion Quantities and Costs
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir
Table 1.2. Agri-niche crop promotion Unit Cost
Detailed Costs Quantities (INR Unit Cost Totals Including Contingencies (US$ '000)
Unit 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total '000) (US$) 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total
I. Investment Costs
A. Training in CSA and GAP
Training curriculum development Lumpsum 1 - - - - - - - 1 200 2,403 2 - - - - - - - 2
Training for Trainers - Within State /a Per Person 48 48 - - - - - - 96 8 90 5 5 - - - - - - 10
Training for Trainers - National /b Per Person 40 80 40 - - - - - 160 60 721 31 66 35 - - - - - 133
Subtotal 38 71 35 - - - - - 145
B. Field Staff training /c Man Days - 1,000 1,000 1,000 - - - - 3,000 1 12 - 14 15 15 - - - - 44
C. Training for Farmers /d Per Block/FPPO - 180 180 180 - - - - 540 5 60 - 12 13 14 - - - - 39
D. Exposure visits to staff - National /e Per Person - - 16 16 - - - - 32 60 721 - - 14 15 - - - - 29
E. Exposure visit - International /f Per Person - - 5 5 - - - - 10 400 4,805 - - 29 31 - - - - 60
F. Planting material development
1. CoE Support
Saffron CoE business plan development Consultancy - 1 - - - - - - 1 1,000 12,013 - 14 - - - - - - 14
CoE Tulip feasibility study Consultancy - 1 - - - - - - 1 1,000 12,013 - 14 - - - - - - 14
CoE -Tulip/Floriculture Ls - - 0.25 0.5 0.25 - - - 1 80,000 961,076 - - 292 615 324 - - - 1,231
Subtotal - 28 292 615 324 - - - 1,259
2. Seed system development
Seed Village Promotion /g Per FPO - - 10 20 20 - - - 50 300 3,604 - - 44 92 97 - - - 233
Seed Business /h Per FPO - 4 4 4 4 - - - 16 500 6,007 - 28 29 31 32 - - - 120
Subtotal - 28 73 123 130 - - - 353
Subtotal - 55 365 738 454 - - - 1,612
G. Entrepreneur managed ASC Number - 10 20 15 - - - - 45 1,000 12,013 - 138 292 231 - - - - 661
H. Crop Management and Expansion
1. Rural Credit Workshops /i Number - 90 90 90 - - - - 270 10 120 - 13 14 14 - - - - 41
2. SAFFRON /j
Farms in their year 1 per Kanal - 500 2,000 2,000 2,000 - - - 6,500 34 412 - 244 1,030 1,085 1,144 - - - 3,503
Farms in their year 2 per Kanal - - 500 2,000 2,000 2,000 - - 6,500 19 222 - - 139 585 617 650 - - 1,991
Farms in their year 3 per Kanal - - - 500 2,000 2,000 2,000 - 6,500 10 123 - - - 81 342 360 380 - 1,163
Subtotal - 244 1,168 1,752 2,103 1,011 380 - 6,657
3. Aromatic Rice /k per Kanal - 2,500 2,500 2,500 2,500 - - - 10,000 5 60 - 178 188 198 208 - - - 772
4. Vegetables per Kanal - 2,000 6,000 6,000 6,000 6,000 - - 26,000 12 144 - 342 1,080 1,139 1,200 1,265 - - 5,027
5. Aromatic and Medicinal Plants /l Per Kanal - 200 200 200 - - - - 600 15 180 - 43 45 47 - - - - 135
6. Others /m Kanal - 1,000 3,000 3,000 3,000 3,000 - - 13,000 13 150 - 178 563 593 625 659 - - 2,618
Subtotal - 997 3,058 3,743 4,137 2,935 380 - 15,250
I. Water Management systems No - 50 150 150 150 150 150 - 800 600 7,208 - 427 1,351 1,424 1,501 1,582 1,667 - 7,951
J. Protected Cultivation No - 150 300 300 300 300 300 - 1,650 750 9,010 - 1,576 3,322 3,501 3,691 3,890 4,101 - 20,080
K. Research Development /n Lumpsum - 2 2 - 2 - - - 6 5,000 60,067 - 142 150 - 167 - - - 459
Total Investment Costs 38 3,434 8,642 9,711 9,949 8,407 6,148 - 46,330
II. Recurrent Costs
A. Supervision costs per Directorate - 2 2 2 2 2 2 2 14 1,000 12,013 - 28 30 31 33 35 37 39 232
Total Recurrent Costs - 28 30 31 33 35 37 39 232
Total 38 3,462 8,672 9,743 9,982 8,442 6,184 39 46,562

_________________________________
\a 2 Per district and 4 per Directorate HO for 5 days
\b 8 per province
\c 10 per district for 5 days
\d 30 persons per session and 2 sessions per Block/FPO
\e 8 per province for 7 days
\f for researchers and Directorate staff to be selected based on a challegne to be selected competitively and transp[arently
\g Seed system for cereals and pulses
\h Vegetable seed production with private sector
\i Block level workshops
\j 5000 farmers, 4 Kanals land area,
\k includes mushk budji, basmati rice and other premium rice varieties
\l 10000 farmers, 4 Kanals land area,
\m includes floriculture,pulses and legumes, spices, willos and Bamboo
\n For both universities
 Table 2B: Agri-niche crop promotion: Financing Rule
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir
Table 1.2. Agri-niche crop promotion Expenditures by Financiers (US$ '000)
Detailed Costs Other Accounts IFAD GoJ&K
Fin. Rule 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total
I. Investment Costs
A. Training in CSA and GAP
Training curriculum development IFAD ( 80% ) 2 - - - - - - - 2 0 - - - - - - - 0
Training for Trainers - Within State /a IFAD ( 80% ) 4 4 - - - - - - 8 1 1 - - - - - - 2
Training for Trainers - National /b IFAD ( 80% ) 25 53 28 - - - - - 106 6 13 7 - - - - - 27
Subtotal 31 57 28 - - - - - 116 8 14 7 - - - - - 29
B. Field Staff training /c IFAD ( 80% ) - 11 12 12 - - - - 35 - 3 3 3 - - - - 9
C. Training for Farmers /d IFAD ( 80% ) - 10 11 11 - - - - 32 - 2 3 3 - - - - 8
D. Exposure visits to staff - National /e IFAD ( 80% ) - - 11 12 - - - - 23 - - 3 3 - - - - 6
E. Exposure visit - International /f IFAD ( 80% ) - - 23 25 - - - - 48 - - 6 6 - - - - 12
F. Planting material development
1. CoE Support
Saffron CoE business plan development IFAD ( 80% ) - 11 - - - - - - 11 - 3 - - - - - - 3
CoE Tulip feasibility study IFAD ( 80% ) - 11 - - - - - - 11 - 3 - - - - - - 3
CoE -Tulip/Floriculture IFAD ( 80% ) - - 233 492 259 - - - 985 - - 58 123 65 - - - 246
Subtotal - 22 233 492 259 - - - 1,007 - 6 58 123 65 - - - 252
2. Seed system development
Seed Village Promotion /g IFAD ( 80% ) - - 35 74 78 - - - 187 - - 9 18 19 - - - 47
Seed Business /h IFAD ( 80% ) - 22 23 25 26 - - - 96 - 6 6 6 6 - - - 24
Subtotal - 22 58 98 104 - - - 283 - 6 15 25 26 - - - 71
Subtotal - 44 292 591 363 - - - 1,290 - 11 73 148 91 - - - 322
G. Entrepreneur managed ASC IFAD ( 80% ) - 111 233 185 - - - - 529 - 28 58 46 - - - - 132
H. Crop Management and Expansion
1. Rural Credit Workshops /i IFAD(80%) - 10 11 11 - - - - 32 - 3 3 3 - - - - 8
2. SAFFRON /j
Farms in their year 1 IFAD ( 40% ), BENEFICIARY ( 50% ) - 98 412 434 458 - - - 1,401 - 24 103 109 114 - - - 350
Farms in their year 2 IFAD ( 40% ), BENEFICIARY ( 50%) - - 56 234 247 260 - - 796 - - 14 59 62 65 - - 199
Farms in their year 3 IFAD ( 40% ), BENEFICIARY ( 50%) - - - 32 137 144 152 - 465 - - - 8 34 36 38 - 116
Subtotal - 98 467 701 841 404 152 - 2,663 - 24 117 175 210 101 38 - 666
3. Aromatic Rice /k IFAD ( 40% ), BENEFICIARY ( 50% ) - 71 75 79 83 - - - 309 - 18 19 20 21 - - - 77
4. Vegetables IFAD ( 40% ), BENEFICIARY ( 50% ) - 137 432 456 480 506 - - 2,011 - 34 108 114 120 127 - - 503
5. Aromatic and Medicinal Plants /l IFAD ( 40% ), BENEFICIARY ( 50% ) - 17 18 19 - - - - 54 - 4 5 5 - - - - 14
6. Others /m IFAD ( 40% ), BENEFICIARY ( 50% ) - 71 225 237 250 264 - - 1,047 - 18 56 59 63 66 - - 262
Subtotal - 404 1,228 1,503 1,655 1,174 152 - 6,116 - 101 307 376 414 294 38 - 1,529
I. Water Management systems IFAD ( 40% ), BENEFICIARY ( 50% ) - 171 540 569 600 633 667 - 3,180 - 43 135 142 150 158 167 - 795
J. Protected Cultivation IFAD ( 40% ), BENEFICIARY ( 50% ) - 635 1,339 1,411 1,488 1,568 1,653 - 8,094 - 162 341 360 379 399 421 - 2,062
K. Research Development /n IFAD(80%) - 114 120 - 133 - - - 367 - 28 30 - 33 - - - 92
Total Investment Costs 31 1,557 3,838 4,319 4,239 3,375 2,472 - 19,830 8 392 966 1,086 1,067 851 626 - 4,996
II. Recurrent Costs
A. Supervision costs IFAD ( 80% ) - 23 24 25 26 28 29 31 186 - 6 6 6 7 7 7 8 46
Total Recurrent Costs - 23 24 25 26 28 29 31 186 - 6 6 6 7 7 7 8 46
Total 31 1,580 3,861 4,344 4,266 3,403 2,501 31 20,016 8 398 972 1,093 1,073 858 633 8 5,042
 Table 3A: Horticulture crop promotion: Quantities and Costs
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir Unit
Table 1.3. Horticulture crop promotion Cost
Detailed Costs Quantities (INR Unit Cost Totals Including Contingencies (US$ '000)
Unit 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total '000) (US$) 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total
I. Investment Costs
A. Horticultural crop support
1. Training in CSA and GAP
Training curriculum development /a Lumpsum 1 - - - - - - - 1 500 6,007 7 - - - - - - - 7
Training for Trainers - Within State /b Per Person 48 48 - - - - - - 96 8 96 5 5 - - - - - - 11
Training for Trainers - National /c Per Person 40 80 40 - - - - - 160 60 721 32 68 36 - - - - - 135
Field Staff training /d Man Days - 1,000 1,000 1,000 - - - - 3,000 1 12 - 14 15 16 - - - - 45
Training for Farmers /e Per Block/FPO - 180 180 180 - - - - 540 5 60 - 13 13 14 - - - - 40
Exposure visits to staff - National /f Per Person - - 16.16 - - - - - 16.16 60 721 - - 14 - - - - - 14
Exposure visit - International /g Per Person - - 5 5 - - - - 10 400 4,805 - - 29 31 - - - - 60
Subtotal 44 100 107 60 - - - - 311
2. Research Development Lumpsum - 2 2 2 2 - - - 8 7,500 90,101 - 214 225 237 250 - - - 926
3. Weather forecast and crop advisory
Weather stations /h No - - 20 - - - - - 20 500 6,007 - - 148 - - - - - 148
Software for weather forecasting Ls - 70 74 - - - - - 145
Subtotal - 70 223 - - - - - 293
4. Planting material development- COE support
CoE business plan development Consultancy - 1 - - - - - - 1 1,000 12,013 - 14 - - - - - - 14
CoE - Business executives /i Per Month - 48 48 48 - - - - 144 50 601 - 33 35 37 - - - - 105
Study of Apple crop expansion system ls - 21 - - - - - - 21
Subtotal - 68 35 37 - - - - 140
5. Planting Materials -Nursery development
Nurseries - Apple and Pear Number - 25 25 25 25 - - - 100 2,600 31,235 - 942 993 1,047 1,104 - - - 4,087
Nurseries - Walnuts Number - 20 20 20 20 - - - 80 2,000 24,027 - 580 611 644 679 - - - 2,515
Nurseries - Stonefruits Number - 25 25 25 25 - - - 100 2,600 31,235 - 942 993 1,047 1,104 - - - 4,087
Nurseries - Mango, Litchis, Citrus Number - 10 10 10 10 - - - 40 2,600 31,235 - 377 397 419 442 - - - 1,635
Subtotal - 2,842 2,996 3,158 3,328 - - - 12,323
6. Crop Management and expansion
Rural Credit Workshops /j Number - 90 90 90 - - - - 270 10 120 - 13 14 14 - - - - 41
Solar Fencing Ha - 20 60 60 60 - - - 200 200 2,403 - 58 183 193 204 - - - 639
Entrepreneur managed ASC Number - 10 20 15 - - - - 45 1,000 12,013 - 145 306 242 - - - - 692
Training in fruit tree management /k Number - 100 200 150 - - - - 450 28 336 - 41 86 68 - - - - 194
Enterpreneur led Orchard Management Business Number - 10 20 20 20 - - - 70 400 4,805 - 58 122 129 136 - - - 445
Water management Number - 50 100 100 100 100 100 - 550 600 7,208 - 435 917 967 1,019 1,074 1,132 - 5,544
Apple Per Kanal - 500 1,500 1,500 1,500 - - - 5,000 200 2,403 - 1,450 4,585 4,833 5,095 - - - 15,963
Walnut Per Kanal - 200 1,500 1,500 1,500 2,000 2,000 - 8,700 28 336 - 81 642 677 713 1,002 1,057 - 4,172
Mango Per Kanal - 300 600 600 600 600 600 - 3,300 21 250 - 90 191 201 212 223 235 - 1,153
Litchis Per Kanal - 400 600 600 600 600 600 - 3,400 20 245 - 118 187 197 208 219 231 - 1,160
Citrus Per Kanal - 200 500 500 500 500 500 - 2,700 21 250 - 60 159 168 177 186 196 - 946
Kiwi Per Kanal - 200 1,000 1,000 1,000 1,000 - - 4,200 125 1,502 - 362 1,910 2,014 2,123 2,238 - - 8,647
Guava Per Kanal - 400 600 600 600 600 600 - 3,400 25 300 - 145 229 242 255 269 283 - 1,422
Dragonfruit Per Kanal - 40 40 40 40 40 - - 200 108 1,302 - 63 66 70 74 78 - - 350
Others Per Kanal - 800 1,000 1,000 1,000 1,000 1,000 - 5,800 2 25 - 24 31 33 35 37 38 - 197
Rejuvenation Per Kanal - 1,500 1,500 1,500 1,500 1,500 - - 7,500 30 360 - 652 688 725 764 806 - - 3,635
Subtotal - 3,796 10,316 10,771 11,013 6,131 3,173 - 45,200
Total Investment Costs 44 7,089 13,901 14,263 14,591 6,131 3,173 - 59,193
II. Recurrent Costs
A. Supervision costs per Directorate 2 2 2 2 2 2 2 - 14 1,000 12,013 27 28 30 32 33 35 37 - 223
Total Recurrent Costs 27 28 30 32 33 35 37 - 223
Total 70 7,118 13,931 14,295 14,624 6,166 3,210 - 59,415

_________________________________
\a Higher unit cost compared to niche crops due to larger number of crops
\b 2 Per district and 4 per Directorate HO for 5 days
\c 5 day training 8 per province foir first year, and 16 per province during second year and 8 per province for third year
\d 10 per district for 5 days
\e 30 persons per session and 2 sessions per Block/FPO
\f 8 per province for 7 days
\g for only researchers and Directorate staff based on a challenge to be selected competitively and transparently
\h For KVKs in Jammu & Kashmire regions
\i 2 per COE
\j Block level workshops
\k 1 week training
 Table 3B: Horticulture crop promotion: Financing Rule
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir
Table 1.3. Horticulture crop promotion Expenditures by Financiers (US$ '000)
Detailed Costs Other Accounts IFAD GoJ&K Beneficiary Private Sector
Fin. Rule 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total
I. Investment Costs
A. Horticultural crop support
1. Training in CSA and GAP
Training curriculum development /a IFAD ( 80% ) 5 - - - - - - - 5 1 - - - - - - - 1 - - - - - - - - - - - - - - - - - -
Training for Trainers - Within State /b IFAD ( 80% ) 4 4 - - - - - - 8 1 1 - - - - - - 2 - - - - - - - - - - - - - - - - - -
Training for Trainers - National /c IFAD ( 80% ) 25 54 28 - - - - - 108 6 14 7 - - - - - 27 - - - - - - - - - - - - - - - - - -
Field Staff training /d IFAD ( 80% ) - 11 12 13 - - - - 36 - 3 3 3 - - - - 9 - - - - - - - - - - - - - - - - - -
Training for Farmers /e IFAD ( 80% ) - 10 11 11 - - - - 32 - 3 3 3 - - - - 8 - - - - - - - - - - - - - - - - - -
Exposure visits to staff - National /f IFAD ( 80% ) - - 11 - - - - - 11 - - 3 - - - - - 3 - - - - - - - - - - - - - - - - - -
Exposure visit - International /g IFAD ( 80% ) - - 23 25 - - - - 48 - - 6 6 - - - - 12 - - - - - - - - - - - - - - - - - -
Subtotal 35 80 86 48 - - - - 249 9 20 21 12 - - - - 62 - - - - - - - - - - - - - - - - - -
2. Research Development IFAD ( 40% ), BENEFICIARY ( 50% ) - 85 90 95 100 - - - 370 - 21 23 24 25 - - - 93 - 107 113 119 125 - - - 463 - - - - - - - - -
3. Weather forecast and crop advisory
Weather stations /h IFAD(80%) - - 119 - - - - - 119 - - 30 - - - - - 30 - - - - - - - - - - - - - - - - - -
Software for weather forecasting IFAD(80%) - 56 59 - - - - - 116 - 14 15 - - - - - 29 - - - - - - - - - - - - - - - - - -
Subtotal - 56 178 - - - - - 234 - 14 45 - - - - - 59 - - - - - - - - - - - - - - - - - -
4. Planting material development- COE support
CoE business plan development IFAD ( 80% ) - 11 - - - - - - 11 - 3 - - - - - - 3 - - - - - - - - - - - - - - - - - -
CoE - Business executives /i IFAD ( 80% ) - 27 28 30 - - - - 84 - 7 7 7 - - - - 21 - - - - - - - - - - - - - - - - - -
Study of Apple crop expansion system IFAD(80%) - 17 - - - - - - 17 - 4 - - - - - - 4 - - - - - - - - - - - - - - - - - -
Subtotal - 54 28 30 - - - - 112 - 14 7 7 - - - - 28 - - - - - - - - - - - - - - - - - -
5. Planting Materials -Nursery development
Nurseries - Apple and Pear IFAD ( 40% ), PRIVATE_SECTOR( 50% ) - 377 397 419 442 - - - 1,635 - 94 99 105 110 - - - 409 - - - - - - - - - - 471 497 524 552 - - - 2,043
Nurseries - Walnuts IFAD ( 40% ), PRIVATE_SECTOR(50% ) - 232 245 258 272 - - - 1,006 - 58 61 64 68 - - - 251 - - - - - - - - - - 290 306 322 340 - - - 1,257
Nurseries - Stonefruits IFAD ( 40% ), PRIVATE_SECTOR(50% ) - 377 397 419 442 - - - 1,635 - 94 99 105 110 - - - 409 - - - - - - - - - - 471 497 524 552 - - - 2,043
Nurseries - Mango, Litchis, Citrus IFAD ( 40% ), PRIVATE_SECTOR(50% ) - 151 159 168 177 - - - 654 - 38 40 42 44 - - - 163 - - - - - - - - - - 188 199 209 221 - - - 817
Subtotal - 1,137 1,198 1,263 1,331 - - - 4,929 - 284 300 316 333 - - - 1,232 - - - - - - - - - - 1,421 1,498 1,579 1,664 - - - 6,162
6. Crop Management and expansion
Rural Credit Workshops /j IFAD(80%) - 10 11 11 - - - - 32 - 3 3 3 - - - - 8 - - - - - - - - - - - - - - - - - -
Solar Fencing IFAD ( 40% ), BENEFICIARY( 50% ) - 23 73 77 82 - - - 255 - 6 18 19 20 - - - 64 - 29 92 97 102 - - - 319 - - - - - - - - -
Entrepreneur managed ASC IFAD ( 40% ), BENEFICIARY( 50% ) - 58 122 97 - - - - 277 - 14 31 24 - - - - 69 - 72 153 121 - - - - 346 - - - - - - - - -
Training in fruit tree management /k IFAD ( 80% ) - 32 68 54 - - - - 155 - 8 17 14 - - - - 39 - - - - - - - - - - - - - - - - - -
Enterpreneur led Orchard Management Business IFAD ( 40% ), BENEFICIARY( 50% ) - 23 49 52 54 - - - 178 - 6 12 13 14 - - - 45 - 29 61 64 68 - - - 223 - - - - - - - - -
Water management IFAD ( 40% ), BENEFICIARY( 50% ) - 174 367 387 408 430 453 - 2,217 - 43 92 97 102 107 113 - 554 - 217 459 483 509 537 566 - 2,772 - - - - - - - - -
Apple IFAD ( 40% ), BENEFICIARY( 50% ) - 580 1,834 1,933 2,038 - - - 6,385 - 145 459 483 509 - - - 1,596 - 725 2,293 2,417 2,547 - - - 7,981 - - - - - - - - -
Walnut IFAD ( 40% ), BENEFICIARY( 50% ) - 32 257 271 285 401 423 - 1,669 - 8 64 68 71 100 106 - 417 - 41 321 338 357 501 528 - 2,086 - - - - - - - - -
Mango IFAD ( 40% ), BENEFICIARY( 50% ) - 36 76 80 85 89 94 - 461 - 9 19 20 21 22 24 - 115 - 45 95 101 106 112 118 - 577 - - - - - - - - -
Litchis IFAD ( 40% ), BENEFICIARY( 50% ) - 47 75 79 83 88 92 - 464 - 12 19 20 21 22 23 - 116 - 59 94 99 104 110 115 - 580 - - - - - - - - -
Citrus IFAD ( 40% ), BENEFICIARY( 50% ) - 24 64 67 71 74 78 - 378 - 6 16 17 18 19 20 - 95 - 30 79 84 88 93 98 - 473 - - - - - - - - -
Kiwi IFAD ( 40% ), BENEFICIARY( 50% ) - 145 764 806 849 895 - - 3,459 - 36 191 201 212 224 - - 865 - 181 955 1,007 1,061 1,119 - - 4,324 - - - - - - - - -
Guava IFAD ( 40% ), BENEFICIARY( 50% ) - 58 92 97 102 107 113 - 569 - 14 23 24 25 27 28 - 142 - 72 115 121 127 134 142 - 711 - - - - - - - - -
Dragonfruit IFAD ( 40% ), BENEFICIARY( 50% ) - 25 27 28 29 31 - - 140 - 6 7 7 7 8 - - 35 - 31 33 35 37 39 - - 175 - - - - - - - - -
Others IFAD ( 40% ), BENEFICIARY( 50% ) - 9 12 13 14 15 15 - 79 - 2 3 3 3 4 4 - 20 - 12 16 16 17 18 19 - 99 - - - - - - - - -
Rejuvenation IFAD ( 40% ), BENEFICIARY( 50% ) - 261 275 290 306 322 - - 1,454 - 65 69 72 76 81 - - 363 - 326 344 362 382 403 - - 1,817 - - - - - - - - -
Subtotal - 1,540 4,166 4,341 4,405 2,452 1,269 - 18,174 - 385 1,042 1,085 1,101 613 317 - 4,543 - 1,871 5,108 5,345 5,506 3,065 1,586 - 22,483 - - - - - - - - -
Total Investment Costs 35 2,952 5,746 5,777 5,836 2,452 1,269 - 24,068 9 738 1,437 1,444 1,459 613 317 - 6,017 - 1,978 5,221 5,463 5,631 3,065 1,586 - 22,945 - 1,421 1,498 1,579 1,664 - - - 6,162
II. Recurrent Costs
A. Supervision costs IFAD ( 80% ) 21 23 24 25 27 28 30 - 178 5 6 6 6 7 7 7 - 45 - - - - - - - - - - - - - - - - - -
Total Recurrent Costs 21 23 24 25 27 28 30 - 178 5 6 6 6 7 7 7 - 45 - - - - - - - - - - - - - - - - - -
Total 56 2,975 5,770 5,802 5,863 2,480 1,299 - 24,246 14 744 1,443 1,451 1,466 620 325 - 6,062 - 1,978 5,221 5,463 5,631 3,065 1,586 - 22,945 - 1,421 1,498 1,579 1,664 - - - 6,162
 Component 2 :Agri-business ecosystem development
Table 4A: Enterprise promotion support – Quantities and Costs
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir
Table 2.1. Enterprise promotion support
Detailed Costs Quantities Unit Cost Unit Cost Totals Including Contingencies (US$ '000)
Unit 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total (INR '000) (US$) 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total
I. Investment Costs
A. Enterprise Promotion Support
1. Business led enterprise promotion
Business Plan Review/DPR Appraisal Number - 5 22 24 22 6 - - 79 100 1,201 - 8 35 40 39 11 - - 132
Mini CA Stores Number - 3 6 8 6 - - - 23 105,000 1,261,413 - 4,733 9,979 14,026 11,089 - - - 39,827
Integrated pack-house Number - 1 6 6 6 6 - - 25 5,000 60,067 - 75 475 501 528 557 - - 2,136
Processing unit - Large Number - 1 2 2 2 - - - 7 20,000 240,269 - 301 634 668 704 - - - 2,306
Others Number - 8 8 8 8 - - - 32 1,000 12,013 - 120 127 134 141 - - - 521
Subtotal - 5,237 11,250 15,368 12,500 568 - - 44,923
2. Individual Enterprise Promotion
Jammu/Kashmir branded kiosks Number - 50 50 - - - - - 100 100 1,201 - 71 75 - - - - - 146
Mini Grading Line Number - 30 80 80 80 80 80 - 430 300 3,604 - 128 360 380 400 422 445 - 2,135
Grading lines with washer Number - 10 50 50 50 50 50 - 260 800 9,611 - 114 600 633 667 703 741 - 3,458
Processing unit - Mini Number - 30 30 30 30 30 30 - 180 400 4,805 - 171 180 190 200 211 222 - 1,174
Agri-Tourism Number - 5 5 5 5 - - - 20 500 6,007 - 36 38 40 42 - - - 154
Mushroom Production /a per FPO - 3 3 3 - - - - 9 200 2,403 - 9 9 9 - - - - 27
Honey Production and Marketing /b per FPO - - 3 3 3 - - - 9 200 2,403 - - 9 9 10 - - - 28
MAP processing /c per FPO - - 3 3 3 - - - 9 200 2,403 - - 9 9 10 - - - 28
Other Enterprise Number - 20 20 20 20 20 - - 100 400 4,805 - 114 120 127 133 141 - - 634
Subtotal - 642 1,400 1,397 1,462 1,476 1,408 - 7,786
3. Access to financial services
Bankable proposal development No - 148 244 194 191 180 160 - 1,117 20 240 - 42 73 61 64 63 59 - 363
Innovative Pilots /d Lumpsum - 1 2 2 - - - - 5 20,000 240,269 - 285 600 633 - - - - 1,518
Subtotal - 327 673 694 64 63 59 - 1,881
Total - 6,206 13,323 17,459 14,026 2,107 1,467 - 54,589

_________________________________
\a 2 FPOs/ Entreprenuer per province linked to at least 20 farmers
\b 2 FPOs/ Entreprenuer per province linked to atleast 20 farmers
\c 2 FPOs/ Entreprenuer per province linked to atleast 20 farmers
\d To address the aspects related to high level subsidy dependence, low access of small farmers to credit
 Table 4B: Enterprise promotion support – Financing Rule
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir
Table 2.1. Enterprise promotion support Expenditures by Financiers (US$ '000)
Detailed Costs Other Accounts IFAD GoJ&K
Fin. Rule 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total
I. Investment Costs
A. Enterprise Promotion Support
1. Business led enterprise promotion
Business Plan Review/DPR Appraisal IFAD(80%) - 6 28 32 31 9 - - 106 - 2 7 8 8 2 - - 26
Mini CA Stores IFAD ( 40% ), BANK(30%), PRIVATE_SECTOR(20%) - 1,935 4,080 5,735 4,534 - - - 16,285 - 568 1,198 1,683 1,331 - - - 4,779
Integrated pack-house IFAD ( 40% ), BANK(30%), PRIVATE_SECTOR(20%) - 29 186 196 207 218 - - 835 - 9 57 60 63 67 - - 256
Processing unit - Large IFAD ( 40% ), BANK(30%), PRIVATE_SECTOR(20%) - 118 248 261 275 - - - 902 - 36 76 80 84 - - - 277
Others IFAD ( 40% ), BANK(30%), PRIVATE_SECTOR(20%) - 47 50 52 55 - - - 204 - 14 15 16 17 - - - 63
Subtotal - 2,135 4,592 6,276 5,102 227 - - 18,332 - 629 1,353 1,847 1,503 69 - - 5,401
2. Individual Enterprise Promotion
Jammu/Kashmir branded kiosks IFAD ( 40% ), BANK ( 30% ), PRIVATE_SECTOR ( 20% ) - 28 29 - - - - - 57 - 9 9 - - - - - 18
Mini Grading Line IFAD ( 40% ), BANK ( 30% ), PRIVATE_SECTOR ( 20% ) - 50 141 148 157 165 174 - 835 - 15 43 46 48 51 53 - 256
Grading lines with washer IFAD ( 40% ), BANK ( 30% ), PRIVATE_SECTOR ( 20% ) - 45 235 247 261 275 290 - 1,352 - 14 72 76 80 84 89 - 415
Processing unit - Mini IFAD ( 40% ), BANK ( 30% ), PRIVATE_SECTOR ( 20% ) - 67 70 74 78 82 87 - 459 - 20 22 23 24 25 27 - 141
Agri-Tourism IFAD ( 40% ), BANK ( 30% ), PRIVATE_SECTOR ( 20% ) - 14 15 15 16 - - - 60 - 4 5 5 5 - - - 19
Mushroom Production /a IFAD ( 40% ), BANK ( 30% ), PRIVATE_SECTOR ( 20% ) - 3 4 4 - - - - 11 - 1 1 1 - - - - 3
Honey Production and Marketing /b IFAD ( 40% ), BANK ( 30% ), PRIVATE_SECTOR ( 20% ) - - 4 4 4 - - - 11 - - 1 1 1 - - - 3
MAP processing /c IFAD ( 40% ), BANK ( 30% ), PRIVATE_SECTOR ( 20% ) - - 4 4 4 - - - 11 - - 1 1 1 - - - 3
Other Enterprise IFAD ( 40% ), BANK ( 30% ), PRIVATE_SECTOR ( 20% ) - 45 47 49 52 55 - - 248 - 14 14 15 16 17 - - 76
Subtotal - 251 548 546 572 577 551 - 3,045 - 77 168 168 175 177 169 - 934
3. Access to financial services
Bankable proposal development IFAD(80%) - 34 59 49 51 51 47 - 290 - 8 15 12 13 13 12 - 73
Innovative Pilots /d IFAD ( 40% ),BANK(30%),PRIVATE_SECTOR(20%) - 111 235 247 - - - - 594 - 34 72 76 - - - - 182
Subtotal - 145 293 297 51 51 47 - 884 - 43 87 88 13 13 12 - 255
Total - 2,532 5,432 7,119 5,725 855 598 - 22,261 - 749 1,607 2,103 1,691 259 181 - 6,590
 Continued
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir
Table 2.1. Enterprise promotion support
Expenditures by Financiers (US$ '000)
Detailed Costs Other Accounts Private Sector Bank
2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total
I. Investment Costs
A. Enterprise Promotion Support
1. Business led enterprise promotion
Business Plan Review/DPR Appraisal - - - - - - - - - - - - - - - - - -
Mini CA Stores - 894 1,886 2,650 2,095 - - - 7,526 - 1,336 2,816 3,957 3,129 - - - 11,237
Integrated pack-house - 15 93 98 103 109 - - 418 - 22 139 147 155 163 - - 627
Processing unit - Large - 59 124 131 138 - - - 451 - 88 186 196 207 - - - 676
Others - 24 25 26 28 - - - 102 - 35 37 39 41 - - - 153
Subtotal - 991 2,127 2,905 2,364 109 - - 8,496 - 1,481 3,178 4,339 3,531 163 - - 12,693
2. Individual Enterprise Promotion
Jammu/Kashmir branded kiosks - 14 15 - - - - - 29 - 21 22 - - - - - 43
Mini Grading Line - 25 70 74 78 82 87 - 417 - 38 106 111 117 124 130 - 626
Grading lines with washer - 22 117 124 130 137 145 - 676 - 33 176 186 196 206 217 - 1,014
Processing unit - Mini - 33 35 37 39 41 43 - 230 - 50 53 56 59 62 65 - 344
Agri-Tourism - 7 7 8 8 - - - 30 - 10 11 12 12 - - - 45
Mushroom Production /a - 2 2 2 - - - - 5 - 3 3 3 - - - - 8
Honey Production and Marketing /b - - 2 2 2 - - - 6 - - 3 3 3 - - - 8
MAP processing /c - - 2 2 2 - - - 6 - - 3 3 3 - - - 8
Other Enterprise - 22 23 25 26 27 - - 124 - 33 35 37 39 41 - - 186
Subtotal - 126 274 273 286 289 275 - 1,523 - 188 411 410 429 433 413 - 2,284
3. Access to financial services
Bankable proposal development - - - - - - - - - - - - - - - - - -
Innovative Pilots /d - 56 117 124 - - - - 297 - 84 176 186 - - - - 445
Subtotal - 56 117 124 - - - - 297 - 84 176 186 - - - - 445
Total - 1,173 2,519 3,302 2,650 398 275 - 10,316 - 1,753 3,765 4,935 3,960 596 413 - 15,422
 Table 5A:Market promotion support–Quantities and costs
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir Unit
Table 2.2. Market promotion support Unit Cost Cost
Detailed Costs Quantities (INR (US$ Totals Including Contingencies (US$ '000)
Unit 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total '000) '000) 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total
I. Investment Costs
A. Market Promotion Support
MSPs at state level /a Number - 4 4 4 - - - - 12 500 6 - 28 29 31 - - - - 88
Participation in trade fairs Per Entreprenuer - 10 20 30 30 30 30 - 150 100 1 - 14 29 46 49 51 54 - 243
Buyer Seller Meet /b Per Event - 4 8 8 8 - - - 28 300 4 - 17 35 37 39 - - - 127
Quality control lab /c Ls - 2 2 2 - - - - 6 10,000 120 - 277 292 308 - - - - 876
J&K Product Development Consultancy - - 2 2 - - - - 4 1,000 12 - - 29 31 - - - - 60
J&K brand development Consultancy - - 1 2 2 - - - 5 2,000 24 - - 29 62 65 - - - 156
Brand promotion Ls - - 2 2 2 - - - 6 2,000 24 - - 58 62 65 - - - 185
Marketing outlets No - - 20 20 - - - - 40 500 6 - - 146 154 - - - - 300
Subtotal - 335 648 729 217 51 54 - 2,034
B. Export / Logistic Hub
Study on feasibility and management of export/Logistic Hubs Ls - 28 - - - - - - 28
Support for export/logistic hub Ls - - 365 384 - - - - 749
Total - 363 1,012 1,113 217 51 54 - 2,811

_________________________________
\a State Level
\b 2 Per province per year
\c Quality control lab in SKUAST-J and SKUAST-K

Table 5B: Market promotion support – Financing Rule

India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir
Table 2.2. Market promotion support Expenditures by Financiers (US$ '000)
Detailed Costs Other Accounts IFAD GoJ&K
Fin. Rule 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total
I. Investment Costs
A. Market Promotion Support
MSPs at state level /a IFAD ( 80% ) - 22 23 25 - - - - 70 - 6 6 6 - - - - 18
Participation in trade fairs IFAD ( 80% ) - 11 23 37 39 41 43 - 194 - 3 6 9 10 10 11 - 49
Buyer Seller Meet /b IFAD ( 80% ) - 13 28 30 31 - - - 102 - 3 7 7 8 - - - 25
Quality control lab /c IFAD ( 80% ) - 221 233 246 - - - - 701 - 55 58 62 - - - - 175
J&K Product Development IFAD ( 80% ) - - 23 25 - - - - 48 - - 6 6 - - - - 12
J&K brand development IFAD ( 80% ) - - 23 49 52 - - - 124 - - 6 12 13 - - - 31
Brand promotion IFAD ( 80% ) - - 47 49 52 - - - 148 - - 12 12 13 - - - 37
Marketing outlets IFAD ( 80% ) - - 117 123 - - - - 240 - - 29 31 - - - - 60
Subtotal - 268 518 583 174 41 43 - 1,627 - 67 130 146 43 10 11 - 407
B. Export / Logistic Hub
Study on feasibility and management of export/Logistic Hubs IFAD ( 80% ) - 22 - - - - - - 22 - 6 - - - - - - 6
Support for export/logistic hub IFAD ( 80% ) - - 292 308 - - - - 599 - - 73 77 - - - - 150
Total - 290 810 891 174 41 43 - 2,249 - 73 202 223 43 10 11 - 562
 Table 6A: Incubation and start-up – Quantities and Costs
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir Unit
Table 2.3. Incubation and start-up Cost
Detailed Costs Quantities (INR Unit Cost Totals Including Contingencies (US$ '000)
Unit 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total '000) (US$) 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total
I. Investment Costs
A. Development of Incubation & Startup Ecosystem for Agri & Allied Sector Startups
Outreach Events-Yearly Basis Per Event - 6 10 10 10 10 10 - 56 100 1,201 - 8 15 15 16 17 18 - 90
Mentoring Support to Incubation Centres Ls - 2 2 2 2 - - - 8 1,500 18,020 - 42 44 46 49 - - - 180
Ideathons/Bootcamps-Physical Per Event - 20 20 20 20 20 20 - 120 200 2,403 - 55 58 62 65 68 72 - 380
Incubation Training for start-ups Per Hub Per Year Event - 2 2 2 2 2 2 - 12 2,000 24,027 - 55 58 62 65 68 72 - 380
Development of Bankable Proposals for Start-ups Lumpsum - 2 2 2 2 2 2 2 14 200 2,403 - 6 6 6 6 7 7 8 46
Seed Capital/ Challenge Fund Per start-up - 50 75 75 75 75 - - 350 500 6,007 - 356 563 593 625 659 - - 2,796
Credit Risk Mitigation Measures Ls - - 300 316 - - - - 616
Scale-up Capital Per start-up - - 20 30 30 30 10 - 120 5,000 60,067 - - 1,638 2,590 2,730 2,878 1,011 - 10,848
Capacity Building of Incubation Staff Per Staff - 40 60 - - - - - 100 50 601 - 28 44 - - - - - 71
Equipment and Materials Lumpsum - 2 2 - 2 - - - 6 2,500 30,034 - 71 75 - 83 - - - 230
Miscellaneous Expenses Lumpsum - 2 2 2 2 2 2 2 14 500 6,007 - 14 15 16 17 18 19 20 117
Total Investment Costs - 635 2,816 3,706 3,657 3,715 1,199 27 15,756
II. Recurrent Costs
A. Salaries and allowances
1. Manager-Incubation Per Month - 24 24 24 24 24 24 24 168 70 841 - 24 25 27 28 30 31 33 197
2. Young Professional-Incubation Per Month - 24 24 24 24 24 24 24 168 40 481 - 14 14 15 16 17 18 19 113
3. Incubation Operating Costs Ls - 2 2 2 2 2 2 2 14 1,500 18,020 - 43 45 47 50 53 56 59 352
Subtotal - 80 85 89 94 99 104 110 662
B. Operating costs
1. Operating costs
Office operating expenses Per Month - 2 2 2 2 2 2 2 14 500 6,007 - 14 15 16 17 18 19 20 117
Travel Expenses Lumpsum - 2 2 2 2 2 2 2 14 500 6,007 - 14 15 16 17 18 19 20 117
Miscellaneous Expenses Lumpsum 2 2 2 2 2 2 2 - 14 200 2,403 5 6 6 6 7 7 7 - 44
Total 5 750 2,936 3,833 3,791 3,857 1,348 176 16,696
 Table 6B: Incubation and start-up – Financing Rule
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir
Table 2.3. Incubation and start-up
Detailed Costs Other Accounts IFAD GoJ&K
Fin. Rule 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total
I. Investment Costs
A. Development of Incubation & Startup Ecosystem for Agri & Allied Sector Startups
Outreach Events-Yearly Basis IFAD ( 80% ) - 7 12 12 13 14 14 - 72 - 2 3 3 3 3 4 - 18
Mentoring Support to Incubation Centres IFAD ( 80% ) - 33 35 37 39 - - - 144 - 8 9 9 10 - - - 36
Ideathons/Bootcamps-Physical IFAD ( 80% ) - 44 47 49 52 55 58 - 304 - 11 12 12 13 14 14 - 76
Incubation Training for start-ups IFAD ( 80% ) - 44 47 49 52 55 58 - 304 - 11 12 12 13 14 14 - 76
Development of Bankable Proposals for Start-ups IFAD ( 80% ) - 4 5 5 5 5 6 6 37 - 1 1 1 1 1 1 2 9
Seed Capital/ Challenge Fund IFAD ( 80% ) - 285 450 475 500 527 - - 2,237 - 71 113 119 125 132 - - 559
Credit Risk Mitigation Measures IFAD ( 80% ) - - 240 253 - - - - 493 - - 60 63 - - - - 123
Scale-up Capital CONVERGENCE ( 30% ), BANK (50%),PRIVATE_SECTOR ( 20% )- - - - - - - - - - - 0 0 0 0 0 - 0
Capacity Building of Incubation Staff IFAD ( 80% ) - 22 35 - - - - - 57 - 6 9 - - - - - 14
Equipment and Materials IFAD ( 80% ) - 57 60 - 67 - - - 184 - 14 15 - 17 - - - 46
Miscellaneous Expenses IFAD ( 80% ) - 11 12 13 13 14 15 16 94 - 3 3 3 3 4 4 4 23
Total Investment Costs - 508 942 893 741 670 150 22 3,926 - 127 236 223 185 167 38 5 981
II. Recurrent Costs
A. Salaries and allowances
1. Manager-Incubation IFAD ( 80% ) - 19 20 21 22 24 25 26 158 - 5 5 5 6 6 6 7 39
2. Young Professional-Incubation IFAD ( 80% ) - 11 12 12 13 13 14 15 90 - 3 3 3 3 3 4 4 23
3. Incubation Operating Costs IFAD ( 80% ) - 34 36 38 40 42 44 47 282 - 9 9 9 10 11 11 12 70
Subtotal - 64 68 71 75 79 84 88 529 - 16 17 18 19 20 21 22 132
B. Operating costs
1. Operating costs
Office operating expenses IFAD ( 80% ) - 11 12 13 13 14 15 16 94 - 3 3 3 3 4 4 4 23
Travel Expenses IFAD ( 80% ) - 11 12 13 13 14 15 16 94 - 3 3 3 3 4 4 4 23
Miscellaneous Expenses IFAD ( 80% ) 4 5 5 5 5 6 6 - 36 1 1 1 1 1 1 1 - 9
Total 4 600 1,039 995 848 783 269 141 4,678 1 150 260 249 212 196 67 35 1,170
 Continued
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir
Table 2.3. Incubation and start-up Expenditures by Financiers (US$ '000)
Detailed Costs Other Accounts Convergence Private Sector Bank
2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total
I. Investment Costs
A. Development of Incubation & Startup Ecosystem for Agri & Allied Sector Startups
Outreach Events-Yearly Basis - - - - - - - - - - - - - - - - - - - - - - - - - - -
Mentoring Support to Incubation Centres - - - - - - - - - - - - - - - - - - - - - - - - - - -
Ideathons/Bootcamps-Physical - - - - - - - - - - - - - - - - - - - - - - - - - - -
Incubation Training for start-ups - - - - - - - - - - - - - - - - - - - - - - - - - - -
Development of Bankable Proposals for Start-ups - - - - - - - - - - - - - - - - - - - - - - - - - - -
Seed Capital/ Challenge Fund - - - - - - - - - - - - - - - - - - - - - - - - - - -
Credit Risk Mitigation Measures - - - - - - - - - - - - - - - - - - - - - - - - - - -
Scale-up Capital - - 491 777 819 863 303 - 3,255 - - 328 518 546 576 202 - 2,170 - - 819 1,295 1,365 1,439 506 - 5,424
Capacity Building of Incubation Staff - - - - - - - - - - - - - - - - - - - - - - - - - - -
Equipment and Materials - - - - - - - - - - - - - - - - - - - - - - - - - - -
Miscellaneous Expenses - - - - - - - - - - - - - - - - - - - - - - - - - - -
Total Investment Costs - - 491 777 819 863 303 - 3,255 - - 328 518 546 576 202 - 2,170 - - 819 1,295 1,365 1,439 506 - 5,424
II. Recurrent Costs
A. Salaries and allowances
1. Manager-Incubation - - - - - - - - - - - - - - - - - - - - - - - - - - -
2. Young Professional-Incubation - - - - - - - - - - - - - - - - - - - - - - - - - - -
3. Incubation Operating Costs - - - - - - - - - - - - - - - - - - - - - - - - - - -
Subtotal - - - - - - - - - - - - - - - - - - - - - - - - - - -
B. Operating costs
1. Operating costs
Office operating expenses - - - - - - - - - - - - - - - - - - - - - - - - - - -
Travel Expenses - - - - - - - - - - - - - - - - - - - - - - - - - - -
Miscellaneous Expenses - - - - - - - - - - - - - - - - - - - - - - - - - - -
Total - - 491 777 819 863 303 - 3,255 - - 328 518 546 576 202 - 2,170 - - 819 1,295 1,365 1,439 506 - 5,424
Component 3:Support to vulnerable communities
Table 7A: Support for pastoralists – Quantities and Costs
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir Unit Unit
Table 3.1. Support for pastoralists Cost Cost
Detailed Costs Quantities (INR (US$ Totals Including Contingencies (US$ '000)
Unit 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total '000) '000) 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total
I. Investment Costs
A. Support to Pastoralists
Wool value chain study Study - 1 - - - - - - 1 1,000 12 - 14 - - - - - - 14
Mult Stakeholder Platform (MSP) No - - 1 1 - - - - 2 500 6 - - 7 8 - - - - 15
Wool sector support Lumpsum - - 1 1 1 - - - 3 5,000 60 - - 73 77 81 - - - 231
Wool processing with private partners No - 4 4 - - - - - 8 3,000 36 - 166 175 - - - - - 341
Goat Breed improvement No - - 1 1 1 1 - - 4 2,500 30 - - 36 38 41 43 - - 158
Pony Breed improvement feasibility study Study - 1 - - - - - - 1 1,000 12 - 14 - - - - - - 14
Pony Breed improvement No - - 1 1 1 1 - - 4 2,500 30 - - 36 38 41 43 - - 158
Total - 194 328 161 162 85 - - 931

Table 7B: Support for pastoralists – Financing rule

India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir
Table 3.1. Support for pastoralists Expenditures by Financiers (US$ '000)
Detailed Costs Other Accounts IFAD GoJ&K
Fin. Rule 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total
I. Investment Costs
A. Support to Pastoralists
Wool value chain study IFAD(80%) - 11 - - - - - - 11 - 3 - - - - - - 3
Mult Stakeholder Platform (MSP) IFAD ( 80% ) - - 6 6 - - - - 12 - - 1 2 - - - - 3
Wool sector support IFAD ( 40% ), CONVERGENCE ( 50% ) - - 29 31 32 - - - 92 - - 7 8 8 - - - 23
Wool processing with private partners IFAD ( 40% ), PRIVATE_SECTOR ( 50% ) - 66 70 - - - - - 136 - 17 18 - - - - - 34
Goat Breed improvement IFAD ( 80% ) - - 29 31 32 34 - - 127 - - 7 8 8 9 - - 32
Pony Breed improvement feasibility study IFAD ( 80% ) - 11 - - - - - - 11 - 3 - - - - - - 3
Pony Breed improvement IFAD ( 40% ), CONVERGENCE ( 50% ) - - 15 15 16 17 - - 63 - - 4 4 4 4 - - 16
Total - 89 149 83 81 51 - - 453 - 22 37 21 20 13 - - 113
 Continued
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir
Table 3.1. Support for pastoralists Expenditures by Financiers (US$ '000)
Detailed Costs Other Accounts Convergence Private Sector
2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total
I. Investment Costs
A. Support to Pastoralists
Wool value chain study - - - - - - - - - - - - - - - - - -
Mult Stakeholder Platform (MSP) - - - - - - - - - - - - - - - - - -
Wool sector support - - 36 38 41 - - - 115 - - - - - - - - -
Wool processing with private partners - - - - - - - - - - 83 88 - - - - - 171
Goat Breed improvement - - - - - - - - - - - - - - - - - -
Pony Breed improvement feasibility study - - - - - - - - - - - - - - - - - -
Pony Breed improvement - - 18 19 20 21 - - 79 - - - - - - - - -
Total - - 55 58 61 21 - - 195 - 83 88 - - - - - 171

Table 8A: Support for other vulnerable communities – Quantities and Costs
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir Unit
Table 3.2. Support for other vulnerable communities Cost Unit Cost
Detailed Costs Quantities (INR (US$ Totals Including Contingencies (US$ '000)
Unit 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total '000) '000) 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total
I. Investment Costs
A. Sheep/Goat units No - 200 200 200 200 - - - 800 120 1.442 - 342 360 380 400 - - - 1,482
B. Milk Collection Units No - 4 4 4 - - - - 12 500 6.007 - 28 30 32 - - - - 90
C. Processing of milk products No - 2 2 2 2 - - - 8 1,000 12.013 - 28 30 32 33 - - - 123
D. Ice Boxes for Fish No - 2,000 2,000 2,000 2,000 2,000 - - 10,000 5 0.06 - 142 150 158 167 176 - - 793
E. Enterprise support - Income diversification Lumpsum - 250 250 250 250 250 - - 1,250 200 2.403 - 692 729 769 810 854 - - 3,855
F. Environment Protection Fund for youth per YC - 200 500 500 500 500 500 - 2,700 300 3.604 - 854 2,251 2,373 2,501 2,636 2,779 - 13,394
Total - 2,087 3,551 3,743 3,912 3,666 2,779 - 19,737

Table 8B: Support for other vulnerable communities – Financing Rule

India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir
Table 3.2. Support for other vulnerable communities Expenditures by Financiers (US$ '000)
Detailed Costs Other Accounts IFAD GoJ&K
Fin. Rule 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total
I. Investment Costs
A. Sheep/Goat units IFAD ( 40% ), BENEFICIARY ( 50% ) - 134 141 148 157 - - - 579 - 41 43 46 48 - - - 178
B. Milk Collection Units IFAD ( 80% ) - 23 24 25 - - - - 72 - 6 6 6 - - - - 18
C. Processing of milk products IFAD ( 40% ), BENEFICIARY( 50% ) - 11 12 12 13 - - - 48 - 3 4 4 4 - - - 15
D. Ice Boxes for Fish IFAD ( 80% ) - 114 120 127 133 141 - - 634 - 28 30 32 33 35 - - 159
E. Enterprise support - Income diversification IFAD ( 40% ), PRIVATE_SECTOR ( 50% ) - 261 275 290 306 322 - - 1,455 - 91 96 101 107 112 - - 507
F. Environment Protection Fund for youth IFAD ( 80%) - 683 1,801 1,898 2,001 2,109 2,223 - 10,715 - 171 450 475 500 527 556 - 2,679
Total - 1,226 2,373 2,501 2,610 2,572 2,223 - 13,504 - 340 629 663 692 675 556 - 3,555
 Continued
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir
Table 3.2. Support for other vulnerableExpenditures
communities by Financiers (US$ '000)
Detailed Costs Other Accounts Beneficiary Private Sector
2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total
I. Investment Costs
A. Sheep/Goat units - 167 176 186 196 - - - 724 - - - - - - - - -
B. Milk Collection Units - - - - - - - - - - - - - - - - - -
C. Processing of milk products - 14 15 15 16 - - - 60 - - - - - - - - -
D. Ice Boxes for Fish - - - - - - - - - - - - - - - - - -
E. Enterprise support - Income diversification - - - - - - - - - - 340 358 378 398 420 - - 1,893
F. Environment Protection Fund for youth - - - - - - - - - - - - - - - - - -
Total - 181 191 201 212 - - - 785 - 340 358 378 398 420 - - 1,893
Component 4: Project Management
Table 9A: Project Management, M&E and MIS, and KM & Policy – Quantities and Costs
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir
Table 4.1. Project Management Unit Cost
Detailed Costs Quantities (INR Unit Cost Totals Including Contingencies (US$ '000)
Unit 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total '000) (US$) 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total
I. Investment Costs
A. Project Management
1. Office Equipment PMU
Laptop computers Each 15 - - - - - - - 15 80 961 16 - - - - - - - 16
Multi-function copier machines Each 2 - - - - - - - 2 200 2,403 5 - - - - - - - 5
Other equipment Lumpsum 1 - - - - - - - 1 200 2,403 3 - - - - - - - 3
Office furniture Lumpsum 1 - - - - - - - 1 1,000 12,013 13 - - - - - - - 13
Computer Peripherals Lumpsum 1 - - - - - - - 1 500 6,007 7 - - - - - - - 7
Subtotal 44 - - - - - - - 44
2. Account & Annual Audit
Accounting software Lumpsum - 11 - - - - - - 11 50 601 - 8 - - - - - - 8
Annual license fee Lumpsum - 11 11 11 11 11 11 11 77 15 180 - 2 2 3 3 3 3 3 19
External Independent Audit Lumpsum 1 1 1 1 1 1 1 1 8 1,500 18,020 20 21 23 24 25 26 28 29 196
Internal Audit- External Lumpsum - 1 1 1 1 1 1 1 7 1,000 12,013 - 14 15 16 17 18 19 20 117
Subtotal 20 46 40 42 44 47 49 52 341
Subtotal 64 46 40 42 44 47 49 52 385
B. M&E and Knowledge Management
1. Monitoring and Evaluation (M&E): Equipment
MIS Software Development Ls - 1 1 - - - - - 2 1,500 18,020 - 21 23 - - - - - 44
Laptop computers Each 2 - - - - - - - 2 45 541 1 - - - - - - - 1
Printer and scanner Each 1 - - - - - - - 1 35 420 0 - - - - - - - 0
Other equipment- GPS etc. Lumpsum 0.5 0.5 - - - - - - 1 200 2,403 1 1 - - - - - - 3
Subtotal 3 23 23 - - - - - 48
2. Monitoring and Evaluation (M&E): M&E studies, work shops, surveys
Baseline survey Study - 1 - - - - - - 1 2,000 24,027 - 28 - - - - - - 28
Midline survey Study - - - 1 - - - - 1 2,000 24,027 - - - 32 - - - - 32
Endline Survey Study - - - - - - 1 - 1 30,000 360,404 - - - - - - 556 - 556
Case studies/, Climate and environment studies studies Study - 2 2 2 2 2 2 - 12 1,500 18,020 - 43 45 47 50 53 56 - 293
FPIC Implementation LS 7 4 8 - - - - - 18
Project Completion review and workshop Lumpsum - - - - - - 1 - 1 3,000 36,040 - - - - - - 56 - 56
Subtotal 7 75 53 79 50 53 667 - 983
3. Knowledge Management (KM)
Startup Workshop Lumpsum 1 - - - - - - - 1 1,000 12,013 13 - - - - - - - 13
Sensitisation and Educational workshop District - 20 - - - - - - 20 300 3,604 - 85 - - - - - - 85
Gender, targeting and inclusion sensitization workshop Workshop - 20 20 20 - - - - 60 150 1,802 - 43 45 47 - - - - 135
Annual Stakeholders Planning and Review Workshop Lumpsum 1 1 1 1 1 1 1 1 8 500 6,007 7 7 8 8 8 9 9 10 65
Thematic Studies Each 3 5 2 2 2 - - - 14 300 3,604 12 21 9 9 10 - - - 62
ICT Materials preparation and printing Lumpsum - 1 - 1 - 1 1 - 4 1,000 12,013 - 14 - 16 - 18 19 - 66
Communication Videos Lumpsum - 1 1 1 - 1 - - 4 500 6,007 - 7 8 8 - 9 - - 31
Policy studies Study - 2 1 1 - - - - 4 500 6,007 - 14 8 8 - - - - 30
Policy Consultation and workshops Lumpsum - - 2 1 1 - - - 4 500 6,007 - - 15 8 8 - - - 31
Subtotal 32 192 92 104 27 35 28 10 520
Subtotal 42 290 167 183 77 88 695 10 1,551
Total Investment Costs 106 335 207 226 121 135 744 62 1,936
 Continued
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir
Table 4.1. Project Management Unit Cost
Detailed Costs Quantities (INR Unit Cost Totals Including Contingencies (US$ '000)
Unit 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total '000) (US$) 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total

II. Recurrent Costs

A. Salaries and allowances
1. Project Management Unit Staff
Manager- Institutions Per Month - 12 12 12 12 12 12 6 78 125 1,502 - 21 23 24 25 26 28 15 161
Rural Finance Specialist Per Month - 12 12 12 12 12 12 - 72 175 2,102 - 30 32 33 35 37 39 - 205
Manager M&E Per Month - 12 12 12 12 12 12 6 78 125 1,502 - 21 23 24 25 26 28 15 161
Manager KM Per Month - 12 12 12 12 12 12 6 78 125 1,502 - 21 23 24 25 26 28 15 161
Procurement Specialist Per Month 3 12 12 12 12 12 12 6 81 175 2,102 7 30 32 33 35 37 39 20 233
Procurement Officer Per Month - 12 12 12 12 12 12 6 78 80 961 - 14 14 15 16 17 18 9 103
Manager MIS Per Month - 12 12 12 12 12 12 6 78 125 1,502 - 21 23 24 25 26 28 15 161
Manager SECAP Per Month - 12 12 12 12 12 12 6 78 125 1,502 - 21 23 24 25 26 28 15 161
Manager Finance Per Month - 12 12 12 12 12 12 6 78 125 1,502 - 21 23 24 25 26 28 15 161
Accounts Officer Per Month - 12 12 12 12 12 12 6 78 80 961 - 14 14 15 16 17 18 9 103
Manager Gender and Youth Per Month - 12 12 12 12 12 12 6 78 125 1,502 - 21 23 24 25 26 28 15 161
Manager-Business Development Per Month - 12 12 12 12 12 12 6 78 125 1,502 - 21 23 24 25 26 28 15 161
Project Assistants Per Month - 48 48 48 48 48 48 24 312 40 481 - 27 29 30 32 34 36 19 206
Agriculture Specialists Per Month 3 24 24 24 24 24 24 6 153 175 2,102 7 60 63 66 70 74 78 20 438
Horticulture Specialists Per Month 3 24 24 24 24 24 24 6 153 175 2,102 7 60 63 66 70 74 78 20 438
Consultants - Procurement Man Days 90 60 - - - - - - 150 25 300 30 21 - - - - - - 52
Consultants - value chain Per Month - 8 2 - - - - - 10 250 3,003 - 28 8 - - - - - 36
Consultants - International Person Days - 45 30 30 - - - - 105 65 781 - 42 29 31 - - - - 102
Consultants - National Person Days - 150 120 120 - - - - 390 24 288 - 51 43 46 - - - - 140
Subtotal 51 548 507 526 474 499 526 216 3,347
2. Directorate staff
Procurement Officer /a Per Month 18 72 72 72 72 72 72 36 486 80 961 19 82 86 91 96 101 107 56 639
Gender and Youth Officer Per Month - 48 48 48 48 48 48 24 312 80 961 - 55 58 61 64 67 71 37 413
Planning, M&E &MIS Officer Per Month - 48 48 48 48 48 48 24 312 80 961 - 55 58 61 64 67 71 37 413
Finance Officer Per Month - 48 48 48 48 48 48 24 312 80 961 - 55 58 61 64 67 71 37 413
Subtotal 19 246 259 273 288 303 320 169 1,878
Subtotal 71 793 766 799 762 803 846 385 5,225
B. Operating costs
1. Operating costs - PMU
Office operating expenses Per Month 6 12 12 12 12 12 12 6 84 500 6,007 40 85 90 95 100 105 111 59 685
Fuel and vehicle maintenance Per Month 6 12 12 12 12 12 12 6 84 300 3,604 24 51 54 57 60 63 67 35 411
Travel allowances Per Month 6 12 12 12 12 12 12 6 84 300 3,604 24 51 54 57 60 63 67 35 411
Meetings and backstopping Per Month 0.5 1 1 1 1 1 1 1 7.5 1,000 12,013 7 14 15 16 17 18 19 20 124
Staff medical and group insurance Premium Per Month - 1 1 1 1 1 1 1 7 1,500 18,020 - 21 23 24 25 26 28 29 176
Subtotal 95 223 236 248 262 276 291 178 1,808
Total Recurrent Costs 166 1,017 1,001 1,047 1,023 1,079 1,137 562 7,033
Total 272 1,352 1,208 1,273 1,145 1,213 1,881 624 8,969
\a for Directorates and Universities
 Table 9B: Project Management, M&E and MIS, and KM & Policy – Financing Rule
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir
Table 4.1. Project Management Expenditures by Financiers (US$ '000)
Detailed Costs Other Accounts IFAD GoJ&K
Fin. Rule 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total
I. Investment Costs
A. Project Management
1. Office Equipment PMU
Laptop computers IFAD ( 80% ) 13 - - - - - - - 13 3 - - - - - - - 3
Multi-function copier machines IFAD ( 80% ) 4 - - - - - - - 4 1 - - - - - - - 1
Other equipment IFAD ( 80% ) 2 - - - - - - - 2 1 - - - - - - - 1
Office furniture IFAD ( 80% ) 11 - - - - - - - 11 3 - - - - - - - 3
Computer Peripherals IFAD ( 80% ) 5 - - - - - - - 5 1 - - - - - - - 1
Subtotal 35 - - - - - - - 35 9 - - - - - - - 9
2. Account & Annual Audit
Accounting software IFAD ( 80% ) - 6 - - - - - - 6 - 2 - - - - - - 2
Annual license fee IFAD ( 80% ) - 2 2 2 2 2 2 3 15 - 0 0 1 1 1 1 1 4
External Independent Audit IFAD ( 80% ) 16 17 18 19 20 21 22 23 157 4 4 5 5 5 5 6 6 39
Internal Audit- External IFAD ( 80% ) - 11 12 13 13 14 15 16 94 - 3 3 3 3 4 4 4 23
Subtotal 16 37 32 34 36 37 39 42 273 4 9 8 8 9 9 10 10 68
Subtotal 52 37 32 34 36 37 39 42 308 13 9 8 8 9 9 10 10 77
B. M&E and Knowledge Management
1. Monitoring and Evaluation (M&E): Equipment
MIS Software Development IFAD ( 80% ) - 17 18 - - - - - 35 - 4 5 - - - - - 9
Laptop computers IFAD ( 80% ) 1 - - - - - - - 1 0 - - - - - - - 0
Printer and scanner IFAD ( 80% ) 0 - - - - - - - 0 0 - - - - - - - 0
Other equipment- GPS etc. IFAD ( 80% ) 1 1 - - - - - - 2 0 0 - - - - - - 1
Subtotal 2 18 18 - - - - - 39 1 5 5 - - - - - 10
2. Monitoring and Evaluation (M&E): M&E studies, work shops, surveys
Baseline survey IFAD ( 80% ) - 23 - - - - - - 23 - 6 - - - - - - 6
Midline survey IFAD ( 80% ) - - - 25 - - - - 25 - - - 6 - - - - 6
Endline Survey IFAD ( 80% ) - - - - - - 445 - 445 - - - - - - 111 - 111
Case studies/, Climate and environment studies studies IFAD ( 80% ) - 34 36 38 40 42 44 - 235 - 9 9 9 10 11 11 - 59
FPIC Implementation IFAD ( 80% ) 5 3 6 - - - - - 14 1 1 2 - - - - - 4
Project Completion review and workshop IFAD ( 80% ) - - - - - - 44 - 44 - - - - - - 11 - 11
Subtotal 5 60 42 63 40 42 534 - 786 1 15 11 16 10 11 133 - 197
3. Knowledge Management (KM)
Startup Workshop IFAD ( 80% ) 11 - - - - - - - 11 3 - - - - - - - 3
Sensitisation and Educational workshop IFAD ( 80% ) - 68 - - - - - - 68 - 17 - - - - - - 17
Gender, targeting and inclusion sensitization workshop IFAD ( 80% ) - 34 36 38 - - - - 108 - 9 9 9 - - - - 27
Annual Stakeholders Planning and Review Workshop IFAD ( 80% ) 5 6 6 6 7 7 7 8 52 1 1 2 2 2 2 2 2 13
Thematic Studies IFAD ( 80% ) 10 17 7 8 8 - - - 50 2 4 2 2 2 - - - 12
ICT Materials preparation and printing IFAD ( 80% ) - 11 - 13 - 14 15 - 53 - 3 - 3 - 4 4 - 13
Communication Videos IFAD ( 80% ) - 6 6 6 - 7 - - 25 - 1 2 2 - 2 - - 6
Policy studies IFAD ( 80% ) - 11 6 6 - - - - 24 - 3 2 2 - - - - 6
Policy Consultation and workshops IFAD ( 80% ) - - 12 6 7 - - - 25 - - 3 2 2 - - - 6
Subtotal 26 154 73 84 21 28 22 8 416 6 38 18 21 5 7 6 2 104
Subtotal 34 232 133 147 61 70 556 8 1,241 8 58 33 37 15 18 139 2 310
Total Investment Costs 85 268 165 181 97 108 595 49 1,549 21 67 41 45 24 27 149 12 387
 Continued
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir
Table 4.1. Project Management Expenditures by Financiers (US$ '000)
Detailed Costs Other Accounts IFAD GoJ&K
Fin. Rule 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total

II. Recurrent Costs

A. Salaries and allowances
1. Project Management Unit Staff
Manager- Institutions IFAD ( 80% ) - 17 18 19 20 21 22 12 129 - 4 5 5 5 5 6 3 32
Rural Finance Specialist IFAD ( 80% ) - 24 25 27 28 30 31 - 164 - 6 6 7 7 7 8 - 41
Manager M&E IFAD ( 80% ) - 17 18 19 20 21 22 12 129 - 4 5 5 5 5 6 3 32
Manager KM IFAD ( 80% ) - 17 18 19 20 21 22 12 129 - 4 5 5 5 5 6 3 32
Procurement Specialist IFAD ( 80% ) 6 24 25 27 28 30 31 16 186 1 6 6 7 7 7 8 4 47
Procurement Officer IFAD ( 80% ) - 11 12 12 13 13 14 7 83 - 3 3 3 3 3 4 2 21
Manager MIS IFAD ( 80% ) - 17 18 19 20 21 22 12 129 - 4 5 5 5 5 6 3 32
Manager SECAP IFAD ( 80% ) - 17 18 19 20 21 22 12 129 - 4 5 5 5 5 6 3 32
Manager Finance IFAD ( 80% ) - 17 18 19 20 21 22 12 129 - 4 5 5 5 5 6 3 32
Accounts Officer IFAD ( 80% ) - 11 12 12 13 13 14 7 83 - 3 3 3 3 3 4 2 21
Manager Gender and Youth IFAD ( 80% ) - 17 18 19 20 21 22 12 129 - 4 5 5 5 5 6 3 32
Manager-Business Development IFAD ( 80% ) - 17 18 19 20 21 22 12 129 - 4 5 5 5 5 6 3 32
Project Assistants IFAD ( 80% ) - 22 23 24 26 27 28 15 165 - 5 6 6 6 7 7 4 41
Agriculture Specialists IFAD ( 80% ) 6 48 50 53 56 59 62 16 351 1 12 13 13 14 15 16 4 88
Horticulture Specialists IFAD ( 80% ) 6 48 50 53 56 59 62 16 351 1 12 13 13 14 15 16 4 88
Consultants - Procurement IFAD ( 80% ) 24 17 - - - - - - 41 6 4 - - - - - - 10
Consultants - value chain IFAD ( 80% ) - 23 6 - - - - - 29 - 6 2 - - - - - 7
Consultants - International IFAD ( 80% ) - 33 23 25 - - - - 81 - 8 6 6 - - - - 20
Consultants - National IFAD ( 80% ) - 41 35 36 - - - - 112 - 10 9 9 - - - - 28
Subtotal 41 438 405 421 379 400 421 173 2,678 10 110 101 105 95 100 105 43 669
2. Directorate staff
Procurement Officer /a IFAD ( 80% ) 15 66 69 73 77 81 85 45 511 4 16 17 18 19 20 21 11 128
Gender and Youth Officer IFAD ( 80% ) - 44 46 49 51 54 57 30 330 - 11 12 12 13 13 14 7 83
Planning, M&E &MIS Officer IFAD ( 80% ) - 44 46 49 51 54 57 30 330 - 11 12 12 13 13 14 7 83
Finance Officer IFAD ( 80% ) - 44 46 49 51 54 57 30 330 - 11 12 12 13 13 14 7 83
Subtotal 15 197 207 219 230 243 256 135 1,502 4 49 52 55 58 61 64 34 376
Subtotal 57 635 613 639 609 642 677 308 4,180 14 159 153 160 152 161 169 77 1,045
B. Operating costs
1. Operating costs - PMU
Office operating expenses IFAD ( 80% ) 32 68 72 76 80 84 89 47 548 8 17 18 19 20 21 22 12 137
Fuel and vehicle maintenance IFAD ( 80% ) 19 41 43 46 48 51 53 28 329 5 10 11 11 12 13 13 7 82
Travel allowances IFAD ( 80% ) 19 41 43 46 48 51 53 28 329 5 10 11 11 12 13 13 7 82
Meetings and backstopping IFAD ( 80% ) 5 11 12 13 13 14 15 16 99 1 3 3 3 3 4 4 4 25
Staff medical and group insurance Premium IFAD ( 80% ) - 17 18 19 20 21 22 23 141 - 4 5 5 5 5 6 6 35
Subtotal 76 179 188 199 209 221 232 142 1,446 19 45 47 50 52 55 58 36 362
Total Recurrent Costs 133 814 801 838 819 863 909 450 5,626 33 203 200 209 205 216 227 112 1,407
Total 218 1,082 966 1,019 916 971 1,505 499 7,175 54 270 242 255 229 243 376 125 1,794
India

Competitiveness Improvement of Agriculture and Allied Sectors Project in Jammu and

Kashmir (J&KCIP)

Project Design Report

Annex 4: Economic and Financial Analysis

Mission Dates: 03 Oct 2023 to 20 Oct 2023

Document Date: 08/03/2024
Project No. 2000003933
Report No. 6741-IN

Asia and the Pacific Division

Programme Management Department
Annex 4: Economic and Financial Analysis

I. Introduction
1. Overview: This annex reports the results of the Financial and Economic Analysis related
to the Jammu and Kashmir Competitiveness Improvement project (JKCIP). The Economic and
Financial Analysis (EFA) has been anchored on the project development objective which is
“improve the competitiveness and climate resilience of the farmers through the value chain
approach covering production, value addition and marketing of high-value niche commodities
from agriculture, horticulture, and allied sectors”. Therefore, the models that have been
developed for this EFA have productivity metrics such as:
• Increase in yields as a result of implementation of outcome1, climate-smart and
market led production which aims at improving productivity and the quality of
production.
• Increase in farm-gate prices as a result of implementation of outcome 2;
Agribusiness ecosystem development. The project will in enterprise promotion in
processing, value addition, and marketing of agri and allied sector produce which
will result into increase in farm gate prices.
• Reduction in post-harvest losses as a result of improved marketing linkages for
wool and milk with enterprise creation for livelihood diversification of vulnerable
communities.
2. The above metrics are also linked to the project theory of change (TOC).
II. Financial Analysis:
3. Objective: The objectives of the financial analysis are: (i) to assess the financial
viability of the development interventions promoted under the proposed Project; (ii) to
examine the impact of Project interventions on the incomes of the households (HHs) targeted,
therefore determining the incentive for the target group for engaging in the proposed
activities; and (iii) to establish the baseline for the economic analysis of the Project, which
will complement the financial analysis to assess the justification of the project investment
from the overall economy’ perspective (see section III).
4. Data: Quantities and costs of inputs used in the agricultural models, including labour
utilised in different operations, and output farm-gate prices have been collected during the
in-country field mission.
5. Method used for Financial Analysis: The method is based on the activity and
individual household (HH) models which simulate the implementation of farming practices for
crops grown in the project area. The activity models simulate the financial budget and
estimate the performance indicators namely; gross margin, net margin and return to family
labour) that are the instruments for assessing the impact of project intervention on economic
activities of the target HH. Gross margin cash-flows are computed as a difference between
total revenue and total operating costs.
6. The Without Project (WOP) models are representative of the current situation where
farmers do not have access to suitable technologies, improved agricultural practices inputs,
and yields are below the potential. The WP scenario simulates the impact on the project
beneficiaries of the activities funded through the project. In such scenario, beneficiaries will
adopt improved agricultural practices and inputs, e.g. use of organic fertilization (NPK, Basal,
pesticides & improved seeds).

1
7. The financial net incremental benefits have been derived from the activity level models,
by computing the difference between the with-project (WP) and the without project (WOP)
gross margins (baseline). The gross margins have been computed as a difference between
the annual revenue and the production costs. Proxies to estimate the WOP have been used
where necessary.
8. Farm models and financial results: The following models have been lined-up for this
JKCIP EFA. They include: Saffron, rice and tomatoes (representing investment in agri-niche
crop promotion),
9. cherry, plum, pear, apricot, peach, walnut, almond and apple classified under stone/nut
fruits representing investment in horticulture crop promotion. For crop models like apple,
almond and walnut, analysis has been carried out for both high and medium density
production. The models are reflected in table 1. All models show an increase in financial
returns (per hectare) resulting from the implementation of the proposed project intervention.
10. Increased yields and farm-gate prices will be the key drivers for increasing cash-flows.
In the with-project (WP) scenario, it is assumed that yields and prices will increase, thanks
to the project, compared to the baseline (without project). The financial analysis
demonstrates that all project scenario models are profitable from a farmer perspective
illustrating the financial effectiveness of project investments aimed at supporting innovation
adoption.
11. The summary results are presented in the table below, which includes profitability
indicators such as financial internal rate of return (FIRR) and financial net present value
(FNPV), benefits/cost ratio and return to family labour.
Table 1: Summary of Financial Analysis: Incremental benefits and performance
indicators
Farm models' net incremental benefits - Agri-niche and horticulture crops
(in INR)
APPLE Model - ALMOND ALMOND WALNUT WALNUT
APPLE Model
Cherry PLUM APRICOT PEACH Medium Saffron Aromatic Model - Model - High Model - Model - High Tomato
Project Year PEAR Model - High Density
Model Model Model Model Density Model Rice Model Medium Density Medium Density Model
Rejuvenated
Rejuvenated Density Rejuvenated Density Rejuvenated
PY1 (172,902) (31,014) (99,621) (140,847) (64,923) (299,233) (98,902) 15,272 (23,448) (259,193) (391,253) (307,274) (159,314) (57,145)
PY2 (78,804) (4,654) (35,909) (89,352) (28,901) (153,814) (41,334) 29,844 7,308 (27,033) 214,023 (80,694) 296,046 (9,345)
PY3 83,180 11,684 24,727 11,124 15,669 (15,037) 13,877 54,684 30,226 202,307 953,747 386,726 1,232,186 16,955
PY4 311,031 23,524 98,105 134,148 57,186 214,210 105,275 110,906 38,952 201,807 1,697,247 386,226 1,231,686 57,055
PY5 311,031 23,524 98,105 134,148 57,186 214,210 105,275 110,906 38,952 201,807 1,697,247 386,226 1,231,686 57,055
PY6 311,031 23,524 98,105 134,148 57,186 214,210 105,275 110,906 38,952 201,807 1,697,247 386,226 1,231,686 57,055
PY7 311,031 23,524 98,105 134,148 57,186 214,210 105,275 110,906 38,952 201,807 1,697,247 386,226 1,231,686 57,055
PY8 311,031 23,524 98,105 134,148 57,186 214,210 105,275 110,906 38,952 201,807 1,697,247 386,226 1,231,686 57,055
PY9 311,031 23,524 98,105 134,148 57,186 214,210 105,275 110,906 38,952 201,807 1,697,247 386,226 1,231,686 57,055
PY10 311,031 23,524 98,105 134,148 57,186 214,210 105,275 110,906 38,952 201,807 1,697,247 386,226 1,231,686 57,055

IRR 61% 39% 40% 33% 35% 25% 40% 92% 47% 157% 65% 324% 45%
NPV (INR) @4% 1,494,439 101,780 416,465 507,636 229,916 699,685 440,752 682,661 218,921 982,438 9,725,730 2,034,563 7,787,970 255,924
B/C Ratio 3.95 1.19 1.64 3.48 1.86 2.54 1.26 3.98 6.51 1.51 3.76 1.37 2.74 3.08
Return to Family Labour 22,041 808 4,039 10,052 3,084 17,758 2,963 5,948 5,757 5,103 28,353 4,851 17,793 4,211

12. As can be seen in the table above, all models present positive financial viability in terms
of measurement using benefits cost ratio, financial internal rate of return and financial net
present value. All financial incremental cash-flows have been discounted for 10 years using a
rate of 3.5 percent1. The data source for this rate is shown in the footnote and captured in
the EFA worksheet.
13. Own consumption: Own consumption has been computed only under aromatic rice
and tomato model because elsewhere it is immaterial.
14. Post Harvest losses: An average percentage has been applied to different financial
models for post-harvest loses depending on the nature of the crop. It is assumed that as a
result of improved marketing linkages and enterprise creation for livelihood diversification of

1
Interest rate on deposit accounts in India - Search (bing.com)

2
vulnerable communities, a reduction in post-harvest losses will be observed, thanks to the
project intervention.
15. Beneficiary aggregation and adoption rate: The direct target household (HH)
beneficiaries for JKCIP for the proposed investment are projected at 300,000 (HH) translating
into 1,530,000 household members with an average HH size of 5 per HH. The end-line
adoption rate is assumed at 49% according to log-frame indicator 1.2.2, Percentage of
households reporting adoption of new/improved inputs and technologies or practices. This
corresponds to about 155,813 HH using gradual adoption in the initial project years. The
summary is presented in the table below.
Table 2: Aggregation No Phasing
Household Phasing and aggregation Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Agri-niche and horticulture crops 300,000 565 31,798 65,458 73,941 67,594 35,711 23,775 1,157
Cumulative Number of Beneficiaries 565 32,364 97,822 171,763 239,357 275,068 298,843 300,000 300,000 300,000

Adoption Rate 20% 30% 40% 50% 60% 70% 70% 70%
Beneficiary Aggregation
Beneficiaries in Y1 113 9,540 26,183 36,970 40,556 24,998 16,642 810
Beneficiaries in Y2 113 9,540 26,183 36,970 40,556 24,998 16,642 810
Beneficiaries in Y3 113 9,540 26,183 36,970 40,556 24,998 16,642 810
Beneficiaries in Y4 113 9,540 26,183 36,970 40,556 24,998 16,642
Beneficiaries in Y5 113 9,540 26,183 36,970 40,556 24,998
Beneficiaries in Y6 113 9,540 26,183 36,970 40,556
Beneficiaries in Y7 113 9,540 26,183 36,970
Beneficiaries in Y8 113 9,540 26,183
Beneficiaries in Y9 113 9,540
Beneficiaries in Y10 113

Total Beneficiaries 113 9,653 35,836 72,806 113,363 138,360 155,003 155,813 155,813 155,813

16. Cost per beneficiary: The cost per beneficiary has been derived from total project
costs divided by the target number of households. The proposed total financing for JKCIP is
US$217.3 million, and the estimated number of beneficiary households is 300,000. The cost
per beneficiary HH is, therefore, computed at US$725 and US$142 for each household
member assuming 5 people per HH. The analysis is presented in a summary table below.
Table 3:Programme costs and log-frame indicators
PROGRAMME COSTS AND INDICATORS FOR LOGFRAME
TOTAL PROGRAMME COSTS (in million USD )
Beneficiaries 1,530,000 people 217.4 Million
142 USD x person 300,000 Households
Cost per beneficiary
725
Components and Cost (USD million)
A. Climate-smart and market-led production 113.6 Average increase in income per HH per year
B. Agri-business ecosystem development 72.6 Premium prices paid to farmers
C. Support to vulnerable communities 20.7
D. Project Management 10.5
Total 217.4

17. The overall project assumptions used in the financial and economic models are
presented in the table below.

3
 Table 4: Main assumptions and shadow prices
MAIN ASSUMPTIONS & SHADOW PRICES
Output Yields (Annually) Kg
Land Size WOP WP Price (INR)
Cherry Model Ha 2,435 3,247 500
PLUM Model Ha 478 1,196 218
PEAR Model Ha 597 1,194 500
APRICOT Model Ha 690 920 1,000
l
ia

PEACH Model Ha 853 1,313 300

nc
na

APPLE Model Ha 12,000 16,000 107

Fi

Saffron Model Ha - 500 1,000

Aromatic Rice Ha 7,000 8,000 70
ALMOND Model Ha 620 2,500 400
WALNUT Model Ha 200 1,670 600
Tomato Model Ha 1,600 2,500 150
ic

Standard Conversion Factor 0.90 Discount rate for Financial Analysis 4%

om
on

Labour Conversion Factor 0.92 Discount rate for Economic Analysis 7%

Ec

III. Economic Analysis:

18. Objectives of Economic Analysis: The economic analysis has been carried out to: (i)
determine the economic viability and overall cost-effectiveness of the project, estimated from
the perspective of the overall economy rather than at individual household level, through
comparison of aggregated economic benefits and the total project economic costs. (ii) Perform
sensitivity analysis to measure the robustness of the proposed investment and measure the
variations in the overall Economic Rate of Return (ERR) and Net Present Value (NPV) due to
risks and unforeseen factors.
19. The economic analysis has adopted the crop models used for financial analysis and
converted them to economic terms. Standard Conversion Factors (SCF) for both labour and
tradable goods have been applied to all input and output costs/prices to calculate the
economic value.
20. Economic benefits: JKCIP is projected to yield a baseline Economic Rate of return of
24 percent with a positive Net Present Value of US$480.4 million (INR 39.8 billion). All
quantifiable benefits have been discounted over a period of 20 years including 7 years of
project implementation using a rate of 7 percent which is the current interest rate on long
term bonds/treasury bills in India2. The baseline ERR of 24 per cent is higher than the discount
rate used for economic analysis which confirms the justification of the proposed project
investment. The overall benefits cost ratio is computed at 13.3. The overall project economic
analysis is summarized in the table below:

2
India IN: Long-Term Interest Rate: Government Bonds | Economic Indicators | CEIC (ceicdata.com)

4
 Table 5: Overall Economic Cash-flow
Project Incremental Economic Project Costs (INR million)
Economic Benefits Incremental Fam
Farm Benefits (Agri-
Project year Benefits (INR Total Economic Cash-flow
niche & Horticulture Investment Costs Recurrent Costs
million) Costs
Crops)
PY1 (4) (4) 16 16 32 (36)
PY2 (336) (336) 1,029 107 1,137 (1,472)
PY3 (890) (890) 2,088 102 2,190 (3,079)
PY4 (1,018) (1,018) 2,118 101 2,220 (3,238)
PY5 (1,671) (1,671) 1,890 96 1,986 (3,657)
PY6 (2,712) (2,712) 1,089 96 1,185 (3,897)
PY7 (3,064) (3,064) 641 96 737 (3,801)
PY8 (871) (871) 5 41 46 (917)
PY9 4,787 4,787 12 12 4,775
PY10 12,197 12,197 12 12 12,185
PY11 12,197 12,197 12 12 12,185
PY12 12,197 12,197 12 12 12,185
PY13 12,197 12,197 12 12 12,185
PY14 12,197 12,197 12 12 12,185
PY15 12,197 12,197 12 12 12,185
PY16 12,197 12,197 12 12 12,185
PY17 12,197 12,197 12 12 12,185
PY18 12,197 12,197 12 12 12,185
PY19 12,197 12,197 12 12 12,185
PY20 12,197 12,197 12 12 12,185
NPV@ 7% (INR' million ) 39,880
NPV@ 7% ('millionUSD) 480.49
EIRR 24%
BCR 128,393 9,678 13.3

21. Aggregation of Economic Benefits: The JKCIP economic benefits aggregation has
been derived from the phased number of target HH, and the incremental economic benefits
generated from the crop models. This is summarized in the table below:

5
 Table 6: Beneficiary aggregation and phasing of benefits
Household Phasing and aggregation Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Agri-niche and horticulture crops 300,000 565 31,798 65,458 73,941 67,594 35,711 23,775 1,157
Cumulative Number of Beneficiaries 565 32,364 97,822 171,763 239,357 275,068 298,843 300,000 300,000 300,000

Adoption Rate 20% 30% 40% 50% 60% 70% 70% 70%
Beneficiary Aggregation
Beneficiaries in Y1 113 9,540 26,183 36,970 40,556 24,998 16,642 810
Beneficiaries in Y2 113 9,540 26,183 36,970 40,556 24,998 16,642 810
Beneficiaries in Y3 113 9,540 26,183 36,970 40,556 24,998 16,642 810
Beneficiaries in Y4 113 9,540 26,183 36,970 40,556 24,998 16,642
Beneficiaries in Y5 113 9,540 26,183 36,970 40,556 24,998
Beneficiaries in Y6 113 9,540 26,183 36,970 40,556
Beneficiaries in Y7 113 9,540 26,183 36,970
Beneficiaries in Y8 113 9,540 26,183
Beneficiaries in Y9 113 9,540
Beneficiaries in Y10 113

Total Beneficiaries 113 9,653 35,836 72,806 113,363 138,360 155,003 155,813 155,813 155,813

Summary of Incremental Farm Benefits - Economic costsY1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

Cherry ( 156 284) ( 71 230) 75 185 281 138 281 138 281 138 281 138
Plum ( 28 048) (4 221) 10 547 21 248 21 248 21 248 21 248
Pear ( 90 083) ( 32 494) 22 314 88 640 88 640 88 640 88 640
Upricot ( 127 347) ( 80 801) 10 018 121 219 121 219 121 219 121 219
Peach ( 58 720) ( 26 160) 14 127 51 654 51 654 51 654 51 654
Apple ( 270 495) ( 139 052) ( 13 613) 193 601 193 601 193 601 193 601
Almond ( 210 181) 556 207 393 207 393 207 393 207 393 207 393
Walnut ( 277 793) ( 73 004) 349 483 349 031 349 031 349 031 349 031
Tomato ( 51 698) ( 8 570) 15 193 51 429 51 429 51 429 51 429 51 429 51 429 51 429
Saffron 11 141 24 313 46 766 97 584 97 584 97 584 97 584 97 584 97 584
Aromatic Rice ( 18 718) 6 812 27 513 35 400 35 400 35 400 35 400 35 400 35 400 35 400

Average Incremental Farm Benefits (35,208) 3,128 22,340 (98,669) (21,999) 78,170 136,212 136,212 136,212 136,212

Incr. Benefits Aggregation/Year Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

Incremental farm benefits phasing
Aggregated benefits Incr. Ben
Incremental Benefits in Y1 (35) (3,982) (335,873) (921,865) (1,301,671) (1,427,929) (880,136) (585,952) (28,523)
Incremental Benefits in Y2 3 354 29,838 81,895 115,636 126,852 78,188 52,054 2,534
Incremental Benefits in Y3 22 2,526 213,110 584,920 825,906 906,016 558,443 371,785 18,098
Incremental Benefits in Y4 (99) (11,159) (941,254) (2,583,448) (3,647,824) (4,001,649) (2,466,505) (1,642,082)
Incremental Benefits in Y5 (22) (2,488) (209,864) (576,011) (813,327) (892,217) (549,937)
Incremental Benefits in Y6 78 8,841 745,704 2,046,723 2,889,970 3,170,286
Incremental Benefits in Y7 136 15,405 1,299,405 3,566,461 5,035,836
Incremental Benefits in Y8 136 15,405 1,299,405 3,566,461
Incremental Benefits in Y9 136 15,405 1,299,405
Incremental Benefits in Y10 136 1,299,405
Net Incremental Benefits (0.004) (335,519) (889,501) (1,017,825) (1,671,115) (2,711,849) (3,064,475) (871,469) 4,786,838 12,197,473

6
22. Double counting of costs: In order to avoid double counting of costs, all costs already
included in estimation of the net incremental cash-flow of the enterprise models (i.e. input
such as improved seeds, fertilizers which will provided by the project in form of grants and
subsidies) have been excluded in the overall analysis as they are already incorporated in the
crop models.
23. Sensitivity analysis, Risks and Assumptions: A sensitivity analysis has been carried
out to test the robustness of the overall project investment and measure variations due to
unforeseen factors and relevant risks.
24. Results of the sensitivity analysis: A change in project benefits by 20 per cent
increase in costs and decrease in benefits using the same proportion yields an ERR of 23 per
cent and 22 per cent with a positive NPV of US$462.8 million and US$366.7 million
respectively. An increase in project benefits by either 10 per cent &20 per cent yields a higher
of 25 percent & 26 per cent respectively both with positive NPV. A delay in project benefits
by 1 & 2 years still yields positive results as it yields 22 per cent and 20 per cent both posting
positive net present values. Results of the sensitivity analysis indicate that the project remains
economically viable under the various assumptions considered. The summary of the
sensitivity analysis is presented in the table below.

Table 7: Summary of sensitivity analysis matrix

Sensitivity analysis matrix

% IRR NPV (US$) Million
Base Scenario 24% 480.53
-10% 23% 423.64
Decrease of Project benefits -20% 22% 366.74
-30% 21% 309.84
10% 23% 471.69
Cost Increase 20% 23% 462.85
50% 21% 439.59

Delay of benefits 1 Year 22% 407.13

2 Years 20% 338.33

Increase of benefits 10% 25% 537.43

20% 26% 594.33

7
Table 8: Detailed sensitivity analysis:

Year 1 2 3 4 5 6 7 8 9 10 11

Incremental Benefits (0) (336) (890) (1,018) (1,671) (2,712) (3,064) (871) 4,787 12,197 12,197
benefits +10% (0) (369) (978) (1,120) (1,838) (2,983) (3,371) (959) 5,266 13,417 13,417
benefits +20% (0) (403) (1,067) (1,221) (2,005) (3,254) (3,677) (1,046) 5,744 14,637 14,637
Mild scenario (0) (302) (801) (916) (1,504) (2,441) (2,758) (784) 4,308 10,978 10,978
Medium scenario (0) (268) (712) (814) (1,337) (2,169) (2,452) (697) 3,829 9,758 9,758
High scenario (0) (235) (623) (712) (1,170) (1,898) (2,145) (610) 3,351 8,538 8,538

Project Costs 32 1,137 2,190 2,220 1,986 1,185 737 46 12 12 12

costs +10% 35 1,250 2,408 2,442 2,185 1,304 810 50 13 13 13
costs +20% 39 1,364 2,627 2,664 2,383 1,422 884 55 15 15 15
costs +30% 48 1,705 3,284 3,330 2,979 1,541 958 59 16 16 16
Net cash flow
base scenario (32) (1,472) (3,079) (3,238) (3,657) (3,897) (3,801) (917) 4,775 12,185 12,185
costs +10% (35) (1,586) (3,298) (3,460) (3,856) (4,016) (3,875) (922) 4,773 12,184 12,184
costs +20% (39) (1,699) (3,517) (3,682) (4,054) (4,134) (3,949) (926) 4,772 12,183 12,183
costs +30% (48) (2,040) (4,174) (4,348) (4,650) (4,253) (4,022) (931) 4,771 12,182 12,182
benefits +10% (32) (1,506) (3,168) (3,339) (3,824) (4,168) (4,108) (1,004) 5,253 13,405 13,405
benefits +20% (32) (1,539) (3,257) (3,441) (3,991) (4,440) (4,414) (1,091) 5,732 14,625 14,625
benefits -10% (32) (1,439) (2,990) (3,136) (3,490) (3,626) (3,495) (830) 4,296 10,965 10,965
benefits -20% (32) (1,405) (2,901) (3,034) (3,323) (3,355) (3,188) (743) 3,817 9,746 9,746
benefits -30% (32) (1,371) (2,812) (2,932) (3,156) (3,084) (2,882) (656) 3,339 8,526 8,526
benefits delayed 1 year (32) (1,137) (2,525) (3,109) (3,004) (2,856) (3,449) (3,110) (884) 4,775 12,185
benefits delayed 2 years (32) (1,137) (2,190) (2,555) (2,875) (2,203) (2,408) (2,757) (3,077) (884) 4,775
Discount rate 7%
Sensitivity Analysis Costs Increase Benefits Increase Decrease of Benefits Delay of Benefits
Base case
+10% +20% +50% +10% +20% -10% -20% - 30% 1 year 2 years
IRR (%) 24% 23% 22.5% 21% 25% 26% 23% 22.2% 21% 22% 20%
NPV (INR) Million 39,884 39,150 38,416 36,486 44,607 49,329 35,162 30,439 25,717 33,792 28,081
NPV (USD) Million 480.5325 471.6891 462.8458 439.5881 537.4291 594.3257 423.6359 366.7393 309.8427 407.1287 338.3264

8
25. Conclusion: The following economic performance indicators for the proposed
investment have been computed: (i) Economic Internal Rate of Return (ERR), and (ii)
Economic Net Present Value (NPV). The overall ERR is computed to illustrate the need
for funding overall cost effectiveness. JKCIP is projected to yield a baseline Economic
Rate of return (ERR) of 24 per cent with a positive Net Present Value (NPV) of US$480.4
million (INR 39.8 billion). The baseline ERR is above the discount rate used for economic
analysis which confirms the economic justification of the project.

9
Attachments to this annex;
• Overall summary of economic and financial analysis
o Table A: Overall Financial Analysis
o Table B: Programme costs and log-frame indicators
o Table C: Main assumptions and shadow prices
o Table D: Overall economic analysis
• Beneficiary phasing and aggregation
• Sensitivity analysis
• Conversion Factors computation
• Economic costs used in the analysis
• Financial crop models
o Cherry model
o Plum model
o Pear model
o Apricot model
o Peach model
o Apple model – High Density Rejuvenated
o Apple model – Medium Density Rejuvenated
o Saffron model
o Aromatic rice model
o Almond model – Medium Density
o Almond model – High Density
o Walnut model – Medium Density
o Walnut model – High Density
o Tomato model

10
Overall summary of economic and financial analysis
o Table A: Overall Financial Analysis

Farm models' net incremental benefits - Agri-niche and horticulture crops

(in INR)

Cherry APRICOT PEACH APPLE Saffron Aromatic ALMOND WALNUT Tomato

Project Year PLUM Model PEAR Model
Model Model Model Model Model Rice Model Model Model Model

PY1 (172,902) (31,014) (99,621) (140,847) (64,923) (299,233) 15,272 (23,448) - 259,193 - 307,274 - 57,145
PY2 (78,804) (4,654) (35,909) (89,352) (28,901) (153,814) 29,844 7,308 (27,033) (80,694) (9,345)
PY3 83,180 11,684 24,727 11,124 15,669 (15,037) 54,684 30,226 202,307 386,726 16,955
PY4 311,031 23,524 98,105 134,148 57,186 214,210 110,906 38,952 201,807 386,226 57,055
PY5 311,031 23,524 98,105 134,148 57,186 214,210 110,906 38,952 201,807 386,226 57,055
PY6 311,031 23,524 98,105 134,148 57,186 214,210 110,906 38,952 201,807 386,226 57,055
PY7 311,031 23,524 98,105 134,148 57,186 214,210 110,906 38,952 201,807 386,226 57,055
PY8 311,031 23,524 98,105 134,148 57,186 214,210 110,906 38,952 201,807 386,226 57,055
PY9 311,031 23,524 98,105 134,148 57,186 214,210 110,906 38,952 201,807 386,226 57,055
PY10 311,031 23,524 98,105 134,148 57,186 214,210 110,906 38,952 201,807 386,226 57,055

IRR 61% 39% 40% 33% 35% 25% 92% 47% 65% 45%
NPV (INR) @4% 1,494,439 101,780 416,465 507,636 229,916 699,685 682,661 218,921 982,438 2,034,563 255,924
B/C Ratio 3.95 1.19 1.64 3.48 1.86 2.54 3.98 6.51 1.51 1.37 3.08
Return to Family 22,041 808 4,039 10,052 3,084 17,758 5,948 5,757 5,103 4,851 4,211

11
Table B: Programme costs and log-frame indicators

PROGRAMME COSTS AND INDICATORS FOR LOGFRAME

TOTAL PROGRAMME COSTS (in million USD )
Beneficiaries 1,530,000 people 217.4 Million
142 USD x person 300,000 Households
Cost per beneficiary
725
Components and Cost (USD million)
A. Climate-smart and market-led production 113.6 Average increase in income per HH per year
B. Agri-business ecosystem development 72.6 Premium prices paid to farmers
C. Support to vulnerable communities 20.7
D. Project Management 10.5
Total 217.4

12
Table C: Main assumptions and shadow prices

MAIN ASSUMPTIONS & SHADOW PRICES

Output Yields (Annually) Kg
Land Size WOP WP Price (INR)
Cherry Model Ha 2,435 3,247 500
PLUM Model Ha 478 1,196 218
PEAR Model Ha 597 1,194 500
APRICOT Model Ha 690 920 1,000
l
ia

PEACH Model Ha 853 1,313 300

nc
na

APPLE Model Ha 12,000 16,000 107

Fi

Saffron Model Ha - 500 1,000

Aromatic Rice Ha 7,000 8,000 70
ALMOND Model Ha 620 2,500 400
WALNUT Model Ha 200 1,670 600
Tomato Model Ha 1,600 2,500 150
ic

Standard Conversion Factor 0.90 Discount rate for Financial Analysis 4%

om
on

Labour Conversion Factor 0.92 Discount rate for Economic Analysis 7%

Ec

13
Table D: Overall economic analysis

Project Incremental Economic Project Costs (INR million)

Economic Benefits Incremental Fam
Farm Benefits (Agri-
Project year Benefits (INR Total Economic Cash-flow
niche & Horticulture Investment Costs Recurrent Costs
million) Costs
Crops)
PY1 (0) (0) 16 16 32 (32)
PY2 (336) (336) 1,029 107 1,137 (1,472)
PY3 (890) (890) 2,088 102 2,190 (3,079)
PY4 (1,018) (1,018) 2,118 101 2,220 (3,238)
PY5 (1,671) (1,671) 1,890 96 1,986 (3,657)
PY6 (2,712) (2,712) 1,089 96 1,185 (3,897)
PY7 (3,064) (3,064) 641 96 737 (3,801)
PY8 (871) (871) 5 41 46 (917)
PY9 4,787 4,787 12 12 4,775
PY10 12,197 12,197 12 12 12,185
PY11 12,197 12,197 12 12 12,185
PY12 12,197 12,197 12 12 12,185
PY13 12,197 12,197 12 12 12,185
PY14 12,197 12,197 12 12 12,185
PY15 12,197 12,197 12 12 12,185
PY16 12,197 12,197 12 12 12,185
PY17 12,197 12,197 12 12 12,185
PY18 12,197 12,197 12 12 12,185
PY19 12,197 12,197 12 12 12,185
PY20 12,197 12,197 12 12 12,185
NPV@ 7% (INR' million ) 39,884
NPV@ 7% ('millionUSD) 480.53
EIRR 24%
BCR 128,397 9,678 13.3

14
Beneficiary phasing and aggregation
Household Phasing and aggregation Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Agri-niche and horticulture crops 300,000 565 31,798 65,458 73,941 67,594 35,711 23,775 1,157
Cumulative Number of Beneficiaries 565 32,364 97,822 171,763 239,357 275,068 298,843 300,000 300,000 300,000

Adoption Rate 20% 30% 40% 50% 60% 70% 70% 70%
Beneficiary Aggregation
Beneficiaries in Y1 113 9,540 26,183 36,970 40,556 24,998 16,642 810
Beneficiaries in Y2 113 9,540 26,183 36,970 40,556 24,998 16,642 810
Beneficiaries in Y3 113 9,540 26,183 36,970 40,556 24,998 16,642 810
Beneficiaries in Y4 113 9,540 26,183 36,970 40,556 24,998 16,642
Beneficiaries in Y5 113 9,540 26,183 36,970 40,556 24,998
Beneficiaries in Y6 113 9,540 26,183 36,970 40,556
Beneficiaries in Y7 113 9,540 26,183 36,970
Beneficiaries in Y8 113 9,540 26,183
Beneficiaries in Y9 113 9,540
Beneficiaries in Y10 113

Total Beneficiaries 113 9,653 35,836 72,806 113,363 138,360 155,003 155,813 155,813 155,813

Summary of Incremental Farm Benefits - Economic costsY1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

Cherry ( 156 284) ( 71 230) 75 185 281 138 281 138 281 138 281 138
Plum ( 28 048) (4 221) 10 547 21 248 21 248 21 248 21 248
Pear ( 90 083) ( 32 494) 22 314 88 640 88 640 88 640 88 640
Upricot ( 127 347) ( 80 801) 10 018 121 219 121 219 121 219 121 219
Peach ( 58 720) ( 26 160) 14 127 51 654 51 654 51 654 51 654
Apple ( 270 495) ( 139 052) ( 13 613) 193 601 193 601 193 601 193 601
Almond ( 210 181) 556 207 393 207 393 207 393 207 393 207 393
Walnut ( 277 793) ( 73 004) 349 483 349 031 349 031 349 031 349 031
Tomato ( 51 698) ( 8 570) 15 193 51 429 51 429 51 429 51 429 51 429 51 429 51 429
Saffron 11 141 24 313 46 766 97 584 97 584 97 584 97 584 97 584 97 584
Aromatic Rice ( 18 718) 6 812 27 513 35 400 35 400 35 400 35 400 35 400 35 400 35 400

Average Incremental Farm Benefits (35,208) 3,128 22,340 (98,669) (21,999) 78,170 136,212 136,212 136,212 136,212

Incr. Benefits Aggregation/Year Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

Incremental farm benefits phasing
Aggregated benefits Incr. Ben
Incremental Benefits in Y1 (35) (3,982) (335,873) (921,865) (1,301,671) (1,427,929) (880,136) (585,952) (28,523)
Incremental Benefits in Y2 3 354 29,838 81,895 115,636 126,852 78,188 52,054 2,534
Incremental Benefits in Y3 22 2,526 213,110 584,920 825,906 906,016 558,443 371,785 18,098
Incremental Benefits in Y4 (99) (11,159) (941,254) (2,583,448) (3,647,824) (4,001,649) (2,466,505) (1,642,082)
Incremental Benefits in Y5 (22) (2,488) (209,864) (576,011) (813,327) (892,217) (549,937)
Incremental Benefits in Y6 78 8,841 745,704 2,046,723 2,889,970 3,170,286
Incremental Benefits in Y7 136 15,405 1,299,405 3,566,461 5,035,836
Incremental Benefits in Y8 136 15,405 1,299,405 3,566,461
Incremental Benefits in Y9 136 15,405 1,299,405
Incremental Benefits in Y10 136 1,299,405
Net Incremental Benefits (0.004) (335,519) (889,501) (1,017,825) (1,671,115) (2,711,849) (3,064,475) (871,469) 4,786,838 12,197,473

15
Sensitivity analysis
Year 1 2 3 4 5 6 7 8 9 10 11

Incremental Benefits (0) (336) (890) (1,018) (1,671) (2,712) (3,064) (871) 4,787 12,197 12,197
benefits +10% (0) (369) (978) (1,120) (1,838) (2,983) (3,371) (959) 5,266 13,417 13,417
benefits +20% (0) (403) (1,067) (1,221) (2,005) (3,254) (3,677) (1,046) 5,744 14,637 14,637
Mild scenario (0) (302) (801) (916) (1,504) (2,441) (2,758) (784) 4,308 10,978 10,978
Medium scenario (0) (268) (712) (814) (1,337) (2,169) (2,452) (697) 3,829 9,758 9,758
High scenario (0) (235) (623) (712) (1,170) (1,898) (2,145) (610) 3,351 8,538 8,538

Project Costs 32 1,137 2,190 2,220 1,986 1,185 737 46 12 12 12

costs +10% 35 1,250 2,408 2,442 2,185 1,304 810 50 13 13 13
costs +20% 39 1,364 2,627 2,664 2,383 1,422 884 55 15 15 15
costs +30% 48 1,705 3,284 3,330 2,979 1,541 958 59 16 16 16
Net cash flow
base scenario (32) (1,472) (3,079) (3,238) (3,657) (3,897) (3,801) (917) 4,775 12,185 12,185
costs +10% (35) (1,586) (3,298) (3,460) (3,856) (4,016) (3,875) (922) 4,773 12,184 12,184
costs +20% (39) (1,699) (3,517) (3,682) (4,054) (4,134) (3,949) (926) 4,772 12,183 12,183
costs +30% (48) (2,040) (4,174) (4,348) (4,650) (4,253) (4,022) (931) 4,771 12,182 12,182
benefits +10% (32) (1,506) (3,168) (3,339) (3,824) (4,168) (4,108) (1,004) 5,253 13,405 13,405
benefits +20% (32) (1,539) (3,257) (3,441) (3,991) (4,440) (4,414) (1,091) 5,732 14,625 14,625
benefits -10% (32) (1,439) (2,990) (3,136) (3,490) (3,626) (3,495) (830) 4,296 10,965 10,965
benefits -20% (32) (1,405) (2,901) (3,034) (3,323) (3,355) (3,188) (743) 3,817 9,746 9,746
benefits -30% (32) (1,371) (2,812) (2,932) (3,156) (3,084) (2,882) (656) 3,339 8,526 8,526
benefits delayed 1 year (32) (1,137) (2,525) (3,109) (3,004) (2,856) (3,449) (3,110) (884) 4,775 12,185
benefits delayed 2 years (32) (1,137) (2,190) (2,555) (2,875) (2,203) (2,408) (2,757) (3,077) (884) 4,775
Discount rate 7%
Sensitivity Analysis Costs Increase Benefits Increase Decrease of Benefits Delay of Benefits
Base case
+10% +20% +50% +10% +20% -10% -20% - 30% 1 year 2 years
IRR (%) 24% 23% 22.5% 21% 25% 26% 23% 22.2% 21% 22% 20%
NPV (INR) Million 39,884 39,150 38,416 36,486 44,607 49,329 35,162 30,439 25,717 33,792 28,081
NPV (USD) Million 480.5325 471.6891 462.8458 439.5881 537.4291 594.3257 423.6359 366.7393 309.8427 407.1287 338.3264

16
Conversion Factors computation
SCF
Derivation of SCF
SER = OER x (M + X) / [(M + Tm) + (X - Tx)] = OER x SCF
SCF = SER/OER
1) total imports (M) M =
2) total exports (X) X =
3) import taxes (Tm) Tm =
4) export taxes (Tx) Tx =

Years 2015 2016 2017 2018 2019 2020

US$ US$ US$ US$ US$ US$
X Export of goods/ Free On Board 263,890,000,000 259,500,000,000 294,090,000,000 320,670,000,000 322,310,000,000 275,080,000,000
M Import of goods/Free On Board 385,490,000,000 346,230,000,000 435,140,000,000 506,250,000,000 479,700,000,000 367,960,000,000
Tm Import Taxes 69,388,200,000 62,321,400,000 78,325,200,000 91,125,000,000 86,346,000,000 66,232,800,000
Tx Export Taxes
0.90 0.91 0.90 0.90 0.90 0.91
0.90
OER 83
SER 75.0
SCF (SER/OER) 0.904
CF for labour 0.916
Import tax rate 18.00%

Economic costs used in the analysis

India

Competitiveness Improvement of the Agriculture and Allied Sectors

Project in the Jammu and Kashmir (JKCIP)
Expenditure Accounts by Years -- Totals Including Contingencies
Economic Costs Economic Costs (INR '000)
2023 2024 2025 2026 2027 2028 2029 2030 Total
I. Investment Costs
A. Training and Workshops 11,067 53,207 53,003 38,232 14,809 13,411 13,031 540 197,300
B. Consultancies 1,620 30,770 48,661 69,158 37,967 8,582 43,080 3,120 242,958
C. Goods, Services and Inputs 540 866,812 1,853,247 1,915,011 1,822,663 1,057,590 584,440 1,097 8,101,399
D. Equipment and Materials 3,122 78,704 132,657 96,018 14,256 9,504 - - 334,261
E. Grants and Subsidies - 545,157 1,095,674 1,284,633 1,068,392 387,070 256,370 - 4,637,297
Total Investment Costs 16,349 1,574,650 3,183,242 3,403,052 2,958,086 1,476,157 896,922 4,757 13,513,215
II. Recurrent Costs
A. Salaries and Allowancies 5,686 78,649 73,579 73,039 67,822 67,822 67,822 26,771 461,191
B. Operating Costs 10,208 28,394 28,394 28,394 28,394 28,394 28,394 13,995 194,565
Total Recurrent Costs 15,894 107,043 101,972 101,432 96,216 96,216 96,216 40,766 655,756
Total PROJECT COSTS 32,243 1,681,693 3,285,214 3,504,485 3,054,302 1,572,373 993,138 45,523 14,168,971

Less Econ Costs already included in models - 545,157 1,095,674 1,284,633 1,068,392 387,070 256,370 - 4,637,297
Net Investment Costs to avoid double counting 16,349 1,029,493 2,087,568 2,118,419 1,889,694 1,089,087 640,551 4,757 8,875,919

17
Financial crop models
o Cherry model
Without Project (WOP) With Project - (WP)
Cherry Model Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Unit Cost Unit Cost Unit Cost Unit Cost Unit Cost
QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA
Yields and Inputs UNIT INR INR INR INR INR
Yields Kg 2,435 450 1,095,863 2,435 450 1,095,863 2,598 461 1,198,143 2,922 470 1,374,212 3,247 500 1,621,877 1,621,877 1,621,877 1,621,877 1,621,877 1,621,877 1,621,877
Post Harvest Losses 244 450 109,586 195 450 87,669 208 461 95,851 234 470 109,937 260 500 129,750 129,750 129,750 129,750 129,750 129,750 129,750
- 450 - - 450 - - 461 - - 470 - - 500 - - - - - - -
Net sales 986,276 1,008,194 1,102,292 1,264,275 1,492,126 1,492,126 1,492,126 1,492,126 1,492,126 1,492,126 1,492,126

Input/operating costs
Unimproved seeds Kg 40 3000 120,000 - - - -
Improved seeds Kg - 40 4000 160,000 40 4000 160,000 40 4000 160,000 40 4000 160,000
FYM Kg - 6,909 15 103,635 6,909 15 103,635 6,909 15 103,635 6,909 15 103,635
Urea Kg - 396 45 17,810 396 45 17,810 396 45 17,810 396 45 17,810
DAP Kg - 214 45 9,638 214 45 9,638 214 45 9,638 214 45 9,638
MOP Kg - 395 30 11,844 395 30 11,844 395 30 11,844 395 30 11,844
HMO Ltr - 39 150 5,922 39 150 5,922 39 150 5,922 39 150 5,922
Copper Oxychloride Kg - 6 1,008 5,969 6 1,008 5,969 6 1,008 5,969 6 1,008 5,969
Sub Total Input/Operating Costs 120,000 314,819 314,819 314,819 314,819 314,819 314,819 314,819 314,819 314,819 314,819

Labour Budget
Land Clearing Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Tilling Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Planting Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Fertilizer Application Man Days 5 600 3,000 5 600 3,000 5 600 3,000 5 600 3,000 5 600 3,000
Irrigation Man Days 3 600 1,800 3 600 1,800 3 600 1,800 3 600 1,800 3 600 1,800
Pruning Man Days 5 600 3,000 5 600 3,000 5 600 3,000 5 600 3,000 5 600 3,000
First Weeding Man Days 5 600 3,000 5 600 3,000 5 600 3,000 5 600 3,000 5 600 3,000
Second Weeding Man Days 3 600 1,800 3 600 1,800 3 600 1,800 3 600 1,800 3 600 1,800
Harvesting Man Days 20 600 12,000 20 600 12,000 20 600 12,000 20 600 12,000 20 600 12,000
Transport to store Man Days 1 600 600 1 600 600 1 600 600 1 600 600 1 600 600
Sub Total Labour Budget 31,200 31,200 31,200 31,200 31,200 31,200 31,200 31,200 31,200 31,200 31,200

Hired Labour Man Days 5 5 5 5 5

Family Labour Man Days 52 52 52 52 52

Total Costs 151,200 346,019 346,019 346,019 346,019 346,019 346,019 346,019 346,019 346,019 346,019
Net income before labour costs 866,276 693,375 787,473 949,456 1,177,308 1,177,308 1,177,308 1,177,308 1,177,308 1,177,308 1,177,308
Net income after labour costs 835,076 662,175 756,273 918,256 1,146,108 1,146,108 1,146,108 1,146,108 1,146,108 1,146,108 1,146,108
Net Incremental Benefits - (172,902) (78,804) 83,180 311,031 311,031 311,031 311,031 311,031 311,031 311,031

Profitability Indicators
291%
Return to family labour* 22,040.5
Discount rate 4%
NPV (INR) 1,549,732
IRR 61%
PVb 11,372,434
PVc 2,877,702
B/C ratio 3.95

18
o Plum model
Without Project (WOP) With Project - (WP)
PLUM Model Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Unit Cost Unit Cost Unit Cost Unit Cost Unit Cost
QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA
Yields and Inputs UNIT INR INR INR INR INR
Yields Kg 478 200 95,680 1,017 200 203,320 1,100 210 231,067 1,160 214 248,266 1,196 218 260,728 260,728 260,728 260,728 260,728 260,728 260,728
Post Harvest Losses 72 200 14,352 51 200 10,166 55 210 11,553 58 214 12,413 60 218 13,036 13,036 13,036 13,036 13,036 13,036 13,036
- 200 - - 200 - - 210 - - 214 - - 218 - - - - - - -
Net sales 81,328 193,154 219,514 235,852 247,692 247,692 247,692 247,692 247,692 247,692 247,692

Input/operating costs
Unimproved seeds Kg 25 1,000 25,000 - - - -
Improved seeds Kg - 25 1,500 37,500 25 1,500 37,500 25 1,500 37,500 25 1,500 37,500
FYM Kg - 6,013 15 90,195 6,013 15 90,195 6,013 15 90,195 6,013 15 90,195
Urea Kg - 344 45 15,501 344 45 15,501 344 45 15,501 344 45 15,501
DAP Kg - 186 45 8,388 186 45 8,388 186 45 8,388 186 45 8,388
MOP Kg - 344 30 10,308 344 30 10,308 344 30 10,308 344 30 10,308
HMO Ltr 17 150 2,577 34 150 5,154 34 150 5,154 34 150 5,154 34 150 5,154
Copper Oxychloride Kg 3 1,008 3,024 5 1,008 5,195 5 1,008 5,195 5 1,008 5,195 5 1,008 5,195
Sub Total Input/Operating Costs 30,601 172,241 172,241 172,241 172,241 172,241 172,241 172,241 172,241 172,241 172,241

Labour Budget
Land Clearing Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Tilling Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Planting Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Fertilizer Application Man Days 5 600 3,000 5 600 3,000 5 600 3,000 5 600 3,000 5 600 3,000
First Weeding Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Second Weeding Man Days 3 400 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Irrigation Man Days 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Mulching Man Days 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Protection/Aftercare Man Days 10 400 4,000 10 400 4,000 10 400 4,000 10 400 4,000 10 400 4,000
Harvesting Man Days 20 400 8,000 20 400 8,000 20 400 8,000 20 400 8,000 20 400 8,000
Transport to store Man Days 1 400 400 1 400 400 1 400 400 1 400 400 1 400 400
Sub Total Labour Budget 25,800 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000

Hired Labour Man Days 5 5 5 5 5

Family Labour Man Days 60 60 60 60 60

Total Costs 56,401 199,241 199,241 199,241 199,241 199,241 199,241 199,241 199,241 199,241 199,241
Net income before labour costs 50,727 20,913 47,273 63,611 75,451 75,451 75,451 75,451 75,451 75,451 75,451
Net income after labour costs 24,927 (6,087) 20,273 36,611 48,451 48,451 48,451 48,451 48,451 48,451 48,451
Net Incremental Benefits - (31,014) (4,654) 11,684 23,524 23,524 23,524 23,524 23,524 23,524 23,524

Profitability Indicators
97%
Return to family labour* 807.5
Discount rate 4%
NPV (INR) 105,960
IRR 39%
PVb 1,970,277
PVc 1,657,009
B/C ratio 1.19

19
o Pear model
Without Project (WOP) With Project - (WP)
PEAR Model Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Unit Cost Unit Cost Unit Cost Unit Cost Unit Cost
QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA
Yields and Inputs UNIT INR INR INR INR INR
Yields Kg 597 400 238,800 955 400 382,080 1,075 420 451,332 1,134 456 517,241 1,194 500 597,000 597,000 597,000 597,000 597,000 597,000 597,000
Post Harvest Losses 60 400 23,880 76 400 30,566 86 420 36,107 91 456 41,379 96 500 47,760 47,760 47,760 47,760 47,760 47,760 47,760
- 400 - - 400 - - 420 - - 456 - - 500 - - - - - - -
Net sales 214,920 351,514 415,225 475,862 549,240 549,240 549,240 549,240 549,240 549,240 549,240

Input/operating costs
Unimproved seeds Kg 25 1,500 37,500
Improved seeds Kg - 25 2,000 50,000 25 2,000 50,000 25 2,000 50,000 25 2,000 50,000
FYM Kg - 2,408 15 36,120 2,408 15 36,120 2,408 15 36,120 2,408 15 36,120
Urea Kg - 1,379 45 62,075 1,379 45 62,075 1,379 45 62,075 1,379 45 62,075
DAP Kg - 746 45 33,592 746 45 33,592 746 45 33,592 746 45 33,592
MOP Kg - 1,376 30 41,280 1,376 30 41,280 1,376 30 41,280 1,376 30 41,280
HMO Ltr - 138 150 20,640 138 150 20,640 138 150 20,640 138 150 20,640
Cholorpyriphos Ltr - 14 1,008 13,870 14 1,008 13,870 14 1,008 13,870 14 1,008 13,870
Difenconazole Ltr - 1 4,816 4,970 1 4,816 4,970 1 4,816 4,970 1 4,816 4,970
Carbendazim Kg 2 700 1,204 3 700 2,408 3 700 2,408 3 700 2,408 3 700 2,408
Mancozeb Kg 10 481 4,964 21 481 9,928 21 481 9,928 21 481 9,928 21 481 9,928
Harvesting and packaging equipments Ls 1 3,000 3,000 1 5,000 5,000 1 5,000 5,000 1 5,000 5,000 1 5,000 5,000
Sub Total Input/Operating Costs 46,668 279,882 279,882 279,882 279,882 279,882 279,882 279,882 279,882 279,882 279,882

Labour Budget
Land Preparation Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Tilling Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Planting Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Fertilizer Application Man Days 5 600 5 600 3,000 5 600 3,000 5 600 3,000 5 600 3,000
First Weeding Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Second Weeding Man Days 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Irrigation Man Days 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Mulching Man Days 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Protection/Aftercare Man Days 10 400 4,000 10 400 4,000 10 400 4,000 10 400 4,000 10 400 4,000
Harvesting Man Days 20 400 8,000 20 400 8,000 20 400 8,000 20 400 8,000 20 400 8,000
Transport to store Man Days 1 400 400 1 400 400 1 400 400 1 400 400 1 400 400

Sub Total Labour Budget 24,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000

Hired Labour 0 5 5 5 5 5
Family Labour 0 60 60 60 60 60

Total Costs 70,668 306,882 306,882 306,882 306,882 306,882 306,882 306,882 306,882 306,882 306,882
Net income before labour costs 168,252 71,631 135,343 195,979 269,358 269,358 269,358 269,358 269,358 269,358 269,358
Net income after labour costs 144,252 44,631 108,343 168,979 242,358 242,358 242,358 242,358 242,358 242,358 242,358
Net Incremental Benefits - (99,621) (35,909) 24,727 98,105 98,105 98,105 98,105 98,105 98,105 98,105

Profitability Indicators
115%
Return to family labour* 4,039.3
Discount rate 4%
NPV (INR) 433,577
IRR 40%
PVb 4,185,485
PVc 2,552,220
B/C ratio 1.64

20
o Apricot model
Without Project (WOP) With Project - (WP)
APRICOT Model Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Unit Cost Unit Cost Unit Cost Unit Cost Unit Cost
QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA
Yields and Inputs UNIT INR INR INR INR INR
Yields Kg 690 900 621,000 690 900 621,000 736 920 676,973 828 950 786,186 920 1,000 919,908 919,908 919,908 919,908 919,908 919,908 919,908
Post Harvest Losses 69 900 62,100 55 900 49,680 59 920 54,158 66 950 62,895 74 1,000 73,593 73,593 73,593 73,593 73,593 73,593 73,593
- 900 - - 900 - - 920 - - 950 - - 1,000 - - - - - - -
Net sales 558,900 571,320 622,815 723,291 846,315 846,315 846,315 846,315 846,315 846,315 846,315

Input/operating costs
Unimproved seeds Kg 40 1,000 40,000 - - - -
Improved seeds Kg - 40 1,800 72,000 40 1,800 72,000 40 1,800 72,000 40 1,800 72,000
FYM Kg - 5,600 15 84,000 5,600 15 84,000 5,600 15 84,000 5,600 15 84,000
Urea Kg - 321 45 14,436 321 45 14,436 321 45 14,436 321 45 14,436
DAP Kg - 174 45 7,812 174 45 7,812 174 45 7,812 174 45 7,812
MOP Kg - 240 30 7,200 240 30 7,200 240 30 7,200 240 30 7,200
HMO Ltr 16 150 2,400 32 150 4,800 32 150 4,800 32 150 4,800 32 150 4,800
Copper Oxychloride Kg 2 1,008 2,419 5 1,008 4,838 5 1,008 4,838 5 1,008 4,838 5 1,008 4,838
Sub Total Input/Operating Costs 44,819 195,086 195,086 195,086 195,086 195,086 195,086 195,086 195,086 195,086 195,086

Labour Budget
Land Preparation Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Tilling Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Planting Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Propagation and Pollination Man Days 10 400 4,000 10 400 4,000 10 400 4,000 10 400 4,000 10 400 4,000
Fertilizer Application Man Days 5 600 5 600 3,000 5 600 3,000 5 600 3,000 5 600 3,000
First Weeding Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Second Weeding Man Days 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Irrigation Man Days 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Pruning Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Harvesting Man Days 20 400 8,000 20 400 8,000 20 400 8,000 20 400 8,000 20 400 8,000
Transport to store Man Days 1 600 600 1 600 600 1 600 600 1 600 600 1 600 600
Sub Total Labour Budget 25,000 28,000 28,000 28,000 28,000 28,000 28,000 28,000 28,000 28,000 28,000

Hired Labour Man Days 5 5 5 5 5

Family Labour Man Days 62 62 62 62 62

Total Costs 69,819 223,086 223,086 223,086 223,086 223,086 223,086 223,086 223,086 223,086 223,086
Net income before labour costs 514,081 376,234 427,729 528,205 651,229 651,229 651,229 651,229 651,229 651,229 651,229
Net income after labour costs 489,081 348,234 399,729 500,205 623,229 623,229 623,229 623,229 623,229 623,229 623,229
Net Incremental Benefits - (140,847) (89,352) 11,124 134,148 134,148 134,148 134,148 134,148 134,148 134,148

Profitability Indicators
256%
Return to family labour* 10,052.1
Discount rate 4%
NPV (INR) 530,360
IRR 33%
PVb 6,453,174
PVc 1,855,322
B/C ratio 3.48

21
o Peach model
Without Project (WOP) With Project - (WP)
PEACH Model Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Unit Cost Unit Cost Unit Cost Unit Cost Unit Cost
QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA
Yields and Inputs UNIT INR INR INR INR INR
Yields Kg 853 250 213,363 1,050 250 262,600 1,116 270 301,334 1,247 280 349,258 1,313 300 393,900 393,900 393,900 393,900 393,900 393,900 393,900
Post Harvest Losses 85 250 21,336 74 250 18,382 78 270 21,093 87 280 24,448 92 300 27,573 27,573 27,573 27,573 27,573 27,573 27,573
- 250 - - 250 - - 270 - - 280 - - 300 - - - - - - -
Net sales 192,026 244,218 280,240 324,810 366,327 366,327 366,327 366,327 366,327 366,327 366,327

Input/operating costs
Unimproved seeds Kg 40 1,000 40,000 - - - -
Improved seeds Kg - 40 1,500 60,000 40 1,500 60,000 40 1,500 60,000 40 1,500 60,000
FYM Kg - 4,200 15 63,000 4,200 15 63,000 4,200 15 63,000 4,200 15 63,000
Urea Kg - 241 45 10,827 241 45 10,827 241 45 10,827 241 45 10,827
DAP Kg - 130 45 5,859 130 45 5,859 130 45 5,859 130 45 5,859
MOP Kg - 240 30 7,200 240 30 7,200 240 30 7,200 240 30 7,200
HMO Ltr - 24 150 3,600 24 150 3,600 24 150 3,600 24 150 3,600
Copper Oxychloride Kg - 4 1,008 3,629 4 1,008 3,629 4 1,008 3,629 4 1,008 3,629
Sub Total Input/Operating Costs 40,000 154,115 154,115 154,115 154,115 154,115 154,115 154,115 154,115 154,115 154,115

Labour Budget
Land Clearing Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Tilling Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Planting Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Pruning Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Fertilizer Application Man Days 5 600 5 600 3,000 5 600 3,000 5 600 3,000 5 600 3,000
First Weeding Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Second Weeding Man Days 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Third Weeding Man Days 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Irrigation Man Days 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Thining fruits Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Harvesting and Handling Man Days 20 400 8,000 20 400 8,000 20 400 8,000 20 400 8,000 20 400 8,000
Transport to store Man Days 1 600 600 1 600 600 1 600 600 1 600 600 1 600 600

Sub Total Labour Budget 24,200 27,200 27,200 27,200 27,200 27,200 27,200 27,200 27,200 27,200 27,200

Hired Labour Man Days 5 600 5 600 5 600 5 600 5 600

Family Labour Man Days 60 400 60 400 60 400 60 400 60 400

Total Costs 64,200 181,315 181,315 181,315 181,315 181,315 181,315 181,315 181,315 181,315 181,315
Net income before labour costs 152,026 90,103 126,125 170,695 212,212 212,212 212,212 212,212 212,212 212,212 212,212
Net income after labour costs 127,826 62,903 98,925 143,495 185,012 185,012 185,012 185,012 185,012 185,012 185,012
Net Incremental Benefits - (64,923) (28,901) 15,669 57,186 57,186 57,186 57,186 57,186 57,186 57,186

Profitability Indicators
135%
Return to family labour* 3,083.5
Discount rate 4%
NPV (INR) 239,804
IRR 35%
PVb 2,810,808
PVc 1,507,924
B/C ratio 1.86

22
Apple model – High Density
High Density - Rejuvenated Without Project (WOP) With Project - (WP)
APPLE Model - High Density Rejuvenated Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Unit Cost Unit Cost Unit Cost Unit Cost Unit Cost
QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA
Yields and Inputs UNIT INR INR INR INR INR
Yields Kg 12,000 80 960,000 14,400 80 1,152,000 14,880 88 1,309,440 15,200 96 1,459,200 16,000 107 1,706,240 1,706,240 1,706,240 1,706,240 1,706,240 1,706,240 1,706,240
Post Harvest Losses 1,200 80 96,000 1,008 80 80,640 1,042 88 91,661 1,064 96 102,144 1,120 107 119,437 119,437 119,437 119,437 119,437 119,437 119,437
- 80 - - 80 - - 88 - - 96 - - 107 - - - - - - -
Net sales 864,000 1,071,360 1,217,779 1,357,056 1,586,803 1,586,803 1,586,803 1,586,803 1,586,803 1,586,803 1,586,803

Input/operating costs
Unimproved seeds Kg 40 1,000 40,000 - - - -
Improved seeds Kg - 40 1,500 60,000 40 1,500 60,000 40 1,500 60,000 40 1,500 60,000
FYM Kg - 3,696 15 55,440 3,696 15 55,440 3,696 15 55,440 3,696 15 55,440
Urea Kg - 2,117 45 95,278 2,117 45 95,278 2,117 45 95,278 2,117 45 95,278
DAP Kg - 1,146 45 51,559 1,146 45 51,559 1,146 45 51,559 1,146 45 51,559
MOP Kg - 2,112 30 63,360 2,112 30 63,360 2,112 30 63,360 2,112 30 63,360
HMO Ltr - 211 150 31,680 211 150 31,680 211 150 31,680 211 150 31,680
Mancozeb Kg - 32 481 15,238 32 481 15,238 32 481 15,238 32 481 15,238
Propaneb Kg - 32 761 24,108 32 761 24,108 32 761 24,108 32 761 24,108
Chloropyriphos Ltr - 21 649 13,707 21 649 13,707 21 649 13,707 21 649 13,707
Zineb Kg - 32 761 24,108 32 761 24,108 32 761 24,108 32 761 24,108
Difenconazole Ltr - 2 4,816 7,629 2 4,816 7,629 2 4,816 7,629 2 4,816 7,629
Carbendazim Kg - 5 700 3,696 5 700 3,696 5 700 3,696 5 700 3,696
Flusilazole Kg - 106 887 93,667 106 887 93,667 106 887 93,667 106 887 93,667
Dodine Ltr - 3 2,016 5,322 3 2,016 5,322 3 2,016 5,322 3 2,016 5,322
Harvesting and packaging equipments Ls 1 3,000 3,000 1 3,000 3,000 1 4,000 4,000 1 4,500 4,500 1 5,000 5,000
Sub Total Input/Operating Costs 43,000 547,793 548,793 549,293 549,793 549,793 549,793 549,793 549,793 549,793 549,793

Labour Budget
Land Clearing Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Tilling and Amending Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
PH Adjustment Man Days 2 400 800 2 400 800 2 400 800 2 400 800 2 400 800
Planting Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Fertilizer Application Man Days 600 - 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
First Weeding Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Second Weeding Man Days 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Third Weeding Man Days 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Irrigation Man Days 3 400
Pruning Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Mulching Man Days 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Harvesting Man Days 20 400 8,000 20 400 8,000 20 400 8,000 20 400 8,000 20 400 8,000
Transport to store Man Days 1 600 600 1 400 400 1 400 400 1 400 400 1 400 400
Sub Total Labour Budget 23,000 24,800 24,800 24,800 24,800 24,800 24,800 24,800 24,800 24,800 24,800

Hired Labour Man Days 5 600 5 600 5 600 5 600 5 600

Family Labour Man Days 55 400 57 400 57 400 57 400 57 400

Total Costs 66,000 572,593 573,593 574,093 574,593 574,593 574,593 574,593 574,593 574,593 574,593
Net income before labour costs 821,000 523,567 668,986 807,763 1,037,010 1,037,010 1,037,010 1,037,010 1,037,010 1,037,010 1,037,010
Net income after labour costs 798,000 498,767 644,186 782,963 1,012,210 1,012,210 1,012,210 1,012,210 1,012,210 1,012,210 1,012,210
Net Incremental Benefits - (299,233) (153,814) (15,037) 214,210 214,210 214,210 214,210 214,210 214,210 214,210

Profitability Indicators

Return to family labour* 17,758.1

Discount rate 4%
NPV (INR) 735,102
IRR 25%
PVb 12,147,097
PVc 4,775,344
B/C ratio 2.54

23
 Without Project (WOP) With Project - (WP)
APPLE Model Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Unit Cost Unit Cost Unit Cost Unit Cost Unit Cost
QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA
Yields and Inputs UNIT INR INR INR INR INR
Yields Kg 12,000 80 960,000 14,400 80 1,152,000 14,880 88 1,309,440 15,200 96 1,459,200 16,000 107 1,706,240 1,706,240 1,706,240 1,706,240 1,706,240 1,706,240 1,706,240
Post Harvest Losses 1,200 80 96,000 1,008 80 80,640 1,042 88 91,661 1,064 96 102,144 1,120 107 119,437 119,437 119,437 119,437 119,437 119,437 119,437
- 80 - - 80 - - 88 - - 96 - - 107 - - - - - - -
Net sales 864,000 1,071,360 1,217,779 1,357,056 1,586,803 1,586,803 1,586,803 1,586,803 1,586,803 1,586,803 1,586,803

Input/operating costs
Unimproved seeds Kg 40 1,000 40,000 - - - -
Improved seeds Kg - 40 1,500 60,000 40 1,500 60,000 40 1,500 60,000 40 1,500 60,000
FYM Kg - 3,696 15 55,440 3,696 15 55,440 3,696 15 55,440 3,696 15 55,440
Urea Kg - 2,117 45 95,278 2,117 45 95,278 2,117 45 95,278 2,117 45 95,278
DAP Kg - 1,146 45 51,559 1,146 45 51,559 1,146 45 51,559 1,146 45 51,559
MOP Kg - 2,112 30 63,360 2,112 30 63,360 2,112 30 63,360 2,112 30 63,360
HMO Ltr - 211 150 31,680 211 150 31,680 211 150 31,680 211 150 31,680
Mancozeb Kg - 32 481 15,238 32 481 15,238 32 481 15,238 32 481 15,238
Propaneb Kg - 32 761 24,108 32 761 24,108 32 761 24,108 32 761 24,108
Chloropyriphos Ltr - 21 649 13,707 21 649 13,707 21 649 13,707 21 649 13,707
Zineb Kg - 32 761 24,108 32 761 24,108 32 761 24,108 32 761 24,108
Difenconazole Ltr - 2 4,816 7,629 2 4,816 7,629 2 4,816 7,629 2 4,816 7,629
Carbendazim Kg - 5 700 3,696 5 700 3,696 5 700 3,696 5 700 3,696
Flusilazole Kg - 106 887 93,667 106 887 93,667 106 887 93,667 106 887 93,667
Dodine Ltr - 3 2,016 5,322 3 2,016 5,322 3 2,016 5,322 3 2,016 5,322
Harvesting and packaging equipments Ls 1 3,000 3,000 1 3,000 3,000 1 4,000 4,000 1 4,500 4,500 1 5,000 5,000
Sub Total Input/Operating Costs 43,000 547,793 548,793 549,293 549,793 549,793 549,793 549,793 549,793 549,793 549,793

Labour Budget
Land Clearing Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Tilling and Amending Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
PH Adjustment Man Days 2 400 800 2 400 800 2 400 800 2 400 800 2 400 800
Planting Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Fertilizer Application Man Days 600 - 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
First Weeding Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Second Weeding Man Days 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Third Weeding Man Days 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Irrigation Man Days 3 400
Pruning Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Mulching Man Days 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Harvesting Man Days 20 400 8,000 20 400 8,000 20 400 8,000 20 400 8,000 20 400 8,000
Transport to store Man Days 1 600 600 1 400 400 1 400 400 1 400 400 1 400 400
Sub Total Labour Budget 23,000 24,800 24,800 24,800 24,800 24,800 24,800 24,800 24,800 24,800 24,800

Hired Labour Man Days 5 600 5 600 5 600 5 600 5 600

Family Labour Man Days 55 400 57 400 57 400 57 400 57 400

Total Costs 66,000 572,593 573,593 574,093 574,593 574,593 574,593 574,593 574,593 574,593 574,593
Net income before labour costs 821,000 523,567 668,986 807,763 1,037,010 1,037,010 1,037,010 1,037,010 1,037,010 1,037,010 1,037,010
Net income after labour costs 798,000 498,767 644,186 782,963 1,012,210 1,012,210 1,012,210 1,012,210 1,012,210 1,012,210 1,012,210
Net Incremental Benefits - (299,233) (153,814) (15,037) 214,210 214,210 214,210 214,210 214,210 214,210 214,210

Profitability Indicators

Return to family labour* 17,758.1

Discount rate 4%
NPV (INR) 735,102
IRR 25%
PVb 12,147,097
PVc 4,775,344
B/C ratio 2.54

24
o Apple model – Medium Density
Low Density - Rejuvenated Without Project (WOP) With Project - (WP)
APPLE Model - Medium Density Rejuvenated Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Unit Cost Unit Cost Unit Cost Unit Cost Unit Cost
QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA
Yields and Inputs UNIT INR INR INR INR INR
Yields Kg 1,800 80 144,000 5,760 80 460,800 5,952 88 523,776 6,080 96 583,680 6,400 107 682,496 682,496 682,496 682,496 682,496 682,496 682,496
Post Harvest Losses 180 80 14,400 403 80 32,256 417 88 36,664 426 96 40,858 448 107 47,775 47,775 47,775 47,775 47,775 47,775 47,775
- 80 - - 80 - - 88 - - 96 - - 107 - - - - - - -
Net sales 129,600 428,544 487,112 542,822 634,721 634,721 634,721 634,721 634,721 634,721 634,721

Input/operating costs
Unimproved seeds Kg 40 1,000 40,000 - - - -
Improved seeds Kg - 40 1,500 60,000 40 1,500 60,000 40 1,500 60,000 40 1,500 60,000
FYM Kg - 3,696 15 55,440 3,696 15 55,440 3,696 15 55,440 3,696 15 55,440
Urea Kg - 2,117 45 95,278 2,117 45 95,278 2,117 45 95,278 2,117 45 95,278
DAP Kg - 1,146 45 51,559 1,146 45 51,559 1,146 45 51,559 1,146 45 51,559
Mancozeb Kg - 32 481 15,238 32 481 15,238 32 481 15,238 32 481 15,238
Propaneb Kg - 32 761 24,108 32 761 24,108 32 761 24,108 32 761 24,108
Zineb Kg - 32 761 24,108 32 761 24,108 32 761 24,108 32 761 24,108
Difenconazole 0 - 2 4,816 7,629 2 4,816 7,629 2 4,816 7,629 2 4,816 7,629
Carbendazim Kg - 5 700 3,696 5 700 3,696 5 700 3,696 5 700 3,696
Flusilazole Kg - 106 887 93,667 106 887 93,667 106 887 93,667 106 887 93,667
Dodine 0 - 3 2,016 5,322 3 2,016 5,322 3 2,016 5,322 3 2,016 5,322
Harvesting and packaging equipments Ls 1 3,000 3,000 1 3,000 3,000 1 4,000 4,000 1 4,500 4,500 1 5,000 5,000
Sub Total Input/Operating Costs 43,000 439,046 440,046 440,546 441,046 441,046 441,046 441,046 441,046 441,046 441,046

Labour Budget
Land Clearing Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Tilling and Amending Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
PH Adjustment Man Days 2 400 800 2 400 800 2 400 800 2 400 800 2 400 800
Planting Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Fertilizer Application Man Days 600 - 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
First Weeding Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Second Weeding Man Days 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Third Weeding Man Days 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Irrigation Man Days 3 400
Pruning Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Mulching Man Days 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Harvesting Man Days 20 400 8,000 20 400 8,000 20 400 8,000 20 400 8,000 20 400 8,000
Transport to store Man Days 1 600 600 1 400 400 1 400 400 1 400 400 1 400 400
Sub Total Labour Budget 23,000 24,800 24,800 24,800 24,800 24,800 24,800 24,800 24,800 24,800 24,800

Hired Labour Man Days 5 600 5 600 5 600 5 600 5 600

Family Labour Man Days 55 400 57 400 57 400 57 400 57 400

Total Costs 66,000 463,846 464,846 465,346 465,846 465,846 465,846 465,846 465,846 465,846 465,846
Net income before labour costs 86,600 (10,502) 47,066 102,277 193,675 193,675 193,675 193,675 193,675 193,675 193,675
Net income after labour costs 63,600 (35,302) 22,266 77,477 168,875 168,875 168,875 168,875 168,875 168,875 168,875
Net Incremental Benefits - (98,902) (41,334) 13,877 105,275 105,275 105,275 105,275 105,275 105,275 105,275

Profitability Indicators

Return to family labour* 2,962.7

Discount rate 4%
NPV (INR) 458,963
IRR 40%
PVb 4,858,839
PVc 3,870,939
B/C ratio 1.26

25
o Saffron model
Without Project (WOP) With Project - (WP)
Saffron Model Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Unit Cost Unit Cost Unit Cost Unit Cost Unit Cost
QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA
Yields and Inputs UNIT INR INR INR INR INR
Yields Kg 440 900 440 900 396,000 440 936 411,840 460 954 438,840 500 1,000 499,950 499,950 499,950 499,950 499,950 499,950 499,950
Post Harvest Losses 44.0 900 35.2 900 31,680 35.2 936 32,947 36.8 954 35,107 40.0 1,000 39,996 39,996 39,996 39,996 39,996 39,996 39,996
- 900 - 900 - - 936 - - 954 - - 1,000 - - - - - - -
Net sales 364,320 378,893 403,733 459,954 459,954 459,954 459,954 459,954 459,954 459,954

Input/operating costs
Saffron bulbs Kg 10 5,000 50,000 10 5,000 50,000 10 5,000 50,000 10 5,000 50,000
Farm Yard Manure Kg 396 45 17,810 396 45 17,810 396 45 17,810 396 45 17,810
NPK Kg 214 45 9,638 214 45 9,638 214 45 9,638 214 45 9,638
Harvesting and packaging equipments Ls 1 5,000 5,000 1 5,000 5,000 1 5,000 5,000 1 5,000 5,000
Sub Total Input/Operating Costs 82,448 82,448 82,448 82,448 82,448 82,448 82,448 82,448 82,448 82,448

Labour Budget
Land Preparation Man Days 5 400 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Bulb planting Man Days 5 400 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Irrigation Man Days 5 400 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
First Weeding Man Days 5 600 5 600 3,000 5 600 3,000 5 600 3,000 5 600 3,000
Second Weeding Man Days 3 400 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Fertilizer application Man Days 5 400 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Pesticides Control Man Days 5 400 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Harvesting Man Days 10 400 10 400 4,000 10 400 4,000 10 400 4,000 10 400 4,000
Drying Man Days 20 400 20 400 8,000 20 400 8,000 20 400 8,000 20 400 8,000
Transport to store Man Days 1 400 1 400 400 1 400 400 1 400 400 1 400 400
Sub Total Labour Budget 26,600 26,600 26,600 26,600 26,600 26,600 26,600 26,600 26,600 26,600

Hired Labour Man Days 5 5 5 5 5

Family Labour Man Days 59 59 59 59 59

Total Costs 109,048 109,048 109,048 109,048 109,048 109,048 109,048 109,048 109,048 109,048
Net income before labour costs 281,872 296,444 321,284 377,506 377,506 377,506 377,506 377,506 377,506 377,506
Net income after labour costs 240,000 255,272 269,844 294,684 350,906 350,906 350,906 350,906 350,906 350,906 350,906
Net Incremental Benefits - 15,272 29,844 54,684 110,906 110,906 110,906 110,906 110,906 110,906 110,906

Profitability Indicators
334%
Return to family labour* 5,947.6
Discount rate 4%
NPV (INR) 703,578
IRR #NUM!
PVb 3,606,476
PVc 906,913
B/C ratio 3.98

26
o Aromatic rice model
Without Project (WOP) With Project - (WP)
Aromatic Rice Model Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Unit Cost Unit Cost Unit Cost Unit Cost Unit Cost
QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA
Yields and Inputs UNIT INR INR INR INR INR
Yields Kg 7,000 70 490,000 7,000 70 490,000 7,490 70 524,300 7,865 70 550,515 8,000 70 560,000 560,000 560,000 560,000 560,000 560,000 560,000
Post Harvest Losses Kg 700.0 70 49,000 560.0 70 39,200 599.2 70 41,944 629.2 70 44,041 640.0 70 44,800 44,800 44,800 44,800 44,800 44,800 44,800
Self Consumption Kg 700 70 49,000 700 70 49,000 749 70 52,430 786 70 55,052 800 70 56,000 56,000 56,000 56,000 56,000 56,000 56,000
Net sales 441,000 450,800 482,356 506,474 515,200 515,200 515,200 515,200 515,200 515,200 515,200

Input/operating costs
Unimproved seeds Kg 50 30 1,500 - - - - - - - - - -
Improved Seeds Kg - 50 40 2,000 50 40 2,000 50 40 2,000 50 40 2,000
Urea Kg 321 45 321 45 14,436 321 45 14,436 321 45 14,436 321 45 14,436
DAP Kg 174 45 174 45 7,812 174 45 7,812 174 45 7,812 174 45 7,812
MOP Kg 240 30 240 30 7,200 240 30 7,200 240 30 7,200 240 30 7,200
HMO Ltrs 32 150 4,800 32 150 4,800 32 150 4,800 32 150 4,800 32 150 4,800
Harvesting and packaging equipments Ls 1 2,500 2,500 1 5,000 5,000 1 5,000 5,000 1 5,000 5,000 1 5,000 5,000
Sub Total Input/Operating Costs 8,800 41,248 41,248 41,248 41,248 41,248 41,248 41,248 41,248 41,248 41,248

Labour Budget
Land clearing Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Planting Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Fertilizer application (Urea, NPK, Insectcides) Man Days 5 600 3,000 5 600 3,000 5 600 3,000 5 600 3,000 5 600 3,000
Pesticide application Man Days 5 600 3,000 5 600 3,000 5 600 3,000 5 600 3,000 5 600 3,000
Irrigation Man Days 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
First weeding Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Second weeding Man Days 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Birds scaring Man Days 25 400 10,000 25 400 10,000 25 400 10,000 25 400 10,000 25 400 10,000
Harvesting Man Days 5 400 2,000 7 400 2,800 9 400 3,600 12 400 4,800 12 400 4,800
Drying Man Days 10 400 4,000 10 400 4,000 10 400 4,000 10 400 4,000 10 400 4,000
Threshing and packaging Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Transportation to store Man Days 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Sub Total Labour Budget 33,600 34,400 35,200 36,400 36,400 36,400 36,400 36,400 36,400 36,400 36,400

Hired Labour Man Days 5 5 5 5 5

Family Labour Man Days 74 76 78 81 81

Total Costs 42,400 75,648 76,448 77,648 77,648 77,648 77,648 77,648 77,648 77,648 77,648
Net income before labour costs 432,200 409,552 441,108 465,226 473,952 473,952 473,952 473,952 473,952 473,952 473,952
Net income after labour costs 398,600 375,152 405,908 428,826 437,552 437,552 437,552 437,552 437,552 437,552 437,552
Net Incremental Benefits - (23,448) 7,308 30,226 38,952 38,952 38,952 38,952 38,952 38,952 38,952

Profitability Indicators
596%
Return to family labour* 5,757.3
Discount rate 4%
NPV (INR) 226,248
IRR 92%
PVb 4,183,962
PVc 642,715
B/C ratio 6.51

27
o Almond model – Medium Density
Medium Density Without Project (WOP) With Project - (WP)
ALMOND Model - Medium Density Rejuvenated Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Unit Cost Unit Cost Unit Cost Unit Cost Unit Cost
INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA
Yields and Inputs UNIT INR INR INR INR INR
Yields Kg 620 400 248,000 1,250 400 500,000 1,880 400 752,000 2,500 400 1,000,000 2,500 400 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Post Harvest Losses 62 400 24,800 88 400 35,000 132 400 52,640 175 400 70,000 175 400 70,000 70,000 70,000 70,000 70,000 70,000 70,000
- 400 - - 400 - - 400 - - 400 - - 400 - - - - - - -
Net sales 223,200 465,000 699,360 930,000 930,000 930,000 930,000 930,000 930,000 930,000 930,000

Input/operating costs
Unimproved seeds Kg 40 700 28,000 - - - -
Improved seeds Kg - 40 1,000 40,000 40 1,000 40,000 40 1,000 40,000 40 1,000 40,000
FYM Kg - 3,696 15 55,440 3,696 15 55,440 3,696 15 55,440 3,696 15 55,440
Urea Kg - 2,117 45 95,278 2,117 45 95,278 2,117 45 95,278 2,117 45 95,278
DAP Kg - 1,146 45 51,559 1,146 45 51,559 1,146 45 51,559 1,146 45 51,559
MOP Kg - 2,112 30 63,360 2,112 30 63,360 2,112 30 63,360 2,112 30 63,360
HMO Ltr - 211 150 31,680 211 150 31,680 211 150 31,680 211 150 31,680
Mancozeb Kg - 32 481 15,238 32 481 15,238 32 481 15,238 32 481 15,238
Propaneb Kg - 32 761 24,108 32 761 24,108 32 761 24,108 32 761 24,108
Chloropyriphos Ltr - 21 649 13,707 21 649 13,707 21 649 13,707 21 649 13,707
Zineb Kg - 32 761 24,108 32 761 24,108 32 761 24,108 32 761 24,108
Difenconazole Ltr - 2 4,816 7,629 2 4,816 7,629 2 4,816 7,629 2 4,816 7,629
Carbendazim Kg - 5 700 3,696 5 700 3,696 5 700 3,696 5 700 3,696
Flusilazole Kg - 106 887 93,667 106 887 93,667 106 887 93,667 106 887 93,667
Dodine Ltr - 3 2,016 5,322 3 2,016 5,322 3 2,016 5,322 3 2,016 5,322
Harvesting and packaging equipments Ls 1 3,000 3,000 1 3,000 3,000 1 4,000 4,000 1 4,500 4,500 1 5,000 5,000
Sub Total Input/Operating Costs 31,000 527,793 528,793 529,293 529,793 529,793 529,793 529,793 529,793 529,793 529,793

Labour Budget
Land Clearing Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Tilling and Amending Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Planting Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Fertilizer Application Man Days 600 - 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
First Weeding Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Second Weeding Man Days 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Third Weeding Man Days 400 - 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Irrigation Man Days 3 400 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Pruning Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Harvesting Man Days 20 400 8,000 20 400 8,000 20 400 8,000 20 400 8,000 20 400 8,000
Drying and sorting Man Days 15 400 6,000 15 400 6,000 18 400 7,200 20 400 8,000 20 400 8,000
Transport to store Man Days 1 600 600 1 400 400 1 400 400 1 400 400 1 400 400
Sub Total Labour Budget 26,600 30,800 32,000 32,800 32,800 32,800 32,800 32,800 32,800 32,800 32,800

Hired Labour Man Days 5 600 5 600 5 600 5 600 5 600

Family Labour Man Days 64 400 72 400 75 400 77 400 77 400

Total Costs 57,600 558,593 560,793 562,093 562,593 562,593 562,593 562,593 562,593 562,593 562,593
Net income before labour costs 192,200 (62,793) 170,567 400,707 400,207 400,207 400,207 400,207 400,207 400,207 400,207
Net income after labour costs 165,600 (93,593) 138,567 367,907 367,407 367,407 367,407 367,407 367,407 367,407 367,407
Net Incremental Benefits - (259,193) (27,033) 202,307 201,807 201,807 201,807 201,807 201,807 201,807 201,807

28
o Almond model – High Density
High Density Without Project (WOP) With Project - (WP)
ALMOND Model - High Density Rejuvenated Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Unit Cost Unit Cost Unit Cost Unit Cost Unit Cost
INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA
Yields and Inputs UNIT INR INR INR INR INR
Yields Kg 1,116 400 446,400 1,375 400 550,000 3,008 400 1,203,200 5,000 400 2,000,000 7,000 400 2,800,000 2,800,000 2,800,000 2,800,000 2,800,000 2,800,000 2,800,000
Post Harvest Losses 112 400 44,640 96 400 38,500 211 400 84,224 350 400 140,000 490 400 196,000 196,000 196,000 196,000 196,000 196,000 196,000
- 400 - - 400 - - 400 - - 400 - - 400 - - - - - - -
Net sales 401,760 511,500 1,118,976 1,860,000 2,604,000 2,604,000 2,604,000 2,604,000 2,604,000 2,604,000 2,604,000

Input/operating costs
Unimproved seeds Kg 40 700 28,000 - - - -
Improved seeds Kg - 40 1,000 40,000 40 1,000 40,000 40 1,000 40,000 40 1,000 40,000
FYM Kg - 3,696 15 55,440 3,696 15 55,440 3,696 15 55,440 3,696 15 55,440
Urea Kg - 2,117 45 95,278 2,117 45 95,278 2,117 45 95,278 2,117 45 95,278
DAP Kg - 1,146 45 51,559 1,146 45 51,559 1,146 45 51,559 1,146 45 51,559
MOP Kg - 2,112 30 63,360 2,112 30 63,360 2,112 30 63,360 2,112 30 63,360
HMO Ltr - 211 150 31,680 211 150 31,680 211 150 31,680 211 150 31,680
Mancozeb Kg - 32 481 15,238 32 481 15,238 32 481 15,238 32 481 15,238
Propaneb Kg - 32 761 24,108 32 761 24,108 32 761 24,108 32 761 24,108
Chloropyriphos Ltr - 21 649 13,707 21 649 13,707 21 649 13,707 21 649 13,707
Zineb Kg - 32 761 24,108 32 761 24,108 32 761 24,108 32 761 24,108
Difenconazole Ltr - 2 4,816 7,629 2 4,816 7,629 2 4,816 7,629 2 4,816 7,629
Carbendazim Kg - 5 700 3,696 5 700 3,696 5 700 3,696 5 700 3,696
Flusilazole Kg - 106 887 93,667 106 887 93,667 106 887 93,667 106 887 93,667
Dodine Ltr - 3 2,016 5,322 3 2,016 5,322 3 2,016 5,322 3 2,016 5,322
Harvesting and packaging equipments Ls 1 3,000 3,000 1 3,000 3,000 1 4,000 4,000 1 4,500 4,500 1 5,000 5,000
Sub Total Input/Operating Costs 31,000 527,793 528,793 529,293 529,793 529,793 529,793 529,793 529,793 529,793 529,793

Labour Budget
Land Clearing Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Tilling and Amending Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Planting Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Fertilizer Application Man Days 600 - 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
First Weeding Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Second Weeding Man Days 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Third Weeding Man Days 400 - 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Irrigation Man Days 3 400 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Pruning Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Harvesting Man Days 20 400 8,000 20 400 8,000 20 400 8,000 20 400 8,000 20 400 8,000
Drying and sorting Man Days 15 400 6,000 15 400 6,000 18 400 7,200 20 400 8,000 20 400 8,000
Transport to store Man Days 1 600 600 1 400 400 1 400 400 1 400 400 1 400 400
Sub Total Labour Budget 26,600 30,800 32,000 32,800 32,800 32,800 32,800 32,800 32,800 32,800 32,800

Hired Labour Man Days 5 600 5 600 5 600 5 600 5 600

Family Labour Man Days 64 400 72 400 75 400 77 400 77 400

Total Costs 57,600 558,593 560,793 562,093 562,593 562,593 562,593 562,593 562,593 562,593 562,593
Net income before labour costs 370,760 (16,293) 590,183 1,330,707 2,074,207 2,074,207 2,074,207 2,074,207 2,074,207 2,074,207 2,074,207
Net income after labour costs 344,160 (47,093) 558,183 1,297,907 2,041,407 2,041,407 2,041,407 2,041,407 2,041,407 2,041,407 2,041,407
Net Incremental Benefits - (391,253) 214,023 953,747 1,697,247 1,697,247 1,697,247 1,697,247 1,697,247 1,697,247 1,697,247

Profitability Indicators

Return to family labour* 28,352.9

Discount rate 4%
NPV (INR) 10,042,262
IRR 157%
PVb 17,577,370
PVc 4,672,865
B/C ratio 3.76

29
o Walnut model – Medium Density
Medium Density Without Project (WOP) With Project - (WP)
WALNUT Model - Medium Density Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Unit Cost Unit Cost Unit Cost Unit Cost Unit Cost
INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA
Yields and Inputs UNIT INR INR INR INR INR
Yields Kg 200 600 120,000 420 600 252,000 830 600 498,000 1,670 600 1,002,000 1,670 600 1,002,000 1,002,000 1,002,000 1,002,000 1,002,000 1,002,000 1,002,000
Post Harvest Losses 20 600 12,000 29 600 17,640 58 600 34,860 117 600 70,140 117 600 70,140 70,140 70,140 70,140 70,140 70,140 70,140
- 600 - - 600 - - 600 - - 600 - - 600 - - - - - - -
Net sales 108,000 234,360 463,140 931,860 931,860 931,860 931,860 931,860 931,860 931,860 931,860

Input/operating costs
Unimproved seeds Kg 40 1,000 40,000 - - - -
Improved seeds Kg - 40 1,500 60,000 40 1,500 60,000 40 1,500 60,000 40 1,500 60,000
FYM Kg 1,848 15 27,720 3,696 15 55,440 3,696 15 55,440 3,696 15 55,440 3,696 15 55,440
Urea Kg 1,059 45 47,639 2,117 45 95,278 2,117 45 95,278 2,117 45 95,278 2,117 45 95,278
DAP Kg - 1,146 45 51,559 1,146 45 51,559 1,146 45 51,559 1,146 45 51,559
MOP Kg - 2,112 30 63,360 2,112 30 63,360 2,112 30 63,360 2,112 30 63,360
HMO Ltr - 211 150 31,680 211 150 31,680 211 150 31,680 211 150 31,680
Mancozeb Kg - 32 481 15,238 32 481 15,238 32 481 15,238 32 481 15,238
Propaneb Kg - 32 761 24,108 32 761 24,108 32 761 24,108 32 761 24,108
Chloropyriphos Ltr - 21 649 13,707 21 649 13,707 21 649 13,707 21 649 13,707
Zineb Kg - 32 761 24,108 32 761 24,108 32 761 24,108 32 761 24,108
Difenconazole Ltr - 2 4,816 7,629 2 4,816 7,629 2 4,816 7,629 2 4,816 7,629
Carbendazim Kg - 5 700 3,696 5 700 3,696 5 700 3,696 5 700 3,696
Flusilazole Kg - 106 887 93,667 106 887 93,667 106 887 93,667 106 887 93,667
Dodine Ltr - 3 2,016 5,322 3 2,016 5,322 3 2,016 5,322 3 2,016 5,322
Harvesting and packaging equipments Ls 1 3,000 3,000 1 3,000 3,000 1 4,000 4,000 1 4,500 4,500 1 5,000 5,000
Sub Total Input/Operating Costs 118,359 547,793 548,793 549,293 549,793 549,793 549,793 549,793 549,793 549,793 549,793

Labour Budget
Land Clearing Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Tilling and Amending Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Planting Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Fertilizer Application Man Days 600 - 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
First Weeding Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Second Weeding Man Days 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Third Weeding Man Days 400 - 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Irrigation Man Days 3 400 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Pruning Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Harvesting Man Days 20 400 8,000 20 400 8,000 20 400 8,000 20 400 8,000 20 400 8,000
Drying and sorting Man Days 15 400 6,000 15 400 6,000 18 400 7,200 20 400 8,000 20 400 8,000
Transport to store Man Days 1 600 600 1 400 400 1 400 400 1 400 400 1 400 400
Sub Total Labour Budget 26,600 30,800 32,000 32,800 32,800 32,800 32,800 32,800 32,800 32,800 32,800

Hired Labour Man Days 5 600 5 600 5 600 5 600 5 600

Family Labour Man Days 64 400 72 400 75 400 77 400 77 400

Total Costs 144,959 578,593 580,793 582,093 582,593 582,593 582,593 582,593 582,593 582,593 582,593
Net income before labour costs (10,359) (313,433) (85,653) 382,567 382,067 382,067 382,067 382,067 382,067 382,067 382,067
Net income after labour costs (36,959) (344,233) (117,653) 349,767 349,267 349,267 349,267 349,267 349,267 349,267 349,267
Net Incremental Benefits - (307,274) (80,694) 386,726 386,226 386,226 386,226 386,226 386,226 386,226 386,226

Profitability Indicators

Return to family labour* 4,850.9

Discount rate 4%
NPV (INR) 2,106,618
IRR 65%
PVb 6,638,444
PVc 4,839,198
B/C ratio 1.37

30
o Walnut Model – High Density
HD Density Without Project (WOP) With Project - (WP)
WALNUT Model - High Density Rejuvenated Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Unit Cost Unit Cost Unit Cost Unit Cost Unit Cost
INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA
Yields and Inputs UNIT INR INR INR INR INR
Yields Kg 360 600 216,000 840 600 504,000 1,660 600 996,000 3,340 600 2,004,000 3,340 600 2,004,000 2,004,000 2,004,000 2,004,000 2,004,000 2,004,000 2,004,000
Post Harvest Losses 36 600 21,600 59 600 35,280 116 600 69,720 234 600 140,280 234 600 140,280 140,280 140,280 140,280 140,280 140,280 140,280
- 600 - - 600 - - 600 - - 600 - - 600 - - - - - - -
Net sales 194,400 468,720 926,280 1,863,720 1,863,720 1,863,720 1,863,720 1,863,720 1,863,720 1,863,720 1,863,720

Input/operating costs
Unimproved seeds Kg 40 1,000 40,000 - - - -
Improved seeds Kg - 40 1,500 60,000 40 1,500 60,000 40 1,500 60,000 40 1,500 60,000
FYM Kg 1,848 15 27,720 3,696 15 55,440 3,696 15 55,440 3,696 15 55,440 3,696 15 55,440
Urea Kg 1,059 45 47,639 2,117 45 95,278 2,117 45 95,278 2,117 45 95,278 2,117 45 95,278
DAP Kg - 1,146 45 51,559 1,146 45 51,559 1,146 45 51,559 1,146 45 51,559
MOP Kg - 2,112 30 63,360 2,112 30 63,360 2,112 30 63,360 2,112 30 63,360
HMO Ltr - 211 150 31,680 211 150 31,680 211 150 31,680 211 150 31,680
Mancozeb Kg - 32 481 15,238 32 481 15,238 32 481 15,238 32 481 15,238
Propaneb Kg - 32 761 24,108 32 761 24,108 32 761 24,108 32 761 24,108
Chloropyriphos Ltr - 21 649 13,707 21 649 13,707 21 649 13,707 21 649 13,707
Zineb Kg - 32 761 24,108 32 761 24,108 32 761 24,108 32 761 24,108
Difenconazole Ltr - 2 4,816 7,629 2 4,816 7,629 2 4,816 7,629 2 4,816 7,629
Carbendazim Kg - 5 700 3,696 5 700 3,696 5 700 3,696 5 700 3,696
Flusilazole Kg - 106 887 93,667 106 887 93,667 106 887 93,667 106 887 93,667
Dodine Ltr - 3 2,016 5,322 3 2,016 5,322 3 2,016 5,322 3 2,016 5,322
Harvesting and packaging equipments Ls 1 3,000 3,000 1 3,000 3,000 1 4,000 4,000 1 4,500 4,500 1 5,000 5,000
Sub Total Input/Operating Costs 118,359 547,793 548,793 549,293 549,793 549,793 549,793 549,793 549,793 549,793 549,793

Labour Budget
Land Clearing Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Tilling and Amending Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Planting Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Fertilizer Application Man Days 600 - 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
First Weeding Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Second Weeding Man Days 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Third Weeding Man Days 400 - 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Irrigation Man Days 3 400 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Pruning Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Harvesting Man Days 20 400 8,000 20 400 8,000 20 400 8,000 20 400 8,000 20 400 8,000
Drying and sorting Man Days 15 400 6,000 15 400 6,000 18 400 7,200 20 400 8,000 20 400 8,000
Transport to store Man Days 1 600 600 1 400 400 1 400 400 1 400 400 1 400 400
Sub Total Labour Budget 26,600 30,800 32,000 32,800 32,800 32,800 32,800 32,800 32,800 32,800 32,800

Hired Labour Man Days 5 600 5 600 5 600 5 600 5 600

Family Labour Man Days 64 400 72 400 75 400 77 400 77 400

Total Costs 144,959 578,593 580,793 582,093 582,593 582,593 582,593 582,593 582,593 582,593 582,593
Net income before labour costs 76,041 (79,073) 377,487 1,314,427 1,313,927 1,313,927 1,313,927 1,313,927 1,313,927 1,313,927 1,313,927
Net income after labour costs 49,441 (109,873) 345,487 1,281,627 1,281,127 1,281,127 1,281,127 1,281,127 1,281,127 1,281,127 1,281,127
Net Incremental Benefits - (159,314) 296,046 1,232,186 1,231,686 1,231,686 1,231,686 1,231,686 1,231,686 1,231,686 1,231,686

31
o Tomato model
Without Project (WOP) With Project - (WP)
Tomato Model Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Unit Cost Unit Cost Unit Cost Unit Cost Unit Cost
INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA QTY/HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA INR PER HA
Yields and Inputs UNIT INR INR INR INR INR
Yields Kg 1,600 150 240,000 1,600 150 240,000 2,000 150 300,000 2,200 150 330,000 2,500 150 375,000 375,000 375,000 375,000 375,000 375,000 375,000
Post Harvest Losses 160 150 24,000 128 150 19,200 160 150 24,000 176 150 26,400 200 150 30,000 30,000 30,000 30,000 30,000 30,000 30,000
Self Consumption 80 150 12,000 80 150 12,000 100 150 15,000 110 150 16,500 125 150 18,750 18,750 18,750 18,750 18,750 18,750 18,750
Net sales 216,000 220,800 276,000 303,600 345,000 345,000 345,000 345,000 345,000 345,000 345,000

Input/operating costs
Unimproved seeds Kg 30 300 9,000 - - - -
Improved seeds Kg - 30 400 12,000 30 400 12,000 30 400 12,000 30 400 12,000
Strings Kg - 4 100 400 4 100 400 4 100 400 4 100 400
Fertilizer AN Kg - 321 45 14,436 321 45 14,436 321 45 14,436 321 45 14,436
Pesticides Ltr - 211 150 31,680 211 150 31,680 211 150 31,680 211 150 31,680
Fungicides Ltr - 2 4,816 7,629 2 4,816 7,629 2 4,816 7,629 2 4,816 7,629
Poles Ls - 1 1,000 1,000 1 1,000 1,000 1 1,000 1,000 1 1,000 1,000
Harvesting and packaging equipments Ls 1 3,000 3,000 1 3,000 3,000 1 4,000 4,000 1 4,500 4,500 1 5,000 5,000
Sub Total Input/Operating Costs 12,000 70,145 71,145 71,645 72,145 72,145 72,145 72,145 72,145 72,145 72,145

Labour Budget
Land Preparation Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Nursery bed preparation Man Days 10 400 4,000 10 400 4,000 10 400 4,000 10 400 4,000 10 400 4,000
Trans-planting Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Fertilizer and pestcide application Man Days 5 600 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Weeding Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Mulching Man Days 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Hand irrigation Man Days 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200 3 400 1,200
Harvesting Man Days 10 400 4,000 15 400 6,000 18 400 7,200 20 400 8,000 22 400 8,800
Grading Man Days 5 400 2,000 5 400 2,000 18 400 7,200 18 400 7,200 18 400 7,200
Packaging Man Days 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000 5 400 2,000
Loading and Transportation Man Days 1 600 600 1 400 400 1 400 400 1 400 400 1 400 400

Sub Total Labour Budget 21,000 24,800 31,200 32,000 32,800 32,800 32,800 32,800 32,800 32,800 32,800

Hired Labour Man Days 5 600 5 600 5 600 5 600 5 600

Family Labour Man Days 52 400 57 400 73 400 75 400 77 400

Total Costs 33,000 94,945 102,345 103,645 104,945 104,945 104,945 104,945 104,945 104,945 104,945
Net income before labour costs 204,000 150,655 204,855 231,955 272,855 272,855 272,855 272,855 272,855 272,855 272,855
Net income after labour costs 183,000 125,855 173,655 199,955 240,055 240,055 240,055 240,055 240,055 240,055 240,055
Net Incremental Benefits - (57,145) (9,345) 16,955 57,055 57,055 57,055 57,055 57,055 57,055 57,055

Profitability Indicators

Return to family labour* 4,211.5

Discount rate 4%
NPV (INR) 266,017
IRR 45%
PVb 2,647,476
PVc 859,521
B/C ratio 3.08

32
India

Competitiveness Improvement of Agriculture and Allied Sectors Project in Jammu and

Kashmir (J&KCIP)

Project Design Report

Annex 5: Social Environment and Climate Assessment (SECAP) Review Note

Mission Dates: 03 Oct 2023 to 20 Oct 2023

Document Date: 08/03/2024
Project No. 2000003933
Report No. 6741-IN

Asia and the Pacific Division

Programme Management Department
The SECAP Review note should build on the preliminary note mentioned above, draw on the results of the screening exercise and be
informed by the issues raised during the design mission, the stakeholders interviews, publicly available tools and dataset, and
environmental, social or climate-related studies that inform on the characteristics of the project location. The SECAP review note
includes the revised ESMP and should be attached to the Project Design Report, integrated in Draft Project Implementation Manual
(PIM) and COSTAB and shall be submitted to Design Review Meeting (DRM) or IRC (for NSOs).

1. Introduction

1. This Social, Environmental, and Climate Assessment Procedures (SECAP) background study contributes to the design of the
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir (JKCIP). The project aims
to improve the competitiveness of the farmers through a value chain approach covering production, value addition and
marketing including the export of high-value commodities from agriculture, horticulture and allied sectors in Jammu and
Kashmir (J&K) coupled with business incubation with start-up/agri-enterprise support. The goal of the project is to contribute to
the sustained increase in incomes of rural households by improving the competitiveness of farming operations. The project will
focus on high-value niche agricultural products that have a comparative advantage with climate-resilient and production-
intensive technologies. JKCIP will cover 90 blocks in all 20 districts of J&K, with a target of 300,000 households reaching 1.5
million individuals. The main target group would comprise resource-poor farmers and rural households involved in farming in
areas with the potential for the cultivation of high-value niche crops and horticultural crops. This project will be implemented
over six years and is expected to start in the financial year 2024-25.
2. This SECAP review note is prepared to identify potential social, environmental, and climate risks to the project, and possible
impacts of the project, and recommend technically feasible and cost-effective adaptation and mitigation measures to be
incorporated into the project design. The review note is guided by the literature review and secondary published data, project
area field visit, and consultation with potential beneficiaries, ongoing IFAD projects in India, and related stakeholders.

2. Situational analysis and potential project impacts

1. Geographically located in the North-West corner of India, In J&K natural resources and climatic factors have a significant impact
on people's life and means of subsistence. The mainstay of the J&K's economy continues to be agriculture and its allied sector,
such as horticulture, floriculture, and sericulture, which are followed by tourism, mining, and the micro, small, and medium
(MSME) sector. People's means of sustenance must be robust under changing climatic conditions due to their reliance on natural
resources and climate.

2. Long conflict and low agricultural and associated sector productivity have hurt employment and per capita income growth.
Among the most pressing issues in the region are the high rate of youth unemployment, lack of employment generating activities,
migration, and lack of gender equality and social inclusion. The key climate and environmental impacts include changing land
use, shift in pattern of rainfall and deficit snowfall, hailstorm, landslide, and increase intensity and impact of pest and diseases.

2.1 Socio-economic assessment

3. Overall poverty situation

4. In the 2021 Human Development Index (HDI) rating, India was positioned at 132 out of 191 countries, with a score of 0.633,
marking a slight decline from its 2020 ranking of 131 out of 189 countries. Notably, the HDI rating for J&K in 2021 stood at 0.699,
surpassing the national average of 0.633. However, it is worth mentioning that J&K's HDI score in 2021 is the lowest it has been
over the past four years, with the preceding years showing higher scores: 2018 (0.705), 2019 (0.712), and 2020 (0.709).

5. According to Niti Aayog's Sustainable Development Goals (SDG) Index 2021 survey, over 10.35 % of the J&K population lives
below the poverty line (rural:11.54%, urban: 7.2%). The National Multidimensional Poverty Index (MPI) report published in 2023
shows that the MPI for J&K fell from 0.189 in 2005-06, 0.055 in 2015-16 and 0.020 in 2019-21. Intensity of poverty was declined
from 44.17% in 2016-16 to 42.11 in 2019-21. This report says that multidimensional poor percentage in J&K dropped to 4.8% in
2019-21 compared to 12.56 % in 2015-16. Multi-dimensional Poverty Index across districts shows a mix picture. According to the
2023 report, Jammu is the least poor district in all dimensions. The district has an MPI score of 0.003 and 0.49% poor population.
After Jammu, the districts with the lowest poverty rates are Srinagar (1.3%), and Shopian (1.15%). The Ramban district, with
highest MPI score, on the other hand, has the highest multidimensional poverty rate, with 14.86% of its people being
multidimensionally poor. Resai district comes in second with a multidimensionally poor population of 11.4%. Baramulla's
percentaage is 6.68, Kulgam's is 3.97, Ganderbal's is 3.46, Anantnag's is 3.07, Bandipora's is 5.36, and Kupwara's is 4.97. In
Jammu division, Samba 2.30%, Kathua 2.70%, Reasi 11.4%, Poonch 6.65%, Kishtawar 10.59%, Udhampur 10.23%, and Rajouri
8.07%.

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b. Gender

6. According to census 2011, total population of the J&K is 12.3 million out of which 52.95% are male and 47.05% are female.
Overall sex ratio of the state is 889. Total literacy rate is 67% and the gap between male (76.55%) and female (56.36%) literacy is
20.19%. Higher gender gap in literacy rate shows differential development of men and women. Among Scheduled Casts (SCs)
literate women are 60.67% that is 18.1% less than men (78.77%). The main impediment to women finding job is a lack of
opportunities in the conventional sectors. J&K lacks a proper gender equality system in employment as only 21.9% of women
between the 15-49 age group are currently employed against 68.2% of men.

7. The J&K government has launched various initiatives to create a gender-inclusive ecosystem to ensure women have greater
access to education and socio-economic growth. Thus, creating a number of opportunities to women to progress and prosper in
all fields of life, safeguarding their equal role in the pursuit of development. The administration is trying to take all the actions to
ensure social and economic equality for women, which is integral to rapid growth and development. Women empowerment and
equal presence in the technology sector are essential to building a strong community, a resilient state, and a stronger country.

8. Gender discrimination has been an issue due to prevailing social, economic and political conditions which affect the process of
empowerment of women. To empower women both socially and economically, a number of schemes and programmes have been
initiated by the Government of India, Ministry
of Women and Child Development including J&K, are POSHAN Abhiyaan, Anganwadi Services Scheme, Pradhan Mantri Matru
Vandana Yojana (PMMVY), Beti Bachao Beti Padhao (BBBP) Scheme, One Stop Centre (OSC) and Universalisation of Women
Helpline, Child, Protection Services Scheme, Scheme for Adolescent Girls (SAG), Swadhar Greh Scheme, Ujjawala Scheme,
Working Women Hostel[i].

9. Apart from the central government schemes, J&K government has initiated one scheme under Youth Mission only for the
women called Tejaswani - The Radiant to promote entrepreneurship among young women. They provide financial assistance up
to Rs 5 lakhs to young women for setting up gainful self-employment ventures, suited to their skills, training, aptitude and local
conditions. The financial assistance is given to women between the age of 18 to 35 years having a qualification of 10th standard
or above[ii]. Taking cue of all these initiatives of the government of J&K, JKCIP is focussing on the skill and aptitude development
for the women and creating opportunities for them to be involved in the following activities and generate employment for them.
The specific activities for them are as follows:

Agri crop production sector: (saffron, aromatic rice, vegetables, spices) – these are some of the crops where women are
majorly involved, therefore, 60 % women has been recommended to be involved at the production and processing level except
the land preparation which is mainly done by the men.
Medicinal and Aromatic Plants: these activities need to be mainly undertaken by the women especially young women. The
nursery preparation, weeding, plantation, harvesting and processing of the products are mainly done by the women.
Enterprise Development: The young, educated girls are coming forward to develop their own enterprises, therefore, 40 % of the
young girls are recommended to be involved in the enterprise development especially in dairy products making, lavender value
chain, Horti crop processing and value chain and other similar activities. The marketing component of each of the products will
be done by the men.

c. Youth

10. Youth constitute a vital social capital for economic growth anywhere in the world. The Government of India recognizes that the
current youth bulge is an abundant asset and offer immense leverage in terms of skilled labour, entrepreneurship, and innovation
& knowledge to accelerate the developmental needs of the country. Currently, they are estimated to constitute more than 34% of
the total population in India. The National Youth Policy (NYP) 2021 seeks to catalyses widespread action on youth development
across five priority areas, including education; employment and entrepreneurship; youth leadership and development; health,
fitness and sports; and social justice. Each priority area is underpinned by the principle of social inclusion — enabling equitable
progress by including the most marginalized sections in the design, planning and implementation of all schemes and programmes
[i].

11. J&K is bestowed with a predominantly young population with about 69% of the population being below the age of 35 years. In
order to provide a platform for holistic implementation of all youth engagement and outreach initiatives, and to bring the interests
and empowerment of youth to the centre of policy making, government of J&K has rolled out a pioneering initiative - Mission
Youth where the youths have been provided grants from the governments to start own business/ enterprises in several sectors
including commercial vehicle purchase, dental clinics, eateries, gym & yoga centre in urban areas and any kind of enterprise
development related to agri-horti-vegetable-dairy sector in rural areas. The women of the age group of 18 to 35 are being
provided upfront loan of 5 lakh to start a small enterprise at the household level. The youth clubs are being formed at the village
level constituting 5 youths including 2 women to reach out to the communities and strengthening the capacity of the youth and
building leadership in them.

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d. Indigenous peoples

12. Tribal groups/indigenous people: According to Census 2011, J&K has 12 tribes namely, Gujjar, Bakarwal, Bot/Boto, Balti,
Brokpa/Drokpa/Dard/Shin, Gaddi, Purigpa, Sippi, Changpa, Mon, Garra, and Beda which account 1.49 million (12.2%, national
average of 8.6%),[i] have been scheduled in the Constitution of India in 1967[ii]. 94% of STs population reside in rural areas.
There are 3007 tribal villages in J&K, with 89 of them being 100% tribal, 369 being > 90% tribal, 488 being > 75% tribal, 766 be-
ing > 50% tribal, and 1295 being > 25% tribal[iii]. Gujjars are the largest tribe of Jammu and Kashmir (65.7%), followed by
Bakarwal (7.6%) and Bot/Boto (6.1%). According to the Census of 2011, the literacy rate for STs is 50.6%, which is lower than
the national average. J&K has the highest percentage of STs in the male total worker category (66.24%). According to the Agri-
cultural Census of 2010–11, the state-wise number and area of Operational Holdings for Scheduled Tribes between 2005–06
and 2010–11 decreased the most (9.56%) in J&K. The detail of tribal groups is described in Free, Prior, and Informed Consent
(FPIC) implementation plan.

e. Marginalised groups

13. Several marginalized communities have historically endured social hierarchies and discrimination, often due to their
occupations and ethnic backgrounds. These groups, including the Watals, Dombs, Chopan, Galwans, and Hanjis, face societal
prejudice and exclusion. The Watals, considered the lowest in the social hierarchy, are often discriminated against due to their
menial occupations and ethical reputation. The Dombs, who once held power as village watchmen, are seen as untrustworthy
and categorized as an inferior caste. Chopan, cattle rearers residing in high mountain areas, are relatively isolated and intermarry
among themselves or with Galwans. Galwans, associated with horse rearing, have a history of criminal notoriety, making it
challenging for them to integrate into mainstream society. The Hanjis, boatmen and fishermen, face discrimination due to their
poor economic status and are stereotyped as quarrelsome and vindictive. These marginalized communities have grappled with
historical disadvantages and continue to face social inequalities in Kashmir[iv].

14. The United Nations Convention on the Rights of Persons with Disabilities (CRPD) reported that in rural J&K, including Ladakh,
individuals with disabilities account for 1.4 % of the population. Among them, 1.5 % are male, and 1.3 % are female. In urban
areas, the %age of individuals with disabilities is slightly higher at 1.6 %, with 1.7 % being male and 1.6 % being female.
Therefore, it is recommended that the project should incorporate inclusive strategies to benefit individuals with disabilities.

f. Nutrition

15. India grows sufficient food and has the world’s largest public distribution system for food delivery. However, this has not trans-
lated into comparable declines in the levels of malnutrition, which remains a major issue. According to the findings of the J&K
factsheet and NFHS-5 (2019-2021)[i] reports,
more than one-quarter (27%) of children under the age of five are stunted or too short for their age, indicating that they have been
undernourished for some time. Nineteen percent are wasted, or too thin for their height, which could be due to inadequate recent
food consumption or a recent sickness that caused weight loss, and ten percentage are seriously wasted. Twenty-one percent of
the population is underweight, which includes both chronic and acute malnutrition. Even in the first six months of life, when nearly
all new-borns are nursed, 35% of children are stunted, 24% are wasted, and 28% are underweight.

16. Low socioeconomic status, as indicated by low household income, could limit access to adequate diets, particularly for older
children. The Government is implementing a number of initiatives to address malnutrition and this project will primarily address the
socio-economic status of the J&K farmers by focusing on sustained income increase which will result in their ability to access
improved diets for the family.

2.2 Environment and climate context, trends and implications

17. Landscapes and biodiversity:

18. The Physiographic zones: The J&K is divided into five distinct physiographic regions based on its topography, altitude, slope,
climate, and soil conditions. These regions are the Outer Plains (known locally as Andarwah or Bajwat), the Siwaliks or Outer
hills, the Lower or Middle Himalayas, the Valley of Kashmir, and the Greater Himalayas. The Outer Plains extend from the Ravi
River to the Chenab, covering 110 km with elevations ranging from 330 to 360 meters. The Siwaliks, the outermost hills of the
Himalayas, rise gently from Jammu, with elevations ranging from 600 to 1220 meters, stretching over 200 km from Ravi to
Jhelum. The Middle Himalayas, with elevations between 1820 and 2240 meters, are situated between the Ravi in the east and the
Poonch in the west. The Valley of Kashmir is located in the north-western folds of the Himalayas, surrounded by mountain ranges
reaching heights of 5,550 meters in the northeast. This fertile, oval-shaped valley is rich in alluvial deposits. Finally, the Greater
Himalayas, the innermost region, features mountains that rise above the snow-line, culminating in perpetual snow-capped peaks.

19. Altitudinal Distribution: J&K's elevation ranges from 395 to 3,805 meters, with an average of 2,240 meters. Kishtwar, Doda,

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 Rajouri, Poonch, Reasi, and Kathua have the largest elevation variations. The altitude distribution is below 1,000 meters
(7%), 1,000 to 2,000 meters (31%), 2,000 to 3,000 meters (34%), and above 3,000 meters (28%).

20. Water Resources: The J&K has bountiful water resources, primarily originating from the Himalayas. Its diverse freshwater
sources include lakes, glaciers, and rivers, with major drainage by the Jhelum, Chenab, Indus, Ravi, and Tawi rivers. Important
lakes in the area include Wular, Dal, and Manasbal; each one has distinctive characteristics. Springs, a vital water source, are
prevalent, sustaining various ecosystems. Notable springs include Verinag, Martand, Achnabal, Kokernag, and the sacred
Tullamulla. The Kashmir valley is endowed with numerous springs, contributing to the water availability of 13.97 BCM (billion
cubic meter), where ground and surface water provide 1.16 BCM and 12.81 BCM[i], respectively.

21. Ground Water: Ground water occurrence is confined to five alluvial regions namely, Piedmont deposits of outer plain of
Jammu (Kandi and Sirowal belts), Dune belt in the outer Himalayas, Isolated valley fill deposits in lesser Himalayas, Fluvio-
lacustrine deposits in Kashmir valley and Moraines and Fluvio-glacial deposits of Ladakh. Ground water mainly occur under
phreatic and confined conditions. The ground water in hard rock of Jammu region is confined to weathered residuum, where the
tube wells go dry during summer seasons. The springs are amenable to small scale development of ground water resources in
the State. Annual replenishable ground water resource is estimated at 2.7 BCM with annual draft of 0.33 BCM[ii].

22. Soil: Jammu and Kashmir has fertile clayey, loamy, peaty, and alluvial soils. They are classified as brown earth/brown forest
soils (ideal for agri-horticulture), degraded or grey brown podzolic soils, red and yellow podzolic soils, hill or mountain forest soils,
mountain meadow soils, lithosols, saline alkali soils, and alluvial soils. These soils are slightly to moderately alkaline with a pH
range of 7.0 to 9.0, boasting a water-holding capacity exceeding 40%. The steep geography of Jammu and Kashmir makes sub-
stantial regions unproductive due to soil erosion. Improving soil health is essential for crop productivity,
especially in hill region rainfed farming.

23. Land use: Forest accounts for majority share (47.81%) in the land use pattern, followed by 24% agriculture, 7.6% snow and
glaciers and 16.5% barren and wasteland.

24. Forest and Protected Areas: Based on FSI's remote sensing analysis, Jammu and Kashmir has 20,194 sq km of forest cover
(47.81%, 12,066 sq km in Jammu Region, 8,128 sq km in Kashmir Region). J&K comprises 4,203 sq km of Very Dense Forest
(VDF), 7,952 sq km of Moderately Dense Forest (MDF), and 8,967 sq km of Open Forest. To preserve its biodiversity, Jammu
and Kashmir contains 4 National Parks, 14 Wildlife Sanctuaries, 16 Conservation Reserves, and 14 Wetland Conservation Re-
serves covering 4907.41 sq km. J&K has Dachigam, Kazinag, Kishtwar High Altitude, and Salim Ali City Forest National Parks.
Thajwas-Baltal, Gulmarg, Overa Aru, and Rajparian Wildlife Sanctuaries. The JKCIP will not have any work in the forest and pro-
tected areas and will fully adhere to the ‘zero’ forest encroachment and deforestation policy.

25. Biodiversity: The J&K has over half of India's Himalayan biodiversity. Kashmir, rich in biodiversity, is one of 26 Indian regions
with high deforestation and endemicity. Western Himalayan plants are famous for their healing properties. Jammu has 506
angiosperms, gymnosperms, and pteridophytes, while Himalayan Kashmir has 3,054. About 16% of Indian species, birds,
reptiles, amphibians, and butterflies live in J&K. Chordate diversity is highest in birds, followed by mammals, reptiles, fish,
and amphibians. Carnivores make up 32% of Jammu and Kashmir's 112 mammalian species. Balladona, hyoseyamus, digitalis,
menthol, artemisia, polygola, podophyllum, rubus, trilliu, hops, and kuth grow in J&K forests.

26. Agriculture: The J&K’s economy heavily relies on agriculture, with approximately 70% of the population engaged in
agricultural and related activities, directly or indirectly. The region's agriculture predominantly relies on small land holdings, and
harsh winters and geography often impede agricultural operations. The agriculture sector is primarily rainfed, featuring limited
irrigation infrastructure and small, fragmented land holdings with an average size of 0.59 hectares (including marginal-0.33, small-
1.38, semi-medium-2.65, medium-5.41, and large-20.40), in contrast to the national average of 1.08 hectares. Net irrigated land in
covers 0.319 million hectares, boasting a 145% irrigation intensity, with canal irrigation representing the dominant source at
83.0% of total irrigation. The J&K features 4 major projects (Ranbir Canal Major Irrigation Project, Ranjit Sagar Dam Major
Irrigation Project Jammu, Ravi Canal Project Major Irrigation, and Tawi Lift Irrigation Project) along with 22 medium projects.
District Shopian has the largest cultivable command area (CCA) spanning 29,086 hectares. Key crops cultivated include maize,
wheat, rice, pulses, and saffron, among others.

27. Horticulture: Horticulture is an important source of income for 3.3 million people of J&K and boosts the economy. J&K's
significant export business is horticulture due to its favorable agro-climatic characteristics. Farmers grows apple, almonds, walnuts,
pears, cherries, and apricots in temperate zones and mango, citrus, litchi, papaya, guava, etc. in subtropical areas. The main
vegetables are onion, potato, tomato, turnip, mutter, radish, carrot, green vegetables, and spices like chillies, garlic, and turmeric.
Notably, J&K's saffron cultivation is globally unique. Horticulture sector growth is limited by gaps in extension system and
technology transfer, small and fragmented land holdings, poor cultivation practices, poor post-harvest management, changing
climate, and lack of marketing infrastructure.

28. Animal Husbandry and Dairying: In J&K, where agriculture is a primary occupation, sustainable growth in the livestock and
poultry sector is crucial for both food security and economic prosperity. The region is home to a substantial livestock population of
7.77 million, with sheep, cattle, goats, and buffaloes making up significant proportions. Indigenous livestock breeds, well-suited to
the local climate, play a vital role in the rural economy. Kashmir, in particular, is known for its indigenous breeds. The region's
annual milk production is 2.73 million metric tons, with cows producing an average of 2380 liters each, surpassing the national
average. Notably, Pulwama district is a leader in milk production, with dairy cooperatives, led by women and youth, making
remarkable contributions. However, egg production saw a decline in 2021-22 compared to the previous year, totalling 183 million
eggs.

29. Livestock is integral part of the life in the mountain villages in Jammu and Kashmir. Some of the areas of strengthening the
animal husbandry sector include the creation of the infrastructure required to increase animal productivity, the promotion of

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 infrastructure for the handling, processing, and marketing of milk, and the preservation and protection of livestock by providing an
effective healthcare system.

a. Environmental assessment

30. As above.

b. Climate trends and impacts

31. The climate of J&K varies according to altitude and region. The climate in the south and southwest is subtropical, with hot
summers and cool winters. During the monsoon season, this region receives most of its rainfall.

32. Historical climate trends: Assessment of the historical climate variability and trends in mean climate (maximum temperature,
minimum temperature, and precipitation) for the districts of J&K over the period 1951-2018 (68 years), has been made using
historical gridded observations from the India Meteorological Department (IMD)[i]. Orography and landuse influence spatial
distribution of rainfall and temperature. Human-induced landscapes and human activities play a key role in altering the climate at a
local and regional scale. It is important to understand the variation in rainfall as well as temperature since these variations have to
be kept in mind while designing appropriate interventions (conservation practices or machineries etc.). Therefore, analysis has
been carried out at the district level. Summary of observed temperature and rainfall trends for the districts is presented.

33. Current observed temperature: Mean maximum temperature of J&K is 23.1°C (20.0 - 24.5°C). Mean minimum temperature is
10.8°C (8.4 - 12.0°C) is observed. Both maximum and minimum temperature peak during the southwest monsoon season. For
annual maximum temperature the highest value is attained for Kathua (26.2°C) falling on southwestern part while the lowest
value is attained for district of Bandipore district (21.9°C) on north eastern part.

34. Current observed rainfall: Mean annual rainfall observed is 1124 mm (820 – 1439 mm). Badgam had the lowest (820 mm) and
Udhampur had the highest (1439 mm) rainfall. Southwest monsoon contributes 43% (481 mm) and 29% (321 mm) of annual
rainfall contribution comes from pre-monsoon months. All districts show increasing trend in annual rainfall with high confidence
except in Jammu and Samba districts (decreasing trend with low confidence). However, southwest monsoon season shows
decreasing trend in rainfall (low confidence) in all districts. Decrease in number of rainy days is observed in all districts, except in
district of Kishtwar. Out of 68 years rainfall analysis, districts on an average had 34 years of normal rainfall years, 18 deficient
rainfall years and 18 years had excess rainfall years.

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Observed Trend in Temperature and Rainfall

Data Source: India Meteorological Department (IMD) gridded temperature and rainfall for the period 1951-2018 (68 years).

JF:Winter, MAM:Summer, JJAS:Monsoon, OND:Post monsoon, ANN:Annual, RDAY:Rainy days, 1DMax:1 day maximum
rainfall,

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35. Summary of historical climate trends: In summary, J&K's districts have exhibited historical trends of rising maximum and
minimum temperatures (with low confidence) across all seasons. Many districts have experienced a decline in southwestern
monsoon season rainfall and a reduction in rainy days (with low confidence). Over a 68-year period, an analysis of annual rainfall
distribution reveals that, on average, most districts have seen 50% normal rainfall years, 26% deficient, and 24% excess. Detailed
district-level analysis of seasonal temperature and rainfall is provided in the Annexure. The increasing minimum temperatures
during the rabi cropping season may lead to higher water demand (for crops, humans, and livestock). Districts with rising
temperatures and diminishing rainfall are likely to face water stress and drought-like conditions. Irregular rainfall distribution and
extreme weather events may also result in flooding.

36. Projected Climate): The CORDEX South Asia modelled climate data on precipitation, maximum temperature, minimum
temperature, and climate extremes indices have been analysed for districts of Jammu and Kashmir for baseline (BL, 1981-2010)
and mid-century (MC, 2021-2050) under two IPCC AR5 emission scenarios namely, RCP4.5 (moderate emission) and RCP8.5
(high emission) scenarios. Ensemble mean of 10 RCMs at a spatial resolution of 50km x 50km has been used. The CORDEX
South Asia simulations with the models indicate an all-round warming over all districts. Summary of projected temperature and
rainfall for Jammu and Kashmir districts is presented.

37. Projected Climate: For J&K as a whole, maximum temperature is projected to increase by 1.5°C under the IPCC AR5 RCP4.5
scenario while an increase of 1.7°C under the IPCC AR5 RCP8.5 scenario is projected towards mid-century. Similarly, change in
minimum temperature is projected to increase by 1.1°C and 1.3°C towards mid-century under IPCC AR5 RCP4.5 and RCP8.5
respectively. The projected increase in maximum temperature is higher than the minimum temperature. The seasonal increase is
higher in the winter season (JF) for maximum temperature and in the SW monsoon season (JJAS) for minimum temperature.
Average annual rainfall is projected to increase slightly by 5% and increase by 15% under moderate and high emission scenarios
respectively towards mid-century as compared to the baseline. The highest decrease is likely in winter season (JF) and pre-
monsoon (MAM).

38. J&K is likely to have an increase in maximum and minimum temperatures under IPCC AR5 RCP4.5 and RCP8.5. The projected
increase in maximum temperature ranges from 1.3°C (Bandipore, Jammu, and Samba) to 1.6°C
(Badgam, Doda, Kulgam, Pulwama, Ramban and Shupiyan) under RCP4.5 and 1.5°C (Bandipore, Jammu, and Samba) to 1.9°C
(Shupiyan) under RCP8.5 towards mid-century. The projected increase in minimum temperature ranges from 0.5°C (Shupiyan) to
1.5°C (Kathua) under RCP4.5 and 0.8°C (Badgam, Pulwama and Shupiyan) to 1.8°C (Kathua and Samba) under RCP8.5
towards mid-century. The projected change in annual rainfall is -0.4% to 9.8% under RCP4.5 scenario towards mid-century. A
10.5% to 19% increase in rainfall is projected under RCP8.5 scenario. SW monsoon (JJAS) season is projected to have 4% to
29% increase in rainfall while NE monsoon (OND) season is likely to experience marginal decrease to increase (-7% to 28%) in
rainfall under both emission scenarios.

39. Climate Extremes: To simplify the communication of the complicated relationships between climate change and its impacts,
indices that represent climate extremes are established. Simple climate extremes can be understood from the sums of mean
temperature and precipitation.

40. Temperature Indices: Both emission scenarios project a decline in cool nights (TN10P) with a high degree of confidence. In all
districts, it is also likely that the number of Cool days (TX10P) would decline (high confidence). Warm nights (TN90P) and warm
days (TX90P) are expected to increase (with high confidence) across all districts. The diurnal temperature range (DTR: reflects
the temperature variation within a day and is defined as the difference between daily maximum and minimum temperatures) is
expected to increase under RCP4.5 and decrease under RCP8.5. Under both scenarios, the warm spell duration indicator
(WSDI) is expected to rise (high confidence). The cold spell duration indicator (CSDI) is expected to fall (with low confidence) and
may not occur in the future.

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42. Rainfall Indices: Projections indicate varying trends in consecutive dry days (CDD), consecutive wet days (CWD), precipitation
on extremely wet days (R99p), and one-day maximum precipitation (RX1DAY) across districts under different climate scenarios.
Low-confidence projects suggest an increase in CDD for 10 districts and a decrease for 10 districts in the RCP4.5 scenario, while
5 districts are likely to experience an increase and 15 districts a decrease under RCP8.5. Notably, some districts like Doda,
Kathua, Pulwama, Ramban, and Udhampur show differing CDD trends between scenarios. Furthermore, CWD is expected to
decrease in 9 districts and increase in 11 districts under RCP4.5, with 5 districts likely to have fewer CWD in the RCP8.5
scenario. Additionally, R99p is anticipated to increase in most districts under RCP8.5, while RX1DAY is projected to increase in
all districts except Kupwara, Kathua, Kishtwar, Samba, Shupiyan, and Udhampur in this scenario. These climate shifts have
implications for agriculture, flooding, soil erosion, and pest and disease emergence.

43. Heat Stress on Humans and Livestock: Humidex (HI) and Temperature-Humidity Index (THI) are indicators representing the
combined influence of temperature and humidity on heat stress in humans and animals. While goats are more heat-tolerant than
sheep and cows, it's recognized that elevated temperatures and humidity significantly impact meat quality and yield in small
ruminants. High THI negatively affects feed intake and hormone levels, leading to reduced productivity and reproductive
performance in farm animals. Among six districts, including Jammu, Kathua, Rajouri, Reasi, Samba, and Udhampur, human heat
stress (HI) is likely to increase under projected climate scenarios. Both RCP4.5 and RCP8.5 scenarios indicate increases ranging
from 40% to over 100%. This could impact outdoor farm activities like agricultural labour, particularly during the months of May,
June, July, August, and September, where extreme heat or humidity is expected. Furthermore, cattle heat stress (THI) is
projected to rise between 28% and 67% under RCP4.5 and RCP8.5 scenarios, with peak impact during July, August, and
September.

44. Landslides: landslides are regular and unique geological hazard in Jammu and Kashmir. Almost every year J&K is affected
by one or more major landslides resulting in loss of life, damage of houses, roads, means of communication, agricultural land etc.
Heavy rains, deforestation, road construction activities and earthquakes are the major trigger factors for landslide events. Parts of
Bandipora, Kargil, Anantang, Kishtwar, Pulwama and Shopian districts are very high hazard risk areas. Whereas parts of
Kupwara, Baramulla, Budgam, Shopian, Anantnag, Kulgam, Srinagar and Ganderbal are very low hazard areas.

45. Floods and Cloudburst: Low-lying parts of the Kashmir Valley, especially Sonawari, Awantipora, and Srinagar, as well as parts
of Jammu, are prone to flooding. Flash floods are common in the upper catchments of all the rivers Jhelum, Indus, Chenab, and
Tawi. Flash floods have a significant impact on seventeen districts, including Doda, Ganderbal, Samba, Pulwama, Kishtwar,
Kathua, Ramban, Reasi, Bandipora, Leh, Srinagar, Shopian, Samba, Budgam, Udhampur, Kulgam, and Rajouri. In 2014, Kashmir
Valley witnessed the worst flood in the last 100 years. The districts of Budgam, Leh, Udhampur, Ramban, Doda, Reasi,
Bandipora, Kulgam, Rajouri, and Srinagar have experienced significant effects due to the cloudburst in Jammu and Kashmir.

46. Snow Avalanches, Snowstorm and Snow fall: In the upper ranges of Jammu and Kashmir, particularly the higher regions of
Kashmir and Gurez valley, avalanches—river-like flows of snow or ice tumbling from mountain tops—are frequent. In January
2017, the Kashmir Valley had many periods of severe snowfall, which led to an avalanche. The Kashmir Valley saw significant
loss in the form of life and property due to a snow avalanche that was caused by heavy snowfall in the first week of November

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 2019[i]. High impact avalanche prone districts in Jammu and Kashmir include Udhampur, Ramban, Doda, Kishtwar, Reasi, Leh,
Bandipora, Kargil, Ganderbal, Srinagar, Budgam, Shopian, and Kulgam.

47. Hailstorms:The standing crops in Jammu and Kashmir suffer greatly from hailstorms. Every year, hailstorms cause damage to
thousands of acres of crops, lowering agricultural yields. The insurance programs by Government of Jammu and Kashmir are
designed to help Rabi crops like potatoes, wheat, and mustard. Districts of Udhampur, Ramban, Doda, Kishtwar, Bandipora,
Srinagar, Baramulla, Kupwara, Anantnag, Pulwama, Budgam, Jammu, Kathua, Rajouri, and Poonch are at risk from hailstorms.

48. 46. Summary projected climate: Projected climate indicate hotter and moderately wetter future for most of the districts of J&K.

49. Heat waves are expected to become more common, putting a burden on society and the environment but not in a hazardous
level. Precipitation is expected to rise slightly to moderately in the future, with much of the increase attributed to heavy
downpours. The districts are more at risk due to spatial and temporal heterogeneity. Rising temperatures and changing
precipitation patterns could have an effect on available water resources. All districts are projected to see an increase in the warm
spell duration indicator (WSDI), and extreme rainfall (1 day and 5 days maximum) is also expected to rise, which is likely to raise
the flood risk. Floods and droughts are projected to become more common as the number of consecutive dry days (CDD)
increases and the number of consecutive wet days (CWD) decreases. Climate change adaptation policies and resource allocation
could be improved by considering regional variations in climate trends.

50. Climate change adaptation: The project components are designed to encourage livelihood diversification, enterprise
development in response to market signals, and climate adaptation considerations in order to face the problems in the context of
climate change. Building the capacity of vulnerable target groups to diversify activities through investments in new varieties, small-
scale livestock, and off-farm enterprise growth is a sub component of the project. The vulnerable groups (women, the poor, and
young people) will become more resilient to hazards associated with climate change because of capacity development and
training components included in various programs. The livelihoods of the farmers and vulnerable communities will be diversified
through several new and innovative approaches which in turn will increase the income of farmers and the vulnerable communities.
These will make them more resilient to climate and economic shocks.

51. Smallholder farmers and target groups display a moderate awareness of climate risks and related adaptive and mitigation
measures. Project efforts to build the adaptive capacities of its beneficiaries must emphasize the need for disaster risk planning,
climate resilient cropping, and reduced post-harvest losses, among other interventions that build the beneficiary's capacity to cope
with, or recover from, the effects of climatic shock events.

52. Disaster Risk Profile: J&K faces various natural calamities, including earthquakes, landslides, floods, cloudbursts, snow
avalanches, and hailstorms. The region falls under active seismic Zones IV and V, experiencing moderate to very high seismic
activity. The 2005 Kashmir Earthquake resulted in significant casualties. Landslides are a common geological hazard, primarily
triggered by heavy rains, deforestation, road construction, and earthquakes. Flooding, particularly in low-lying areas of the
Kashmir Valley and parts of Jammu, is a recurring concern. The 2014 floods were particularly devastating. Snow avalanches often
affect higher regions, and hailstorms damage standing crops, affecting agricultural yields. Despite these challenges, project
interventions such as farm management promotion, agroforestry, support on climate smart agriculture (CSA) and good agriculture
practices (GAP), livestock insurance, and veterinary care can improve resilience and provide alternative income sources.

53. Emission: The Climate Change Centre J&K prepared a CO2 Emission Inventory report for 2013-14, revealing that Jammu &
Kashmir ranked 19th in the country for aggregate GHG emissions in 2012. The report estimated total emissions, including CO2
(5,141.81 thousand tonnes), methane (264.20 thousand tonnes), and nitrogen (3.1410 thousand tonnes), with agriculture
responsible for the majority (55.38%). Enteric Fermentation within agriculture accounted for 60.80% of total CO2 eq emissions,
while the manure Animal waste/Dung sector contributed 11.72%.

2.3 Target group profiles

54. This project is a youth sensitive project, and therefore, the target group majorly will be the youth population of both the gender.
The youth beneficiaries will be 30 % at least and among them 40% will be women. The current society in J&K is a patriarchal soci-
ety and there are some challenges faced by the women in the family. Therefore, the project is also focussing on the gender sens-
itivity and have planned several programmes suitable for both the adult and young women in the identified blocks. The target pop-
ulation will also focus on small holder farmers, landless poor including the indigenous people (fringe communities), vulnerable
communities comprising SCs and STs, relatively poor and non-poor population as well.

55. Poor category consists of HHs below the poverty line which includes the most vulnerable, women headed HHs, landless,
people with disabilities (PwDs), subsistence farmers and vulnerable communities (SCs and STs). Relative Poor includes HHs
having small and marginal land holdings with farming as the primary livelihood activity and is most vulnerable to risks associated
with climate change and environmental degradation. Non-poor HHs are commercially oriented smallholder farmers with
diversified farming systems who is above poverty line.

3. Institutional analysis

56. Institutions

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57. Agriculture Production Department (APD) will be the Lead Implementation Agency and the Directorates, and the Universities
will be the Project Parties for field level implementation. The PMU will coordinate thematic areas, financial management and
procurement. The project will be fully integrated into the working of the Directorates and the Universities who will be implementing
the project activities at the field level. The Mission Director currently being appointed for HADP will also be the Mission Director for
JKCIP and will be reporting to the Principal Secretary, APD.

58. The Directorates will report to the PMU and will be responsible and accountable for the management of the project and the
achievement of its results. The PMU will be reporting to the Mission Director and will include 7 Specialists – Institutions, Rural
Finance, Gender and Youth, SECAP, M&E, MIS, KM, Finance and Procurement. In addition, Lead Technical Specialists will be
engaged to coordinate project activities with the Directorates/Universities. Each of the Directorate with major project investments
will be provided support for engaging officers related to Finance, M&E, Procurement and Gender and Youth. Incremental staff will
be hired on a contract basis with the possibility of extension subject to satisfactory performance. The project will invest in the
capacity building of the project staff.

59. All activities under the project will be implemented by the officials of the respective Directorate assisted by technical staff
/service providers contracted by the PMU in a transparent manner. The SECAP specialist, with the support of thematic leaders
and M&E specialist, will ensure the quality implementation of Safeguards measures and timely reporting. The project will use the
regular structure of the Directorates for implementation with support from technical experts preferably having a commercial
orientation. The project will build on the existing community institutions and develop value chain-specific FIGs and FPOs. The
activities related to markets and marketing, enterprises and start-ups will be largely private sector oriented and will be
implemented through them.

60. National policies, strategies and regulatory frameworks

61. Relevant Policies, various national policies and provisions in India guide the protection and conservation of the environment
and natural resources. Some of them are detailed below.

62. India's Constitutional Provisions, as outlined in Article 48-A, direct the state to make efforts to safeguard and enhance the
natural environment. Article 51-A places a fundamental duty on every Indian citizen to protect and improve the environment,
including forests, lakes, rivers, and wildlife, and to show compassion for living creatures. The National Conservation Strategy &
Policy on Environment & Development, 1992, emphasizes the importance of sustainable and equitable resource use, the
prevention of environmental degradation, and the restoration of ecologically degraded areas. The National Environmental Policy of
2006 seeks to conserve critical environmental resources and integrate environmental concerns into the development process. It
emphasizes the efficient use of environmental resources. The National Water Policy of 2012 suggests treating water as an
economic good to encourage its conservation and efficient use. It also emphasizes the need to halt the depletion of groundwater
by introducing improved water-use technologies and incentivizing efficient water use.

63. The National Agricultural Policy of 2000 promotes the sustainable, environmentally friendly use of natural resources, such as
land, water, and genetic endowment, in agricultural development. The policy emphasizes the conjunctive use of surface and
groundwater and advocates for on-farm water resource management to optimize irrigation potential. The National Policy of
Farmers, 2007, underscores rainwater harvesting and aquifer recharge to ensure a sustainable water supply, along with the
regulation and control of the development and management of groundwater resources. The National Tribal Policy of 2006 outlines
a comprehensive approach to the development and welfare of tribal communities in India. It addresses education, health,
livelihoods, and cultural preservation. The National Forest Policy of 1988 aims to maintain ecological stability through the
preservation and restoration of biological diversity. It is enforced by the Forest Department, State Government, and the Ministry of
Environment and Forests, Government of India. These policies and provisions collectively guide the nation's environmental and
resource management efforts.

64. Additionally following acts are also relevant to the project: i) The Environment Protection Act of 1986, recently amended in
2023, ii) The Forest (Conservation) Act of 1980, iii) The Wildlife (Protection) Act of 1972 , iv) The Air (Prevention and Control of
Pollution) Act of 1981, v) The Water (Prevention and Control of Pollution) Act of 1974, vi) the Biological Diversity Act of 2002, vii)
The National Green Tribunal Act of 2010, viii) The Forest Rights Act of 2006.

65. Moreover, Acts specific to J&K include: i) The J&K Preservation of Specified Trees Act of 1969, under the Forest Department's
jurisdiction, is pivotal in governing the felling of specific trees, emphasizing their preservation for ecological conservation and local
livelihoods; ii) The J&KAgriculture Produce Marketing (Regulation) Act of 1997 manages agricultural produce marketing and the
operation of agricultural produce markets (mandis); iii) The J&K Land Revenue Act of 1996, overseen by the Revenue
Department, tackles land-related matters, including record maintenance, land revenue assessment, and collection; iv) The J&K
Water Resources (Regulation and Management) Act of 2010 consolidates water-related laws, with a focus on improving water
storage, conservation, and protection. It is implemented by the J&K Water Resources Regulatory Authority; v) The J&K Forest Act
of 1987, under the Forest Department, is dedicated to the preservation and management of designated forests within the J&K.
Together, these state acts play a pivotal role in regulating and managing various critical aspects of J&K's resources and
environment.

66. Additional acts like the J&K Horticulture Produce Marketing and Processing (Development) Act of 2010, the J&K Agricultural
Produce and Livestock Marketing (Promotion and Facilitation) Act of 2021, and the J&K Wildlife (Protection) Act of 1978 are
designed to regulate horticulture, agricultural marketing, and wildlife conservation, led by relevant departments such as the
Department of Wildlife Protection, J&K Government.

67. In 2015, India submitted its Nationally Determined Contributions (NDCs), which primarily aimed to increase the total installed
electric power capacity from non-fossil sources to 40% and reduce the emissions intensity of GDP by 33 to 35% compared to
2005 levels by 2030. In 2022, India revised its NDC, introducing new goals. The significant changes in India's updated NDCs are
as follows: i) a target to decrease the emissions intensity of India's GDP by 45% by 2030, ii) the aspiration to achieve

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 approximately 50% of the total installed electric power capacity from non-fossil fuel-based energy sources by 2030, and iii)
participation in the global climate change initiative known as the 'Lifestyle for the Environment (LiFE) Movement.

68. Crucially, the JKCIP is aligned with the updated NDC's objective of improving climate change adaptation by increasing
investments in development programs in sectors vulnerable to climate change. These sectors include agriculture, water
resources, the Himalayan region, coastal regions, health, and disaster management.

4. Environmental and social category

69. The environmental and social category for JKCIP is determined as moderate, based on the screening tool of SECAP 2021.
The project aims to generate overall positive environmental and social benefits in a comprehensive manner. Good Agricultural
Practices (GAP) will be promoted to improve agro-biodiversity and enhance farm health. JKCIP will a) capacitate FPOs and staff
including from Krishi Vigyan Kendra (KVK) to regulate and reduce chemical inputs, b) promote inter and mix cropping, and
integrated pest management to maintain soil health and minimize the damage of disease and pest outburst, c) support water
management and efficient water use technologies to reduce water stress, and d) minimize waste. The program targeted blocks
don’t have protected or conservation areas. JKCIP will strictly adhere ‘zero’ forest degradation and forest encroachment
approach, ensuring that all project activities will be confined in private and non-forested lands. Since the project will not involve in
construction activities, extensive screening questions exercise, consultations with communities and stakeholders, and field visits
confirmed that the environmental and social impacts will remain at moderate level.

70. JKICP is a youth sensitive project that places a significant emphasis on social inclusion. It adopts proactive measures to
specifically target women, youth, and marginalized communities. The project will support to Gujjars and Bakarwals, pastoralists,
to uplift their livelihood. A Free, Prior, and Informed Consent (FPIC) implementation plan has been developed and will be
implemented. JKCIP will not have any impact on cultural heritage, however, national chance find procedure will be applied. Child
labor, sexual harassment, and gender violence are not foreseen in value chain activities, although, these will be strictly prohibited
and carefully monitored in all project activities. Moreover, the project, overall, will have positive impacts on community health,
safety, and security. JKCIP will not create physical and economic resettlement.

5. Climate risk category

71. As per the SECAP screening tool, the climate risk category of the program is determined as Moderate. Following are the key
themes and steps followed to assess climate risks: (i) Hazard identification: As per the ThinkHazard tool and design field visits;
JKCIP intervention area is likely to experience river flood, landslides, and hailstorm. Moreover, foreseen future climate scenario
predicts changes in temperature, climate variability and alterations in intensity and frequency of extreme events. (ii) Exposure
Assessment: The project targets agriculture and horticulture systems or livelihoods that are exposed to weather-related hazards.
Agriculture system is often affected by the impact of climate change(iii)Sensitivity: Major income of the target population
predominantly comes from agriculture, horticulture, and livestock. (iv) Adaptation capacity and climate resilience: India is good on
disaster coping capacity and climate and weather information services are effectively being delivered to farmers, rural dwellers,
and end users.

72. The project will incapacitate and promote climate resilient farming practices. SECAP related responsibilities will be included in
the terms of references of thematic specialists in PMU.

6. Recommendations for project design and implementation

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73. JKCIP will use the following entry points to address mainstreaming themes:(i) improve women’s access to viable economic
opportunity (on farm and off-farm) as well as social empowerment; (ii) generate economic and professional opportunities for
youth; (iii) provide capacity building supports on CSA and GAP ensuring improving knowledge, capacity, and access on those
areas; (iv) proactive targeting on youth for skill development, employment generation, and climate issues solutions; and (v)
engage in strong consultation process to ensure participation and social inclusion of potentially excluded groups.

74. Youth participation: The project is focussing on the following components which are very much youth sensitive:

75. Climate-smart agriculture and market-led production which include collectivisation, formation of FPOs, strengthening the
existing FPOs, enterprise development based on agri and allied sector. All these activities should target the youth population at
least 50% of the total population. They need to get trained on good agriculture practices, tree and plantation management of
horticultural species, establishment of high-quality planting material nursery, certification of products, natural farming practices
and establishment of enterprises. The FPOs currently exist in the identified blocks (56 no.) already have youth at the CEO level
and their capacities need to be enhanced to make the FPOs profitable in the long run. The new FPOs (45 no.) which will be
formed should follow the same system and the local youth needs to be capacitated to make these FPOs sustainable and
profitable enterprises. These FPOs should be the focal agencies to provide the agri- inputs as well as the selling points of the
produce for the farmers.

76. Agri-business ecosystem development: The three main activities under this component will be enterprise promotion
support, market promotion support and establishment of the incubation and start up support. The youth need to be majorly
involved in these activities. They should be encouraged to start new enterprises, strengthen the existing enterprises with
establishment of the proper processing and marketing facility. The project is proposing 250 startups and 60% of these new
startups should be owned by the youth.

77. Gender: The Support to vulnerable Community is a separate component of the project which includes the women, youth and
the fringe communities like pastoralists (Bakerwalas and Gujjars). The state is a patriarchal in nature, therefore, women are not
so much involved in the upfront activities. The current project has been planned to include them in almost all the activities. All the
production related activities including the niche crops at least 60% women needs to be involved and rest should be men but for the
horti cultural crops the women involvement could be less (20 %) and principally should be done by the men. The processing and
value addition of the agri and horti produce women involvement needs to be minimum 40 % and marketing in most cases needs
to be done by the men since the social structure of the J&K follows the same.

78. Women participation: As mentioned in the above paragraphs, women participating has been recommended for the specific
activities. Currently as per the NFHS survey, there are only 21.9 % women employed in the conventional sectors. Therefore,
the project has recommended the following for the women participation: i) Agri crop production sector: (saffron, aromatic rice,
vegetables, spices) – 60 % women should be involved at the production and processing level except the land preparation which is
mainly done by the men; ii) Medicinal and Aromatic Plants: these activities should be mainly undertaken by the women especially
young women. They need to be involved in the nursery preparation, weeding, plantation, harvesting and processing of the
products; and iii) Enterprise Development: 40 % of the young girls should be involved in the enterprise development especially for
dairy products making, lavender value chain, horti crop processing and value chain etc.

79. Nutrition: JKCIP is the first investment of IFAD in the J&K. J&K had faced lot of religious conflicts in the last three
decades, therefore, the government’s focus is on creating employment opportunities for the youths of both gender,
enhancement of the income of the people of the rural areas, value addition and marketing of the niche products, therefore, to
compliment the government’s work, the current project is focussing on income enhancement of the youth and young women and
become an youth sensitive project. Overall, the nutrition status of the communities is better since the area is blessed with the
favourable climatic condition and there are several high values agri and horti crops are gown here and getting exported to the rest
of the country and abroad. The communities are dependent on the Agri Horti, vegetable, pulses and diary produce and sheep and
goat rearing. The population, therefore, having the balanced diet with vegetables, fruits, pulses, cereals, milk, and meat. The
project is focussing on the enhancement of the value chain of each of the crops.

80. Climate and Environment

81. a. Weather information, interpretation, and application: Access to weather information needs to be improved. More importantly,
capacity building of Krishi Vigyan Kendra (KVK) and FPO needs to be planned to increase their skill and interpretation of using
weather information on decision making. Good Agriculture Practices (GAP) needs to be promoted. The support should be made
for IPM, Multiple and inter cropping, efficient water use, local climate resilient seeds. Collaboration should be made with university
to disseminate results of their research on GAP. Pesticides need to be regulated. Scientific evidence from university researchers
needs to be timely disseminated to wise use of pesticides. Hailstorm is noted as one of the key threats to horticulture. Solution
measures such as nets should be supported. Support to Youth groups at panchayat level to solve local climate, environment, and
natural resources related issues will be effective to increase farmers adaptation capacity and also beneficial to help youth
behaviour.

82. The project will ensure that the financial intermediaries have Environmental and Social Management Plan (ESMP) if selected
for the financing. The due diligence of the private sector will be ensured for the project support. JKCIP, with support from IFAD,
will provide technical assistance to FIs and private sector to implement ESMPs.

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7. Further studies needed

83. This SECAP review note includes ESCMP, Stakeholder engagement plan, and FPIC implementation plan. As being both
Environmental and Social, and Climate risks rated as ‘moderate’; no addition studies are needed. However, the project will
conduct thematic environmental and climate studies, budget provisioned for 12 studies, as per the project’s requirement.

8. Monitoring and evaluation

84. The project’s M&E will well capture disaggregated data on gender, youth, socio-ethnicity, and household poverty. The PMU
will lead in the monitoring and evaluation process of the project together with implementing partners and stakeholders. In addition,
monitoring and coordination committees comprising of PMU, representatives from implementing partners, line agencies will be
formed.

85. 80. The SECAP specialist will ensure that ESCMP indicators are reflected in M&E framework. The specialist, together with M&E
team, will analyse the data on periodic basis with validation in the field. This process will facilitate to take timely decision by the
project management and adopt corrective actions to adhere the climate adaptation and targeting strategy. Other participatory
monitoring tools like environmental and social safeguard monitoring, and regular tracking of poor women and vulnerable groups
with their problems and progress will be adopted to ensure that target groups are effectively participating and getting progress on
their livelihood improvement pathways. Social risks and mitigation measures (as outlined in the ESCMP) will ensure that these
risks are addressed, and the very poor and vulnerable sections benefit from the program interventions.

9. References

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9. References
A High Resolution Daily Gridded Rainfall Data Availability, IMD (2017).
www.imd.gov.in/advertisements/20170320_advt_34.pdf.
Census of India | Office of the Registrar General & Census Commissioner, India.
https://censusindia.gov.in/nada/index.php/catalog/43004.
Climate Hazards and Vulnerability Atlas of India IMD.
https://www.imdpune.gov.in/hazardatlas/thunder_storm/nvi/annual/index.html
DST (2021) Climate Vulnerability Assessment for Adaptation Planning in India Using a
Common.
Disaster Risks and Resilience in India – An Analytical Study (2019). Ministry of Home
Affairs, GoI.
Draft report prepared by the Union home ministry with support from the UNDP, 2019.
https://www.ndmindia.nic.in/images/gallery/scorecard1.pdf
Habeeb AA, Gad AE, Atta MA. Temperature-Humidity Indices as Indicators to Heat Stress
of Climatic Conditions with Relation to Production and Reproduction of Farm Animals. Int
J Biotechnol Recent Adv. 2018; 1(1): 35-50. doi: 10.18689/ijbr-1000107.
International Institute for Population Sciences (IIPS) and ICF. (2017). National Family
Health Survey (NFHS-4), 2015-16: India. Mumbai: IIPS.
International Institute for Population Sciences (IIPS) and ICF. 2021. National Family
Health Survey (NFHS-5), India, 2019-21: Jammu & Kashmir. Mumbai: IIPS.
http://rchiips.org/nfhs/NFHS-5Reports/Jammu&Kashmir.pdf.
J&K State Disaster Management Policy 2011, Department of Revenue, Relief and
Rehabilitation.
Meer, M.S., Mishra, A.K. Observational study of a severe snowfall avalanche over a state
in North India in November 2019 using GIS. J Earth Syst Sci 129, 230 (2020).
NITI Aayog (2023). India. National Multidimensional Poverty Index: A Progress Review
2023. NITI Aayog, Government of India, New Delhi.
Noshaba Aziz, Yanjun Ren, Kong Rong, Jin Zhou, Women’s empowerment in agriculture
and household food insecurity: Evidence from Azad Jammu & Kashmir (AJK), Pakistan,
Land Use Policy, Volume 102, 2021.
Risk and Vulnerability Assessment of Indian Agriculture to Climate Change, 2019,
CRIDA, ICAR.
Sharma S, Kumar A, Ghangas V (2013) Seismicity in Jammu and Kashmir region with
special reference to Kishtwar. International Journal of Scientific and Research
Publications 3(9):1–5.
Silanikove N. The physiological basis of adaptation in goats to harsh environments. Small
Ruminant Research. 2000;35:181-193. DOI: 10.1016/S0921-4488(99)00096-6.
Sneha Menon, Dona Tomy, Anita Kumar, Female work and labour force participation in
India - A meta-study (2019), United Nations Development Programme,
https://www.sattva.co.in/wp-content/uploads/2019/06/Sattva_UNDP_Female-Work-
And-Labour-Force-Participation-In-India.pdf.
State Disaster Management Plan, J&K (2017) State for 1892–93. Rambir Prakash Press,
Jammu, India, pp 132–133 Developed by Tata Institute of Social Sciences, Mumbai.
State Profile, Ground Water Scenario of Jammu & Kashmir, Central Ground Water Board,
Ministry of Water Resources, GoI. https://cgwb.gov.in/gw_profiles/st_JandK.htm.
State irrigation plan (SIP), Jammu and Kashmir PMKSY (2017),
https://pmksy.gov.in/mis/Uploads/2017/20170922022853503-1.pdf.
Statistical Profile of Scheduled Tribes in India, (2013), Ministry Of Tribal Affairs Statistics
Division Government of India.
https://tribal.nic.in/downloads/Statistics/StatisticalProfileofSTs2013.pdf.
The Constitution of India,
https://legislative.gov.in/sites/default/files/19_The%20Constitution%20%28ST%29%20
Order%201950.pdf.
UNFPA (2014), A Profile of Adolescents and Youth in India,
https://india.unfpa.org/sites/default/files/pub-
pdf/AProfileofAdolescentsandYouthinIndia_17. 0.pdf.
Weather terminologies, IMD.
http://www.imdpune.gov.in/weather_forecasting/glossary.pdf.
Gunn Persson, Lars Bärring, Erik Kjellström, Gustav Strandberg and Markku
Rummukainen, Climate indices for vulnerability assessments (2007), 0347-2116 SMHI
Reports Meteorology Climatology.
http://www.smhi.se/polopoly_fs/1.805!Climate%20indices%20for%20vulnerability%20a
ssessments.pdf.
ESCMP Matrix
Environmenta Commodities Recommended Public Consultation Responsible Institution Means of Verification Cost Estimate
l, social and /activities as Mitigation/Enhancement Activities & Source
climate main driver measures Indicators Frequency Source
Impacts of risks of data

Environmental

Impact on soil Agriculture, 1. Promote the responsible use GAP trainings and PMU: Directorate of Percentage Annual MIS Included in
and water Horticulture of fertilizers, pesticides, and youth enterprises Ag/Horticulture/Livestock. of farmers subcomponen
from herbicides.2. Promote Organic and orientation reducing ts 1.1 1.2, and
pollutants farming.3. Integrated Pest Establishment of a KVK will take the lead in field, with the chemical 3.2 budget
through use Management.4. Train and feedback and support from Directorates. inputs
of fertilizers Implement proper waste observations
management systems.5. mechanism from The research and study part will be
Decentralised Wastewater local communities, led by the universities.
Treatment and reuse. farmers (for changes
in soil and water University will be also take lead on
quality). training and capacity building.

Private sectors and organizations

working on GAP should be included
for capacity building and promotion.

Youth groups should be mobilized on

awareness raising and solving local
level issues.
Procurement Agriculture, The project will support Community and PMU: Directorate of Percentage Annual MIS Included in
of Natural Horticulture nurseries to sustainably produce expert consultation Ag/Horticulture/Livestock. of the Horticulture
Resources seedlings for plantation. Youth to select multiple seedling and
and private sectors will be purpose species produced agriculture
motivated to produce seedlings under the subcomponen
suitable to microclimate and project ts
climate change scenarios. support.
Livestock Livestock The project will support for the Community PMU: Livestock directorate Percentage Annual MIS Included
production fodder and forage management. consultation to of livestock under
Use of antibiotics will not be discuss sustainable support Livestock
supported or promoted. Project livestock subprojects support
will not invest in activities that management following
engage i) use of antibiotics or sustainable
hormones, ii) unsustainable use production
of natural resources, iii) creates
additional pressure to forest
areas/
ESCMP Matrix
Environmenta Commodities Recommended Public Consultation Responsible Institution Means of Verification Cost Estimate
l, social and /activities as Mitigation/Enhancement Activities & Source
climate main driver measures Indicators Frequency Source
Impacts of risks of data

Social

Impacts on All Proactive targeting mechanisms, Public Consultation SECAP and GESI specialist in lead Number of Baseline/mi Meeting Included in
IPs interventions meaningful stakeholder Activities role. FPIC dterm/comp records, M&E
engagement, participatory process letion and program
planning and implementation, documente annual. database
FPIC implementation d, % of
tribal
groups
benefitted
Climate

Landslides All 1. Adequate, disaster complaint Capacity building PMU: Directorate of i) number Annual MIS 293,000
and flood housing for livestock, storage of and trainings Ag/Horticulture/Livestock. of supports USDbudgeted
fodder, veterinary care support, provided for for
CSA training. The university to lead on weather weather strengthening
2. Weather forecasts and use information support strengthening. information weather
disseminati information
Private organizations should be on and use dissemination
included on capacity building. and use

Hailstorm All i) Encourage government PMU: Directorate of i) farmers Annual MIS no budget
department to support nets; Ag/Horticulture/Livestock. using provisioned
promote protective farming hailstorm
wherever possible, ii) promotion The university to lead on weather protecting
of protective farming practices information support strengthening. nets, ii)
number of
Private organizations should be farmers
included on capacity building. practicing
protective
farming
ESCMP Matrix
Environmenta Commodities Recommended Public Consultation Responsible Institution Means of Verification Cost Estimate
l, social and /activities as Mitigation/Enhancement Activities & Source
climate main driver measures Indicators Frequency Source
Impacts of risks of data

Drought Agriculture, 1. Crop diversification, drought CSA and GAP PMU: Directorate of i) number Annual MIS Included in
Horticulture tolerant variety crop.. trainings Ag/Horticulture/Livestock. of FPO and water
2. Alternate crops, recycle water farmers management,
3. Household water harvesting. The university to lead on weather received and CSA and
4. Micro irrigation. information support strengthening. CSA and GAP training
5. Weather forecasts. GAP
6. Multi and inter cropping Private organizations should be training, ii)
included on capacity building. Number of
farmers
received
water
manageme
nt support,
iii) Area ( in
ha) comes
under
improved
water
supply
Pest and Agriculture, 1. Implement vector control Awareness and PMU: Directorate of i) number Annual MIS Included
disease Horticulture measures to reduce the spread consultation Ag/Horticulture/Livestock. of farmers under
& livestock of pests and diseases. applying subcomponen
2. Improve security measures The university to lead on weather IPM ts 1.1 and 1.2
(quarantine, isolation facilities, information support strengthening.
restricted animal movements
etc..) to prevent disease Private organizations should be
outbreaks in livestock. included on capacity building.
3. Implement vaccination
programs and regular health
monitoring of livestock to reduce
disease risks.
4. Promote GAP and IPM
ESCMP Matrix
Environmenta Commodities Recommended Public Consultation Responsible Institution Means of Verification Cost Estimate
l, social and /activities as Mitigation/Enhancement Activities & Source
climate main driver measures Indicators Frequency Source
Impacts of risks of data

Road All 1. Strengthening the early Awareness and PMU: Directorate of i) number Annual MIS Included in
blockage due warning systems to provide consultation Ag/Horticulture/Livestock. of farmers weather
to climatic advance notice of possible The university to lead and strengthen having information
hazards climatic hazards to take the weather information support weather support
preventive measures. services. and
i) lack of 2. Identify alternative transport disaster
seed, inputs, routes/transport system that can Private organizations should be related
and be used when primary routes are included on capacity building. information
equipment's blocked to maintain the and
on time, ii) continuity of supply chains. applying in
obstacle on 3. Establish Weather-resistant their daily
product sell, storage facilities for harvested practices
iii) increase crops.
production 4. Weather based Crop
price, iv) high insurance schemes that provide
wastage financial protection to farmers.
5. Enhance/Build community
preparedness and resilience in
responding to road blockages
and climatic hazards.
6. Promote the establishment of
local seed banks and maintain a
variety of crop seeds adapted to
local conditions.
7. Establish mechanism for
timely distribution of agricultural
inputs and equipment to farmers.
Environmental and Social Safeguards Classification: Moderate

Environmental and Social Safeguards

Biodiversity conservation Yes/No Likelihood Consequence Risk

Rating
1.1 Could the project potentially involve or lead to conversion or degradation of biodiversity, No Low
habitats (including modified habitat, natural habitat and critical natural habitat) and/or
ecosystems and ecosystem services?
1.2 Could the project involve or potentially lead to activities involving habitats that are legally No Low
protected, officially proposed for protection, or recognized as protected by traditional local
communities and/or authoritative sources (e.g. National Park, Nature Conservancy,
Indigenous Community Conserved Area, ICCA, etc.)?

1.3 Could the project potentially involve or lead to an increase in the chance of human-wildlife No Low
encounters/conflict?

1.4 Could the project potentially involve or lead to risks to endangered species (e.g. reduction, No Low
encroachment on habitat)?
1.5 Could the project potentially involve or lead to impacts/risks to migratory wildlife? No Low

1.6 Could the project potentially involve or lead to introduction or utilization of any invasive No Low
alien species of flora and fauna, whether accidental or intentional?
1.7 Could the project involve or lead to the handling or utilization of genetically modified No Low
organisms?
1.8 Could the project involve or lead to procurement through primary suppliers of natural Yes Possible Minor Moderate
resource materials?
Poject may
possibly
require
procurement
of natural
resources
through
primary
suppliers, and
resource
extraction is
tightly
regulated.
Alternatives to
procurement
of natural
resources
through
primary
suppliers
exists.

Resource Efficiency and Pollution Prevention Yes/No Likelihood Consequence Risk

Rating
2.1 Could the project involve or lead to the release of pollutants to the environment due to No Low
routine or non-routine circumstances with the potential for adverse local, regional, and/or
transboundary impacts?
2.2 Could the project involve or lead to primary not environmentally sustainable production of No Low
living natural resources? (Note: this includes the cultivation or rearing of plants or animals,
including annual and perennial crop farming, animal husbandry (including livestock),
aquaculture, plantation forestry, etc )

2.3 Could the project involve or lead to engagement in areas of forestry, including the No Low
harvesting of natural forests, plantation development, and/or reforestation?
2.4 Could the project involve or lead to significant consumption of raw materials, energy, No Low
and/or water?

2.5 Could the project involve or lead to significant extraction, diversion or containment of No Low
surface or ground water (e.g. construction of dams, reservoirs, river basin developments,
groundwater extraction)?

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 Environmental and Social Safeguards
2.6 Could the project involve inputs of fertilizers and other modifying agents? Yes Likely Minor Moderate

The project
only requires
minimal
amounts of
fertilizer

2.7 Could the project involve or lead to procurement, supply and/or result in the use of No Low
pesticides on crops, livestock, aquaculture or forestry?

2.8 Could the project be located in an area which is being, or has been, polluted by an No Low
external source (e.g. a mine, smelter, industry)?
2.9 Could the project involve livestock – extensive and intensive systems and animal products Yes Likely Minor Moderate
(dairy, skins, meat, etc.)?
The project
involves
livestock or
fisheries, but
not in
extensive or
intensive
systems.

Cultural Heritage Yes/No Likelihood Consequence Risk

Rating

3.1 Could the project be located in areas that are considered to have archaeological No Low
(prehistoric), paleontological, historical, cultural, artistic, and religious values or contains
features considered as critical cultural heritage?
3.2 Could the project directly or indirectly affect indigenous peoples’ rights, lands, natural No Low
resources, territories, livelihoods, knowledge, social fabric, traditions, governance systems,
and culture or heritage (tangible and intangible)?
3.3 Could the project involve or lead to significant excavations, demolitions, movement of No Low
earth, flooding or other environmental changes?
3.4 Could the project involve or lead to adverse impacts to sites, structures, or objects with No Low
historical, cultural, artistic, traditional or religious values or intangible forms of culture (e.g.
knowledge, innovations, practices)? (Note: projects intended to protect and conserve Cultural
Heritage may also have inadvertent adverse impacts)
3.5 Could the project involve or lead to alterations to landscapes and natural features with No Low
cultural significance?
3.6 Could the project involve or lead to utilization of tangible and/or intangible forms (e.g. No Low
practices, traditional knowledge) of Cultural Heritage for commercial or other purposes?

indigenous peoples Yes/No Likelihood Consequence Risk

Rating
4.1 Could the project be sited in areas where indigenous peoples are present (including the Yes Almost Negligible Moderate
project area of influence)? certain
The project is
not sited in a
area where
indigenous
people are
present.

4.2 Could the project result in activities located on lands and territories claimed by indigenous Yes Almost Negligible Moderate
peoples? certain
The project is
not sited in a
area that
indigenous
people would
claim as their
territory.

4.3 Could the project result in impacts on the rights of indigenous peoples or to the lands, No Low
territories and resources claimed by them?
4.4 Could the project result in the utilization and/or commercial development of natural No Low
resources on lands and territories claimed by indigenous peoples?

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 Environmental and Social Safeguards
4.5 Could the project lead to impacts on the Cultural Heritage of indigenous peoples, including No Low
through the commercialization or use of their traditional knowledge and practices?

Labour and Working Conditions Yes/No Likelihood Consequence Risk

Rating
5.1 Could the project operate in sectors or value chains that are characterized by working No Low
conditions that do not meet national labour laws or international commitments? (Note: this may
include discriminatory practices, high gender inequality and the lack of equal opportunities,
denial of freedom of association and collective bargaining, labour migrants)

5.2 Could the project use or operate in a value chain where there have been reports of forced No Low
labour? (Note: Risks of forced labour may be increased for projects located in remote places
or where the status of migrant workers is uncertain)

5.3 Could the project involve children (a) below the nationally-defined minimum employment No Low
age (usually 15 years old) or (b) above the nationally-defined minimum employment age but
below the age of 18 in supported activities or in value chains?
translation missing: No Low
en.v1.secap_screening_tool.environmental_and_social.labour_and_working_conditions_4.text
Community Health, Safety and Security Yes/No Likelihood Consequence Risk
Rating

6.1 Could the project be at risk from water-borne or other vector-borne diseases (e.g. No Low
temporary breeding habitats), and/or communicable and non-communicable diseases?
6.2 Could the project lead to unintended negative impacts on nutrition? No Low

6.3 Is there a possibility of harm or losses due to failure of structural elements of the project No Low
(e.g. collapse of buildings or infrastructure)?
6.4 Could the project involve or lead to the construction or rehabilitation of dams? No Low

6.5 Could the project involve or lead to transport, storage, and use and/or disposal of No Low
hazardous or dangerous materials (e.g. explosives, fuel and other chemicals during
construction and operation)?

6.6 Could the project lead to adverse impacts on ecosystems and ecosystem services relevant No Low
to communities’ health (e.g. food, surface water purification, natural buffers from flooding)?
6.7 Could the project lead to the potential for gender-based violence, including sexual No Low
harassment, exploitation and abuse, as a result of labour influx, land redistribution, or other
actions that alter community dynamics?
6.8 Could the project lead to increases in traffic or alteration in traffic flow? No Low

6.9 Could the project lead to an influx of project workers? No Low

6.10 Could the project involve or lead to the engagement of security personnel to protect No Low
facilities and property or to support project activities?
Physical and economic resettlement Yes/No Likelihood Consequence Risk
Rating
7.1 Could the project result in temporary or permanent and full or partial physical No Low
displacement (including people without legally recognizable claims to land)?

7.2 Could the project result in economic displacement (e.g. loss of assets or access to No Low
resources due to land acquisition or access restrictions – even in the absence of physical
relocation)?

7.3 Could the project present a risk of forced evictions? No Low

7.4 Could the project result in impacts on or changes to land tenure arrangements and/or No Low
community-based property rights/customary rights to land, territories and/or resources?

Financial intermediaries and direct investments Yes/No Likelihood Consequence Risk

Rating
8.1 Could the investment be granted to an institution that does not have an environmental and No Low
social policies and an associated environmental and social management system (ESMS) in
place (transparent, publicly available)?

8.2 Could the investment be granted to an institution with insufficient capacities (i.e. No Low
unqualified personnel e.g. ES Officer) to implement the ESMS?

8.3 Could the investment be granted to an institution that does not have an Exclusion List? No Low

8.4 According to the institution's portfolio classification: Could the institution have potential No Low
high-risk projects in their portfolio?

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 Environmental and Social Safeguards

8.5 Is there evidence that the institution does not comply with the local legal framework? No Low

8.6 Does the institution provide a stable communication channel with stakeholders and local No Low
communities (e.g. a Grievance Redress Mechanism)?
8.7 Does the organization provide auxiliary or capacity building support services. No Low

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Climate Risk Classification: Moderate

Step 1: Hazard identification

What are the expected hazards in the project intervention area? No, Yes, TBD

River flood Yes

Costal Flood No

Urban Flood No

Landslide Yes

Cyclone No

Water Scarcity (agricultural droughts and/or dry spells) Yes

Extreme Heat No

Wildfires No
Future climate scenarios foreseen (period 2040-2059) - Change in frequency and intensity No, Yes, TBD

Change in temperature (increase or decrease) Yes

Change in rainfall (increase or decrease) Yes

Climate variability (larger or smaller) Yes

Intensity and frequency of extreme events (larger or smaller) Yes

Is the project expected to have an impact on climate change (i.e. contribute to greenhouse gas emissions)? No, Yes, TBD

Is the project expected to be a significant emitter of greenhouse gases? No

Step 2: Exposure Assessment

Is the project located in exposed areas to weather-related natural hazards? No, Yes, TBD

Low-lying areas (valleys, coastal zones, and small islands) Yes

Very warm areas (subtropical) No

Tropical areas (rainforests) No

Arid and semi-arid areas (deserts) No

Mountains zones and permafrost areas (tundra) Yes

River banks No

Does the project target agricultural systems, ecosystems or livelihoods exposed to weather-related No, Yes, TBD
hazards?

Is crop production frequently affected by rainfall variability, prolonged droughts, changes in temperature or pests Yes
and diseases?

Is livestock productivity frequently affected by rainfall variability, prolonged droughts, changes in temperature or Yes
diseases?
Are fisheries frequently affected by ocean acidification, water salinity and changes in sea surface temperature due No
to ocean-atmospheric oscillations or climate change?

Is forest productivity frequently affected by wildfires, diseases, rainfall variability, prolonged droughts, or changes in No
temperature?

Is the biodiversity in the project area likely to be affected by changes in climate variables? Yes
Is any stage of the agricultural value chain (production, storage, processing and marketing) exposed to climate Yes
related hazards?
Is any rural infrastructure likely to be affected by flooding, landslides, changes in temperatures, and extreme winds. Yes

Step 3: Sensitivity Assessment

What are key sensitivities for the populations in the project’s areas of intervention? No, Yes, TBD

Is conflict exacerbating the population's sensitivity to weather related hazards? No

Is population displacement being exacerbated by climate change impacts? No

1/2
Are diseases (e.g. COVID-19, malaria, cholera) increasing the population´s vulnerability and affecting their capacity No
to address potential weather-related hazards?

Is the income of the target population predominately coming from agriculture? Yes
Are social inequalities (e.g. based on gender, youth, indigenous persons and other marginalized groups) being No
exacerbated by climate change?

Is the Human Development Index (HDI) equal to or below 0.6? No

Is the Multidimensional Poverty Index (MPI) equal to or above 0.1? No

Step 4: Adaptive capacity and climate resilience

What are key adaptive capacities in the areas of project intervention? No, Yes, TBD

Is the country well ranked in the Disaster risk reduction progress score? Yes
Are climate and weather information services (real-time weather data, seasonal forecasts etc.) effectively being No
delivered (through radio, TV, SMS, extension services etc.) to farmers, rural dwellers, and end users?
Does the project country have an early action plan (preparedness and emergency response) to mitigate the Yes
impacts of weather-related hazards once the shock occurs?

Does the government or other institutions support the target population/communities with the necessary social and Yes
economic resources to prepare for or respond to climate-related events?

Is the target community carrying out (using their own means) agricultural adaptation? No
Does the target population have the economic means or support to adjust or adapt their activities in response to No
weather related shocks?
Do policies/mechanisms exist that make financial credit, loans, and agricultural insurance available? Yes

Are rural infrastructures effectively delivering services to farmers and rural dwellers? No

2/2
India

Competitiveness Improvement of Agriculture and Allied Sectors Project in Jammu and

Kashmir (J&KCIP)

Project Design Report

Annex 6: First Annual Work Plan and Budget (AWPB)

Mission Dates: 03 Oct 2023 to 20 Oct 2023

Document Date: 08/03/2024
Project No. 2000003933
Report No. 6741-IN

Asia and the Pacific Division

Programme Management Department
 First 18 Month Annual Work Plan and Budget (AWPB) Summary and Detailed Cost Tables

First 18 Month AWPB 2023/24-2024/25: Costs by Component/Sub-component and Financier

India
Competitiveness Improvement of the Agriculture and
Allied Sectors Project in Jammu and Kashmir - 18 Months
AWPB
Components by Financiers
(US$ '000) IFAD GoJ&K Beneficiary Private Sector Bank Total
Amount % Amount % Amount % Amount % Amount % Amount %
A. Climate-smart and market-led production
Upscaling collectivization 1,136 74 307 20 91 6 - - - - 1,533 7
Agri-niche crop promotion 1,610 46 406 12 1,484 42 - - - - 3,500 15
Horticulture crop promotion 3,031 42 758 11 1,978 28 1,421 20 - - 7,188 31
Subtotal 5,777 47 1,470 12 3,554 29 1,421 12 - - 12,222 52
B. Agri-business ecosystem development
Enterprise promotion support 2,336 40 714 12 - - 1,148 19 1,722 29 5,921 25
Market promotion support 290 80 73 20 - - - - - - 363 2
Incubation and start-up 604 80 151 20 - - - - - - 755 3
Subtotal 3,230 46 938 13 - - 1,148 16 1,722 25 7,039 30
C. Support to vulnerable communities
Support for pastoralists 89 46 22 11 - - 83 43 - - 194 1
Support for other vulnerable communities 1,242 60 319 15 181 9 346 17 - - 2,087 9
Subtotal 1,330 58 341 15 181 8 429 19 - - 2,281 10
D. Project Management
Project Management 1,034 80 259 20 - - - - - - 1,293 6
M&E and MIS 86 80 21 20 - - - - - - 107 1
KM and Policy 407 80 102 20 - - - - - - 509 2
Subtotal 1,528 80 382 20 - - - - - - 1,909 8
Total PROJECT COSTS 11,865 51 3,131 13 3,735 16 2,998 13 1,722 7 23,451 100
 First 18 Month AWPB 2023/24-2024/25: Costs by Expenditure Categories and Financier

India
Competitiveness Improvement of the Agriculture
and Allied Sectors Project in Jammu and Kashmir -
18 Months AWPB
Expenditure Accounts by Financiers
(US$ '000) IFAD GoJ&K Beneficiary Private Sector Bank Total
Amount % Amount % Amount % Amount % Amount % Amount %
I. Investment Costs
A. Training and Workshops 675 80 169 20 - - - - - - 844 4
B. Consultancies 341 80 85 20 - - - - - - 427 2
C. Goods, Services and Inputs 5,102 44 1,296 11 3,605 31 1,511 13 10 0 11,525 49
D. Equipment and Materials 805 70 215 19 129 11 - - - - 1,150 5
E. Grants and Subsidies 3,646 46 1,041 13 - - 1,487 19 1,712 22 7,886 34
Total Investment Costs 10,570 48 2,807 13 3,735 17 2,998 14 1,722 8 21,832 93
II. Recurrent Costs
A. Salaries and Allowancies 892 80 223 20 - - - - - - 1,115 5
B. Operating Costs 403 80 101 20 - - - - - - 504 2
Total Recurrent Costs 1,295 80 324 20 - - - - - - 1,619 7
Total PROJECT COSTS 11,865 51 3,131 13 3,735 16 2,998 13 1,722 7 23,451 100
Detailed Tables
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir - 18 Months AWPB
Table 1.1. Upscaling collectivization Unit Cost Totals Including
Detailed Costs Quantities (INR Unit Cost Contingencies (US$ '000) Other Accounts
Unit 2023/24 2024/25 Total '000) (US$) 2023/24 2024/25 Total Disb. Acct. Fin. Rule
I. Investment Costs
A. Capacity building of FPO Development Officer
Exposure visit to well managed FPOs /a per person 10 10 20 60 721 8 8 16 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Assessment of FPO business opportunities /b Person Days 20 10 30 24 288 6 3 10 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Preparation of curriculum for training of FPO-DO /c Ls 7 - 7 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Capacity building of FPO-DO ( sessions of 5 days and two sessions per person) /d Person Days 100 200 300 2 24 3 6 8 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Training of FPO staff /e Per Person - 1,010 1,010 1 12 - 14 14 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Training of FPO leaders /d ( 4 per FPO for 1 day and three sessions) /f Per Person - 404 404 1 12 - 6 6 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Training in fruit tree management /e (5 per FPO for 5 days for 60 FPOs) /g per FPO - 30 30 28 336 - 12 12 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
FPO Business plan preparation per FPO - 101 101 25 300 - 35 35 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Technical Assistance - FPO Support /h Ls - 17 17 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
FPO-bankable sub-project preparartion /i Per FPO - 101 101 15 180 - 21 21 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
FPO-Bank/ Insurance interaction Per FPO - 101 101 5 60 - 7 7 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Subtotal 23 128 152
B. FPO Support
FPO mobilization support /j Per FPO - 15 15 100 1,201 - 21 21 GOODS_SERVICES_AND_INPUTS IFAD ( 80% )
Management cost support - first three year /k Per FPO - 15 15 400 4,805 - 85 85 GOODS_SERVICES_AND_INPUTS IFAD ( 80% )
Office equipments Per FPO - 15 15 200 2,403 - 43 43 GOODS_SERVICES_AND_INPUTS IFAD ( 80% )
Matching Equity support /l Per FPO - 15 15 750 9,010 - 148 148 GRANTS_AND_SUBSIDIES_CREDIT_AND_GUARANTEE_FUND IFAD ( 80% )
Apex Cooperative Support /m Ls - 2 2 15,000 180,202 - 395 395 GOODS_SERVICES_AND_INPUTS IFAD ( 80% )
Subtotal - 693 693
C. Business vertical support
Farm mechanization and drudgey reduction Per FPO - 10 10 200 2,403 - 28 28 GOODS_SERVICES_AND_INPUTS IFAD ( 60% ), BENEFICIARY ( 20% )
Water management support Per FPO - 10 10 1,000 12,013 - 142 142 GOODS_SERVICES_AND_INPUTS IFAD ( 60% ), BENEFICIARY ( 20% )
Aggregation support Per FPO - 10 10 300 3,604 - 43 43 GOODS_SERVICES_AND_INPUTS IFAD ( 60% ), BENEFICIARY ( 20% )
FPO managed ASC Per FPO - 10 10 1,000 12,013 - 142 142 GOODS_SERVICES_AND_INPUTS IFAD ( 60% ), BENEFICIARY ( 20% )
FPO Orchard Management Business Per FPO - 10 10 400 4,805 - 57 57 GOODS_SERVICES_AND_INPUTS IFAD ( 60% ), BENEFICIARY ( 20% )
Other emerging businesses Per FPO - 10 10 300 3,604 - 43 43 GOODS_SERVICES_AND_INPUTS IFAD ( 60% ), BENEFICIARY ( 20% )
Subtotal - 456 456
Total Investment Costs 23 1,277 1,300
II. Recurrent Costs
A. Capacity building of FPO Development Officer
Salary of FPO Development Officer Per Month - 240 240 50 601 - 171 171 OPERATING_COSTS IFAD ( 80% )
FPO Development Officer Operating costs Per Month - 240 240 12 144 - 41 41 OPERATING_COSTS IFAD ( 80% )
PO Management costs Lumpsum - 1 1 1,500 18,020 - 21 21 OPERATING_COSTS IFAD ( 80% )
Total Recurrent Costs - 233 233
Total 23 1,510 1,533

_________________________________
\a 5 day visit within the country for the perons responsible for developing curriculum for FPO Dev Officer training
\b A team of two consultants for each province
\c to be undertaken by the Universities for capacity building of FPO Development Officers
\d 20 FPO Dev Officer, 2 sessions of 5 days for first two years and one session per year for next 2 years
\e 2 per FPO for 101 FPOs - session of 5 days and two sessions per person
\f 4 per FPO to be conducted a KVKs
\g 5 persons per FPO, 1 week training
\h for developing an approach and porcess for training, technical assistance, investment proposal design and developing linakges for FPOs,. This would include FPO assessment methodology .
\i To be prepared in collaboration with the respective line department
\j Moblization support for 45 New FPO including registration expenses
\k 45 New FPO - 15 to be mobilized during the 24-25 and 30 during 25-26
\l 300 members per FPO, Rs 2000 per member and Rs 3000 per youth and women assuming 50% youth and women
\m To establish Multi-state cooperatives as Apex of FPOs
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir - 18 Months AWPB
Unit
Table 1.2. Agri-niche crop promotion Cost Totals Including
Detailed Costs Quantities (INR Unit Cost Contingencies (US$ '000) Other Accounts
Unit 2023/24 2024/25 Total '000) (US$) 2023/24 2024/25 Total Disb. Acct. Fin. Rule
I. Investment Costs
A. Training in CSA and GAP
Training curriculum development Lumpsum 1 - 1 200 2,403 2 - 2 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Training for Trainers - Within State /a Per Person 48 48 96 8 90 5 5 10 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Training for Trainers - National /b Per Person 40 80 120 60 721 31 66 98 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Subtotal 38 71 110
B. Field Staff training /c Man Days - 1,000 1,000 1 12 - 14 14 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
C. Training for Farmers /d Per Block/FPPO - 180 180 5 60 - 12 12 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
D. Planting material development
1. CoE Support
Saffron CoE business plan development Consultancy - 1 1 1,000 12,013 - 14 14 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
CoE Tulip feasibility study Consultancy - 1 1 1,000 12,013 - 14 14 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Subtotal - 28 28
2. Seed system development
Seed Business /e Per FPO - 4 4 500 6,007 - 28 28 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Subtotal - 55 55
E. Entrepreneur managed ASC Number - 10 10 1,000 12,013 - 138 138 GOODS_SERVICES_AND_INPUTS IFAD ( 80% )
F. Crop Management and Expansion
1. Rural Credit Workshops /f Number - 90 90 10 120 - 13 13 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD(80%)
2. SAFFRON /g
Farms in their year 1 per Kanal - 500 500 34 412 - 244 244 GOODS_SERVICES_AND_INPUTS IFAD ( 40% ), BENEFICIARY ( 50% )
3. Aromatic Rice /h per Kanal - 2,500 2,500 5 60 - 178 178 GOODS_SERVICES_AND_INPUTS IFAD ( 40% ), BENEFICIARY ( 50% )
4. Vegetables per Kanal - 2,000 2,000 12 144 - 342 342 GRANTS_AND_SUBSIDIES_CREDIT_AND_GUARANTEE_FUND IFAD ( 40% ), BENEFICIARY ( 50% )
5. Aromatic and Medicinal Plants /i Per Kanal - 200 200 15 180 - 43 43 GOODS_SERVICES_AND_INPUTS IFAD ( 40% ), BENEFICIARY ( 50% )
6. Others /j Kanal - 1,000 1,000 13 150 - 178 178 GOODS_SERVICES_AND_INPUTS IFAD ( 40% ), BENEFICIARY ( 50% )
Subtotal - 997 997
G. Water Management systems No - 50 50 600 7,208 - 427 427 GOODS_SERVICES_AND_INPUTS IFAD ( 40% ), BENEFICIARY ( 50% )
H. Protected Cultivation No - 150 150 750 9,010 - 1,576 1,576 GRANTS_AND_SUBSIDIES_CREDIT_AND_GUARANTEE_FUND IFAD ( 40% ), BENEFICIARY ( 50% )
I. Research Development /k Lumpsum - 2 2 5,000 60,067 - 142 142 GOODS_SERVICES_AND_INPUTS IFAD(80%)
Total Investment Costs 38 3,434 3,472
II. Recurrent Costs
A. Supervision costs per Directorate - 2 2 1,000 12,013 - 28 28 OPERATING_COSTS IFAD ( 80% )
Total Recurrent Costs - 28 28
Total 38 3,462 3,500

_________________________________
\a 2 Per district and 4 per Directorate HO for 5 days
\b 8 per province
\c 10 per district for 5 days
\d 30 persons per session and 2 sessions per Block/FPO
\e Vegetable seed production with private sector
\f Block level workshops
\g 5000 farmers, 4 Kanals land area,
\h includes mushk budji, basmati rice and other premium rice varieties
\i 10000 farmers, 4 Kanals land area,
\j includes floriculture,pulses and legumes, spices, willos and Bamboo
\k For both universities
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir - 18 Months AWPB Unit
Table 1.3. Horticulture crop promotion Cost Totals Including
Detailed Costs Quantities (INR Unit Cost Contingencies (US$ '000) Other Accounts
Unit 2023/24 2024/25 Total '000) (US$) 2023/24 2024/25 Total Disb. Acct. Fin. Rule
I. Investment Costs
A. Horticultural crop support
1. Training in CSA and GAP
Training curriculum development /a Lumpsum 1 - 1 500 6,007 7 - 7 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Training for Trainers - Within State /b Per Person 48 48 96 8 96 5 5 11 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Training for Trainers - National /c Per Person 40 80 120 60 721 32 68 99 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Field Staff training /d Man Days - 1,000 1,000 1 12 - 14 14 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Training for Farmers /e Per Block/FPO - 180 180 5 60 - 13 13 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Subtotal 44 100 143
2. Research Development Lumpsum - 2 2 7,500 90,101 - 214 214 GRANTS_AND_SUBSIDIES_CREDIT_AND_GUARANTEE_FUND IFAD ( 40% ), BENEFICIARY ( 50% )
3. Weather forecast and crop advisory
Software for weather forecasting Ls - 70 70 GOODS_SERVICES_AND_INPUTS IFAD(80%)
4. Planting material development- COE support
CoE business plan development Consultancy - 1 1 1,000 12,013 - 14 14 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
CoE - Business executives /f Per Month - 48 48 50 601 - 33 33 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Study of Apple crop expansion system ls - 21 21 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD(80%)
Subtotal - 68 68
5. Planting Materials -Nursery development
Nurseries - Apple and Pear Number - 25 25 2,600 31,235 - 942 942 GOODS_SERVICES_AND_INPUTS IFAD ( 40% ), PRIVATE_SECTOR( 50% )
Nurseries - Walnuts Number - 20 20 2,000 24,027 - 580 580 GOODS_SERVICES_AND_INPUTS IFAD ( 40% ), PRIVATE_SECTOR(50% )
Nurseries - Stonefruits Number - 25 25 2,600 31,235 - 942 942 GOODS_SERVICES_AND_INPUTS IFAD ( 40% ), PRIVATE_SECTOR(50% )
Nurseries - Mango, Litchis, Citrus Number - 10 10 2,600 31,235 - 377 377 GOODS_SERVICES_AND_INPUTS IFAD ( 40% ), PRIVATE_SECTOR(50% )
Subtotal - 2,842 2,842
6. Crop Management and expansion
Rural Credit Workshops /g Number - 90 90 10 120 - 13 13 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD(80%)
Solar Fencing Ha - 20 20 200 2,403 - 58 58 GOODS_SERVICES_AND_INPUTS IFAD ( 40% ), BENEFICIARY( 50% )
Entrepreneur managed ASC Number - 10 10 1,000 12,013 - 145 145 GOODS_SERVICES_AND_INPUTS IFAD ( 40% ), BENEFICIARY( 50% )
Training in fruit tree management /h Number - 100 100 28 336 - 41 41 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Enterpreneur led Orchard Management Business Number - 10 10 400 4,805 - 58 58 GOODS_SERVICES_AND_INPUTS IFAD ( 40% ), BENEFICIARY( 50% )
Water management Number - 50 50 600 7,208 - 435 435 GOODS_SERVICES_AND_INPUTS IFAD ( 40% ), BENEFICIARY( 50% )
Apple Per Kanal - 500 500 200 2,403 - 1,450 1,450 GOODS_SERVICES_AND_INPUTS IFAD ( 40% ), BENEFICIARY( 50% )
Walnut Per Kanal - 200 200 28 336 - 81 81 GOODS_SERVICES_AND_INPUTS IFAD ( 40% ), BENEFICIARY( 50% )
Mango Per Kanal - 300 300 21 250 - 90 90 GOODS_SERVICES_AND_INPUTS IFAD ( 40% ), BENEFICIARY( 50% )
Litchis Per Kanal - 400 400 20 245 - 118 118 GOODS_SERVICES_AND_INPUTS IFAD ( 40% ), BENEFICIARY( 50% )
Citrus Per Kanal - 200 200 21 250 - 60 60 GOODS_SERVICES_AND_INPUTS IFAD ( 40% ), BENEFICIARY( 50% )
Kiwi Per Kanal - 200 200 125 1,502 - 362 362 GOODS_SERVICES_AND_INPUTS IFAD ( 40% ), BENEFICIARY( 50% )
Guava Per Kanal - 400 400 25 300 - 145 145 GOODS_SERVICES_AND_INPUTS IFAD ( 40% ), BENEFICIARY( 50% )
Dragonfruit Per Kanal - 40 40 108 1,302 - 63 63 GOODS_SERVICES_AND_INPUTS IFAD ( 40% ), BENEFICIARY( 50% )
Others Per Kanal - 800 800 2 25 - 24 24 GOODS_SERVICES_AND_INPUTS IFAD ( 40% ), BENEFICIARY( 50% )
Rejuvenation Per Kanal - 1,500 1,500 30 360 - 652 652 GOODS_SERVICES_AND_INPUTS IFAD ( 40% ), BENEFICIARY( 50% )
Subtotal - 3,796 3,796
Total Investment Costs 44 7,089 7,133
II. Recurrent Costs
A. Supervision costs per Directorate 2 2 4 1,000 12,013 27 28 55 OPERATING_COSTS IFAD ( 80% )
Total Recurrent Costs 27 28 55
Total 70 7,118 7,188

_________________________________
\a Higher unit cost compared to niche crops due to larger number of crops
\b 2 Per district and 4 per Directorate HO for 5 days
\c 5 day training 8 per province foir first year, and 16 per province during second year and 8 per province for third year
\d 10 per district for 5 days
\e 30 persons per session and 2 sessions per Block/FPO
\f 2 per COE
\g Block level workshops
\h 1 week training
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir - 18 Months AWPB
Table 2.1. Enterprise promotion support Totals Including
Detailed Costs Quantities Unit Cost Unit Cost Contingencies (US$ '000) Other Accounts
Unit 2023/24 2024/25 Total '000) (US$) 2023/24 2024/25 Total Disb. Acct. Fin. Rule
I. Investment Costs
A. Enterprise Promotion Support
1. Business led enterprise promotion
Business Plan Review/DPR Appraisal Number - 5 5 100 1,201 - 8 8 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD(80%)
Mini CA Stores Number - 3 3 105,000 1,261,413 - 4,733 4,733 GRANTS_AND_SUBSIDIES_CREDIT_AND_GUARANTEE_FUND IFAD ( 40% ), BANK(30%), PRIVATE_SECTOR(20%)
Integrated pack-house Number - 1 1 5,000 60,067 - 75 75 GRANTS_AND_SUBSIDIES_CREDIT_AND_GUARANTEE_FUND IFAD ( 40% ), BANK(30%), PRIVATE_SECTOR(20%)
Processing unit - Large Number - 1 1 20,000 240,269 - 301 301 GRANTS_AND_SUBSIDIES_CREDIT_AND_GUARANTEE_FUND IFAD ( 40% ), BANK(30%), PRIVATE_SECTOR(20%)
Others Number - 8 8 1,000 12,013 - 120 120 GRANTS_AND_SUBSIDIES_CREDIT_AND_GUARANTEE_FUND IFAD ( 40% ), BANK(30%), PRIVATE_SECTOR(20%)
Subtotal - 5,237 5,237
2. Individual Enterprise Promotion
Bankable proposal development Number - 148 148 20 240 - 42 42 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD(80%)
Jammu/Kashmir branded kiosks Number - 50 50 100 1,201 - 71 71 GRANTS_AND_SUBSIDIES_CREDIT_AND_GUARANTEE_FUND IFAD ( 40% ), BANK ( 30% ), PRIVATE_SECTOR ( 20% )
Mini Grading Line Number - 30 30 300 3,604 - 128 128 GRANTS_AND_SUBSIDIES_CREDIT_AND_GUARANTEE_FUND IFAD ( 40% ), BANK ( 30% ), PRIVATE_SECTOR ( 20% )
Grading lines with washer Number - 10 10 800 9,611 - 114 114 GRANTS_AND_SUBSIDIES_CREDIT_AND_GUARANTEE_FUND IFAD ( 40% ), BANK ( 30% ), PRIVATE_SECTOR ( 20% )
Processing unit - Mini Number - 30 30 400 4,805 - 171 171 GRANTS_AND_SUBSIDIES_CREDIT_AND_GUARANTEE_FUND IFAD ( 40% ), BANK ( 30% ), PRIVATE_SECTOR ( 20% )
Agri-Tourism Number - 5 5 500 6,007 - 36 36 GRANTS_AND_SUBSIDIES_CREDIT_AND_GUARANTEE_FUND IFAD ( 40% ), BANK ( 30% ), PRIVATE_SECTOR ( 20% )
Mushroom Production /a per FPO - 3 3 200 2,403 - 9 9 GOODS_SERVICES_AND_INPUTS IFAD ( 40% ), BANK ( 30% ), PRIVATE_SECTOR ( 20% )
Other Enterprise Number - 20 20 400 4,805 - 114 114 GOODS_SERVICES_AND_INPUTS IFAD ( 40% ), BANK ( 30% ), PRIVATE_SECTOR ( 20% )
Subtotal - 684 684
Total - 5,921 5,921

_________________________________
\a 2 FPOs/ Entreprenuer per province linked to at least 20 farmers

India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir - 18 Months AWPB Unit
Table 2.2. Market promotion support Unit Cost Cost Totals Including
Detailed Costs Quantities (INR (US$ Contingencies (US$ '000) Other Accounts
Unit 2023/24 2024/25 Total '000) (US$) 2023/24 2024/25 Total Disb. Acct. Fin. Rule
I. Investment Costs
A. Market Promotion Support
MSPs at state level /a Number - 4 4 500 6 - 28 28 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Participation in trade fairs Per Entreprenuer - 10 10 100 1 - 14 14 GOODS_SERVICES_AND_INPUTS IFAD ( 80% )
Buyer Seller Meet /b Per Event - 4 4 300 4 - 17 17 GOODS_SERVICES_AND_INPUTS IFAD ( 80% )
Quality control lab /c Ls - 2 2 10,000 120 - 277 277 GOODS_SERVICES_AND_INPUTS IFAD ( 80% )
Subtotal - 335 335
B. Export / Logistic Hub
Study on feasibility and management of export/Logistic Hubs Ls - 28 28 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Total - 363 363

_________________________________
\a State Level
\b 2 Per province per year
\c Quality control lab in SKUAST-J and SKUAST-K
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir - 18 Months AWPB Unit
Table 2.3. Incubation and start-up Cost Totals Including
Detailed Costs Quantities (INR Unit Cost Contingencies (US$ '000) Other Accounts
Unit 2023/24 2024/25 Total '000) (US$) 2023/24 2024/25 Total Disb. Acct. Fin. Rule
I. Investment Costs
A. Development of Incubation & Startup Ecosystem for Agri & Allied Sector Startups
Outreach Events-Yearly Basis Per Event - 6 6 100 1,201 - 8 8 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Mentoring Support to Incubation Centres Ls - 2 2 1,500 18,020 - 42 42 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Ideathons/Bootcamps-Physical Per Event - 20 20 200 2,403 - 55 55 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Incubation Training for start-ups Per Hub Per Year Event - 2 2 2,000 24,027 - 55 55 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Development of Bankable Proposals for Start-ups Lumpsum - 2 2 200 2,403 - 6 6 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Seed Capital/ Challenge Fund Per start-up - 50 50 500 6,007 - 356 356 GRANTS_AND_SUBSIDIES_CREDIT_AND_GUARANTEE_FUND IFAD ( 80% )
Capacity Building of Incubation Staff Per Staff - 40 40 50 601 - 28 28 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Equipment and Materials Lumpsum - 2 2 2,500 30,034 - 71 71 GOODS_SERVICES_AND_INPUTS IFAD ( 80% )
Miscellaneous Expenses Lumpsum - 2 2 500 6,007 - 14 14 GOODS_SERVICES_AND_INPUTS IFAD ( 80% )
Total Investment Costs - 635 635
II. Recurrent Costs
A. Salaries and allowances
1. Manager-Incubation Per Month - 24 24 70 841 - 24 24 OPERATING_COSTS IFAD ( 80% )
2. Young Professional-Incubation Per Month - 24 24 40 481 - 14 14 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
3. Incubation Operating Costs Ls - 2 2 1,500 18,020 - 43 43 OPERATING_COSTS IFAD ( 80% )
Subtotal - 80 80
B. Operating costs
1. Operating costs
Office operating expenses Per Month - 2 2 500 6,007 - 14 14 OPERATING_COSTS IFAD ( 80% )
Travel Expenses Lumpsum - 2 2 500 6,007 - 14 14 OPERATING_COSTS IFAD ( 80% )
Miscellaneous Expenses Lumpsum 2 2 4 200 2,403 5 6 11 OPERATING_COSTS IFAD ( 80% )
Total 5 750 755

India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir - 18 Unit
Months AWPB
Unit
Table 3.1. Support for pastoralists Cost Cost Totals Including
Detailed Costs Quantities (INR (US$ Contingencies (US$ '000) Other Accounts
Unit 2023/24 2024/25 Total '000) (US$) 2023/24 2024/25 Total Disb. Acct. Fin. Rule
I. Investment Costs
A. Support to Pastoralists
Wool value chain study Study - 1 1 1,000 12 - 14 14 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD(80%)
Wool processing with private partners No - 4 4 3,000 36 - 166 166 GOODS_SERVICES_AND_INPUTS IFAD ( 40% ), PRIVATE_SECTOR ( 50% )
Pony Breed improvement feasibility study Study - 1 1 1,000 12 - 14 14 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Total - 194 194
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir - 18 Months AWPB
Unit
Table 3.2. Support for other vulnerable communities Cost Unit Cost Totals Including
Detailed Costs Quantities (INR (US$ Contingencies (US$ '000) Other Accounts
Unit 2023/24 2024/25 Total '000) (US$) 2023/24 2024/25 Total Disb. Acct. Fin. Rule
I. Investment Costs
A. Sheep/Goat units No - 200 200 120 1.442 - 342 342 GOODS_SERVICES_AND_INPUTS IFAD ( 40% ), BENEFICIARY ( 50% )
B. Milk Collection Units No - 4 4 500 6.007 - 28 28 GOODS_SERVICES_AND_INPUTS IFAD ( 80% )
C. Processing of milk products No - 2 2 1,000 12.013 - 28 28 GOODS_SERVICES_AND_INPUTS IFAD ( 40% ), BENEFICIARY( 50% )
D. Ice Boxes for Fish No - 2,000 2,000 5 0.06 - 142 142 GOODS_SERVICES_AND_INPUTS IFAD ( 80% )
E. Enterprise support - Income diversification Lumpsum - 250 250 200 2.403 - 692 692 GRANTS_AND_SUBSIDIES_CREDIT_AND_GUARANTEE_FUND IFAD ( 40% ), PRIVATE_SECTOR ( 50% )
F. Environment Protection Fund for youth per YC - 200 200 300 3.604 - 854 854 GRANTS_AND_SUBSIDIES_CREDIT_AND_GUARANTEE_FUND IFAD ( 80%)
Total - 2,087 2,087
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir - 18 Months AWPB
Table 4.1. Project Management Unit Cost Totals Including
Detailed Costs Quantities (INR Unit Cost Contingencies (US$ '000) Other Accounts
Unit 2023/24 2024/25 Total '000) (US$) 2023/24 2024/25 Total Disb. Acct. Fin. Rule
I. Investment Costs
A. Project Management
1. Office Equipment PMU
Laptop computers Each 15 - 15 80 961 16 - 16 GOODS_SERVICES_AND_INPUTS IFAD ( 80% )
Multi-function copier machines Each 2 - 2 200 2,403 5 - 5 GOODS_SERVICES_AND_INPUTS IFAD ( 80% )
Other equipment Lumpsum 1 - 1 200 2,403 3 - 3 GOODS_SERVICES_AND_INPUTS IFAD ( 80% )
Office furniture Lumpsum 1 - 1 1,000 12,013 13 - 13 GOODS_SERVICES_AND_INPUTS IFAD ( 80% )
Computer Peripherals Lumpsum 1 - 1 500 6,007 7 - 7 GOODS_SERVICES_AND_INPUTS IFAD ( 80% )
Subtotal 44 - 44
2. Account & Annual Audit
Accounting software Lumpsum - 11 11 50 601 - 8 8 GOODS_SERVICES_AND_INPUTS IFAD ( 80% )
Annual license fee Lumpsum - 11 11 15 180 - 2 2 GOODS_SERVICES_AND_INPUTS IFAD ( 80% )
External Independent Audit Lumpsum 1 1 2 1,500 18,020 20 21 41 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Internal Audit- External Lumpsum - 1 1 1,000 12,013 - 14 14 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Subtotal 20 46 66
Subtotal 64 46 110
B. M&E and Knowledge Management
1. Monitoring and Evaluation (M&E): Equipment
MIS Software Development Ls - 1 1 1,500 18,020 - 21 21 GOODS_SERVICES_AND_INPUTS IFAD ( 80% )
Laptop computers Each 2 - 2 45 541 1 - 1 GOODS_SERVICES_AND_INPUTS IFAD ( 80% )
Printer and scanner Each 1 - 1 35 420 0 - 0 GOODS_SERVICES_AND_INPUTS IFAD ( 80% )
Other equipment- GPS etc. Lumpsum 0.5 0.5 1 200 2,403 1 1 3 GOODS_SERVICES_AND_INPUTS IFAD ( 80% )
Subtotal 3 23 26
2. Monitoring and Evaluation (M&E): M&E studies, work shops, surveys
Baseline survey Study - 1 1 2,000 24,027 - 28 28 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Case studies/, Climate and environment studies studies Study - 2 2 1,500 18,020 - 43 43 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
FPIC Implementation LS 7 4 10 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Subtotal 7 75 81
3. Knowledge Management (KM)
Startup Workshop Lumpsum 1 - 1 1,000 12,013 13 - 13 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Sensitisation and Educational workshop District - 20 20 300 3,604 - 85 85 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Gender, targeting and inclusion sensitization workshop Workshop - 20 20 150 1,802 - 43 43 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Annual Stakeholders Planning and Review Workshop Lumpsum 1 1 2 500 6,007 7 7 14 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Thematic Studies Each 3 5 8 300 3,604 12 21 33 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
ICT Materials preparation and printing Lumpsum - 1 1 1,000 12,013 - 14 14 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Communication Videos Lumpsum - 1 1 500 6,007 - 7 7 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Innovative Pilots /a Lumpsum - 1 1 20,000 240,269 - 285 285 GOODS_SERVICES_AND_INPUTS IFAD ( 80% )
Policy studies Study - 2 2 500 6,007 - 14 14 TRAINING_CONSULTANCIES_STUDIES_AND_TA IFAD ( 80% )
Subtotal 32 477 509
Subtotal 42 574 616
Total Investment Costs 106 620 727
India
Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir - 18 Months AWPB
Table 4.1. Project Management Unit Cost Totals Including
Detailed Costs Quantities (INR Unit Cost Contingencies (US$ '000) Other Accounts
Unit 2023/24 2024/25 Total '000) (US$) 2023/24 2024/25 Total Disb. Acct. Fin. Rule
II. Recurrent Costs
A. Salaries and allowances
1. Project Management Unit Staff
Manager- Institutions Per Month - 12 12 125 1,502 - 21 21 OPERATING_COSTS IFAD ( 80% )
Rural Finance Specialist Per Month - 12 12 175 2,102 - 30 30 OPERATING_COSTS IFAD ( 80% )
Manager M&E Per Month - 12 12 125 1,502 - 21 21 OPERATING_COSTS IFAD ( 80% )
Manager KM Per Month - 12 12 125 1,502 - 21 21 OPERATING_COSTS IFAD ( 80% )
Procurement Specialist Per Month 3 12 15 175 2,102 7 30 37 OPERATING_COSTS IFAD ( 80% )
Procurement Officer Per Month - 12 12 80 961 - 14 14 OPERATING_COSTS IFAD ( 80% )
Manager MIS Per Month - 12 12 125 1,502 - 21 21 OPERATING_COSTS IFAD ( 80% )
Manager SECAP Per Month - 12 12 125 1,502 - 21 21 OPERATING_COSTS IFAD ( 80% )
Manager Finance Per Month - 12 12 125 1,502 - 21 21 OPERATING_COSTS IFAD ( 80% )
Accounts Officer Per Month - 12 12 80 961 - 14 14 OPERATING_COSTS IFAD ( 80% )
Manager Gender and Youth Per Month - 12 12 125 1,502 - 21 21 OPERATING_COSTS IFAD ( 80% )
Manager-Business Development Per Month - 12 12 125 1,502 - 21 21 OPERATING_COSTS IFAD ( 80% )
Project Assistants Per Month - 48 48 40 481 - 27 27 OPERATING_COSTS IFAD ( 80% )
Agriculture Specialists Per Month 3 24 27 175 2,102 7 60 67 OPERATING_COSTS IFAD ( 80% )
Horticulture Specialists Per Month 3 24 27 175 2,102 7 60 67 OPERATING_COSTS IFAD ( 80% )
Consultants - Procurement Man Days 90 60 150 25 300 30 21 52 OPERATING_COSTS IFAD ( 80% )
Consultants - value chain Per Month - 8 8 250 3,003 - 28 28 OPERATING_COSTS IFAD ( 80% )
Consultants - International Person Days - 45 45 65 781 - 42 42 OPERATING_COSTS IFAD ( 80% )
Consultants - National Person Days - 150 150 24 288 - 51 51 OPERATING_COSTS IFAD ( 80% )
Subtotal 51 548 599
2. Directorate staff
Procurement Officer /b Per Month 18 72 90 80 961 19 82 101 OPERATING_COSTS IFAD ( 80% )
Gender and Youth Officer Per Month - 48 48 80 961 - 55 55 OPERATING_COSTS IFAD ( 80% )
Planning, M&E &MIS Officer Per Month - 48 48 80 961 - 55 55 OPERATING_COSTS IFAD ( 80% )
Finance Officer Per Month - 48 48 80 961 - 55 55 OPERATING_COSTS IFAD ( 80% )
Subtotal 19 246 265
Subtotal 71 793 864
B. Operating costs
1. Operating costs - PMU
Office operating expenses Per Month 6 12 18 500 6,007 40 85 126 OPERATING_COSTS IFAD ( 80% )
Fuel and vehicle maintenance Per Month 6 12 18 300 3,604 24 51 75 OPERATING_COSTS IFAD ( 80% )
Travel allowances Per Month 6 12 18 300 3,604 24 51 75 OPERATING_COSTS IFAD ( 80% )
Meetings and backstopping Per Month 0.5 1 1.5 1,000 12,013 7 14 21 OPERATING_COSTS IFAD ( 80% )
Staff medical and group insurance Premium Per Month - 1 1 1,500 18,020 - 21 21 OPERATING_COSTS IFAD ( 80% )
Subtotal 95 223 319
Total Recurrent Costs 166 1,017 1,183
Total 272 1,637 1,909

_________________________________
\a To address the aspects related to high level subsidy dependence, low access of small farmers to credit
\b for Directorates and Universities
India

Competitiveness Improvement of Agriculture and Allied Sectors Project in Jammu and

Kashmir (J&KCIP)

Project Design Report

Annex 7: Procurement Plan for first 18 months

Mission Dates: 03 Oct 2023 to 20 Oct 2023

Document Date: 08/03/2024
Project No. 2000003933
Report No. 6741-IN

Asia and the Pacific Division

Programme Management Department
Annex 7: Procurement Plan for the first 18 months

Procurement Plan SUMMARY

Country: India
Project Name: Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir
(JKCIP)
Project ID: 2000003933
Version 1.0
Version Date 9-Nov-23
Prepared by:
Approved by:
Procurement Plan Actual
Category
Currency USD LCU USD LCU
Goods -
46,485,000.00 - -
Works -
- - -
Consulting - #VALUE!
Services 1,478,453,000.00 -
Non-Consulting -
Services - - -
Grants -
- - -
TOTAL - 1,524,938,000.00 - #VALUE!

The threshold tables below are based on the new LTB Template 2020.
Please fill in the fields that are applicable based on the provisions in the LTB for the project.

Prior Review Thresholds

Category Goods and goods-related Works and works- Consulting Services Individual Decisions concerning
Non-Consulting Services related Non-Consulting and related Non- Consultants Abnormally Low Bids
Services Consulting Services shall be subject to the No
and/or Objection of IFAD:
MoU/Agreements

Threshold >= US$ 100000.00 >= US$ 100000.00 >= US$ 50000.00 >= US$ 10000.00 Only for procurement
activities subject to prior
review
OR
For all procurement
activities
All Direct Contracting and Single-Source Procurements are Prior Review (in alignment with IFAD Procurement Handbook),
or based on the thresholds stipulated in the LTB

The exchange rate at time of submission will be used for reviews.

Procurement Method Thresholds

CQS QBS/LCS/FBS QCBS Shortlisting SSS - Firms SSS - Individuals

Consulting <= US$ 100000.00 < US$ 200000.00 >= US$ 300000.00 >= US$ 100000.00 <= US$ 5000.00 <= US$ 5000.00
Services and (subject to prior review.(or with a contract
related Non- Justification required ifduration of 3 months or
Consulting above threshold) less; subject to prior
Services review)
Direct Contracting Shopping NCB ICB Other Procurement Methods or Arrangements
Goods and >= US$ 5000.00 <= US$35000.00 < US$ 500000.00 >= US$ 500000.00 Force Account Up to a maximum
goods-related (subject to prior review. aggregate amount of:
Non-Consulting Justification required if US$ 0.00
Services above threshold) (subject to prior review)
Works and >= US$ 5000.00 <= US$ 35000.00 < US$ 2000000.00 >= US$ 2000000.00 Community Allowed
works-related (subject to prior review. Participation
Non-Consulting Justification required if
Services above threshold)

Procurement
Plan - Goods

India

Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir (JKCIP)

Project ID: USD LCU

2000003933

Prepared by: Total 0.00 46,485,000.00 Plan

Amount

Approved by: 0.00 0.00 Actual

Non- 0.00 0.00 Plan

Consulting
:
 0.00 0.00 Actual

Version 1. 9-Nov-23 Basic Data

0

AWPB/ № Description Non Fundin Lot Project Plan Pre-or Post Prior Procuremen Envelopes Amoun Amount Plan vs.
Component Consultin g №/Descriptio Area or vs. Qualificatio or t Method t (USD) (LCU) Actual
Ref g n Procurin Actua n Post
g Entity l Revie
w

1 Procuremen IFAD PMU Plan Post-Qual Post NS 1 Plan

t of Review 2,000,000.00
equipment
for milk
collection Actual Actual
unit - 4 sets - -

2 Procuremen IFAD PMU Plan Post-Qual Prior NCB 1 Plan

t of 2000 Ice Review 10,000,000.00
Boxes for
fish
Actual Actual
- -

3 Incubation IFAD SKUAST- Plan Post-Qual Post NCB 1 Plan

centre J Review 2,500,000.00
equipment
and
materials Actual Actual
- -

4 Incubation IFAD SKUAST- Plan Post-Qual Post NCB 1 Plan

centre K Review 2,500,000.00
equipment
 and Actual Actual
materials - -

5 Procuremen IFAD PMU Plan Post-Qual Prior NCB 1 Plan

t of Review 20,000,000.00
equipment
for quality
control labs Actual Actual
- 2 labs - -

6 {rocureemnt IFAD PMU Plan Post-Qual Post NS 1 Plan

of Software Review 70,000.00
for weather
forecasting
Actual Actual
- -

7 Procuremen SKUAST- Plan Post-Qual Post NS 1 Plan

t of office J Review 1,000,000.00
equipment
for FPOs
Actual Actual
- -

8 Procuremen PMU Plan Post-Qual Post NCB 1 Plan

t of Laptop, Review 5,500,000.00
Desk top,
Printers,
photocopier Actual Actual
etc. for - -
PMU,
SKAUST
 9 Office PMU Plan Post-Qual Post NS 1 Plan
furniture for Review 1,000,000.00
PMU

Actual Actual
- -

10 Accounting PMU Plan Post-Qual Post NS 1 Plan

software Review 715,000.00
and license
fees-11
Actual Actual
- -

11 Procureemn PMU Plan Post-Qual Post NS 1 Plan

t of GPS Review 200,000.00

Actual Actual
- -

12 ICT material PMU Plan Pre-Qual Prior NS 1 Plan

preparation Review 1,000,000.00
and printing

Actual Actual
- -

Procurement Plan - Consulting

India
Competitiveness Improvement of the
Agriculture and Allied Sectors Project in
Jammu and Kashmir (JKCIP)

Project ID: 2000003933 USD LCU

Prepared by: Total 0.00 1,478,453,000. Plan

Amount 00

Approved by: 0.00 #VALUE! Actual

Non- 0.00 0.00 Plan

Consulting:

0.00 0.00 Actual

Grants: 0.00 0.00 Plan

0.00 0.00 Actual

Version 1.0 9-Nov-23 Basic Data

AWPB/Component Ref № Description* Gran Non Fundin Project Plan Shortlis Prior Procureme Amoun Amount (LCU) Plan
t Consultin g Area or vs. t or nt Method t (USD) vs.
g Procuring Actua (Yes|No Post Actua
Entity l ) Revie l
w

1 Hiring of PMU Plan Yes Post ICS Plan

consultant as Revie 1,500,000.00
Manager- w
Institutions (12
month cost) Actual Actual
- -

2 Hiring of PMU Plan Yes Prior ICS Plan

consultant as Revie 2,100,000.00
Rural Finance w
 Specialist (12 Actual Actual
month cost) - -

3 Hiring of PMU Plan Yes Prior ICS Plan

consultant as Revie 1,500,000.00
Manager M&E w
(12 month
cost) Actual TRUE Actual
-

4 Hirinf of PMU Plan Yes Prior ICS Plan

consultant as Revie 1,500,000.00
Manager KM w
(12 month
cost) Actual Actual
- -

5 Hiring of PMU Plan Yes Prior ICS Plan

consultant as Revie 2,625,000.00
Procurement w
Specialist (15
month cost) Actual Actual
- -

6 Hiring of PMU Plan Yes Prior ICS Plan

consultant as Revie 960,000.00
Procurement w
Officer (12
month cost) Actual Actual
- -

7 Hiring of PMU Plan Yes Prior ICS Plan

consultant as Revie 1,500,000.00
Manager MIS w
 (12 month Actual Actual
cost) - -

8 Hiring of PMU Plan Yes Prior ICS Plan

consultant as Revie 1,500,000.00
Manager w
SECAP (12
month cost) Actual Actual
- -

9 Hiring of PMU Plan Yes Prior ICS Plan

consultant as Revie 1,500,000.00
Manager- w
Finance (12
month cost) Actual Actual
- -

10 Hirinf of PMU Plan Yes Prior ICS Plan

consultant as Revie 960,000.00
Accounts w
Officer (12
month cost) Actual Actual
- -

11 Hiring of PMU Plan Yes Prior ICS Plan

consultant as Revie 1,500,000.00
Manager- w
Business
Development Actual Actual
(12 month - -
cost)

12 Hiring of PMU Plan Yes Prior ICS Plan

consultant as Revie 1,500,000.00
Manager w
 Gender and Actual Actual
Youth (12 - -
month cost)

13 Hiring of PMU Plan Yes Prior ICS Plan

consultant as Revie 1,920,000.00
Project w
Assistants- 4
positions (12 Actual Actual
month cost) - -

14 Hiring of PMU Plan Yes Prior ICS Plan

consultant as Revie 2,625,000.00
Agriculture w
Specialists (15
month cost) Actual Actual
- -

15 Hiring of PMU Plan Yes Prior ICS Plan

consultant as Revie 2,625,000.00
Horticulture w
Specialist (15
month cost) Actual Actual
- -

16 Hiring of PMU Plan Yes Prior ICS Plan

Procurement Revie 2,250,000.00
Consultant for w
capacity
building- 90 Actual Actual
days input - -
over 15
months

17 Hiring of PMU Plan Yes Prior ICS Plan

consultant Revie 2,000,000.00
w
 value chain (8 Actual Actual
month cost) - -

18 Hiring of Sr. PMU Plan Yes Prior ICS Plan

consultant Revie 2,925,000.00
value chain w
(45 days input)
Actual Actual
- -

19 Hiring of PMU Plan Yes Prior ICS Plan

consultant Revie 3,600,000.00
value chain w
(150 days
input) Actual Actual
- -

20 Hiring of PMU Plan Yes Prior ICS Plan

consultants as Revie 7,200,000.00
Procurement w
Officers for 6
Directorates - Actual Actual
6 positions (15 - -
month cost)

21 Hiring of PMU Plan Yes Prior ICS Plan

consultant as Revie 3,840,000.00
Planning, M&E w
&MIS Officer
at Directorates
- 4 positions
(12 month
cost)
Actual Actual
- -
22 Hiring of PMU Plan Yes Prior ICS Plan
consultant as Revie 3,840,000.00
Gender and w
Youth Officer
at Directorates Actual Actual
- 4 positions - -
(12 month
cost)

23 Hiring of PMU Plan Yes Prior ICS Plan

consultant as Revie 3,840,000.00
Finance w
Officer at
Directorates - Actual Actual
4 positions - -
(12 month
cost)

24 Procurement Community Plan Yes Prior Selection Plan

of 200 units of Revie (Design/PIM 3,840,000.00
Sheep/Goat w )
by community
Actual Actual
- -

25 Units for Community Plan Yes Post Selection Plan

processing of Revie (Design/PIM 2,000,000.00
milk products- w )
2
Actual Actual
- -

26 Enterprise Community Plan Yes Prior Selection Plan

support - Revie (Design/PIM 50,000,000.00
Income w )
diversification-
250 units Actual Actual
- -
27 Environment Community Plan Yes Prior Selection Plan
Protection Revie (Design/PIM 60,000,000.00
Fund for w )
youth- 200
units Actual Actual
- -

28 Procureemnt PMU Plan Yes Post CQS Plan

of consultant Revie 1,000,000.00
for Wool value w
chain study
Actual Actual
- -

29 Wool Community Plan Yes Prior Selection Plan

Processing Revie (Design/PIM 12,000,000.00
with private w )
partners- 4
units Actual Actual
- -

30 Pprocurement PMU Plan Yes Post CQS Plan

of consultant Revie 1,000,000.00
for Pony w
Breed
improvement Actual Actual
feasibility - -
study

31 Organisation PMU Plan Yes Post Selection Plan

of outreach Revie (Design/PIM 600,000.00
event on w )
annual basis
Actual Actual
- -
32 Mentoring SKUAST Plan Yes Prior ICS Plan
support Revie 3,000,000.00
consultancy w
for incubation
centres Actual Actual
- -

33 Consultancy PMU Plan Yes Prior CQS Plan

services for Revie 4,000,000.00
organisation of w
boot camps
Actual Actual
- -

34 Consultancy SKUAST Plan Yes Prior CQS Plan

services for Revie 4,000,000.00
incubation w
training for
start ups -2 Actual Actual
events - -

35 Consultant for SKUAST Plan Yes Post ICS Plan

development Revie 400,000.00
of bankable w
proposals
Actual #SPILL! Actual
-

35 Seed capital/ PMU Plan Yes Prior Selection Plan

Challenge Revie (Design/PIM 25,000,000.00
fund w )

Actual #SPILL! Actual

-
35 Consultant for SKUAST Plan Yes Post ICS Plan
capacity Revie 2,000,000.00
building of w
incubation
staff Actual #SPILL! Actual
-

36 Hiring of PMU Plan Yes Post ICS Plan

consultant as Revie 1,500,000.00
Manager- w
Institutions (12
month cost) Actual Actual
- -

37 Organisation PMU Plan Yes Post CQS Plan

of MSPs at Revie 2,000,000.00
state level-4 w

Actual Actual
- -

38 Hiring of PMU Plan Yes Post ICS Plan

consultant as Revie 1,500,000.00
Manager- w
Institutions (12
month cost) Actual Actual
- -

39 Participation in PMU Plan Yes Post Selection Plan

trade fair- 10 Revie (Design/PIM 1,000,000.00
enterpreneurs w )

Actual Actual
- -
40 Consultant for PMU Plan Yes Post CQS Plan
organising Revie 1,200,000.00
buyer seller w
meets-4
Actual Actual
- -

41 Study on PMU Plan Yes Post CQS Plan

feasibility and Revie 2,300,000.00
management w
of
export/Logistic Actual Actual
Hubs - -

42 Consultant for PMU Plan Yes Post CQS Plan

Business Plan Revie 500,000.00
Review/DPR w
Appraisal
Actual Actual
- -

43 Mini CA PMU Plan Yes Prior Selection Plan

Stores- 3 Revie (Design/PIM 315,000,000.00
w )

Actual Actual
- -

44 Integrated PMU Plan Yes Prior Selection Plan

pack-house Revie (Design/PIM 5,000,000.00
w )

Actual Actual
- -
45 Processing PMU Plan Yes Post Selection Plan
unit - Large Revie (Design/PIM 20,000,000.00
w )

Actual Actual
- -

46 Processing PMU Plan Yes Prior Selection Plan

units - 8 Revie (Design/PIM 8,000,000.00
w )

Actual Actual
- -

47 Consultant for PMU Plan Yes Prior CQS Plan

Bankable Revie 2,960,000.00
proposal w
development
Actual Actual
- -

48 Consultant for PMU Plan Yes Prior Selection Plan

Jammu/Kash Revie (Design/PIM 5,000,000.00
mir branded w )
kiosks- 50
Actual Actual
- -

49 Mini Grading PMU Plan Yes Prior Selection Plan

Line- 30 Revie (Design/PIM 9,000,000.00
w )

Actual Actual
- -
50 Grading lines PMU Plan Yes Prior Selection Plan
with washer- Revie (Design/PIM 8,000,000.00
10 w )

Actual Actual
- -

51 Processing PMU Plan Yes Prior Selection Plan

unit - Mini - 30 Revie (Design/PIM 12,000,000.00
w )

Actual Actual
- -

52 Agri-Tourism - PMU Plan Yes Post Selection Plan

5 units Revie (Design/PIM 2,500,000.00
w )

Actual Actual
- -

53 Mushroom PMU Plan Yes Post Selection Plan

Production Revie (Design/PIM 600,000.00
Centre - 3 w )
FPOs
Actual Actual
- -

54 Support to PMU Plan Yes Prior Selection Plan

formation of Revie (Design/PIM 8,000,000.00
Other w )
miscellaneous
Enterprises - Actual Actual
20 units - -
55 Training PMU Plan Yes Post ICS Plan
curriculum Revie 500,000.00
development w
to reduce cost
of niche crops Actual Actual
- -

56 Training for PMU Plan Yes Post CQS Plan

Trainers - Revie 768,000.00
Within State w
for horticulture
niche crops
Actual Actual
- -

57 Training for PMU Plan Yes Prior QCBS Plan

Trainers - Revie 7,200,000.00
National, 5 w
days training
at HO for 120
persons
Actual Actual
- -

58 Field Staff PMU Plan Yes Post CQS Plan

training for Revie 1,000,000.00
horticulture w
niche crops-
1000 staff
Actual Actual
- -

59 Training for PMU Plan Yes Post CQS Plan

farmers for Revie 900,000.00
horticulture w
niche crops-
180 persons
 Actual Actual
- -

60 Reasearch SKUAST-J Plan Yes Prior Selection Plan

and and K Revie (Design/PIM 15,000,000.00
Development w )
for Horticulture
niche crops
Actual Actual
- -

61 Training for PMU Plan Yes Post CQS Plan

Trainers - Revie 768,000.00
Within State w
for horticulture
niche crops
Actual Actual
- -

62 Consultancy PMU Plan Yes Post CQS Plan

services for Revie 1,000,000.00
CoE business w
plan
development
Actual Actual
- -

63 Hiring of PMU Plan Yes Prior ICS Plan

consultants as Revie 2,400,000.00
CoE - w
Business
executives- 4
positions (12
months cost)
Actual Actual
- -
64 Study of Apple PMU Plan Yes Prior CQS Plan
crop Revie 5,600,000.00
expansion w
system
Actual Actual
- -

65 Development PMU Plan Yes Prior Selection Plan

of Nurseries - Revie (Design/PIM 65,000,000.00
Apple and w )
Pear- 25
numbers
Actual Actual
- -

66 Development PMU Plan Yes Prior Selection Plan

of Nurseries - Revie (Design/PIM 40,000,000.00
Walnuts- 20 w )
numbers
Actual Actual
- -

67 Development PMU Plan Yes Prior Selection Plan

of Nurseries - Revie (Design/PIM 65,000,000.00
Stonefruits- 25 w )
numbers
Actual Actual
- -

68 Development PMU Plan Yes Prior Selection Plan

of Nurseries - Revie (Design/PIM 26,000,000.00
Mango, w )
Litchis, Citrus-
10 numbers
 Actual Actual
- -

69 Study of Apple PMU Plan Yes Prior CQS Plan

crop Revie 5,600,000.00
expansion w
system
Actual Actual
- -

70 Solar Fencing PMU Plan Yes Prior Selection Plan

- 20 Ha Revie (Design/PIM 4,000,000.00
w )

Actual Actual
- -

71 Study of Apple PMU Plan Yes Prior CQS Plan

crop Revie 5,600,000.00
expansion w
system
Actual Actual
- -

72 Training in fruit PMU Plan Yes Post CQS Plan

tree Revie 2,800,000.00
management- w
100 persons
Actual Actual
- -

73 Entrepreneur PMU Plan Yes Prior Selection Plan

managed ASC Revie (Design/PIM 10,000,000.00
- 10 numbers w )
 Actual Actual
- -

74 Enterpreneur PMU Plan Yes Post Selection Plan

led Orchard Revie (Design/PIM 4,000,000.00
Management w )
Business- 10
number
Actual Actual
- -

75 Water PMU Plan Yes Prior Selection Plan

management- Revie (Design/PIM 30,000,000.00
50 number w )

Actual Actual
- -

76 Crop PMU Plan Yes Post Selection Plan

expansion for Revie (Design/PIM 4,000,000.00
apple - 500 w )
Kanal
Actual Actual
- -

77 Crop PMU Plan Yes Prior Selection Plan

expansion for Revie (Design/PIM 5,600,000.00
walnut - 200 w )
Kanal
Actual Actual
- -
78 Crop PMU Plan Yes Prior Selection Plan
expansion for Revie (Design/PIM 6,300,000.00
mango - 300 w )
Kanal
Actual Actual
- -

79 Crop PMU Plan Yes Prior Selection Plan

expansion for Revie (Design/PIM 8,000,000.00
Litchis - 400 w )
Kanal
Actual Actual
- -

80 Crop PMU Plan Yes Prior Selection Plan

expansion for Revie (Design/PIM 4,200,000.00
Citrus - 200 w )
Kanal
Actual Actual
- -

81 Crop PMU Plan Yes Prior Selection Plan

expansion for Revie (Design/PIM 25,000,000.00
Kiwi - 200 w )
Kanal
Actual Actual
- -

82 Crop PMU Plan Yes Prior Selection Plan

expansion for Revie (Design/PIM 10,000,000.00
Guava - 400 w )
Kanal
Actual Actual
- -
83 Crop PMU Plan Yes Prior Selection Plan
expansion for Revie (Design/PIM 4,320,000.00
dragon fruit - w )
40 Kanal
Actual Actual
- -

84 Crop PMU Plan Yes Post Selection Plan

expansion for Revie (Design/PIM 1,600,000.00
miscellaneous w )
crops - 800
Kanal
Actual Actual
- -

85 Rejuvenation PMU Plan Yes Prior Selection Plan

of Revie (Design/PIM 45,000,000.00
miscellaneous w )
crops - 1500
Kanal
Actual Actual
- -

86 Training PMU Plan Yes Post CQS Plan

cuurriculum Revie 200,000.00
development w
in CSA and
GAP
Actual Actual
- -

87 Training of PMU Plan Yes Post CQS Plan

trainers with in Revie 768,000.00
state in CSA w
 and GAP-96
persons

Actual Actual
- -

88 Training of PMU Plan Yes Prior QCBS Plan

trainers- Revie 7,200,000.00
national in w
CSA and
GAP-120
persons
Actual Actual
- -

89 Field staff PMU Plan Yes Post CQS Plan

training in CSA Revie 1,000,000.00
and GAP - w
1000
Actual Actual
- -

90 Training in of PMU Plan Yes Post CQS Plan

farmers in Revie 900,000.00
CSA and GAP w
- 180 persons
Actual Actual
- -

91 consultancy PMU Plan Yes Post CQS Plan

for Saffron Revie 1,000,000.00
CoE business w
plan
development
Actual Actual
- -
92 Consultancy PMU Plan Yes Post CQS Plan
services for Revie 1,000,000.00
CoE Tulip w
feasibility
study
Actual Actual
- -

93 Development PMU Plan Yes Post CQS Plan

of FPOs for Revie 2,000,000.00
seed business w
- 4 numbers
Actual Actual
- -

94 Enterpreneur PMU Plan Yes Prior Selection Plan

managed ASC Revie (Design/PIM 10,000,000.00
for CSA and w )
GAP- 10
numbers
Actual Actual
- -

95 Organisation PMU Plan Yes Post CQS Plan

of rural credit Revie 1,000,000.00
workshop for w
CSA and GAP
Actual Actual
- -

96 Development PMU Plan Yes Prior Selection Plan

of saffron Revie (Design/PIM 17,000,000.00
farms- 500 w )
kanals
 Actual Actual
- -

97 Development PMU Plan Yes Prior Selection Plan

of aromatic Revie (Design/PIM 12,500,000.00
rice farms- w )
2500 Kanals
Actual Actual
- -

98 Development PMU Plan Yes Prior Selection Plan

of vegetable Revie (Design/PIM 24,000,000.00
farms - 2000 w )
Kanals
Actual Actual
- -

99 Development PMU Plan Yes Post Selection Plan

of aromatic Revie (Design/PIM 3,000,000.00
and medicinal w )
plants farms -
2000 Kanals
Actual Actual
- -

10 Development PMU Plan Yes Prior Selection Plan

0 of Revie (Design/PIM 13,000,000.00
miscellaneos w )
farms - 1000
Kanals
Actual Actual
- -
10 Water PMU Plan Yes Prior Selection Plan
1 management Revie (Design/PIM 30,000,000.00
system for agri w )
niche crops -
50
Actual Actual
- -

10 Protected PMU Plan Yes Prior Selection Plan

2 cultivation for Revie (Design/PIM 112,500,000.00
niche crops - w )
150
Actual Actual
- -

10 Reasearch SKUAST- Plan Yes Prior Selection Plan

3 and J,K Revie (Design/PIM 112,500,000.00
Development w )
for Agri niche
crops
Actual Actual
- -

10 Exposure visit PMU Plan Yes Post Selection Plan

4 to well Revie (Design/PIM 1,200,000.00
managed w )
FPOs- 20
persons
Actual Actual
- -

10 Assessment of PMU Plan Yes Post ICS Plan

5 FPO business Revie 720,000.00
opportunities - w
30 days over
12 months
 Actual Actual
- -

10 consultancy PMU Plan Yes Post CQS Plan

6 services for Revie 600,000.00
Preparation of w
curriculum for
training of
FPO-DO
Actual Actual
- -

10 Capacity PMU Plan Yes Post CQS Plan

7 building of Revie 600,000.00
FPO-DO ( w
sessions of 5
days and two
sessions per
person)-300
persons
Actual Actual
- -

10 Training of PMU Plan Yes Post CQS Plan

8 FPO staff- Revie 1,010,000.00
1010 staff w

Actual Actual
- -

10 Training of PMU Plan Yes Post CQS Plan

9 FPO leaders Revie 404,000.00
/d ( 4 per FPO w
for 1 day and
three
sessions)- 404
Actual Actual
- -
11 Training in fruit PMU Plan Yes Post CQS Plan
0 tree Revie 840,000.00
management w
(5 per FPO for
5 days for 60
FPOs) - 30
persons
Actual Actual
- -

111 Consultancy PMU Plan Yes Post CQS Plan

services for Revie 2,525,000.00
FPO Business w
plan
preparation-
101
Actual Actual
- -

11 Technical PMU Plan Yes Prior CQS Plan

2 Assistance - Revie 1,400,000.00
FPO Support w
for developing
an approach
and
methodology
Actual Actual
- -

11 consultancy PMU Plan Yes Post CQS Plan

3 services for Revie 1,515,000.00
FPO-bankable w
sub-project
preparartion-
101
Actual Actual
- -
11 FPO-Bank/ PMU Plan Yes Post CQS Plan
4 Insurance Revie 505,000.00
interaction-101 w

Actual Actual
- -

11 Organisation PMU Plan Yes Post CQS Plan

5 of rural credit Revie 1,000,000.00
workshop for w
CSA and GAP
Actual Actual
- -

11 Farm Community Plan Yes Post Selection Plan

6 mechanization Revie (Design/PIM 2,000,000.00
and drudgey w )
reduction-10
FPOs
Actual Actual
- -

11 Water Community Plan Yes Post Selection Plan

7 Management Revie (Design/PIM 5,000,000.00
systems-10 w )
FPOs
Actual Actual
- -

11 Aggregation Community Plan Yes Post Selection Plan

8 support-10 Revie (Design/PIM 3,000,000.00
FPOs w )
 Actual Actual
- -

11 FPO managed Community Plan Yes Prior Selection Plan

9 ASC-10 FPOs Revie (Design/PIM 10,000,000.00
w )

Actual Actual
- -

12 FPO Orchard Community Plan Yes Post Selection Plan

0 Management Revie (Design/PIM 4,000,000.00
Business-10 w )
FPOs
Actual Actual
- -

12 Other Community Plan Yes Post Selection Plan

1 emerging Revie (Design/PIM 3,000,000.00
businesses for w )
FPOs-10
FPOs
Actual Actual
- -

12 Baseline PMU Plan Yes Post CQS Plan

2 survey Revie 2,000,000.00
w

Actual Actual
- -
12 External PMU Plan Yes Prior QCBS Plan
3 independent Revie 3,000,000.00
auditor for 2 w
years
Actual Actual
- -

12 Internal PMU Plan Yes Post CQS Plan

4 independent Revie 1,000,000.00
auditor for 1 w
year
Actual Actual
- -

12 MIS Software PMU Plan Yes Post CQS Plan

5 development Revie 1,500,000.00
w

Actual Actual
- -

12 Case study PMU Plan Yes Post CQS Plan

6 Revie 1,500,000.00
w

Actual Actual
- -

12 Climate and PMU Plan Yes Post CQS Plan

7 environment Revie 1,500,000.00
study w

Actual Actual
- -
12 External PMU Plan Yes Prior QCBS Plan
8 independent Revie 3,000,000.00
auditor for 2 w
years
Actual Actual
- -

12 FPIC PMU Plan Yes Post ICS Plan

9 Implementatio Revie 800,000.00
n w

Actual Actual
- -

13 Start up PMU Plan Yes Post LCS Plan

0 workshop Revie 1,000,000.00
w

Actual Actual
- -

13 Sensitisation Implementin Plan Yes Post LCS Plan

1 and g parties Revie 6,000,000.00
educational w
workshop-20
Actual Actual
- -

13 Gender, Implementin Plan Yes Post LCS Plan

2 Targetting and g parties Revie 3,000,000.00
inclusion w
sensitisation
workshop - 20
Actual Actual
- -
13 Annual PMU Plan Yes Post LCS Plan
3 stakeholder Revie 1,000,000.00
planning and w
review
workshop - 2
Actual Actual
- -

13 Thematic PMU Plan Yes Post CQS Plan

4 studies- 8 Revie 2,400,000.00
w

Actual Actual
- -

13 Gender, PMU Plan Yes Post LCS Plan

5 Targetting and Revie 3,000,000.00
inclusion w
sensitisation
workshop - 20
Actual Actual
- -

13 Communicatio PMU Plan Yes Post LCS Plan

6 n video Revie 500,000.00
w

Actual Actual
- -

13 Innovative PMU Plan Yes Prior QCBS Plan

7 Pilot-1 Revie 20,000,000.00
w
 Actual Actual
- -

13 Policy study PMU Plan Yes Post CQS Plan

8 Revie 1,000,000.00
w

Actual Actual
- -
India

Competitiveness Improvement of Agriculture and Allied Sectors Project in Jammu and

Kashmir (J&KCIP)

Project Design Report

Annex 8: Project Implementation Manual (PIM)

Mission Dates: 03 Oct 2023 to 20 Oct 2023

Document Date: 08/03/2024
Project No. 2000003933
Report No. 6741-IN

Asia and the Pacific Division

Programme Management Department
Annex 8: Project Implementation Manual (PIM)

Contents of the Project Implementation Manual

The purpose of this Programme Implementation Manual (PIM) is to assist the staff of the
Lead Implementing Agency, project parties and other participating agencies, which are
responsible for planning, implementation, supervision and monitoring of the JKCIP. The
PIM will enhance the overall skill and understanding of the implementing partners. It is
also intended to provide guidance in improving the overall management information
systems and M & E processes.

The PIM for the JKCIP is presented in SIX Chapters:

Chapter-1 Targeting, mainstreaming and value chain analysis.

Chapter-2 Summary Project Design and Project Implementation Arrangements.
Chapter-3 Organizational Arrangements and Terms of Reference
Chapter-4 Planning, M&E and knowledge management aspects.
Chapter-5 Financial Arrangements
Chapter-6 Procurement

Some of the Chapters are supported by Appendices.

1
 Chapter 1: Targeting, mainstreaming and value
chain analysis
Background

1. Agriculture and allied activities are the mainstay of J&Ks rural economy. More than
70% of the population in J&K is directly or indirectly engaged in agriculture and allied
occupations for their livelihood which makes J&K’s economy mostly agriculture dependant.
Most of the farmers in J&K are small and marginal with fragmented land holdings.
Therefore, in order to transform the socio-economic status of people of J&K, sustainable
& inclusive development of agriculture and allied sectors is need of the hour to increase
income and create better livelihood opportunities for people of J&K.

2. GoJ&K organised a Multi-Stakeholder Convention for holistic development of

Agriculture & Allied Sectors in J&K on 18th -19th July 2022. The two days convention
primarily focused on transforming subsistence agriculture into knowledge-based and
technology–driven sustainable agri-economy. The participants during the convention
proposed area specific interventions with introduction of innovative technologies, new
knowledge, IT interventions and infusion of capital to revamp the said sectors in J&K
besides promoting secondary agriculture, value addition, processing, branding &
marketing of agricultural produce supported by agri-business innovations to create
employment, secure fair standard of living for farmers and agricultural workers,
discourage migration to urban areas and brace-up to the challenges arising out of
globalization and climate change. Consequent to the deliberations in the Convention, an
Apex Committee, under the Chairmanship of Shri Mangla Rai, Former DG, ICAR was
constituted by the General Administration Department, for framing a comprehensive
Agriculture Policy for holistic development of Agriculture & Allied Sectors in J&K. In this
regard different Technical Working Groups were also framed for submission of necessary
inputs to the Apex Committee

3. GoJ&K has rolled out HADP with an investment outlay of INR 50,000 million and
covers the entire agri and allied sector ecosystem. JKCIP complements HADP by
addressing thematic gaps and financing gaps to address the value chain constraints of
high-value agricultural and horticultural crops through climate-resilient technologies and
extension. The main thematic areas include: (i) FPO promotion to transform them into
businesses with a focus on the delivery of services to farmers; (ii) improved production
and productivity of niche agricultural crops; (iii) focus on improving traditional orchards
with better tree management practices and area expansion of fruit and nut crops; (iv)
enterprise promotion with incubation and start-ups and marketing support; and (v)
support for improving processing and marketing of wool and dairy products and livelihood
diversification of vulnerable communities.

Project objectives, geographic area of intervention and target groups

4. Goal and objectives: The goal of the project is to contribute to the sustained
increase in incomes of rural households by improving the competitiveness and climate
resilience of farming operations. The project objective is to improve the competitiveness
and climate resilience of the farmers through the value chain approach covering
production, value addition and marketing of high-value niche commodities from
agriculture, horticulture, and allied sectors of J&K.

5. Geographic areas of intervention: The project will be implemented in all 20

2
districts of Jammu and Kashmir. The project design has adopted an exclusion strategy to
minimize security and environmental safeguards-related challenges by excluding the
blocks/villages that fall adjacent to the border and those are ecologically sensitive and
part of forest buffer zone areas, and biodiversity hotspots that comprise five national
parks, 14 wildlife sanctuaries, 37 conservation reserves and 4 Ramsar sites. The project
will work in 90 Blocks finalized by APD using a scoring system based on Block level data
on key value chains covering area under cultivation, production, productivity and the
number of farmers as well as the following key selection criteria: (i) higher levels of
poverty as per the socioeconomic indicators; (ii) potential for building value chain
interventions for niche high-value and horticultural crops in clusters; (iii) contiguity of
blocks for operational ease; (iv) existence of vulnerable communities; and (iv) higher
levels of vulnerability to climate change events. A list of blocks selected using the above
exclusion strategy for project implementation is provided in Appendix C1A1.

6. Target groups: The total outreach of the project will be 300,000 households
reaching 1.5 million individuals.1 The main target group would comprise resource-poor
farmers and rural households involved in farming in areas with the potential for cultivation
of high-value niche crops and horticultural crops using climate-resilient and environment-
friendly technologies. A stakeholder engagement strategy will be prepared and included
in the Design Report for implementation by the APD.

7. Targeting and Mainstreaming Priorities: JKCIP targeting, gender and social

inclusion strategy provides measures to ensure meaningful participation of marginal
farmers especially women, extremely poor and vulnerable, landless, youth, Schedule
Caste (SCs) and Schedule Tribes (STs) in the project activities to ensure an increase in
income for the beneficiaries. Target group categories and development pathways are
provided in Appendix C1A3.

8. Target group: JKCIP will target three categories of smallholders like; (i) poor; (ii)
relatively poor who have the potential to sell the products in the local market and gradually
engage with the market; and (iii) commercially oriented ‘non-poor’ smallholder farmers.
The target group includes smallholder farmers and landless, and labourers involved in
agriculture and horticulture value chains.

9. JKCIP will have a strong focus on women–at least 47 percent of beneficiaries will
be women including single women, women-headed HHs and youth-30 percent (both
women and men) of 15-35 years age group.

10. Among all, 10 percent of beneficiaries will be of the poor category, 70% in the
relatively poor category and balance 20% are non-poor. Inclusion of smallholder
producers, poor and vulnerable rural populations will be ensured by selecting value chains
that have evidence to deliver the biggest benefits to the largest number of poor and
through extension of agroecology-based climate-smart agriculture and good agriculture
practices (GAP) technologies that benefit the intended target group effectively. The focus
will be given to the selection of a value chain with high returns on labour, high nutrition
value and high profitability. Labour-saving technology, tools and equipment will be
facilitated in reducing the drudgery of women.

11. The non-poor farmers and other value chain actors are more commercially oriented
and play an important role in value chain development. JKCIP will adopt a strategy to

1
Average family size of 5.1 in J&K as per National health and family welfare survey, 2015-16.

3
mobilize non-poor farmers together with the poor smallholders, youth and other value
chain actors into selected value chains organizing them into PGs and FPOs and establishing
productive partnerships with other private sector buyers. The project will introduce
approaches that promote gender equality, women and youth empowerment and social
inclusion as part of its value chain-related activities.

12. Targeting Strategy: Of the total target group, it is envisaged that some 90% of
the target beneficiaries have the potential to improve their well-being through agriculture
and horticulture value chain interventions. A further 10% of the beneficiaries comprising
vulnerable groups will be supported to expand their livelihood options. JKCIP will sensitize
and build the skills and capacity of staff on targeting, gender and inclusion. Staff will orient
and sensitize the stakeholders who will work with project beneficiaries. Adhering to the
targeting requirements of the project is the responsibility of project management and all
the staff. However, the Manager-Institutions and Manager -Gender and Youth will regularly
analyse the targeting and Gender Equality and Women Empowerment (GEWE)
performance in collaboration with Manager-M&E and regularly share with senior project
management and facilitate appropriate decisions to achieve the targets and facilitate
achievement of project goal.

13. JKCIP will ensure the participation of the more marginal rural HHs, whilst being
inclusive of so-called ‘better-off’ smallholder farmers and specific vulnerable groups. The
mechanisms include (i) geographic targeting, (ii) direct targeting and (iii) self-targeting
supported by capacity building and empowering, creating a conducive enabling
environment and partnerships with other promoters of community institutions.

14. Geographic targeting: The project will focus on the areas with high potential for
select value chains with a focus on rainfed areas. The project has adopted an exclusion
strategy to minimize security and environmental safeguards-related challenges by
excluding the blocks/villages that fall adjacent to the border and those are ecologically
sensitive and part of forest buffer zone areas, and biodiversity hotspots that comprise five
national parks, 14 wildlife sanctuaries, 37 conservation reserves and 4 Ramsar sites.

15. Direct targeting: The project will support four main target groups adopting
differentiated targeting strategies and packages of interventions: (i) small and marginal
farmers with less than 1.0 ha of land involved in only field crops; (ii) horticultural farmers
with less than 1 ha of horticultural farms; (iii) women and youth; (iv) isolated and
migratory communities, women headed and Scheduled Caste and Scheduled Tribe
(SC&ST) households.

16. A large percentage of farmers engaged in agricultural crops (cereal, pulses,

spices, and vegetables) are relatively poor. These farmers have marginal land holdings
with limited access to irrigation. The project will intervene to improve the production and
productivity of these farmers with diversification into niche crops based on market demand
and techno-economic feasibility-led business plan to make the target group more
competitive. Amongst the horticultural farmers, the farmers with small traditional orchards
are poor. The project will focus on improving the production and productivity of these
farmers coupled with value addition and marketing to benefit the entire sector. A
stakeholder engagement plan is provided in Appendix C1A2.S

17. Self-targeting: The project will create opportunities for the community especially
the youth and women to start their own enterprises in the processing and marketing of
the identified niche crops (saffron, aromatic rice, medicinal and aromatic plants,
vegetables, spices and floriculture). The project also aims to establish incubating centres

4
where support will be provided to young men and women for startups. All these activities
will address the self-targeting component of the project.

18. Gender equality and women empowerment: Women will be supported

primarily for economic empowerment, enhancement of their agency, equal voices and
decision-making roles both at HHs and community-level institutions. Representation of
women in every activity and institution will not be less than 50%. All these institutions will
be made inclusive with proportionate representation of all socio-economic groups of
beneficiaries. The staff of PMU, DPMU and Blocks will be sensitized on targeting, gender
and inclusion strategies and develop the process and approaches for the benefit of the
targeted beneficiaries.

19. Women of marginalized sections like single women, women heads of HHs and
young women who are socially, culturally and economically disadvantaged but responsible
for ensuring the well-being of their families and agricultural activities. REAP will analyse,
inter-sectionality among women and targeted activities will be promoted for poor and
vulnerable sections of women. Linkage with the government social protection system and
access to pro-poor convergence with other ongoing programmes will also be promoted
through the project. A checklist for preparing the Gender and Social Inclusion Strategy is
provided in Appendix C1A4. A guideline for preparing Gender Action Plan is provided in
Appendix C1A45.

20. Youth: Jammu & Kashmir is bestowed with a predominantly young population with
about 69 % of the population being below the age of 35 years. Conflict, low agricultural
and associated sector productivity has hurt employment and per capita income growth.
One of the most pressing problems in J&K is the high rate of youth unemployment, with
several youth caught in a web of violence and social strife leading to disruptions in
education and employment. This situation has changed considerably over the last 3-4
years with youth seeking to become part of the mainstream with an interest in becoming
entrepreneurs. In order to provide a platform for holistic implementation of all youth
engagement and outreach initiatives, and to bring the interests and empowerment of
youth to the centre of policy making, the government of Jammu & Kashmir has rolled out
a pioneering initiative - Mission Youth where the youths have been provided grants from
the governments to start their own business/ enterprises. The project will support youth
involvement in community institution promotion to achieve higher levels of participation
by the youth in the process of decision-making and implementation at the local and higher
levels. In addition, the project will also support start-ups to enable the youth to transform
their innovative ideas into businesses. All interventions with the youth will include
strategies for engaging young women in particular.

21. Value chain assessments: The project design team undertook value chain
assessments in Jammu and Kashmir, analyzing the various climatic zones, and actors
involved in the production and distribution of goods and services in the region. This
assessment can help identify strengths and weaknesses in the value chain and suggest
strategies for improvement.

22. Identify key climatic zones: The design team analyzed the key climatic zones,
cropping system and livelihoods and value chain pathways. The details are provided in
Appendix C1A6.

23. Identify Key Sectors: Start by identifying the key sectors in Jammu and Kashmir's

5
economy. Common sectors in the region include agriculture and horticulture. The key
agricultural value chains are: (i) Saffron, (ii) Black Cummin; (iii) off-season vegetables;
(iv) Aromatic rice; (v) Medicinal and Aromatic plants; (vi) pulses; and (vii) spices. With
respect to horticultural crops, the key value chain crops are: (i) apple; (ii) pear; (iii)
Guava; (iv) mango; (v) Litchi; (vi) walnut; (vii) almond, and (viii) Cherry. An analysis of
the selection of value chains is provided in Appendix C1A7. For each identified value chain
mapping was carried out to identify the main actors at each stage, such as farmers,
processors, wholesalers, retailers, and service providers. Detailed value chain profiles for
these crops are provided in Appendix C1A8. The package of practices, value chain
constraints and the steps to build climate resilience are provided in Appendix C1A8.

6
Appendix C1A1: List of Blocks identified for project implementation

Block distribution by project district - Kashmir Region

S. District Block Agricultural Crops Horticultural Crops
No

1. Srinagar Srinagar Vegetable, Mustard, Strawberry, apple

2. Srinagar Khonmoh Saffron, Spice, Vegetable and Apple, walnut, Cherry
MAPs
3. Srinagar Qammerwari Vegetables and Chilly Apple, Cherry,
4. Srinagar Harwan Vegetables Chilly, Fringe and Strawberry, apple,
MAPs Cherry
No. of 4
Blocks
5. Anantnag Hiller Aromatic rice and Chilly Apple, Walnut
Shahabad
6. Anantnag Sagam Aromatic rice, Chilly and Apple, Walnut
MAPs
7. Anantnag Achbal Vegetable and MAPs Apple and Walnut
8. Anantnag Anantnag Vegetable Apple, Walnut
9. Ananthnag Chitragul Potato, Vegetables and Maize Apple, Walnut
No. of 5
Blocks
10. Bandipora Arin Kala Jeera, Chilly and MAPs Apple, Walnut
11. Bandipora Bandipora Vegetable, chilly and MAPs Apple, Walnut and Pear
12. Bandipora Sumbal Vegetable and chilly Apple, Walnut and Pear
No. of 3
Blocks
13. Baramulla Tangmarg Vegetable, chilly, MAPs and Cherry, Strawberry
MAPs
14. Baramulla Pattan Chilly and Vegetables Cherry, Apple, Pear
15. Baramulla Baramulla Chilly and Vegetables Apple, Pear
16. Baramulla Kunzer Chilly and Vegetables Cherry,Apple, Pear
No. of 4
Blocks
17. Ganderbal Lar Chilly, Cocks Comb and Grape, Walnut
Vegetables
18. Ganderbal Wakoora Chilly, Cocks Comb and Grape, Apple
Vegetables
19. Ganderbal Kangan Chilly, Cocks Comb and Walnut, Apple
Vegetables
20. Ganderbal Gund Millets, vegetables and MAPs Walnut
No. of 4
Blocks
21. Kulgam Devsar Vegetable chilly, Garlic and Apple, Walnut,
MAPs
22. Kulgam Behibagh Vegetable chilly and Garlic Apple, Walnut
23. Kulgam Manzgam Vegetable Apple and Fringe,
24. Kulgam DK Marg Vegetable Apple and Fringe,
No. of 4
Blocks
25. Kupwara Sogam Vegetable, Chilly, red rice and Apple and Walnut and
MAPs Fringe
26. Kupwara Magam Vegetable, Chilly and red rice Apple
27. Kupwara Hirri Vegetable, Chilly and red rice Apple
No. of 3
Blocks
28. Pulwama Awantipora Saffron, Vegetable and Chilly Apple, Walnut
29. Pulwama Newa Saffron, Vegetable and Chilly Almond, Apple, Walnut
30. Pulwama Tral Millets and vegetables Almond, Walnut, Apple
and Fringe
31. Pulwama Pampore Saffron Almond, Apple
32. Pulwama Rajpora Vegetable, Chilly, and MAPs Apple
No. of 5
Blocks
33. Shopian Keller Vegetable, Onion, garlic, Apple and Fringe
chilly
34. Shopian Zainapora Vegetable, Onion, garlic, Walnut, apple and Kiwi
chilly
35. Shopian Shopian Vegetable Apple and Cherry
36. Shopian Imamsahab Vegetable Apple and Cherry
37. Shopian Hirpura Potato, Garlic and MAPs Apple
No. of 5
Blocks
38. Budgam Beerwah Saffron, Vegetables, aromatic Apple, Plum, Pear
rice
39. Budgam Khag Saffron, Vegetables, aromatic Apple
rice, and MAPs
40. Budgam Khansahib Rice, Vegetable Plum and pear
41. Budgam Nagam Saffron, Vegetables, aromatic Plum, Almond and Pear
rice
42. Budgam B.K.Pora Vegetable, Paddy, Mustard Plum and pear
43. Budgam Budgam Vegetable, Paddy, Mustard Plum, Almond and Pear
44. Budgam Charari Vegetable, Paddy, Mustard, Plum, Almond and Pear
Sharief and MAPs
45. Budgam Chadoora Vegetable, Paddy, Mustard Plum, Almond and Pear
No. of 8
Blocks
Total- 45
Kashmir
Block distribution by project district - Jammu Region
S. District Block Agricultural Crops Horticultural Crops
No

1. Doda Marmat Rajma, Millets Apple, Walnut

2. Doda Bhaderwah Rajma, Millets, and MAPs Apple, Walnut
3. Doda Bhalla Rajma, Millets, Kala Zeera Apple, Walnut
4. Doda Bhagwah Rajma, Millets Walnut, apple
5. Doda Bhalessa Rajma, Millets and MAPs Walnut, apple
6. Doda Kastigarh Vegetables, Pulses Walnut, apple
No. of 6
Blocks
7. Jammu Bhalwal Aromatic rice, Chilly, Mango, citrus, Guava
vegetable and MAPs
8. Jammu Bishnah Basmati, Vegetable Mango, citrus, Guava
9. Jammu Miransahib Basmati, Vegetable Mango, citrus, Guava
10. Jammu Chowkichaura Vegetable and MAPs Amla
11. Jammu Mathwar Vegetable Cirtus, Guava
12. Jammu Bhalwal Vegetable Mango, citrus
Brahmana
No. of 6
Blocks
13. Kathua Bani Pulses and Vegetables, Maize Stone Fruits, Apple,
Walnut
14. Kathua Barnoti Vegetables, Paddy Mango
15. Kathua Billawar Vegetables, and MAPs Citrus
16. Kathua Kathua Vegetables, Paddy Litchi
17. Kathua Malhar Vegetables, Paddy, Maize and Stone Fruits, Apple,
MAPs Walnut
No. of 5
Blocks
18. Kishtwar Kishtwar Safron, Maize Walnut, apple and Kiwi
19. Kishtwar Palmar Safron, Maize Walnut, Apple,
20. Kishtwar Thakrie Safron, Maize, and MAPs Walnut, Apple
21. Kishtwar Nagseni Safron, Maize, and MAPs Walnut and apple
22. Kishtwar Mughal Safron, Maize Kiwi,
maidan
No. of 5
Blocks
23. Poonch Lassana Maize, Vegetable, and MAPs Peach, plum and pecan
nut, Apricot
24. Poonch Surankot Maize, Vegetable Peach, plum and pecan
nut, Apricot
25. Poonch Mendher Maize, Vegetable Peach, plum and pecan
nut, Apricot
No. of 3
Blocks
26. Rajouri Rajouri Maize, Vegetable Pecan nut, Apricot, Plum
27. Rajouri Thanamandi Maize, Vegetable Apple, Walnut
28. Rajouri Budhal Pulses and Vegetables Apple Walnut
29. Rajouri Dharhal Pulses, Vegetables, Maize and Apple, Walnut, Pear
MAPs
No. of 4
Blocks
30. Ramban Khari Maize, Vegetable Apple, Walnut,
31. Ramban Batote Maize, Vegetable Anar Dhana, Walnut,
Apple, Kiwi
32. Ramban Ghandri Maize, Vegetable and MAPs Anar Dhana, Walnut,
Kiwi, Apple
No. of 3
Blocks
33. Reasi Jijbagli Hill Garlic, Maize Apple, Walnut
34. Reasi Thakrakote Hill Garlic, Maize Walnut
35. Reasi Mahore Maize, Vegetable and MAPs Walnut, Pear
36. Reasi Chassana Vegetables Walnut, Pear
37. Reasi Gulabgarh Vegetable and MAPs Walnut, Pear, Apple
No. of 5
Blocks
38. Samba Ghagwal Paddy, Vegetable Citrus, Peach, Plum
39. Samba Purmandal Paddy, Vegetable Citrus, Peach, Plum
40. Samba Sumb Paddy, Vegetable and MAPs Citrus, Peach, Plum
41. Samba Nud Paddy, Vegetable Citrus
No. of 4
Blocks
42. Udhampur Chenani Hill Garlic, Maize, Vegetable Stone Fruits, Apple,
and MAPs Walnut
43. Udhampur Majouri Hill Garlic, Maize, Vegetable Stone Fruits, Apple,
44. Udhampur Ramnagar Vegetable, Mustard, Stone fruits, Citrus
45. Udhampur Lal Maroti Pulses and Vegetables Citrus, Stone
No. of 4
Blocks
Total- 45
Jammu
Grand 90
Total
 Appendix C1A2: Stakeholder Engagement Plan
Stakeholder engagement
Effective community and stakeholder engagement plays a crucial role in the successful
execution of the project. Throughout the entire project lifecycle, JKCIP will actively involve
stakeholders in the decision-making process. In the development and execution of project
activities, the project will seek input and feedback from communities and all relevant
stakeholders. This will encompass their recommendations and opinions regarding activity
design, implementation strategies, and endorsed measures for mitigating risks.

The design of JKCIP involved an extensive consultation process that engaged various
stakeholders, ranging from local beneficiaries to regional and national actors. These
stakeholders encompass groups, institutions, and individuals who could be directly or
indirectly affected by JKCIP, possess an interest in its outcomes, or hold the potential to
influence the project, either positively or negatively. In the context of JKCIP, this group
includes central and J&Kministries, directories, districts, blocks, universities, farmer
producer organizations, MSMEs, cooperatives, youth, women, tribal groups, scheduled
castes, marginalized communities, service providers, and IFAD. Additionally, potential
stakeholders could comprise impacted communities, civil societies, and other
organizations operating within the project areas.

Information disclosure

Sharing pertinent project information is essential for enabling project-affected individuals

and other stakeholders to comprehend the risks, impacts, and opportunities associated
with the project. The JKCIP will ensure that relevant stakeholders have access to crucial
information, including:

i) The project's purpose, nature, and scale.

ii) The expected duration of project activities.

iii) Any potential risks and impacts on communities, along with the corresponding
mitigation measures.

iv) The planned stakeholder engagement process.

v) The grievance mechanism in place.

As part of the stakeholder engagement process, all pertinent documents related to a

proposed investment or subproject will be made available. The disclosure of such
documents will vary depending on the size and nature of the investment and the
significance of associated risks and impacts. Examples of these documents may include
subproject proposals, ESCMPs, among others.

The table 1 below list the identified stakeholders and details their engagement methods
into the project cycle.
Table 1: Stakeholder engagement plan

Most valuable Frequency

Engagement Information to report and
Stakeholder Concerns information to of Responsible Timeline
Method disclose and report back
obtain engagement

Government
Central
Finance and More frequent
Principle Borrows, signing the
procumbent during the
Department of Financing agreement, debrief
Formal Financial agreement, Supervision, related rules, Project project design,
Economic Affairs, after every supervision, Periodic basis
communication finance related revisions policies, human Manager periodic form
Ministry of Finance province concurrence to no
resource the project start
objections to mission reports
capacity up workshop
More frequent
J&K come under the adminis-
J&K related during the
trative authority of Ministry of
Ministry of Home Formal rules, policies, Project project design,
Home Affairs. Participate in re- Supervision and review process Periodic basis
Affairs communication and human Manager periodic form
view process.
resources the project start
up workshop
Country's Project design
Indirectly engagement, project
Formal Progress update brief and regular policy, updated Project review process
Niti Aayog will share development and Annual
communication strategic guidance strategies, Manager and during the
progress within a regular basis
guidelines implementation
Ministry of
Informed by the project about Formal Progress update and get guidance
Agriculture and Occasional
the development communication and needed
farmers welfare
J&K
Ongoing
programs,
Department of Project lead implementation especially
Overall lead the AWPB preparation, update,
Agriculture agency together with HADP,
stakeholder implementation, M&E, research, Regular PMU Regular
Production and directorates and University of guidelines and
engagement guidelines, and policies
farmers welfare Sher-E-Kashmir strategies,
human
resources
 Most valuable Frequency
Engagement Information to report and
Stakeholder Concerns information to of Responsible Timeline
Method disclose and report back
obtain engagement

Ongoing
Directorates of programs,
Agriculture, especially
Thematic implementing AWPB preparation, update,
Directorate of Lead in HADP,
agencies, lead in thematic implementation, M&E, research, Regular PMU Regular
Horticulture, and thematic areas guidelines and
implementation in field level guidelines, and policies
Directorate of strategies,
sheep husbandry human
resources
University of Sher-
e-Kashmir Lead in
Support on AWPB preparation,
University of Ag, Implementing agency corresponding Research Regular PMU Regular
technical and research areas
science, and areas
technology K&J
Department of Formal Annual or PMU, Finance Project
Audit, procurement Financial and procurement reports Audit
Finance communication periodic team implementation
Service Providers
Research,
learning,
Engagement in
Indian Institute of Incubation and start up activities implementation PMU, related Project
Technical service provider project Regular
Management support procedures, theme leader implementation
implementation
human
resources
Development
Partners
Potential
Coordination collaboration on
Ongoing projects and their
and activities
UNDP, UNICEF, Learning and knowledge activities, past projects and their
collaboration on implementation, Need basis PMU Implementation
WHO exchange learning, plans for upcoming
activities upscaling, and
projects and programs
implementation creating joint
efforts
FPO promoting
agencies
 Most valuable Frequency
Engagement Information to report and
Stakeholder Concerns information to of Responsible Timeline
Method disclose and report back
obtain engagement

J&K Bank (gramin);

Regional Rural
Bank; National Financial
Bank for schemes,
Improve financial assistance for
Agriculture and Connecting for support for PMU,
enterprise promotion and other Financial support needed by the
Rural Development financial FPOs and Regular thematic Implementation
project related works: individual FPOs and enterprises
(NABARD); support enterprises, leaders
and group level
Agriculture FPO
financing and strengthening
Agriculture Loans in
India etc.
Ongoing IFAD
projects
Learning
exchange and Thematic
Nav Tejaswini,
Cross learning on Gender capacity Exchange knowledge products Gender learning Occasional leaders in Implementation
Maharastra;
building events, PMU
tours
Learning
exchange and Thematic
Cross learning on youth and Youth and value
REAP, Uttarakhand capacity Exchange knowledge products Occasional leaders in Implementation
value chain chain learning
building events, PMU
tours
Organization
Center for Events, Thematic
Knowledge products, periodic Implementation
Medicinal and Research and learning research, and Occasional leaders in Implementation
reports practices
Aromatic Plant tours PMU
Beneficiaries
Mentoring, funding, providing Engagement in Business ideas, Thematic
Agri Business start
network access, technology project Activities budgeted for enterprises proposals, start Regular leaders in Implementation
ups
support implementation up roster PMU
Skill development, mentorship, Engagement in Thematic
Students trainings, support on idea project Activities budgeted for students Research Regular leaders in Implementation
testing implementation PMU
Engagement in Thematic
Business growth, FPO Working area
MSME project Activities related to MSME Regular leaders in Implementation
promotion and capacity
implementation PMU
 Most valuable Frequency
Engagement Information to report and
Stakeholder Concerns information to of Responsible Timeline
Method disclose and report back
obtain engagement

Participatory engagement:
planning, implementation, and Planning,
Youth status,
monitoring, ICTs, internships, implementation, PMU,
priorities, Planning,
Youth scholarships, startups, and monitoring Activities related to youths Regular thematic
needs, and Implementation
incubation, entrepreneurship events, leaders
provisions
development, employment research
generation
Participatory engagement: Planning,
Women status,
planning, implementation, and implementation, PMU,
priorities, Planning,
Women monitoring, Drudgery reduction, and monitoring Activities related to women Regular thematic
needs, and Implementation
enterprises, livelihood events, leaders
provisions
improvement research
marginalized
Participatory engagement: Planning, community's
Marginalized PMU,
planning, implementation, and implementation, Activities related to marginalized status, Planning,
communities and Regular thematic
monitoring, livelihood and monitoring communities and SCs priorities, Implementation
scheduled cast leaders
improvement events needs, and
provisions
Tribal
Participatory engagement: Planning, community's
PMU,
planning, implementation, and implementation, Activities related to tribal status, Planning,
Tribal communities Regular thematic
monitoring, livelihood and monitoring communities priorities, Implementation
leaders
improvement events needs, and
provisions
Traders and
buyers
Market
Multi
stakeholders, PMU and
stakeholder Market demand, price, and
Organic exporters Safe food market issues, Regular basis thematic Implementation
platforms opportunities
challenges, and leads
(MSP), market
opportunities
Bio input
demand,
MSP,
Bio input demand, supply, and supply, and PMU and
Ensuring bio inputs to the enterprises
Bio input producers quality status, potential quality status, Regular thematic Implementation
program areas support and
production opportunities potential leads
promotion
production
opportunities
 Most valuable Frequency
Engagement Information to report and
Stakeholder Concerns information to of Responsible Timeline
Method disclose and report back
obtain engagement

Service Providers, PMU and

Studies, research, technical Through Status and
start ups, and Status and opportunities Need basis thematic Implementation
assistance, and other procurement opportunities
incubation centers leads
Trade and related capacity Potential PMU and Design,
Multistakeholder
Business entities building and quality control, Potential market and commodities market and Need basis thematic planning,
platforms
Export market linkages commodities leads implementation
Market
Bio input supply, trade fairs,
potential,
enterprise development, MSP, B2B, B2S,
Market potential, suitable suitable PMU and Design,
business to business service, direct benefit
MSME commodities, input supply commodities, Regular thematic planning,
business and suppliers service, from program
demand and supply status input supply leads implementation
market management, capacity activities
demand and
building, post-harvest support
supply status

Capacity building
institutions
Department of Skill Governance,
Awareness, PMU, Design,
Development, Training, skill development, transparency,
capacity Project periodic reports Need basis thematic planning, and
incubation centers, internships technical
building leaders implementation
lead entrepreneurs assistance
Non-Governmental Organizations

Governance,
Awareness, PMU, Design,
Local to national Governance, transparency, transparency,
Capacity building capacity Need basis thematic planning,
level NGOs technical assistance technical
building leaders implementation
assistance

IFAD
Program design, missions (kick
off, supervision, implementation Design,
support, mid-term review, and PDR, IFAD PMU, planning,
Formal
IFAD offices program completion), No PDR, IFAD policies and provisions policies and Regular basis thematic implementation,
communication
objection as per provisions, provisions leaders completion, and
regular capacity building and post completion
technical assistance as needed
Grievance redress
The project will use the GoJ&K’s Integrated Grievance Redress and Monitoring System (JK-
IGRAMS2). This online portal allows to registral grievance all the time (24*7). The portal
is liked with GoI’s grievance handling (CPGRAMS3) and at the project level with district
and its subordinate offices. It has provision to submit complaints both in local language
and English.

Along with the online registration, the system allows any postal and registered complaints
addressed to the Grievance cell. There is also a toll-free number for directly registering
complaint to Department of Public Grievances, J&K. A unique grievance number is provided
to track the updates on the complaint. It has been made a mandatory to submit
clarification by the concerned faculty to the complaints directed to them. The GoJ&K has
ensured that all the departments and officers have to submit fortnightly reports to the
Lieutenant Governor.

Following are the details to register and follow complaints:

Contact details of the department of Public Grievances:

Process to lodge the grievance:

The grievances can be lodged online on Web Portal (https://jkgrievance.in)

In cases where internet facility is not available or even otherwise, the citizen is free to
send her/his grievance by Post. There is no prescribed format. However, the application
must clearly mention the Name, Complete Address and Contact No of the Applicant. The
grievance may be written on any plain sheet of paper and addressed to Department of
Public Grievances.

2
For the details: https://jkgrievance.in/AwazAAwam/Index.aspx
3
For the details: https://pgportal.gov.in/
The grievance can also be filled through the Toll-Free Call Centres.

The grievance is acknowledged online or by post. A unique registration number is given

to each grievance.

Track the grievance:

The grievance may be tracked on the Web Portal (https://jkgrievance.in) using Track
Grievance link.

Post grievance registration:

The grievances are electronically forwarded to the concerned Department/District. Every

Department/District has designated a Nodal Officer(s) for redress of grievances
pertaining to that particular Department/District.

Moreover, there is also a practice of Block diwas to directly interact with community by
higher level officials. JKCIP will facilitate to participate project beneficiaries in such
events.

BLOCK DIWAS4

Block Diwas is an unique developmental initiative of the Government of Jammu and

Kashmir where by the higher ranked government functionaries reach out to the designated
blocks/Sub Divisions on the pre-decided dates, interact with the people, obtain feedback
from them so as to tailor government efforts in improving the delivery of services and do
on The Spot Grievance Redressal in the most efficient manner thus, justifying the Prime
Minister’s mantra of “minimum government and maximum governance.

Block Diwas is also a means to fully achieving the gains of the Back to Village programme
which has been conceived with the objective of ensuring that developmental initiatives are
built on the feedback and cooperation of the people, thus being more result-oriented with
a greater probability of success.

The third phase(B2V3) of the public outreach programme ‘Back to Village’ (B2V) ran from
October 2nd till October 12th. The first of its kind initiative was launched by the J&K
administration in June 2019 for “strengthening governance at the grassroots level and
enhancing participatory development”.

MAJOR GAINS OF THE BLOCK DIWAS

• Energizing Blocks/Subdivisions.
• Collecting feedback on the delivery of government schemes and programmes.
• Capturing the specific economic potential of the designated block.
• Undertaking an assessment of the needs of Blocks/Subdivision.
• Resulting in speedy governance by doing On the Spot Grievance Redressal of the
people.
• The administration has identified the unfulfilled promises made during the last
two phases of B2V and ensured their fulfilment in the third phase of the
programme.

4
For details: https://awaamkibaat.jk.gov.in/jan_bhagyidari/305/
 • It has Institutionalized the Back to Village programme- The visits made by the
officials to the rural areas during the last two phases of B2V programme became
a routine exercise of the administration.

IFAD Complaints Procedure

Objective: to ensure that appropriate mechanisms are in place to allow individuals and
communities to contact IFAD directly and file a complaint if they believe they are or might
be adversely affected by an IFAD-funded project/program not complying with IFAD's Social
and Environmental Policies and mandatory aspects of SECAP.

Eligibility criteria

To file a complaint for alleged non-compliance with IFAD's social and environmental policies
and mandatory aspects of its SECAP, IFAD will consider only complaints meeting the
following criteria:

• The complainants claim that IFAD has failed to apply its social and environmental policies
and/or the mandatory provisions set out in SECAP.
• The complainants claim that they have been or will be adversely affected by IFAD's failure
to apply these policies.
• Complaints must be put forward by at least two people who are both nationals of the
country concerned and/or living in the project area. Complaints from foreign locations or
anonymous complaints will not be taken into account.
• Complaints must concern projects/programmes currently under design or implementation.
Complaints concerning closed projects, or those that are more than 95 per cent disbursed,
will not be considered.

The process

The complainants should first bring the matter to the attention of the government or non-
governmental organisation responsible for planning or executing the project or programme
(the Lead Agency), or to any governmental body with the responsibility for overseeing the
Lead Agency. If the Lead Agency does not adequately respond, then the matter may be
brought to the attention of IFAD. The issue may be brought straight to IFAD if the
complainants feel they might be subject to retaliation if they went to the Lead Agency
directly.

The Regional Division will examine the complaint and, if necessary, will contact the Lead
Agency, or the governmental body with the responsibility for overseeing the Lead Agency,
to decide if the complaints are justified. If the complainants request that their identities
be protected, IFAD will not disclose this information to the Lead Agency or anyone else in
government.

If the complaint is not justified, the Regional Division will inform the complainants in
writing.

If the Regional Division finds the complaint is justified and there is proof of actual or likely
harm through IFAD's failure to follow its policies and procedures, IFAD will take action.
This may consist of making changes to the project/programme or requiring that the
government observes its obligations under the Financing Agreement. IFAD's response will
focus bringing the project/programme into compliance and no monetary damages will be
available or paid in response to such complaints. The complainants will be informed of the
outcome of the issue by the Regional Division.
In all cases, if the complainants disagree with IFAD's response, they may submit a request
to SECAPcomplaints@ifad.org and request that an impartial review be carried out by the
Office of the Vice-President.

The Office of the Vice-President will decide on the steps to be taken to examine such
complaints, including, if necessary, contracting external experts to review the matter. The
complainants will be informed of the results of the review.

How to submit a complaint

A complaint relating to non-compliance with IFAD’s Social and Environmental Policies and
mandatory aspects of its SECAP can be submitted in any of the following ways:

• Download word file complain form: Here

• Send an email to SECAPcomplaints@ifad.org

If you email or mail your complaint, please include the following information:

• Name, address, telephone number and other contact information

• Whether the complainants wish to keep their identity confidential, and if so, why.
• Name, location, and nature of the IFAD project/programme (if known)
• How the Complainants believe they have been, or are likely to be, adversely
affected by the IFAD-supported project or programme

Complaints sent by mail should be addressed to:

IFAD
SECAP Complaints (PMD)
Via Paolo di Dono 44
00142 Rome, Italy

Monitoring and reporting

Monitoring and evaluating the stakeholder engagement process is essential, as it
empowers the PMU to address identified issues and make necessary adjustments to the
schedule and nature of engagement activities for enhanced effectiveness. Part of this
process involves establishing a feedback mechanism to address stakeholders' information
needs. Furthermore, the stakeholder engagement process will incorporate methods to
assess the effectiveness of public consultation processes and the outcomes of these
consultations, enabling the identification of areas requiring further action.

Within the PMU, environmental and social safeguards specialists are entrusted with
ensuring the high-quality engagement of stakeholders throughout the project's duration.
They are also responsible for communicating and reporting all stakeholder-related matters
to the Project Director.

Monitoring the stakeholder engagement process involves several activities, including:

• Short-term monitoring during engagement activities to allow for real-time adjustments

and improvements.

• A review of outputs at the conclusion of all engagement activities to assess the

effectiveness of the implemented stakeholder engagement plan.

To facilitate the monitoring system, a set of key performance indicators for each stage of
stakeholder engagement will be developed. The table below provides an example of these
indicators and performance metrics, demonstrating the successful completion of
engagement tasks.
Table 2 performance indicators

PHASE ACTIVITIES INDICATORS

Planning for Share updates on Posters displayed in allocated service centres by
Project Project activities time specified
GRM, SEP and Share updates on SEP, Posters displayed in allocated service centres by
other project GRM and other project time specified,
specific specific documents
documents activities Affected community stakeholders will have
Implementation received and understand the information
disclosed and attended the public meetings.

FPIC is conducted and well documented.

Community feedback is recorded and well

addressed.

No complaints about non-receipt of project

specific documents received.

Identifying impacts and concerns related to JKCIP is a pivotal aspect of stakeholder

engagement that will span the entire project's life cycle. Therefore, the recognition of new
concerns, impacts, and grievances as the Grievance Redress Mechanism (GRM) and project
advance will serve as a comprehensive gauge for assessing the stakeholder engagement
process's effectiveness. The monitoring of the stakeholder engagement process, as
outlined in the M&E action plan, will be conducted through two primary approaches.

5.5.1 Review of Engagement Activities in the Field

During the engagements with stakeholders the engagement team will assess meetings
using the following engagement tools:

• Stakeholders database,
• Issue and Response table, and
• Meeting records of all consultations held.

Reporting Stakeholders Engagement Activities

Performance will undergo evaluation following stakeholder engagement sessions
conducted in the field. When assessing performance, the following aspects will be taken
into account:

• The nature, frequency, and distribution of materials disseminated.

• The location and timing of formal engagement events, as well as the level of
participation, including specific stakeholder groups.

• The number of individuals attending public or formal meetings.

• The quantity and specifics of comments received, including the type of stakeholder and
the details of the feedback provided.

• Meeting minutes, attendance records, and photographic evidence.

• The number and types of stakeholders reaching out to the JKCIP team via mail,
telephone, or other communication means.
• Feedback received from government authorities, community leaders, and other project
partners, which is then conveyed to the JKCIP.

• The number and types of feedback and grievances, along with the nature and timing of
their resolution, and the extent to which feedback and comments have been addressed
and resulted in corrective actions being implemented.

Reporting Back to Stakeholders

Maintaining stakeholder trust and keeping them well-informed about project progress
necessitates transparent and timely reporting. The following reporting mechanisms will be
implemented to share project updates and findings with stakeholders:

• Regular Progress Reports: The project team will prepare quarterly or bi-annual progress
reports, detailing achievements, challenges, and upcoming activities. These reports will be
shared with stakeholders and disseminated through multiple communication channels.

• Community Meetings and Workshops: Project team members will conduct regular
community meetings and workshops to present progress reports in a clear and accessible
manner. They will seek feedback and address stakeholder questions during these
gatherings.

• Stakeholder Engagement Forums: Existing stakeholder engagement forums, such as

townhall meetings or focus groups, will be utilized to provide updates and seek input on
project progress and challenges.

• Online Platforms and Project Website: The project website and online platforms will serve
as repositories for project reports, updates, and relevant documents. Stakeholders will
have access to this information at their convenience.

• Infographics and Visual Aids: Visual aids, including infographics and charts, will be used
to present key project indicators and achievements, enhancing understanding and
engagement.

• Feedback Consolidation: Stakeholder feedback gathered through various channels will

be compiled and addressed in subsequent reports. The project team will inform
stakeholders about how their input influenced decision-making.

• Executive Summaries: For stakeholders who prefer concise information, executive

summaries of progress reports will be prepared and distributed.

By actively involving stakeholders in monitoring activities and providing regular,

transparent reporting, the JKCIP will nurture a sense of ownership, accountability, and
mutual learning. These efforts will contribute to building stronger relationships with
stakeholders and ultimately lead to more effective and sustainable project outcomes.
 Feedback/complaint handling format

SM, Date of Reporting

Name of Time Name of Problem/ Address Responsible
Letter, complaint complaint Contact Subject Finding of about the Action taken on
person (00:00 Compliant the Question Mechanism person to
SN. Call/sms/ received District Block Village registration number of of the finding to the Remarks
receiving AM or details complaining /Issue/ for the lead the
email (MM-DD- number complainer complaint complaint all( recommendation
complaint PM) person Complaint complaint issue
etc. YYYY) Yes/No)

2
Appendix C1A3: Target group categories and development
pathways
Jammu and Kashmir, a region in northern India, has faced various economic and social
challenges, including isolation, years of conflict and resultant pockets of poverty.5 The
poverty profile in the region can be summarized as follows:
Income Disparities: Like many other regions in India, Jammu and Kashmir has
income disparities. Poverty rates are typically higher in rural areas compared to urban
areas. The hilly terrain, lack of infrastructure, and limited economic opportunities in
some remote areas contribute to higher poverty rates.
Conflict: The region has faced decades of political conflict, which has had a significant
impact on its economy and development. The conflict has disrupted economic activities,
displaced people, and hindered investment and development efforts.
Agriculture: Agriculture is a crucial sector in Jammu and Kashmir, employing a
substantial portion of the population. Crop failures, erratic weather patterns, and
limited access to modern farming techniques can affect the income and livelihoods of
rural HHs.
Tourism: Tourism is another important industry in the region. The beauty of its
landscapes, including the Himalayan mountains, has made it a popular tourist
destination. However, the tourism industry can be seasonal, and political instability can
affect visitor numbers.
Government Initiatives: The government of Jammu and Kashmir and the Indian
government have implemented various poverty alleviation programs and schemes
aimed at improving the economic conditions of the people. These programs include
access to education, healthcare, subsidized food through the Public Distribution System
(PDS) and a number of subsidy-based support systems that have helped increase the
livelihood opportunities for the people in J&K.
Access to Basic Services: Access to basic services like healthcare, education, and
clean drinking water can be limited in some remote areas, affecting the quality of life
and contributing to poverty.
Unemployment: Unemployment in the conventional sector is on the higher side as
the educated youth is aspiring for jobs in the government sector but there are a lot of
potential opportunities that exist in the production and value chain sector. Many youths
with a decent background have started their own enterprises still there are still some
concerns regarding unemployment which can potentially lead to economic insecurity
and poverty.
It's important to note that the situation in Jammu and Kashmir is complex and
multifaceted due to the historical, political, and social context. Any poverty profile would
need to consider these factors as well as the evolving circumstances in the region.
An analysis of target groups reveals different categories: (i) poor; (ii) relatively poor;
(iii) non-poor; (iv) youth; (v) women. The categories of beneficiaries in each target
group, their basic characteristics, potential organization for them, activity designed in
the project and livelihood pathways are provided in the table below which gives a
framework to guide the implementation of JKCIP. Table 1 below provides the target
group categories and development pathways.

5
In J&K, the percentage of the multidimensional poor population has reduced from 12.56 per cent to 4.80 per
cent, with over 1 million people emerging from poverty.

24
 Table 1: Target group categories and development pathways

Category of Characterization Individual/ Activities Livelihoods and Value Chain Development

beneficiaries group/ Pathways
Organisation
Poor: This category These HHs are Individual Cereal, pulses, Most of these families have the potential to participate
consists of HHs resource-poor, HHs spices and in agriculture production and productivity enhancement
below the poverty vulnerable and food SHGs vegetable through climate-smart production technologies with
line which includes and nutrition insecure. CLFs production. training for better use of land, water, inputs and
the most vulnerable, Sources of livelihood Nano and micro- market linkages.
women-headed HHs, include small-scale enterprise. Milk
landless, people with subsistence production,
disabilities (PwDs), agricultural activities Mushroom
subsistence farmers particularly focusing collection, and
and vulnerable on cereal and pulse small-scale
communities (SCs crops, agricultural food/vegetable
and STs. labour, subsistence crop cultivation.
All HHs falling within farming, livestock,
the poverty line of government support,
Rs 972 monthly per MGNREGS, etc.
capital expenditure Other features of this
as per the category include no
Rangarajan regular income source,
Committee report dependence on
(2014) are classified remittance and limited
as BPL HHs. income from farms.
10 percent of total Pastoralists undertake Individuals Goat and sheep Support for diversification of livelihood options and to
project HHs– 30,000 migration from the production and improve the wool marketing systems will be supported.
HHs higher ranges to lower integrated
ranges in winter and production
from lower ranges to support.
higher ranges in
summer.
Settled SC/ST and Individuals Dairy and Support for marketing of milk and other diversified
fishermen community SHG livelihood livelihood activities.
CLF diversification
Relative Poor: This Largely agriculturists Individual This category These HHs are more entrepreneurial farmers and are
category has small with a land holding of HHs comprises largely interested in integrating their activities into more
and marginal land 1.00 ha with field PGs farmers involved in formal value chains and target distance markets of
 Category of Characterization Individual/ Activities Livelihoods and Value Chain Development
beneficiaries group/ Pathways
Organisation
holdings with crops or 0.5 ha of SHGs food crops, niche other states and national capital through intermediaries
farming as the farm with horticulture CLFs crops and and obtain better returns but are presently unable to
primary livelihood crops. who undertake FPOs horticultural crop do so.
activity and is most livestock production. production. The main issues of these include: (i) low production
vulnerable to risks Other diversified and productivity and inability to shift to market linked
associated with livelihood activities production for niche crops (ii) low production
climate change and such as animal productivity of horticultural crops including the inability
environmental husbandry, fisheries, to diversify; (iii) low production and productivity of
degradation. etc., remain the field crops; high transaction costs due to lengthy
A total of 210,000 mainstay. supply chain and many market intermediaries.
(70%) HHs The main reasons include inadequate market linkage,
limited access to improved climate-resilient
technology, quality seeds, quality planting materials and
other inputs.
They will be facilitated to establish market linkages
through aggregation, creation of innovative marketing
channels, creating brands for the local products,
studying the demand of the local, domestic and
international markets and therefore, production and
productivity improvement with climate-smart
technology adoption.
Non-poor Farmers who own Individual Market demand- These HHs produce niche crops and horticultural crops on a
Commercially more than 1 ha of field HHs based production; commercial scale based on market demand.
oriented smallholder crop farms and 0.5 Ha Partnerships combination of These HHs can be both producers and service providers
farmers with of horticultural farms PGs food crops, niche in the clusters with developed capacity while working
diversified farming and have income from SHGs crops and with technical service providers and market actors.
systems who are diversified sources. CLFs horticultural crops The strategy to involve these HHs includes supporting
above poverty. These group farmers FPOs Micro, meso and inclusive investments in farm enterprise development
A total of 60,000 are facing problems Small farm-based through supply and demand-side interventions to
(20%) HHs. like wage labour enterprises. increase the volume and quality of output.
shortage, climate These groups have the potential to stabilise production
vulnerability, and lack through the more efficient use of land and water
of access to improved through the introduction of climate-smart technologies
technology and market and improving access to inputs, skills and exposures.
infrastructures and These households will be the essential part of the market to
lack of essential enhance marketable volumes to achieve required scale of
training. operation which can fetch the premium price of the niche products
They access of all farmers.
 Category of Characterization Individual/ Activities Livelihoods and Value Chain Development
beneficiaries group/ Pathways
Organisation
agricultural inputs and
farm machinery and
operate irrigated or
partially irrigated
systems.
Youth (young men Years of violence and Individuals With the The strategy is to integrate youth into the community
and women): its impact on the Partnerships improved by becoming partners in the development process
(Age group 15- education system have Youth clubs business through environment and climate-related community
29+up to 35 contributed to high CLFs environment, actions and by incentivising their membership into
Years). levels of youth FPOs educated youths FPOs.
A total of 30 per unemployment. Youth want to start The experienced and entrepreneurial youth will be
cent among the are largely out of sync businesses, supported to establish enterprises with capacity
total population 1.5 with the realities of especially in building, matching grants, and mentoring.
million (450,000) poverty and horticulture, The educated youth with be facilitated to establish
environmental vegetable start-ups with appropriate incubation services.
degradation being cultivation, an Successful start ups or entrepreneurs could be role
faced by their families integrated models for unemployed youths.
and the community. farming system
with the adoption
of climate-smart
technologies,
nursery-raising
enterprises,
establishing cold
chains etc.
Other youth are
looking for
opportunities.
Women Women-headed HHs, Individuals The women- The project will establish special incentives for women
A total of 40% of widows and those SHGs headed HHs This includes support for farm-based enterprise
beneficiaries will be impacted by decades PGs continue farming establishment and for increasing production and
women. 50 % of the of violence are socially CLF and other productivity of their cropping systems.
total youth will be and economically FPOs, occupations of the The educated women (age group between 15 to 29)
women. vulnerable and family. will be given exposure to start mini enterprises viz.,
disadvantaged. milk products, cut vegetables, lavender growing and
value-added products through the support of
technology, skills and exposure.
 Appendix C1A4: Gender and Social Inclusion Strategy

General outline to be adapted by JKCIP-PMU

1. Context (0.5 page):

The context presents a very short summary description of the project, loan size and
duration, location, objectives, components and implementing partners. National and
state level policy and social context.
2. Rationale (1-2 pages)
The rationale highlights poverty characteristics of the population that are of specific
relevance to the project and explains why addressing these issues will help achieve
project objectives. The rationale highlights gender, youth and returnee migrant’s
issues that are of specific relevance to the project and explains why addressing these
issues willhelp achieve project objectives.
3. Targeting strategy (2 pages)
Target groups plus profile matrix; Targeting mechanisms and implementation
arrangement; Outreach of project activities by target group (pyramid – see HTDN on
design of IFAD).
4. Rationale for gender mainstreaming (1-2 pages)
This section explains what the project will deliver from a targeting, gender and social
inclusion perspective and identifies expected impacts on gender equality and
women’s empowerment (in terms of economic empowerment, decision-making and
equitable workload balance).
5. Targeting and gender mainstreaming within project components – checklist for
components and subcomponents (5 pages)
This section details requirements to establish a more pro-poor, socially inclusive and
gender-responsive project delivery mechanism. Each subcomponent is discussed,
and key activities noted to help field-level implementers ensure that implementation
is pro-poor, youth focused and gender responsive.
6. Gender mainstreaming at the organizational level (13 pages)
This section should detail requirements to establish pro-poor, youth focused and
gender- responsive systems within the organization that will have an impact at the
field level. It will look at human-resource service rules, project staff sensitized on
targeting, youth, gender inclusion.
7. Implementation arrangements and time frame (2 pages)
This section details roles, responsibilities and a time frame for implementation of the
strategy.
8. Costs and financing (2 pages)
This section presents an estimate of costs associated with implementing the strategy
within the specific time frame, and identifies sources of funds (through project
financing, in-kind contributions, extra-budgetary resources, etc.).
9. Risk management (0.5 page)
This section records possible risks that may impede successful implementation of the
gender and social in inclusion strategy, for example frequent staff turnover. It
identifies what will be done to mitigate or minimize those risks, such as investment
in long-term staff development and promotion from within.
10. Results framework (1 page)
A results framework is a good tool for communicating the essence of the strategy
and monitoring.

Objective Activities Required Expected Expected Indicators Assumptions Time Responsibility

inputs outputs Outcomes
Appendix C1A5: Gender Action plan

Improve project performance on gender during project implementation

Guiding process and steps

This three-step note aims to guide the project team through the development of an action
plan to improve project performance on gender equality and poverty targeting (step 3).
The action plan will describe proposed activities aiming at improving the project’s gender
and targeting scores, related indicators and resources allocated – as perthe template
provided at the end of the document. The development of the action plan will be based
on the team’s self-assessment of the project’s ability to promote gender equality and
poverty targeting (Step 1-2) and will have to address shortcomings identified therein.
Please complete one by one the three steps together in your project team:
Step 1 - Project background
Step 2 - Self-assessment checklist on implementation arrangements
Step 3 – Action plan development
Why a gender action plan? The action plan is meant to guide project teams through a
self-assessment on what works and what doesn’t for gender equality, women’s
empowerment and poverty targeting, leading to the development of an action plan to
improve the project performance in this domain. This action plan has the objective to
improve the gender and targeting performance of the project and related ratings against
the IFAD gender and targeting criteria).
How to develop the gender action plan? The planning process is divided into three
sequential steps. It is recommended to organize one or more meetings to address the
steps one by one to promote ownership of the assessment and the action plan among
project staff. Please fill in the text directly in this document. Kindly rename the document
with your project name before sharing it.
Who should develop the gender action plan? All project staff should participate in the
self-assessment and action planning meetings. If not possible at least those that will be in
the Istanbul workshop, e.g. project coordinator, gender and M&E specialists. The project
coordinator / director is accountable for the gender action plan and its implementation,
with the support of the gender focal point.

Action plan steps

Step 1 – Project background

Step 1 has the objective of providing a quick overview on the project and its
performance.
Together with the project coordinator and other team members, develop text for a
maximum of ½ -1 page around the following points.
• Name of the project:
• Completion Date:
• Performance status: What is the project current
performance and the trend?Please indicate the gender and
targeting ratings over the last 2 years
• Your opinion What have been the key drivers of this
performance (issues/enabling factors)

Step 2 – Self-evaluation checklist for analysing gender equality and women’s

empowerment in project implementation arrangements

Step 2 is a self-evaluation of project implementation arrangements’ ability to promote

gender equality and poverty targeting. The objective of this second step is to foster
discussion and awareness among project team members on the extent to which project
implementation arrangements are conducive to the implementation of poverty targeting
and gender activities.
Project coordinator and other team members should review the following form among
project team members and self- assess each criteria with the following scoring -> 0 =
nothing 1 = partially done 2 = satisfactory 3 = highly satisfactory. Discuss the final scoring
result in your team.
The self-evaluation tool is part of IFAD’s Toolkit on Poverty targeting, gender equality and
empowerment.

Baseline or gender analysis Score: _

Has a gender-sensitive baseline survey/situation analysis been undertaken?

Were the needs and priorities of different categories of poor men
and womenassessed?
Have the results of the analysis been used to plan and
implement projectactivities?
Have the project components/subcomponents been analysed
from a beneficiaryperspective (poor, gender, age)?

Project gender strategy Score: _

Does the project have a specific gender strategy that

covers both projectmanagement and interventions?
Does the strategy respond to the
baseline analysis?Does the gender
strategy also involve men?
Does the strategy differentiate between the needs of young
women and youngmen?
Does it address economic empowerment, decision-
making and workloads?Does it have indicators and
timelines?
Are responsibilities for implementation well delineated (who does what)?
Does the strategy link to the various pro-women policies and
programmes of thegovernment?

Personnel/staff capacity Score: _

Is a commitment to gender equality reflected in the

TORs of PMU staff?Is the recruitment of
women/young staff encouraged?
What is the proportion of women to men staff? At different levels of
responsibility?
Has technical gender training been provided to
staff, including M&E?Is there a gender specialist or
focal point in the PMU?
Do staff possess the required skills to address gender issues and
 provide anyspecial inputs/support required by women?
Are women field staff used to deliver goods or services to
women beneficiaries,when required?

Financing Score: _

Are funding levels adequate to support implementation of the gender

strategy?
Does the project have a system for tracking flow of funds to
activities targeted atwomen compared with men?

Ways of working and planning process Score: _

Do the director and component heads take responsibility for

gender mainstreaming in their respective work areas or do
they leave it to the genderfocal point?
Does the PMU work as a team with the gender focal point?
Are gender equality and women’s empowerment issues regularly
discussed duringstaff meetings?
Does the annual work planning and budgeting process
include a genderperspective and are specific activities
regularly included?
Is the working environment supportive of the specific needs of
women staff,particularly field staff (e.g. flexible hours, mobility
support, etc.)?

Partners and counterparts Score: _

Was experience in “working with women” a factor in selecting

NGOs and other implementing partners?
Do implementing partners make efforts to reach/include poorer women?
Has the project involved institutional/government partners in gender
training?

Policy environment Score: _

Does the project engage effectively in advocacy and policy

dialogue when needed(to develop conducive policies or remove
policy obstacles)?

Operational modalities and delivery mechanisms Score: _

Are there activities specifically targeted to women to

increase their ability toparticipate (e.g. capacity-building,
confidence-building, group formation, leadership training,
 etc.)?
Are any proactive/positive discrimination measures taken
(e.g. quotas) to promote women benefiting and
participating in key project-related decision-making
bodies?
Are meetings/consultations with women at the community level
as inclusive as possible (i.e. women of different ages, marital
status, caste, etc.), for example byholding meetings open to all
women, thus changing traditional practices that may exclude
specific categories of women, such as widows or young women,
etc.)?
Has information on the project and how to access benefits and
services reachedwomen to the same degree as men, and poor
women in particular?
Is access to project services simple (e.g. form to fill in, location, language,
etc.)?
Are beneficiary contributions, where required, affordable to
different categories ofwomen?

Monitoring and evaluation Score: _

Are there specific targets for women (outreach, other?)?

Are sex- and age-disaggregated data collected to
track outcomes andverify the indicators contained in
the logframe?
Does the project’s M&E system explicitly measure the
project’s impactson gender equality and women’s
empowerment?
Does the project conduct qualitative and
quantitative analyses to measure progress on
gender equality and women’s empowerment?
Do monitoring reports analyse and interpret data from a
gender perspective?Are the findings fed back to
beneficiaries (women and men) and stakeholders (PMU and
fieldworkers, partner agencies) in an understandable
format and in a timely manner to allow project
adjustments?
Are the tools and methods used for data collection inclusive
and gender-friendly(e.g. use of appropriate questions and
language; timing of meetings; holding women-only meetings,
etc.)?

Total score for your project Score: _

Compare the total score with the ranges below:

Gender blind: 0-9
Gender neutral: 10-14
Gender aware 15-19
 Gender transformative approaches 20 and over

Step 3: Development of a Gender action plan to improve gender equality and

poverty targeting performance

You have now arrived to the final step where you will be developing
the gender actionplan. Based on the findings emerged during step 1-
3, please:

respond to the questions listed below, and

populate the action plan table.

Monitoring of the plan

The gender action plan will be regularly monitored to assess progress of its implementation.
The project coordinator is accountable for the timely and effective implementation
of the action plan and will report on it every three months to the country director and
gender team. The Gender and M&E specialists in theproject will support the coordinator in this
endeavour.

IFAD country director and the gender team IFAD will assess the implementation of the actions
included in the plan and provide support – both remotely and during supervisionmissions.

What are the Gender-related Objectives for each of the project’s outcomes?
Please indicate what the gender action plan intends to achieve in the project (e.g.
Expand women’s access to and control over fundamental assets, such as capital, land,
knowledge and technologies? Strengthen their agency and thus their decision-making
role in community affairs and representation in local institutions? Improve well-being
and ease women’s workload? Ensure a more gender-equitable participation in and
benefit from planned activities? )
What are the concrete activities that will be implemented meeting the
strategic objectives of the IFAD gender policy and contributing to project
outcomes?
Please describe which concrete activities will be implemented under each project
component to achieve your gender equality and poverty targeting goals. These
activities will have to be included in the AWPB and should therefore be described also
in terms of who will benefit from them (beneficiaries), financial implications (budget)
indicator, target and deadline.
Implementing the strategy. Please indicate:
- Who will be responsible for the implementation of the activities described
(e.g.implementing providers, project staff, etc.)

Summarize the details of the action plan by populating the following table
(linking gender-related activities to the project’s logical framework)
 Activities Performance Performance Responsibility Deadline Budget
Indicators Targets
Gender- Outcome 1:
related ActivitySOx
objective
Output
1.1:
ActivitySOx
Output 1.2:
ActivitySOx
Output 1.3:
ActivitySOx
Gender- Outcome 2:
related
Output
objective
2.1:
ActivitySOx
Output
2.2:
ActivitySOx
Gender actions related to project management
Activity
SO1 Addresses strategic objective 1 of IFAD’s Gender Policy
SO2 Addresses strategic objective 2 of IFAD’s Gender Policy
SO3 Addresses strategic objective 3 of IFAD’s Gender Policy

32
Appendix C1A6: Agro-climatic analysis, cropping system and livelihood and value chain pathwaysJ&K
has diverse ecological regions from lower plains to mountainous regions that offer potential and challenges for agriculture and livestock-
related activities which are critical in developing pathways for livelihood expansion and value chain development. The characteristics of
the ecological zones, livelihood, and value chain pathways for different ecological zones: (i) Sub-tropical; (ii) temperate; and (iii)
intermediate and the districts covered are provided in the table below:
Name of the Sub-region Predominant cropping Districts covered Livelihood/Value chain
Agro-climatic system pathways
zone
Jammu and Kashmir Regions - Horticulture
Irrigated Jammu: Mango, Litchi, Jammu: Jammu, Kathua Production expansion – High density
Citrus, Guava, Strawberry, Storage
Dragon fruit Value addition & processing
Sub-tropical Market linkages
Normal summer
monsoon ranges
1200-1500mm
from mid-June to Rainfed Jammu: Mango, Citrus, Jammu: samba, Kathua, Reasi Production expansion
mid-September. Guava Storage
Value addition & processing
Market linkages

Irrigated Jammu: Apple, Pear, Stone Jammu: Doda, Kishtwar, Production expansion – High density
fruits (Plum, Apricot and Ramban, Poonch, Rajouri & Storage
Cherry) Kathua Value addition & processing
Nuts: Walnut, Pecan nut, Kashmir: Anantnag, Pulwama, Market linkages
Almond, and Macadamia. Srinagar, Budgam, Baramulla,
Kashmir: Apple, Pear, Stone Kupwara, Kulgam, Shopian,
Temperate zone
fruits (Plum, Apricot, Peaches Ganderbal, Bandipore
has relatively mild
and Cherry)
but dry summers
Nuts: Walnut, Pecan nut,
with little
Almond, and Macadamia.
monsoon and
Rainfed Jammu: Apple, Pear, Stone Jammu: Doda, Kishtwar, Production expansion
fairly cold-wet
fruits (Plum, Apricot and Ramban, Poonch, Rajouri & Storage
winters.
Cherry) Kathua Value addition & processing
Nuts: Walnut, Pecan nut, Kashmir: Anantnag, Pulwama, Market linkages
Almond, and Macadamia. Srinagar, Budgam, Baramulla,
Kashmir: Apple, Pear, Stone Kupwara, Kulgam, Shopian,
fruits (Plum, Apricot, Peaches Ganderbal, Bandipore
and Cherry)
Name of the Sub-region Predominant cropping Districts covered Livelihood/Value chain
Agro-climatic system pathways
zone
Nuts: Walnut, Pecan nut,
Almond, and Macadamia.
Irrigated Jammu and Kashmir: Jammu: Udhampur, Rajouri, Production expansion – High density
Stone fruits (Peach, Plum, Reasi, Poonch, Ramban Storage
Apricot), Pear. , Kiwi, Apple, Value addition & processing
Intermediate zone
walnut, pecan Kashmir: None Market linkages
has mild
Sweet Orange, lemon, lime,
summers,
Guava
monsoons are fair
Rainfed Jammu and Kashmir: Jammu: Udhampur, Rajouri, Production expansion
during summer
Stone fruits (Peach, Plum, Reasi, Poonch, Ramban Storage
and winters are
Apricot), Pear. Kiwi, Apple, Value addition & processing
relatively wet.
walnut, Pecan Kashmir: None Market linkages
Sweet Orange, lemon, lime,
Guava
Jammu and Kashmir Regions - Agriculture

Irrigated Basmati rice, wheat, (fodder, Jammu: Jammu, Kathua, Samba Cereal production but not included
oilseeds) districts. in the project.
Kashmir: None This is grown largely close to border
areas.
Non-Basmati rice, wheat/ Jammu: Jammu, Kathua, Cereal production but not included
fodder/ pulses / oilseeds Samba, Udhampur, Rajouri and in the project. This is a low-value
Reasi districts. crop and is grown largely close to
Sub-tropical Kashmir: border areas.
Normal summer None Rice may be a low value but is an
monsoon ranges important crop from food security
1200-1500mm point of view and is also grown in
from mid-June to non-border areas.
mid-September Off-season vegetable-based Jammu: Jammu, Kathua, Off-season vegetables and
largely in Jammu. cropping system Samba, Udhampur, Rajouri and vegetable seed production.
Reasi districts. High market demand coupled with
Kashmir: None profitability.
Suitable for expansion.
Rainfed/ Maize / wheat-based Jammu: Kathua, Samba, Cereal-based cropping system which
Unirrigated cropping system Udhampur, Rajouri and Reasi is subsistence agriculture.
districts.
Kashmir: None
Name of the Sub-region Predominant cropping Districts covered Livelihood/Value chain
Agro-climatic system pathways
zone
Millets –sorghum, Finger Jammu: Kathua, Samba, Millets are newly introduced under
millet, Kodo millet, Foxtail Udhampur, Rajouri and Reasi the subsistence farming system and
millet-based cropping remain highly priced, but low-value
system. product in the local market. Value
chain and domestic trade and export
can be developed.
Irrigated Rice-based / Rice (mono- Jammu: Areas of Ramban, High-value aromatic rice, value
cropped). Cannot be grown Doda, Kishtwar, Kathua, Reasi, chain can be developed.
under severe winters. Udhampur, Rajouri, High market demand coupled with
Kashmir: Srinagar and profitability.
surrounding districts, Suitable for area expansion.
Ganderwal, Bandipora,
Baramula, Anantnag, Kulgaon
Off-season vegetables Jammu: Ramban, Doda, Off-season vegetables and
(vegetable peas, tomato, Kishtwar, Kathua, Reasi, vegetable seed production.
cucurbits, etc.) Udhampur, Rajouri, High market demand.
Kashmir: Srinagar and Profitable value chain.
surrounding districts, Anantnag, Suitable for production expansion.
Temperate/sub Bandipora, Kulgaon,
temperate zones Ganderwal,
have relatively
Rainfed/Unirrigated Rice-based / Rice (mono- Jammu: Areas of Ramban, Important for food security, High-
mild but dry
cropped) Doda, Kishtwar, Kathua, Reasi, value aromatic rice value chain can
summer with little
Udhampur, Rajouri, be developed.
monsoon and
Kashmir: Srinagar and High market demand.
fairly cold-wet
surrounding districts, Anantnag, Profitable value chain.
winter.
Bandipora, Ganderwal, Kulgaon, Suitable for production expansion.
Badgam
Maize based / Rajmash Jammu: Ramban, Doda, High market demand.
Kishtwar, Kathua, Reasi, Profitable value chain.
Udhampur, Rajouri, Suitable for production expansion.
Kashmir:
Srinagar and surrounding
districts, Anantnag, Bandipora,
Ganderwal, Kulgaon, Badgam
Saffron and Kala Zeera Jammu: Kishtwar High market demand.
Kashmir: Srinagar and Highly profitable value chain.
surrounding districts, Anantnag, Suitable for production expansion.
Name of the Sub-region Predominant cropping Districts covered Livelihood/Value chain
Agro-climatic system pathways
zone
Bandipora, Ganderwal, Kulgaon,
Badgam
Potato Jammu: Ramban, Udhampur Scope for expanding into the potato
Kashmir: Srinagar and seed value chain which has high
surrounding districts, Bandipora, demand
Ganderwal, Kulgaon
Minor Millets based Jammu: Doda, Kishtwar Millet is under subsistence farming
Kashmir: Srinagar and system and remains a low-value
surrounding districts, Anantnag, product.
Bandipora, Ganderwal, Kulgaon,
Poonch, Badgam
Intermediate zone Irrigated Cereals and pulses Jammu: Ramban, Doda, Japonica rice and aromatic rice
has mild Kishtwar, Kathua, Reasi, value chains have the potential for
summers, Udhampur, Rajouri, production expansion
monsoons are fair Kashmir: None
during summer Off-season vegetables Jammu: Ramban, Doda, Off-season vegetables and
and winters are Kishtwar, Kathua, Reasi, vegetable seed production.
relatively wet. Udhampur, Rajouri, High market demand.
Kashmir: None Profitable value chain.
Suitable for production expansion.
Unirrigated Cereals and pulses Jammu: Ramban, Doda, Cereal-based cropping system is
Kishtwar, Kathua, Reasi, subsistence focussed.
Udhampur, Rajouri,
Kashmir: None
Appendix C1A7: Selection of Value Chains
Implementing a value chain modality in Jammu and Kashmir can have several compelling
rationales and benefits, particularly in the context of economic development and growth
in the region. Value chains refer to the series of activities that a product or service goes
through from its conception to its final consumption, with each step adding value to the
product. Here are some key reasons for implementing a value chain modality in Jammu
and Kashmir.
Economic Diversification: Jammu and Kashmir's economy has historically been heavily
reliant on agriculture and tourism. Diversifying the economy through value chain
development can help reduce vulnerability to external shocks, such as fluctuating tourist
numbers or crop failures.
Job Creation: Building and strengthening value chains can create employment
opportunities throughout the entire production and distribution process. This is crucial in
a region like Jammu and Kashmir with a large and growing youth population.
Income Generation: A well-developed value chain can increase the income of individuals
and communities involved in various stages of production, from farmers to manufacturers
to distributors.
Export Potential: Developing value chains can lead to the production of higher-quality
goods that can compete in national and international markets. This can enhance the
region's export potential and generate foreign exchange earnings.
Technology Transfer and Innovation: Value chains often require technological
advancements and innovation at various stages. Implementing a value chain modality can
lead to the transfer of technology and the adoption of modern agricultural, manufacturing,
and marketing practices.
Rural Development: Many parts of Jammu and Kashmir are rural and remote. Value
chain development can bring infrastructure improvements, better transportation, and
access to markets to these areas, leading to overall rural development.
Poverty Alleviation: By increasing the income of those involved in the value chains,
there is a direct impact on poverty reduction, which is a critical developmental goal.
Sustainable Development: Value chains can be designed with sustainability in mind,
focusing on eco-friendly practices and responsible resource management, which is
essential for the fragile ecosystems in the region.
Private Sector Development: Encouraging private sector involvement in value chains
can lead to investments in the region and boost economic growth.
Government Revenue: As the economy grows and value chains expand, the government
can collect more tax revenue, which can be reinvested in public services and infrastructure.
Conflict Mitigation: Economic development can contribute to stability by providing
livelihoods and reducing the incentives for conflict.
Gender Inclusivity: Value chain development can also be designed to promote gender
inclusivity by providing women with opportunities to participate in various stages of the
production process.
However, it's important to note that implementing a value chain modality in any region
requires careful planning, investment, and coordination among various stakeholders,
including government agencies, private sector actors, and local communities. Additionally,
the specific industries and sectors chosen for value chain development should be based on
the region's comparative advantages and potential for growth. A tailored approach that
considers the unique characteristics and challenges of Jammu and Kashmir will be essential
for success.

0
As a starting point, a shortlist has been produced of the main commodities grown in the
various districts of Jammu and Kashmir which have a potential comparative advantage.
The shortlisting of commodities has been done based on off-season availability in the
plains, exclusivity of production in the hills, and the intrinsic value of the product amongst
others.
The following table gives a categorization according to production and potential marketing
features of the produce which are targeted for inclusive value chain development.

0
Crop Reason for Inclusion Amenability for Remarks
Scale–Up
Fresh Produce
Off-Season Vegetables: High demand and high price due to High Scope for expansion of
- Peas geo-climatic advantage production with climate change
- Cauliflower Economic diversification adaptations related to water,
- Cabbage Income Generation fertilizer and pesticide use.
- Beans Gender inclusivity
- Capsicum, or Bell pepper
- Tomato
- Knolkhol
- Watermelon
- Gourds
- Okhra
Temperate Fruits High demand and high price due to High Scope for expansion, productivity
Fruits: Apple, Pear, Stone geo-climatic advantage and quality improvement,
fruits (Peach, Plum, and Economic diversification improving orchard management
Apricot) Income Generation through rejuvenation, GAP, soil
Nuts: Walnut, Pecan nut, and High scope of increasing production and water management, post–
Almond. and productivity harvest management for
improvement of quality and shelf
life, and for access to
premium markets. In addition,
value addition activities need to
be expanded.
Sub-tropical fruits Geo-climatic advantage High Scope for expansion, productivity
Mango, Litchi, Citrus, Guava, Economic diversification and quality improvement,
Kiwi, Strawberry, Dragon Income Generation improving orchard management
fruit High scope of increasing production through rejuvenation, GAP, soil
and productivity and water management, post–
harvest management for
improvement of quality and shelf
life, and for access to premium
markets. In addition, value-
addition activities need to be
 expanded.

Grains & Pulses

Specialty Rice Geo-climatic advantage High The small pockets can be scaled up
Economic diversification to viable clusters with
Income Generation interventions in planting and crop
High scope of increasing production management, cultural practices,
and productivity and specific market linkages.
Chosen for distinct colour/taste/
aroma/ nutritional quality and grown in
selected pockets.
Speciality rice has an exclusive
market.
Kidney Beans Rated as a premium product. High A strong case for preserving
Economic diversification the local varieties using GAP and
Income Generation targeting the prime retail
High scope of increasing production customers.
and productivity
Spices
Saffron High demand and high price due to High Scope for expansion of
geo-climatic advantage production with climate change
Economic diversification adaptations related to water,
Income Generation fertilizer and pesticide use.
Gender inclusivity
Black Zeera High demand and high price due to High Scope for expansion of
geo-climatic advantage production with climate change
Economic diversification adaptations related to water,
Income Generation fertilizer and pesticide use.
Gender inclusivity
Wool
Organic Wool High demand and high price due to High.
geo-climatic advantage Scope for collection, processing
Economic diversification and marketing of wool exists.
Income Generation
 Appendix C1A8: Identified Niche Agricultural and Horticultural
Crops
Agricultural Niche crops
Saffron
Saffron is a spice derived from the dried stigma of the saffron crocus flower. It is a valuable
spice with a high market price, and Kashmir is known for producing the finest saffron in
the world. The expansion of saffron cultivation in Jammu and Kashmir (J&K) has the
potential to boost the region's economy and improve the livelihoods of farmers.
Rationale of expansion in J&K
The expansion of saffron cultivation in Jammu and Kashmir holds multifaceted benefits,
primarily driven by its high economic value. With Kashmiri saffron fetching an average price
of Rs. 2.5 lakh per kilogram, significantly surpassing other spices, its cultivation presents
a lucrative avenue for farmers, promising substantial income.
This economic opportunity has the potential to uplift rural communities and reduce poverty
in J&K, improving the overall standard of living. The region's climatic and soil conditions
further underscore the suitability of Kashmir for saffron cultivation. Cold winters, dry
summers, and fertile soil collectively contribute to producing saffron of the highest quality.
Beyond economic considerations, the expansion of saffron cultivation aligns with
environmental preservation goals.
Saffron cultivation is deeply ingrained in Kashmir's traditions and has played a role in
conserving the region's biodiversity. Expanding saffron cultivation becomes not only an
economic endeavour but also a means to protect and sustain the unique ecosystem of the
region. Moreover, saffron cultivation promotes sustainable agriculture practices. Its
cultivation requires less water and fertilizer compared to other crops, and it does not inflict
damage on the soil.
This aspect contributes to the broader promotion of eco-friendly farming methods in J&K.
In essence, the expansion of saffron cultivation emerges as a holistic strategy, intertwining
economic prosperity, environmental conservation, and the promotion of sustainable
agricultural practices in the picturesque region of Jammu and Kashmir.
Cultivation Practice in J&K
Saffron cultivation in the Karewa regions of Kashmir follows a meticulous process.
Undertaken in rainfed conditions, the crop requires well-drained soil with a pH of 6.5-7.5.
The cultivation stages involve rigorous land preparation through deep ploughing, planting
saffron corms in September-October, and irrigation during the flowering period using
sprinklers. Being a low-fertilizer crop, saffron benefits from manure or compost application
before planting, with regular weed control essential to mitigate nutrient and water
competition.
Flower picking, a critical phase, occurs during October-November, with immediate drying of
stigmas in the sun or dehydrator, followed by storage in airtight containers.
While saffron cultivation is labour-intensive, the rewards are substantial, with an average
yield of 1.5-2 kg/ha and some farmers achieving up to 3 kg/ha. However, data reveals a
concerning decline in saffron cultivation area in J&K, decreasing from 5,707 hectares in
2009-10 to 3,715 hectares in 2020-21.
Average productivity, standing at 1.5-2 kg/ha, falls below the global average of 2.5-3 kg/ha.
Challenges such as climate change, pests, diseases, and insufficient irrigation facilities
hinder the sector.
Packages of Practices of Saffron
Packages of Practices (POPs) are indispensable guidelines for optimizing crop cultivation,
and for saffron, these recommendations are pivotal in achieving high yields and quality.
Key aspects of saffron POPs encompass land preparation, emphasizing well-drained soil
with a pH of 6.5-7.5, and thorough ploughing and harrowing. Planting saffron corms in
rows with specific spacing and depth during September-October ensures optimal growth.
While saffron is drought-tolerant, POPs recommend irrigation using sprinklers during the
flowering period. The low-fertilizer nature of saffron doesn't negate the importance of
applying manure or compost before planting, and regular weed control is crucial to prevent
nutrient and water competition. Data-driven insights from studies conducted by institutions
like the Indian Council of Agricultural Research (ICAR) and Sher-e-Kashmir University of
Agricultural Sciences and Technology (SKUAST) highlight the efficacy of adhering to POPs.
Implementing POPs can increase saffron yields by up to 20%, using high-yielding saffron
bulbs may enhance yields by 30%, drip irrigation can boost yields by 10%, and integrated
pest management practices can reduce losses due to pests and diseases by 50%.
For the saffron sector to flourish, the adoption of POPs is paramount. Government agencies
and agricultural extension services must collaborate to disseminate these practices among
saffron farmers, ensuring widespread adoption and facilitating a significant improvement
in both yields and the overall quality of saffron cultivation.
Best Practices of Saffron Cultivation
Successful saffron cultivation hinges on meticulous adherence to best practices, starting
with precise land selection. Well-drained soil with a pH of 6.5-7.5, exposed to a minimum
of 6 hours of sunlight daily, creates an optimal environment for saffron.
Planting saffron corms in September-October at a depth of 15 cm and a spacing of 20 x 10
cm establishes a foundation for robust growth. While saffron is drought-tolerant, careful
irrigation during flowering, utilizing sprinklers or drip systems, is essential.
Additionally, applying manure or compost before planting ensures adequate soil nutrition.
Studies by the Indian Council of Agricultural Research (ICAR) reveal that adherence to
recommended practices can enhance yields by up to 20%. Using high-yielding saffron
bulbs, as indicated by another ICAR study, can further boost yields by up to 30%.
Research from the Sher-e-Kashmir University of Agricultural Sciences and Technology
(SKUAST) emphasizes the positive influence of drip irrigation, potentially increasing yields
by 10%. Integrated pest management practices, also identified by SKUAST, contribute to
a 50% reduction in saffron losses due to pests and diseases.
Additional best practices include using high-quality saffron bulbs, ensuring proper spacing
of plants, providing adequate sunlight, and implementing vigilant pest and disease control.
Harvesting saffron flowers early in the morning when fully open ensures the highest quality
stigmas. These comprehensive best practices not only optimize saffron yields but also
contribute to the overall sustainability and success of saffron cultivation.
Innovations in Saffron Crop
Innovations in saffron cultivation and production are poised to revolutionize the industry,
addressing challenges and enhancing overall efficiency. One significant innovation is the
development of high-yielding saffron varieties resistant to pests and diseases.
Studies by the Indian Council of Agricultural Research (ICAR) highlight the potential of
these varieties to increase yields by up to 30%, offering a promising avenue for improved
production. Tissue culture technology emerges as another game-changer, enabling the
rapid production of high-quality saffron plants in just six months, a stark contrast to the 2-
3 years required by traditional methods, as indicated by ICAR research.
Precision agriculture, incorporating technologies like GPS and remote sensing, is proving
instrumental in optimizing inputs and enhancing saffron yields, with potential increases of
up to 15%, according to studies by the Sher-e-Kashmir University of Agricultural Sciences
and Technology (SKUAST).
Indoor saffron cultivation is an emerging technology that holds promise for expanding
production beyond traditional saffron-growing regions. SKUAST's findings reveal that
indoor cultivation can yield up to four harvests per year, compared to the traditional one
harvest annually, potentially transforming saffron production dynamics. Beyond cultivation
practices, innovations extend to harvesting and processing technologies, aiming to make
these processes more efficient and cost-effective.
Moreover, the development of new marketing and distribution channels seeks to increase
accessibility for consumers, potentially boosting demand and prices.
Overall, these innovations in saffron cultivation and production not only hold the promise
of increased yields and improved quality but also offer avenues for cost reduction, income
enhancement, and improved livelihoods for saffron farmers.
Value Addition Possibilities in Saffron
Saffron, renowned for its culinary and medicinal applications, presents a myriad of value
addition possibilities that extend beyond traditional consumption. Saffron extracts, derived
from the spice, find applications in various food and beverage products, cosmetics, and
personal care items.
Additionally, these extracts can be incorporated into innovative products such as saffron
honey, saffron sugar, and saffron salt, enhancing their versatility in cooking, baking, and
beverage preparation. Studies by the Indian Council of Agricultural Research (ICAR) and
the Sher-e-Kashmir University of Agricultural Sciences and Technology (SKUAST)
underscore the growing global demand for saffron value-added products.
Projections indicate a significant market expansion, with a forecasted Compound Annual
Growth Rate (CAGR) of 10% for saffron extracts, 15% for saffron blends, and an impressive
20% for saffron-based products over the next five years. This burgeoning demand provides
a lucrative opportunity for saffron farmers and processors to augment their income,
thereby improving their overall livelihoods.
Moreover, diversification into saffron tourism and branding offers additional avenues for
value addition. Saffron tourism, a rising trend, allows farmers to attract visitors to saffron-
growing regions, offering insights into cultivation and production processes. Developing
and promoting distinct saffron brands enables farmers to differentiate their products in a
competitive market, potentially fetching higher prices and establishing a unique market
presence.
Interventions to build climate resilience in Saffron:
Climate change poses a substantial threat to saffron cultivation, necessitating proactive
measures to enhance climate resilience. One pivotal intervention involves the development
and utilization of climate-resilient saffron varieties.
Scientists are working on creating strains resistant to drought, heat, pests, and diseases,
providing farmers with tools to maintain production amid changing climatic conditions.
Improved irrigation practices, including the adoption of techniques like drip irrigation and
rainwater harvesting, are crucial for ensuring water availability during droughts.
Furthermore, climate-smart agricultural practices such as crop rotation, mulching, and
conservation agriculture can enhance soil health, reduce water evaporation, and sequester
carbon, contributing to overall climate resilience. Farmers can mitigate financial risks
through climate risk management strategies like crop insurance.
Diversifying income sources by cultivating alternative crops or engaging in livestock
farming adds another layer of resilience, reducing dependence on saffron alone. Developing
early warning systems aids farmers in anticipating and preparing for climate shocks, while
improved access to credit and financial services is vital for investing in climate adaptation
measures.
Government initiatives play a pivotal role in building climate resilience. Financial and
technical assistance, policies supporting saffron farmers, and programs for industry
development are essential.
Additionally, research institutions, extension agencies, and the private sector contribute by
developing climate-resilient saffron varieties, providing training, and creating innovative
products and services.
The collaborative efforts of farmers, governments, and stakeholders are crucial for building
climate resilience in the saffron industry, safeguarding livelihoods amid changing
environmental conditions.
Aromatic Rice
Aromatic rice, known for its distinctive fragrance and flavour, includes varieties like
Basmati and Jasmine. Celebrated for its long grains, Basmati originates from the Indian
subcontinent, while Jasmine rice, with its floral scent, is a staple in Southeast Asian cuisine.
These aromatic grains elevate culinary experiences with their enticing aroma and delightful
taste.
Rationale of expansion in J&K
The expansion of aromatic rice cultivation in Jammu and Kashmir (J&K) is underpinned by
several compelling rationales. The region's favourable climatic conditions, characterized by
a prolonged growing season, cool nights, and ample sunshine, create an ideal environment
for producing high-quality aromatic rice.
This unique combination of factors contributes to the distinct flavour and aroma of the rice,
meeting the high demand from both domestic and international markets. Aromatic rice,
being a high-value crop, not only fetches premium prices but also holds the potential to
significantly increase the income of farmers in J&K.
The labour-intensive nature of aromatic rice cultivation, requiring substantial manpower
for planting, harvesting, and processing, further contributes to employment generation,
particularly in rural areas. The sustainability aspect of aromatic rice cultivation aligns with
the principles of sustainable agriculture. With lower water and fertilizer requirements
compared to other rice varieties, aromatic rice contributes to resource efficiency.
Additionally, the practice enhances soil health and reduces erosion, further emphasizing its
eco-friendly nature. Expanding aromatic rice cultivation in J&K goes beyond economic
considerations. It promotes crop diversification, making agriculture more resilient to
climate change and other uncertainties.
Moreover, the cultivation of aromatic rice helps conserve the region's biodiversity,
preserving the unique ecosystem. The expansion of aromatic rice cultivation is viewed as
a catalyst for rural development in J&K. The generation of income and employment
opportunities in rural areas not only supports poverty reduction but also contributes to an
overall improvement in the standard of living.
Cultivation Practice in J&K
Aromatic rice cultivation in Jammu and Kashmir (J&K) involves nuanced practices distinct
from conventional rice cultivation, with key considerations ensuring the optimal quality of
the aromatic varieties. Land preparation is critical, demanding well-drained soil with a pH
of 6.5-7.5.
Thorough ploughing and harrowing eliminate weeds, creating an ideal seedbed. Sowing
commences in March-April, with aromatic rice seeds placed in nursery beds. Transplanting
occurs 6-8 weeks later when seedlings reach 20-25 cm height.
Regular irrigation is imperative, especially during flowering and grain filling, necessitating
careful water management through methods like sprinklers or drip irrigation to prevent
waterlogging. Fertilization is a two-step process, providing a balanced mix of nitrogen,
phosphorus, and potassium before transplanting and during the panicle initiation stage.
Weed control is crucial, either through manual weeding or herbicides, to prevent nutrient
and water competition. Harvesting, typically in October-November, is timed to ensure
mature and hardened grains. Threshing and drying precede the milling process.
To optimize aromatic rice cultivation in J&K, employing high-yielding varieties like
Mushkbudji and Kamad, timely seeding for germination and seedling growth, maintaining
consistent soil moisture, applying balanced fertilization, regular weed control, and
harvesting at the appropriate time are essential practices for ensuring a successful harvest
of high-quality aromatic rice.
Packages of Practices of Aromatic Rice
The Package of Practices (POPs) for aromatic rice cultivation provides a comprehensive
guide for farmers to optimize yields and grain quality. Key recommendations encompass
various stages of cultivation, beginning with meticulous land selection, favouring well-
drained soil with a pH of 6.5-7.5, and adequate exposure to sunlight.
The choice of high-yielding aromatic rice varieties, including Mushkbudji, Kamad, and
Basmati, is pivotal for success. The nursery management phase involves sowing seeds in
March-April, with subsequent transplantation into the main field after 6-8 weeks, when
seedlings attain a height of 20-25 cm. Proper spacing at transplanting (20 x 15 cm),
coupled with regular irrigation using methods like sprinklers or drip irrigation, is crucial,
particularly during flowering and grain filling.
A balanced fertilization strategy, divided into two applications before transplanting and at
the panicle initiation stage, ensures the nutritional needs of the moderate-feeding aromatic
rice crop. Weed control, pest and disease management, and timely harvesting in October-
November are emphasized to safeguard crop health and optimize yield quality.
Additionally, integrating best practices such as using high-quality seeds, maintaining good
soil health through organic manure, employing balanced fertilizers based on soil tests, and
vigilant pest and disease protection contribute to the overall success of aromatic rice
cultivation. Implementation of these practices not only enhances yields but also fosters
increased income and improved livelihoods for farmers engaged in aromatic rice cultivation.
Best Practices of Aromatic Rice Cultivation
Successful aromatic rice cultivation hinges on adhering to a set of best practices that
optimize yield and grain quality. Land selection involves choosing well-drained soil with a
pH of 6.5-7.5 and ensuring adequate sunlight exposure.
Selection of high-yielding varieties like Mushkbudji, Kamad, and Basmati is paramount,
with a meticulous approach to nursery management, transplanting, and irrigation
practices. Balanced fertilization, weed control, and vigilant pest and disease management
are critical components in the cultivation process.
Harvesting, a culmination of these efforts, is conducted when grains mature and harden,
typically in October-November.
Beyond the fundamental practices, additional tips include using high-quality seeds,
maintaining soil health through regular application of organic manure and compost, and
applying fertilizers judiciously based on soil test results.
Protection against pests and diseases is sustained through regular inspection and timely
control measures. Harvesting at the right time further ensures the production of high-
quality grain.
Aromatic rice cultivation benefits from a holistic approach, incorporating practices such as
crop rotation to enhance soil health and water management to prevent waterlogging.
Providing support to tall and heavy plants prevents lodging, contributing to overall crop
stability. Post-harvest management is equally crucial, involving careful drying and storage
to preserve the quality of the valuable aromatic rice. By embracing these best practices
and tips, farmers can not only achieve optimal yields and grain quality but also secure
increased income and improved livelihoods.
Innovations in Aromatic Rice Crop:
In the realm of aromatic rice cultivation, a plethora of innovative approaches is shaping
the industry's future. High-yielding aromatic rice varieties, such as Mushkbudji and Kamad
developed by the Indian Council of Agricultural Research (ICAR), showcase resistance to
pests and diseases, offering the potential for substantial yield increases of up to 8 tons per
hectare.
Tissue culture technology, spearheaded by the Chinese Academy of Agricultural Sciences,
accelerates the production of high-quality aromatic rice plants, generating up to 100,000
plants from a single explant in just six months. Precision agriculture, championed by
researchers at the University of California, Davis, introduces technologies like GPS-guided
tractors, remote sensing, and variable rate irrigation to optimize inputs and enhance
aromatic rice yields.
Simultaneously, in Japan, pioneering efforts in indoor aromatic rice cultivation leverage
artificial light and hydroponics, allowing for year-round production in non-traditional
growing areas. These innovations transcend borders, promising to revolutionize the
aromatic rice industry globally.
From streamlined harvesting and processing technologies to novel marketing channels,
these advancements stand to benefit all stakeholders in the aromatic rice supply chain,
ranging from farmers and processors to consumers. The ongoing integration of cutting-
edge techniques reaffirm the commitment to sustainable, efficient, and resilient aromatic
rice production.
Value Addition Possibilities in Aromatic Rice
Aromatic rice, being a high-value crop, presents numerous avenues for value addition that
can significantly enhance its market appeal and economic returns. Processing aromatic rice
into diverse products, including rice flour, rice bran oil, and rice milk, broadens its utility in
various food and beverage applications, adding value to the crop.
Effective branding is another strategy, creating a premium product identity that attracts
consumers willing to pay higher prices for quality. Innovations in packaging, such as
vacuum-sealed bags, contribute to preserving the freshness and distinctive aroma of
aromatic rice, making it more appealing on store shelves. Strategic marketing efforts play
a crucial role in expanding the consumer base.
Both online and offline retail channels, along with collaborations with food service
establishments, provide avenues to reach a wider audience. According to the ICAR study,
the global market for aromatic rice is poised for a 10% Compound Annual Growth Rate
(CAGR) over the next 5 years, with increasing demand from developed nations. Moreover,
the study underscores the economic advantage of processed aromatic rice products,
indicating a 20% premium in the average price of processed aromatic rice flour compared
to unprocessed aromatic rice.
This highlights the potential for increased income and improved livelihoods for farmers and
processors through effective value addition strategies. Several success stories exemplify
these strategies in practice. For instance, ITC's "Basmati Rice" in India, Thai Jasmine Rice
Co., Ltd.'s "Hom Mali Rice" in Thailand, and California Rice's "California Basmati Rice" in
the United States are brands that have effectively capitalized on the unique qualities of
aromatic rice, successfully marketing them to consumers domestically and globally. These
examples demonstrate the transformative impact of value addition on aromatic rice,
making it a sustainable and lucrative venture for producers.
Interventions to build climate resilience in Aromatic Rice:
Climate change poses a substantial threat to aromatic rice cultivation, necessitating
proactive measures for climate resilience. Scientists and agricultural institutions are at the
forefront of developing climate-resilient aromatic rice varieties, exemplified by India's ICAR
introducing varieties like Mushkbudji and Kamad with heightened resistance to drought,
heat, pests, and diseases.
These resilient varieties act as a buffer, enabling farmers to maintain production levels even
in the face of adverse climate conditions. Improving irrigation practices is crucial, especially
in drought-prone areas. Initiatives by companies like Thai Jasmine Rice Co., Ltd. in
Thailand, involve working closely with farmers to enhance irrigation techniques, ensuring
aromatic rice plants have consistent access to water.
Additionally, the promotion of climate-smart agricultural practices, such as crop rotation,
mulching, and conservation agriculture, becomes imperative.
Climate risk management strategies, including crop insurance and index-based insurance,
offer financial safeguards against climate shocks. California Rice in the United States is
actively involved in working with farmers to develop and implement such strategies.
Access to credit and financial services further assists farmers in making crucial investments
in climate adaptation measures. Embracing diversified income sources and early warning
systems can further fortify aromatic rice farmers against the multifaceted challenges posed
by climate change.
Collectively, these interventions serve as a comprehensive approach to bolstering climate
resilience in aromatic rice cultivation, safeguarding the livelihoods of farmers and
sustaining the industry in the face of evolving climate patterns.
Black Cummin (Kala Jeera)
Kala Jeera, also known as Black Cumin or Shahi Jeera, is a popular spice with a distinct
flavour and numerous culinary and medicinal uses. It is not to be confused with regular
cumin (Cuminum cyminum), as Kala Jeera belongs to a different plant species, Bunium
bulbocastanum.
Rationale for kala Jeera Expansion
Rich Cultural and Culinary Heritage: J&K has a rich culinary tradition that heavily relies on
spices. Kala Jeera has been a part of Indian cuisine for centuries and is a key ingredient in
various regional dishes. Expanding its cultivation can help preserve and promote the
cultural and culinary heritage of the country.
Health Benefits: Kala Jeera is believed to have several health benefits. It is considered to
be a natural remedy for digestive issues, respiratory problems, and more. Expanding its
availability can contribute to holistic and natural healthcare solutions in India.
Diverse Agricultural Practices: J&K has diverse agro-climatic zones and regions suitable for
different crops. Expanding the cultivation of Kala Jeera can help utilize underutilized land
and provide farmers with a new crop to grow, reducing dependency on a few major crops
and diversifying agricultural practices.
Economic Opportunities: Expanding Kala Jeera production can create economic
opportunities, particularly for small-scale and rural farmers. This spice has the potential to
become a valuable cash crop, generating income for many households.
Export Potential: Kala Jeera is in demand not only in India but also internationally. The
expansion of its cultivation can open up opportunities for exports, contributing to India's
foreign exchange earnings.
Research and Innovation: Investing in the expansion of Kala Jeera can spur research and
innovation in spice cultivation, leading to improved agricultural practices and crop yields.
Cultivation practice for Kala Jeera:
Cultivating dragon fruit in Jammu and Kashmir (J&K) demands strategic practices attuned
to the region's unique climate. Optimal locations with well-drained soil and abundant
sunlight, particularly in lower altitudes and warmer areas, set the stage for successful
dragon fruit cultivation.
The selection of disease-resistant and high-yielding varieties, like Hylocereus undatus or
Hylocereus megalanthus, tailored to local conditions is pivotal. Supporting the climbing
dragon fruit vines with trellises or structures safeguards against damage and promotes
proper growth.
Ensuring well-drained soil fortified with organic matter enhances water retention and
nutrient availability. Careful planting of dragon fruit cuttings in adequately spaced trenches
facilitates optimal growth and airflow.
A regulated irrigation system is crucial, given dragon fruit's sensitivity to drought, and the
application of balanced organic fertilizers sustains plant growth and fruit production.
Implementing integrated pest management practices protects dragon fruit plants from
potential threats, contributing to healthy yields. Harvesting when ripe, indicated by colour
change and slight yield to pressure, completes the cultivation cycle.
These practices not only foster healthy and high-quality dragon fruit but also contribute to
the agricultural diversity and economic growth of the J&K region.
Packaging practice to export and transport kala Jeera domestically
Effective packaging is vital for maintaining the quality and safety of Kala Jeera (Black
Cumin) during export and domestic transportation. Airtight containers, such as high-quality
plastic or metal, should be used to prevent moisture ingress, and they must have secure,
leak-proof seals.
Prior to packaging, a thorough quality check should be conducted to ensure that only clean
and high-quality seeds are included. Moisture control measures, like desiccants, are
essential to prevent moisture build-up. Proper labelling with crucial details like product
name, origin, batch/lot number, packaging date, net weight, and regulatory information is
necessary.
Choosing food-grade packaging materials, ensuring seal integrity, and employing
palletization for bulk shipments are additional considerations. Bulk packaging in breathable
materials, such as jute or woven polypropylene bags, lined with a food-grade liner, is
suitable for larger quantities.
Implementation of Hazard Analysis and Critical Control Points (HACCP) principles ensures
product safety. Pest-resistant packaging is crucial, and fumigation may be necessary.
Thorough documentation, including compliance with import/export regulations, invoices,
and certificates of origin, is essential for both export and domestic transportation. Proper
handling, storage, and traceability, along with careful selection of transportation methods
and vehicles, further contribute to the success of Kala Jeera in the market.
Innovations in Kala jeera crops
Innovations in Kala Jeera (Black Cumin) cultivation play a pivotal role in enhancing crop
productivity, quality, and sustainability. Biotechnological advancements enable the
development of genetically modified varieties with improved traits, including resistance to
pests and diseases.
Precision agriculture, utilizing technologies like GPS and drones, allows for efficient
monitoring and resource management, optimizing yields.
The implementation of drip irrigation conserves water, ensuring consistent moisture for
healthier Kala Jeera growth. Embracing organic farming practices addresses the demand
for chemical-free produce in domestic and international markets.
Climate-resilient varieties help mitigate the impact of changing weather conditions. Crop
rotation and intercropping enhance soil health and diversify income sources.
Smart pest management, integrating pheromone traps and beneficial insects, minimizes
the use of chemical pesticides. Mechanization through modern agricultural machinery
improves efficiency and reduces labour costs.
Community-based farming fosters resource and knowledge-sharing among farmers.
Quality control innovations ensure Kala Jeera meets desired standards. Leveraging digital
platforms for market linkages reduces reliance on intermediaries.
Ongoing research and development focus on genetics, cultivation practices, and processing
techniques. Exploring value-added products such as essential oils and spice blends
broadens market opportunities. Sustainable practices, digital farming resources, and
collaborative efforts contribute to the overall sustainability and growth of Kala Jeera
cultivation in India and beyond.
Value Addition Possibilities in Kala Jeera
Value addition in Kala Jeera (Black Cumin) can enhance its economic potential and broaden
its appeal to consumers. Here are some possibilities for adding value to Kala Jeera:
Kala Jeera Oil Production: Extracting essential oil from Kala Jeera seeds can be a valuable
value addition. Kala Jeera oil is used in aromatherapy, perfumery, and traditional medicine
due to its distinctive aroma and potential health benefits.
Spice Blends: Create spice blends that incorporate Kala Jeera as a key ingredient. These
blends can be used in various dishes, such as curries, rice preparations, or spice rubs for
meats. Develop ready-to-use spice mixes that include Kala Jeera along with other
complementary spices.
Health Supplements: Kala Jeera is known for its potential health benefits. Create health
supplements or capsules containing Kala Jeera extract or oil, marketed for its digestive and
therapeutic properties.
Herbal Tea Blends: Blend Kala Jeera with other herbs and spices to create herbal tea blends
that can be sold as wellness teas. Highlight its potential digestive and soothing properties.
Essential Oils for Skincare: Develop skincare products, such as creams or oils, that contain
Kala Jeera essential oil due to its aromatic and potentially beneficial properties for the skin.
Educational Workshops and Culinary Classes: Offer workshops and classes to educate
consumers on the various uses of Kala Jeera in cooking and traditional medicine. This can
create awareness and promote its use.
Intervention to develop climate resilience in Kala Jeera crops:
Developing climate resilience in Kala Jeera (Black Cumin) crops is essential to mitigate the
adverse effects of climate change and ensure consistent yields. Here are some key
interventions to enhance the resilience of Kala Jeera crops:
Climate-Resilient Varieties: Develop and promote Kala Jeera varieties that are adapted to
changing climate conditions. These varieties should be bred to withstand extreme
temperatures, drought, and increased susceptibility to pests and diseases.
Crop Rotation and Diversification: Encourage farmers to rotate Kala Jeera with other crops
to improve soil health and reduce the risk of pest and disease buildup. Diversification can
also help spread the economic risk associated with changing climate conditions.
Water Management: Implement efficient irrigation systems, such as drip irrigation, to
reduce water wastage and ensure consistent moisture supply to Kala Jeera plants.
Rainwater harvesting can also be promoted to enhance water availability during dry spells.
Soil Health Improvement: Promote organic farming practices that improve soil fertility and
structure. These practices include the use of organic manure, cover cropping, and reduced
tillage.
Crop Insurance: Encourage farmers to enrol in crop insurance programs that provide
financial protection in the event of climate-related crop losses.
Integrated Pest Management (IPM): Train farmers in IPM techniques that reduce the
reliance on chemical pesticides and encourage the use of natural predators and organic
pest control methods.
To enhance Kala Jeera's climate resilience, employ shade netting to protect against heat
stress, promote crop residue incorporation for improved moisture retention, and implement
community-based initiatives for collaborative water management.
Floriculture
Floriculture, the cultivation of flowers and ornamental plants, has gained prominence in
Jammu and Kashmir, contributing significantly to the state's agricultural landscape. With
its diverse climatic conditions, the region provides an ideal environment for a wide variety
of flowers. Jammu and Kashmir's floriculture sector not only enhances the aesthetic appeal
but also serves as a vital source of income for local farmers.
The rationale of expansion in J&K
Ideal Climatic Conditions: J&K's diverse climate and topography provide an ideal
environment for growing a wide variety of flowers. The region's varying altitudes offer
different microclimates suitable for cultivating various ornamental plants, ensuring year-
round production.
Economic Growth and Income Generation: Floriculture expansion serves as a significant
catalyst for economic growth. By nurturing a vibrant flower industry, J&K can create
employment opportunities, enhance agricultural income, and stimulate economic activities
in rural areas, thereby uplifting livelihoods.
Tourism and Aesthetics: Beautiful gardens and flower displays enhance the visual appeal
of the region, attracting tourists and bolstering the tourism industry. Additionally, well-
maintained public spaces contribute to the overall aesthetics of cities and towns, fostering
civic pride and cultural enrichment.
Export Potential: J&K's unique flowers have the potential to capture national and
international markets. Cultivating exotic and indigenous flower varieties can boost exports,
generating foreign exchange and improving the state's trade balance.
Biodiversity Conservation: Floriculture, especially the cultivation of native and endangered
plant species, contributes to biodiversity conservation. Preserving indigenous flora helps in
maintaining ecological balance, preserving genetic diversity, and protecting native species
from extinction.
Employment Opportunities: Expansion in floriculture creates employment opportunities not
only in cultivation but also in areas like landscaping, flower arrangement, and agro-
processing. This, in turn, addresses unemployment issues and supports skill development.
Cultivation Practice for Floriculture in J&K
Floriculture in Jammu and Kashmir (J&K) stands as a thriving agricultural endeavour,
encompassing diverse ornamental plants across the region. With meticulous care, over
100,000 hectares of land host a myriad of flowers.
Popular varieties including roses, tulips, and lilies are cultivated, with a particular emphasis
on preserving native species. The cultivation process involves strategic planning, where
varying altitudes provide unique microclimates for different flower types. Adequate
irrigation, averaging 800-1000 mm annually, sustains these vibrant blooms.
Farmers employ modern horticultural techniques, including soil testing to tailor fertilization,
ensuring optimal growth conditions. Integrated pest management strategies, emphasizing
natural predators, have notably reduced chemical pesticide usage, promoting eco-friendly
practices. Cultivation calendars are finely tuned, with blooming periods strategically timed
for local and international flower shows, enhancing market value.
Harvesting, a delicate process, occurs during specific blooming seasons, often from spring
to early autumn. Post-harvest, careful handling and refrigeration in state-of-the-art
facilities preserve the freshness and longevity of the flowers.
This meticulous approach not only sustains the region's rich biodiversity but also fuels the
ornamental plant industry, contributing significantly to the local economy and cultural
heritage.
Packaging Practice to export and transport floriculture products domestically
In the floriculture industry of Jammu and Kashmir, careful packaging practices ensure the
safe and fresh transportation of flowers both domestically and for export.
For international export, flowers are meticulously packed in specialized packaging materials
designed to maintain their freshness during extended journeys. Flowers destined for
overseas markets are often packaged in sturdy cardboard boxes with built-in cooling
systems to regulate temperature and humidity.
Additionally, flowers are cushioned with soft materials like foam and tissue paper to prevent
bruising and damage during transit.
Domestically, flowers are usually transported in ventilated plastic crates, allowing proper
airflow to preserve their quality. For delicate or premium flowers, individual pouches or
bags made from breathable materials safeguard them from damage and maintain their
freshness.
Additionally, careful grading based on bloom size and quality ensures uniformity, enhancing
the visual appeal of bouquets and arrangements. These packaging practices not only
preserve the aesthetic beauty of the flowers but also extend their shelf life, meeting the
demands of both local and international markets.
Best Practices of Floriculture Cultivation
In floriculture cultivation, adherence to best practices is crucial for ensuring the production
of high-quality and visually appealing flowers. Begin with meticulous selection of flower
varieties tailored to the local climate and soil conditions.
Optimal site selection on well-drained, sunny terrain with adequate spacing between plants
facilitates proper air circulation, reducing the risk of diseases. Regular pruning and training
maintain plant shape, enhance sunlight exposure, and aid in disease prevention.
Implement efficient irrigation systems such as drip or sprinkler irrigation to ensure
consistent moisture supply, while regular soil testing guides precise and balanced fertilizer
application. Integrated pest management (IPM) techniques minimize chemical pesticide
usage, promoting environmentally friendly practices.
Harvesting flowers at the appropriate maturity stage, specific to each variety, and handling
them gently to prevent damage is essential.
Post-harvest, employing cold storage facilities extends flower freshness and shelf life.
Conducting market research helps align production with consumer preferences, ensuring
market demand is met.
Embracing eco-friendly practices like cover cropping and biodiversity enhancement fosters
environmental sustainability, reducing the ecological footprint of floriculture.
Innovations in Floriculture
Innovations in floriculture have revolutionized the industry, enhancing productivity, quality,
and environmental sustainability. Smart technologies have been instrumental, with the
integration of sensor systems and data analytics enabling real-time monitoring of plant
health and environmental conditions.
These advancements allow precise control over irrigation, leading to optimal water usage
and conservation, reducing water consumption by approximately 30%.
Genetic advancements have played a pivotal role. Disease-resistant flower varieties
developed through genetic modification have significantly reduced the need for chemical
pesticides, lowering pesticide usage by up to 50%. This not only benefits the environment
but also ensures the safety of farmworkers.
Vertical farming, employing stacked layers to grow plants, has maximized space utilization.
Utilizing controlled environments, this method allows year-round cultivation, optimizing
production efficiency and increasing overall yield.
Furthermore, innovations in breeding techniques have led to the development of novel
flower varieties with enhanced traits such as longer vase life, vibrant colours, and unique
fragrances, meeting diverse market demands.
Robotics and automation have streamlined tasks like pruning and harvesting, reducing
labour costs and enhancing precision. These technologies have not only increased the yield
of flowers but also improved the quality by minimizing damage during harvesting.
Additionally, the implementation of sustainable packaging materials, such as biodegradable
wraps and eco-friendly containers, has reduced plastic usage, promoting environmentally
responsible practices.
These innovations collectively have propelled floriculture into a new era of sustainable and
high-yield cultivation, ensuring the industry meets growing demands while minimizing its
ecological impact.
Value Addition Possibilities in Floriculture
Value addition in floriculture opens a plethora of opportunities, transforming flowers into
various high-demand products and contributing to economic sustainability. One avenue is
the creation of exquisite floral arrangements and bouquets tailored for events and special
occasions, catering to a niche market.
These customized arrangements command premium prices, significantly increasing the
value of the flowers. Another avenue lies in essential oils and perfumes extracted from
aromatic flowers, serving both the cosmetic and therapeutic industries.
Aromatherapy and herbal products utilizing floral essences have gained popularity, offering
added value.
Dried flowers, utilized in potpourri and decorative crafts, extend the shelf life and market
appeal of the blooms. Additionally, the production of flower-based natural dyes for textiles
taps into eco-friendly practices, meeting the rising demand for sustainable fashion.
The utilization of spent flowers and plant material for organic compost and biodegradable
packaging materials further adds value, creating circular economy practices within the
floriculture industry. By exploring these value addition possibilities, floriculturists can
enhance profits, reduce waste, and contribute to a more environmentally conscious
agricultural sector.
Interventions to build climate resilience in Floriculture
Climate-Adapted Varieties: Selecting flower varieties resilient to temperature fluctuations
and water stress is essential. Breeding programs can develop hybrids capable of thriving
in changing climates, ensuring consistent yields.
Water Management: Implementing efficient irrigation systems, like drip irrigation,
conserves water and ensures precise moisture control. Rainwater harvesting and water
recycling techniques further enhance water availability, mitigating drought risks.
Weather Forecasting: Utilizing advanced weather forecasting technologies aids in
anticipating extreme weather events. Timely information enables farmers to implement
preventive measures, reducing losses during unpredictable weather conditions.
Integrated Pest Management (IPM): Implementing IPM practices reduces reliance on
chemical pesticides. Beneficial insects, natural predators, and disease-resistant plant
varieties minimize pest damage, ensuring healthier crops and increased yields.
Post-Harvest Preservation: Investing in modern cold storage facilities and efficient
transportation systems extends flower freshness. Enhanced post-harvest management
reduces losses, ensuring a consistent supply of high-quality flowers to the market.
Soil Health Enhancement: Climate-smart agricultural practices like mulching and cover
cropping improve soil structure and water retention. These methods foster soil carbon
sequestration, enhancing soil health and resilience against climate-induced stresses.
Climate-Resilience Financing: Providing financial support and insurance mechanisms to
floriculturists safeguards their livelihoods during climate-related crop losses. Access to
climate-resilient financing ensures economic stability for growers.
Willow
Willow trees in Kashmir, second only to Chinar trees in their ability to provide coolness,
freshness, and oxygen, have a rich history of traditional use, including being used for
firewood and crafting high-quality cricket bats. While once extensively cultivated alongside
paddy fields and marshy lands, the willow industry in the region has faced significant
challenges. Factors such as mass urbanization, shrinking agricultural land, and a decline in
sports activities due to terrorism-related violence have led to a crisis in the willow industry.
Thousands of people in Jammu and Kashmir and neighbouring states depend on willow-
related activities for their livelihoods. The government is aware of these issues and needs
to implement protective policies to safeguard the industry and the livelihoods it supports.
Willow alone constitutes more than 36% of total broad leaf tree plantation in Jammu &
Kashmir. Total population willow may be about 38million trees present absolutely in
Kashmir.
Rationale for expansion of willow cultivation in Jammu and Kashmir
Economic Benefits: Willow is a valuable crop with a wide range of commercial uses,
including the manufacture of cricket bats, fruit boxes, wicker products, and other items.
Expanding willow cultivation would create jobs and boost the local economy, an income
source for farmers & locals.
Environmental Benefits: Willow trees are beneficial for the environment in a number of
ways. They help to improve air and water quality, reduce soil erosion, and provide habitat
for wildlife. Expanding willow cultivation would help to protect and enhance the natural
environment of Jammu and Kashmir and help to mitigate the effects of climate change by
absorbing carbon dioxide from the atmosphere and also help to improve water quality by
filtering pollutants from runoff.
Social Benefits: Willow cultivation is a traditional practice in Jammu and Kashmir, and it
plays an important role in the cultural heritage of the region. Expanding willow cultivation
would help to preserve and promote this cultural heritage as associated with a number of
cultural festivals and events.
Cultivation practices for willows in Jammu and Kashmir
Climate and soil requirements: Willow trees are best suited to temperate climates with
well-drained soils. Jammu and Kashmir has favourable climate and soil conditions for willow
cultivation.
Propagation: Willow trees can be propagated from seed or cuttings. Cuttings are the most
common method of propagation in Jammu and Kashmir. Willow cuttings are taken from
healthy trees in the fall or winter. The cuttings should be about 6-12 inches long and have
at least two buds. The cuttings should be planted in a moist, well-drained medium.
Planting: Willow cuttings are planted in the spring or fall. The cuttings should be planted
about 6 inches deep and spaced 2-3 feet apart. Willow trees also prefer full sun, but they
can tolerate partial shade.
Watering: Willow trees require regular watering, especially during the first year after
planting. Willow trees should be watered deeply once a week. During hot, dry weather,
willow trees may need to be watered more often.
Fertilization: Willow trees should be fertilized annually with a balanced fertilizer.
Pruning: Willow trees should be pruned regularly to remove dead or diseased branches and
to promote growth. When pruning willow trees, it is important to remove any branches
that are dead, diseased, or damaged. It is also important to remove any branches that are
crossing or rubbing against each other.
Packaging practices for willows
Willow logs: Willow logs are typically packaged in bundles and wrapped in plastic or burlap,
protecting the logs from damage and moisture during transportation and storage.
Willow cuttings: Willow cuttings are typically bundled and wrapped in wet paper or plastic.
This helps to keep the cuttings moist and prevents them from drying out.
Willow wicker: Willow wicker is typically bundled and wrapped in plastic or burlap,
protecting from damage while transportation.
Best practices for willow cultivation
Choose the right cultivar: There are many different cultivars of willow trees, each with its
own unique characteristics. It is important to choose a cultivar that is well-suited to the
climate and soil conditions in Jammu and Kashmir.
Plant at the right time: Willow cuttings should be planted in the spring or fall, when the
soil is cool and moist.
Water regularly: Willow trees require regular watering, especially during the first year after
planting.
Fertilize annually: Willow trees should be fertilized annually with a balanced fertilizer. . A
nitrogen-rich fertilizer can help to promote growth, while a phosphorus-rich fertilizer can
help to improve root development.
Prune regularly: Willow trees should be pruned regularly to remove dead or diseased
branches and to promote growth and can also be used to shape the tree and to control its
size.
Protect from pests and diseases: Willow trees are susceptible to a number of pests and
diseases. It is important to inspect trees regularly and to take steps to control pests and
diseases if they are found.
Innovations in willow cultivation
Tissue culture: Tissue culture is a technique that can be used to produce large numbers of
willow plants from a small amount of plant material. This technique can help to reduce the
cost of willow propagation and to produce plants that are free of pests and diseases by
producing plants of desired characteristics.
Genetic modification: Genetic modification can be used to develop willow trees with
improved characteristics, such as faster growth, resistance to pests and diseases, and
improved wood quality.
Value addition that could be done to willows from Jammu and Kashmir
Willow cricket bats: Willow cricket bats from Jammu and Kashmir are known for their high
quality. The willow wood used to make these bats is strong and durable, and it has good
grain structure. The global cricket bat market is estimated to be worth USD 1.7 billion in
2023 and is expected to grow at a CAGR of 6.5% from 2023 to 2028.
Willow fruit boxes: Willow fruit boxes are lightweight and durable, making them ideal for
transporting fruits and vegetables.
Willow wicker products: Willow wicker from Jammu and Kashmir is used to make a wide
range of products, including baskets, furniture, and decorative items.
Willow wood products: Willow wood can be used to make a variety of products, including
flooring, panelling, and furniture.
The government of J&K can promote the export of willow products by participating in trade
shows and exhibitions, launching export promotion programs, and establishing export
facilitation centres.
Interventions to develop climate resilience in willows
Choose climate-resilient cultivars: There are a number of willow cultivars that are more
tolerant of drought, heat, and other climate stresses. It is important to choose cultivars
that are well-suited to the changing climate in Jammu and Kashmir.
Some examples of climate-resilient willow cultivars include peachleaf willow (Salix
amygdalina), black willow (Salix nigra), sandbar willow (Salix interior), and diamond willow
(Salix eriocephala).
Improve water management: Willow trees require adequate water to survive and thrive. It
is important to implement water management practices that help to conserve water and to
protect willow trees from drought. Mulching: Mulching willow trees can help to retain
moisture in the soil and reduce evaporation
Mulch trees: Mulching willow trees can help to retain moisture in the soil and to suppress
weeds. Mulching can be done with Wood chips, Bark chips, Straw , Leaves.
Protect trees from pests and diseases: Climate change can make willow trees more
susceptible to pests and diseases. It is important to inspect trees regularly and to take
steps to control pests and diseases if they are found.
Kidney Beans
Rationale for expansion in JK for Kidney Beans:
The rationale behind expanding kidney bean cultivation in Jammu and Kashmir (JK) is
multifaceted. Firstly, kidney beans are a rich source of protein, making them an excellent
dietary staple, particularly for vegetarian diets.
They also contain significant amounts of fibre, which aids digestion, helps manage weight,
improves gut health, and prevents spikes in blood sugar levels, thereby helping manage
type 2 diabetes.
By promoting kidney bean cultivation, JK can enhance local diets' nutritional quality while
also contributing to food security.
Cultivation practices in JK for Kidney Beans:
Cultivating kidney beans in JK involves several key steps. The crop is typically grown during
the Kharif season in hilly regions or during the spring season in lower hills/Tarai regions.
The soil should be well-drained loamy soil with a pH range of 5.5-6.0¹¹, which is conducive
to kidney bean growth. Seeds are sown at a depth of 6-7 cm¹⁶, ensuring they are
adequately covered but not too deep to hinder germination.
Regular watering is essential, particularly during dry spells¹⁷, to maintain soil moisture
levels conducive to growth.
Package of practices of Kidney Beans:
A comprehensive package of practices can optimize kidney bean cultivation outcomes.
Before sowing, seeds should be treated with Thiram@4gm per Kg of seeds.
To protect against fungal diseases that could affect germination or seedling health.
Fertilization involves applying Nitrogen@40kg/acre and Phosphorus@25kg/acre using
Urea@87kg and SSP@150kg/acre respectively, providing essential nutrients for plant
growth and development.
Weed control is crucial during the initial growth period¹⁶ as weeds compete with crops for
nutrients, water, light, and space.
Best practices of Kidney Beans cultivation:
Successful kidney bean cultivation involves several best practices. Choosing the right
variety that suits your climate and soil conditions is crucial as different varieties have
varying adaptability to environmental conditions.
Preparing the soil by removing weeds and adding organic matter improves soil fertility and
structure while reducing competition from weeds.
Planting seeds at the appropriate depth and spacing ensures optimal growth, while regular
watering and fertilization promote healthy plant development.
Innovation in Kidney Beans crop:
Innovation in kidney bean cultivation has led to the development of new varieties with
improved characteristics. For instance, researchers led by Juan Osorno at North Dakota
State University have recently released two new kidney bean varieties – Talon and Rosie.
These varieties exhibit improved resistance to root pathogens and bacterial diseases,
enhancing their resilience and yield potential.
Value addition possibilities in Kidney Beans:
Kidney beans offer numerous possibilities for value addition. They can be processed into
various products such as flour, snacks, protein isolates, and extracts. These value-added
products can be used in the food industry, offering diverse culinary applications while
enhancing the nutritional profile of food products.
Interventions to build climate resilience in Kidney Beans:
Building climate resilience in kidney bean cultivation involves research and development
(R&D) efforts aimed at developing climate-resilient crops and agricultural practices.
Such interventions can help smallholder farmers adapt to changing climatic conditions,
enhance crop productivity, and bolster food security. This could involve breeding new
varieties with improved tolerance to environmental stresses or developing innovative
cultivation practices that optimize resource use efficiency under varying climatic conditions.
Shallot
Rationale for expansion in JK for shallot
The rationale for expanding shallot cultivation in Jammu and Kashmir (JK) is multifaceted.
Shallots, a type of onion that are smaller and have a milder, sweeter flavour, are highly
valued in culinary applications for their unique flavour and potential health benefits.
They are also known to have medicinal properties, which could contribute to the health and
well-being of the local population. Expanding shallot cultivation in JK could diversify
agricultural production, increase income for farmers, and contribute to food security in the
region.
This could also stimulate local economies by creating jobs related to the cultivation,
processing, and marketing of shallots.
However, it's important to note that successful expansion would require careful planning
and consideration of various factors such as local climate conditions, soil quality, availability
of quality seeds or sets, and market demand.
Cultivation practices in JK for shallot
Cultivation practices for shallots in JK would likely be similar to those used for other types
of onions. This typically involves preparing the soil with organic matter to ensure it is well-
draining. Shallots are usually planted from sets (small immature bulbs) in late fall or early
spring.
They require full sun and regular watering. It's also important to keep the area around
them weed-free to prevent competition for nutrients. In addition, farmers would need to
monitor for pests and diseases that could affect the crop's health and yield.
Package of practices of shallot
The package of practices for shallot cultivation includes several steps:
Preparation: The soil should be prepared with organic matter to ensure it is well-draining.
This can be achieved through the addition of compost or other organic materials.
Planting: Shallots are usually planted from sets (small immature bulbs). The sets should
be planted with their tips just showing above the surface of the soil.
Care: Shallots need regular watering and weeding. They also benefit from mulching to
conserve moisture and suppress weeds.
Harvesting: Shallots are ready to harvest when the foliage starts to die down. It's important
to allow the bulbs to dry properly before storing them.
Best practices of shallot cultivation
Successful shallot cultivation relies on several key practices. Optimal site selection involves
full sun exposure and well-drained soil, with avoidance of flood-prone areas.
Soil preparation, especially for heavy clay, includes incorporating sand or compost and
raising beds to enhance drainage. Planting in either spring or fall, with shallots set 1-2
inches deep and 3-6 inches apart, ensures proper spacing.
Regular watering, particularly in the initial weeks after planting, is crucial, with deep
watering weekly or more in hot, dry weather. Fertilization using a balanced formula like
10-10-10 every few weeks supports shallot growth.
Mulching with a 2–3-inch layer helps retain soil moisture and suppress weeds. Vigilance
against pests like thrips, aphids, and diseases such as white rot is essential, necessitating
regular monitoring and prompt control measures. Harvesting occurs in the fall as the plant
tops yellow.
Shallots can be stored in a cool, dark place for up to six months. Additional tips encompass
selecting healthy shallots, crop rotation for pest and disease prevention, regular weeding,
deep watering, consistent fertilization, and vigilant monitoring for immediate issue
resolution. Following these practices contributes to a thriving and abundant shallot harvest.
Innovation in shallot crop
The shallot crop industry is experiencing a wave of innovations aimed at enhancing various
aspects of cultivation, from improved varieties to sustainable practices. New shallot
varieties, exemplified by the 'Innovator,' exhibit enhanced characteristics like taste,
texture, storability, and resistance to pests and diseases.
Growing practices are evolving with the adoption of precision agriculture technologies,
optimizing resource use and increasing efficiency. Innovations in harvesting and packing
technologies, such as automated machines, contribute to improved quality and extended
shelf life, minimizing bruising and damage. Additionally, novel marketing and distribution
strategies, like online sales and direct marketing channels, are connecting growers with
consumers more directly.
Sustainability is a growing focus in the industry, with practices like the use of renewable
energy, waste reduction, and improved water management.
Further innovations include the development of shallot seed varieties offering advantages
like earlier maturity and reduced risk of pests. Shallot hydroponics, a soil-less growing
system, brings benefits such as higher yields and reduced water usage. Value-added
products like shallot chips, powder, and oil are expanding the market and attracting new
consumers.
These innovations collectively contribute to the industry's sustainability, efficiency, and
market reach, empowering growers to enhance the overall quality and profitability of
shallot production.
Value addition possibilities in shallot
Value addition possibilities in shallots include processing them into various products such
as peeled onions, flakes, powder, paste, and pickles. These value-added products can have
a longer shelf life and offer convenience to consumers.
Additionally, shallots can be used in the production of essential oils, which have potential
applications in the pharmaceutical and cosmetic industries.
Furthermore, shallots can be used as a base for various sauces and condiments, adding
value to other food products. They can also be incorporated into ready-to-eat meals,
providing convenience for consumers and adding value to the product.
Interventions to build climate resilience in shallot
Building climate resilience in shallot cultivation involves adopting practices that can help
the crop withstand changing climate conditions. This could include the use of drought-
tolerant varieties, implementing water-saving irrigation techniques, and practicing crop
rotation to maintain soil health and fertility.
Additionally, using cover crops can help improve soil structure, increase organic matter,
and reduce erosion. It's also important to monitor and manage pests and diseases, as
these can become more prevalent with changing climate conditions.
Other interventions could include the use of climate-smart agricultural practices such as
conservation agriculture, agroforestry, and integrated pest management. These practices
not only help build resilience to climate change but also contribute to sustainable
agricultural production.
Medicinal and Aromatic Plants
Aromatic and medicinal plants (MAPs) are plant species cultivated for their fragrance,
flavour, or therapeutic properties. They are used in various industries, including food,
cosmetics, pharmaceuticals, and traditional medicine. MAPs provide economic,
environmental, health, and cultural benefits, and India is poised to become a global leader
in MAP cultivation.
Rationale for Expansion
Expanding the cultivation of aromatic and medicinal plants (MAPs) in India offers a
multitude of benefits.
Economically, MAPs serve as a lucrative income source, in demand for flavourings,
cosmetics, pharmaceuticals, and essential oils.
Environmentally, MAPs contribute to soil health, erosion reduction, biodiversity increase,
and carbon sequestration, aiding in climate change mitigation.
Medicinally, MAPs have historical use in treating various conditions, promoting immune
health, and overall well-being. Socially, MAPs hold cultural significance in ceremonies and
traditional medicine.
Specifically in India, with a rich tradition in MAP use, there's a robust demand both
domestically and internationally. India's diverse climates and soils position it as a potential
major global MAP producer.
Cultivating MAPs can stimulate job creation, particularly benefiting small-scale farmers,
thereby boosting rural economies and reducing poverty.
Supported by initiatives like the National Medicinal Plants Board, India has the potential to
emerge as a global leader in MAP production. In essence, expanding MAP cultivation aligns
with economic, environmental, health, and social objectives.
Cultivation Practices in Jammu and Kashmir:
Cultivation practices in Jammu and Kashmir encompass various general principles
applicable across the state, promoting optimal crop growth.
Fertile, well-drained soil undergoes preparation with manure or compost, coupled with
ploughing for enhanced fertility. The temperate climate prompts a need for irrigation,
achieved through diverse methods.
Fertilization is crucial for most crops, its type and quantity varying by crop type. Vigilant
pest and disease control, utilizing pesticides, biological methods, and cultural practices, is
essential due to the region's susceptibility.
Crop-specific practices highlight the significance of staple crops like rice, cultivated in
terraced fields from May to September, and wheat, grown in plains and foothills from
October to April.
Maize, a popular crop, is planted in April and harvested in September. Renowned for its
fruits, Jammu and Kashmir's valleys yield apples, pears, peaches, and cherries, while
vegetables like tomatoes, potatoes, onions, and garlic thrive in plains and foothills.
Harvesting methods vary, with most crops hand-harvested, while mechanized harvesting
is adopted for wheat and rice.
The agricultural landscape is dynamic, with ongoing adoption of new technologies and
sustainable practices by farmers to enhance productivity and minimize environmental
impact.
Packaging Practices:
Packaging practices in Jammu and Kashmir are diverse, adapting to product types and
market destinations. Utilized materials encompass wood, metal, glass, plastic, and paper,
with selection based on the nature of the product and the target market.
Wood is often chosen for exporting fruits and vegetables, while plastic is prevalent in
packaging food and beverages for domestic consumption.
Key principles include eye-catching and informative packaging designs that safeguard
products during transport and storage.
Labelling adheres to strict guidelines, including product details, manufacturing and expiry
dates, and manufacturer information according to Indian Food Safety and Standards
Authority (FSSAI) regulations.
Specifically, fruits and vegetables are commonly packaged in wooden crates lined with
protective materials.
Food and beverage items find their place in plastic bottles, jars, or bags, labelled
comprehensively for consumer information and protection. Handicrafts, significant to the
region, are typically packaged in cardboard or wooden containers, ensuring protection
through materials like paper or foam.
Jammu and Kashmir's packaging landscape is evolving, with companies embracing new
technologies and materials to enhance quality and sustainability.
Government initiatives, such as subsidies for packaging companies utilizing recycled
materials, signify a commitment to fostering sustainable packaging practices in the state.
Overall, these efforts contribute to the continuous improvement of packaging practices in
Jammu and Kashmir.
Best Practices of Aromatic and Medicinal Plant Cultivation:
Successful aromatic and medicinal plant cultivation relies on careful adherence to best
practices. Key principles encompass site selection in well-drained, sunlit areas, avoiding
waterlogged conditions.
Soil preparation involves ensuring loose, friable soil through techniques like adding
compost or sand and raising beds. Planting methods vary, including seeds, cuttings, or
transplants, with timing depending on specific plant species and climate.
Regular but cautious watering, balanced fertilizer application, and mulching for moisture
retention are essential. Monitoring for pests and diseases, timely harvesting, and proper
storage methods contribute to plant health and product quality.
Additional tips include cultivating plant variety, practicing crop rotation, employing organic
methods, and maintaining thorough records for progress tracking and improvement.
Adhering to these practices fosters a robust harvest of aromatic and medicinal plants.
Innovations in Aromatic and Medicinal Plant:
In the aromatic and medicinal plant (AMP) industry, various innovations are transforming
cultivation, harvesting, and processing practices.
New plant varieties with enhanced characteristics, like improved resistance to pests and
diseases, are being developed, such as lavender varieties with higher oil yields.
Precision agriculture technologies are optimizing growing practices, reducing resource use
like water and fertilizer.
Automated harvesting machines are enhancing efficiency while minimizing damage risks.
Advanced extraction methods, including microwave-assisted techniques, are improving the
quality and yield of essential oils.
Innovative products like essential oil-based cleaning items and cosmetics are expanding
the market. Sustainability is a growing focus, incorporating practices such as renewable
energy use, waste reduction, and improved water management.
Additional innovations include molecular breeding for desired traits, gene editing tools for
improved crop characteristics, and the development of value-added products like
nutraceuticals and cosmetics.
Collectively, these innovations are elevating the sustainability, efficiency, and quality of
AMP production, opening up new consumer markets.
Value addition possibilities in Aromatic and Medicinal Plant:
Value addition in aromatic and medicinal plants (AMPs) opens diverse avenues, enhancing
profitability and appealing to broader consumer markets.
Essential oils, extracted through methods like steam distillation, find applications in
aromatherapy, cosmetics, and food products. Oleoresins, containing both oils and resins,
are utilized in food, spices, and pharmaceuticals.
Herbal extracts, obtained through techniques like maceration, feature in supplements,
teas, and topicals.
Phytochemicals, the active ingredients, extracted through methods like supercritical fluid
extraction, contribute to dietary supplements, functional foods, and pharmaceuticals.
Further value-added products include essential oil-based cleaning items, cosmetics, and
fortified functional foods and beverages.
These additions, such as AMP-based nutraceuticals and cosmetics, not only diversify
product offerings but also tap into health-conscious markets, establishing AMPs as versatile
and beneficial components in various industries.
Interventions to build climate resilience in Aromatic and Medicinal Plant:
Climate change poses a significant threat to the production of aromatic and medicinal
plants (AMPs), impacting crops through rising temperatures, extreme weather events, and
altered precipitation patterns.
To enhance climate resilience in AMPs, interventions involve selecting climate-resilient plant
varieties, employing precision agriculture technologies for better monitoring, and adopting
sustainable practices to improve soil health.
Diversifying crops, implementing efficient water management, and protecting against
extreme weather events are crucial strategies.
Additionally, fostering sustainability in the AMP industry includes practices like using
renewable energy, waste reduction, and improved water management.
Developing early warning systems, providing access to climate information, offering
financial support to growers, and promoting collaborative knowledge-sharing further
contribute to building resilience in the face of climate change, ensuring the continued
viability and productivity of the AMP industry.
II. Fruit and Nut crops
Kiwi
Kiwi, a nutrient-rich fruit, is packed with vitamin C, K, and E. Its vibrant green flesh,
speckled with tiny seeds, offers a unique sweet-tart flavour. Known for its health benefits,
kiwi promotes digestion, boosts immunity, and supports heart health. This small, fuzzy fruit
is a delicious addition to a balanced diet.
Rationale of expansion in J&K
The expansion of kiwi cultivation in Jammu and Kashmir (J&K) is strategically founded on
the region's favourable climate and well-drained soils. With a temperate climate and a
prolonged growing season, J&K provides an ideal environment for kiwi cultivation, ensuring
optimal fruit development.
This data-driven initiative is bolstered by global trends, as the kiwi market is projected to
grow from USD 10.31 billion in 2022 to USD 14.46 billion by 2027, at a Compound Annual
Growth Rate (CAGR) of 6.04%. J&K's potential to become a major supplier of high-quality
kiwi aligns with the increasing global and domestic demand for this nutritious fruit. India,
ranking as the third-largest kiwi importer globally, spends an average of INR 200 per
kilogram on kiwi imports.
By locally cultivating kiwi, J&K can not only meet domestic demand but also contribute to
import substitution, reducing India's reliance on external sources. Economically, kiwi
cultivation in J&K holds promising prospects, offering farmers the opportunity to earn up
to INR 500,000 per hectare.
This high-value crop not only benefits individual farmers but also contributes to job creation
and overall rural economic development. The government's data-driven approach,
supported by subsidies for planting materials, irrigation systems, and technical assistance,
ensures the sustainable and successful expansion of kiwi cultivation in J&K. This initiative
is poised to bring about substantial economic and social gains, establishing J&K as a key
player in the thriving kiwi market.
Cultivation Practice in J&K
In cultivating kiwi in Jammu and Kashmir (J&K), it's crucial to align practices with the
unique climate and soil conditions. The selection of well-drained soils with a pH of 6.0-7.0
and protection from winds is essential.
Planting in the optimal seasons, with a spacing of 4-5 meters between plants, ensures
proper growth. Regular irrigation, especially during initial years, is vital, but caution must
be exercised to avoid overwatering and subsequent root rot.
For optimal yields, regular fertilization with a balanced, nitrogen-rich fertilizer is
recommended. Pruning, typically conducted in late winter or early spring, is necessary for
maintaining shape and encouraging fruiting.
Due to the dioecious nature of kiwi plants, ensuring one male plant for every 8-10 female
plants is critical for pollination. Harvesting in the fall when the fruit is firm and slightly
yellow is standard.
Additional considerations for J&K include selecting cultivars suited to the region, planting
in sheltered locations, mulching for moisture conservation, and vigilant monitoring for
pests and diseases. These data-driven practices, adapted to the region's specifics, can lead
to sustained kiwi production in J&K, contributing to agricultural success.
Packages of Practices of Kiwi
In Jammu and Kashmir (J&K), the kiwi cultivation begins with precise site selection.
Utilizing climate data ensures the choice of regions with a temperate climate, well-drained
soils (pH 6.0-7.0), and an ideal elevation of 1500-2500 meters above sea level. Optimal
slopes, less than 30%, are considered for gentle terrain.
Kiwi cultivation relies on well-defined packages of practices tailored to ensure optimal
growth and fruit production. Irrespective of location, the fundamental principles encompass
site selection in a moderate climate with well-drained soil, planting in spring with proper
spacing, implementing a trellis system for vine support, regular irrigation especially in
initial years, balanced fertilizer application, routine pruning for shape maintenance, and
ensuring pollination for fruit set.
The harvesting process, typically in fall, involves careful clipping of ripe kiwis. Storage in a
cool, dark place for up to six months and ripening facilitation in a paper bag at room
temperature complete the cycle.
While these practices form a universal foundation, regional variations, as seen in specific
examples like kiwi cultivation in India, underscore the need for adaptations based on local
climates, soil types, and other nuanced factors for optimal results. Consulting local
agricultural expertise remains pivotal in refining these practices for specific contexts.
Best Practices of Kiwi Cultivation
Kiwis thrive in moderate climates with specific chilling hour requirements below 70 degrees
Fahrenheit. Optimal soil conditions include well-drained, organic-rich soil with a pH ranging
from 5.5 to 6.5. Since kiwis are dioecious, both male and female plants are necessary for
fruit production, and planting should occur in spring, post-last frost.
Implementing a trellis system, such as a T-bar or pergola, supports the vine growth
characteristic of kiwis. Regular irrigation, especially in the initial two years, is crucial.
Weekly deep watering is recommended, increasing in hot and dry conditions.
Regular fertilization with a balanced fertilizer, like 10-10-10, throughout the growing
season is essential. Pruning in late winter or early spring aids in shaping and encouraging
fruit production.
For pollination, both male and female plants are ideal; otherwise, hand pollination using a
cotton swab is necessary. Harvest in the fall when ripe, handle with care, and store in a
cool, dark place for up to six months. Following these practices ensures a thriving kiwi crop.
Innovations in Kiwi crop
The kiwi crop industry is experiencing a wave of innovation across various fronts. New
kiwifruit varieties, exemplified by Zespri Red, showcase improved traits such as enhanced
taste, texture, storability, and resistance to diseases.
Growing practices are evolving with the integration of precision agriculture technologies,
enabling growers to monitor and manage crops more efficiently, thereby reducing resource
inputs like water and fertilizer.
Harvesting and packing technologies are advancing, incorporating automated machines to
ensure efficient harvesting and minimize fruit damage. Novel marketing and distribution
strategies, including online sales and direct marketing, are emerging to broaden consumer
reach and diversify market channels.
Sustainability is a key focus, with efforts directed at reducing environmental impact.
Practices such as incorporating renewable energy sources, minimizing waste, and
enhancing water management underscore the industry's commitment to environmentally
conscious kiwifruit production.
Value Addition Possibilities in Kiwi
Kiwi, with its delightful taste and nutritional richness, offers a plethora of value-added
products catering to diverse consumer preferences.
Fresh-cut kiwi, conveniently packaged in clamshells or bags, is a popular, ready-to-eat
option. Dried kiwi, available in various Flavors, serves as a healthy and fibre-rich snack.
Candied kiwi, in assorted shapes and sizes, appeals to both children and adults seeking a
sweet, chewy treat. Kiwi's versatility extends to beverages, including refreshing kiwi juice,
thick kiwi nectar, and healthy kiwi smoothies.
Dessert options abound with kiwi ice cream and yogurt, while kiwi jams, jellies, chutneys,
and salsas add flavourful dimensions to meals. Kiwi's utility extends to unconventional
products like kiwi wine, vinegar, oil, powder, flakes, chips, bars, and dietary supplements,
showcasing its adaptability in various culinary domains.
With these value additions, kiwi stands as a versatile fruit poised for a bright future in the
ever-evolving food and beverage landscape.
Interventions to build climate resilience in Kiwi
Climate change poses a substantial threat to kiwi production, prompting a range of on-
farm and off-farm interventions to enhance climate resilience. On-farm strategies include
adopting climate-resilient kiwifruit varieties, improving soil health through sustainable
practices, diversifying crops, implementing water management techniques, and
safeguarding crops from extreme weather events.
Off-farm initiatives involve developing early warning systems, facilitating access to climate
information, providing financial support for adaptation measures, and promoting
collaboration among growers and researchers.
Moreover, additional interventions include transitioning to renewable energy sources to
reduce greenhouse gas emissions, implementing waste reduction measures, enhancing
water management practices to conserve resources, and protecting ecosystems to
maintain crucial services for kiwi production, such as pollination and pest control.
These multifaceted interventions collectively aim to ensure the sustainability and climate
resilience of the kiwi industry, mitigating the impacts of climate change and fostering a
more environmentally conscious approach to kiwi cultivation.
Litchi
Litchi, scientifically known as Litchi chinensis, is a tropical and subtropical fruit tree
renowned for its sweet and fragrant fruit. The lychee tree produces small, oval to heart-
shaped fruits with rough, textured reddish-pink skin and juicy, translucent, white flesh. The
flesh surrounds a single large seed, which is inedible. Lychee fruits are treasured for their
sweet, floral flavour and are often described as a combination of strawberries and grapes
with hints of rose and pear.
Rationale for Litchi Expansion in J&K
Promoting lychee cultivation in Jammu and Kashmir (J&K) holds multifaceted benefits. The
region's climate, particularly in Jammu, aligns with lychee requirements, fostering optimal
growth.
Agricultural diversification, crucial for risk mitigation, can be achieved by introducing
lychee, a high-value fruit that promises increased farm income.
The venture not only generates employment opportunities but also positions J&K as a
potential exporter to international markets, boosting foreign exchange earnings.
Lychee expansion necessitates improved rural infrastructure, contributing to overall
development. Furthermore, lychee orchards offer potential for agro-tourism, providing
additional income streams.
With drought-resistant qualities, lychee aligns with J&K's occasional water scarcity.
Sustainable farming practices, required for lychee care, promote eco-friendly agriculture.
Importantly, by reducing dependency on lychee imports, the region can enhance self-
sufficiency, making lychee cultivation a key player in J&K's economic development and
agricultural diversification strategy. Local considerations and sustainability practices must
guide this expansion.
Cultivation practice in J&K for Litchi
Cultivating lychee in Jammu and Kashmir (J&K) holds profit potential given the region's
favourable climate. Key practices include selecting suitable varieties like Shahi or Rose
Scented, planting in well-drained, sunny sites, and using grafted saplings for desired
characteristics.
Adequate soil preparation, incorporating organic matter, and maintaining slightly acidic to
neutral pH are crucial. Irrigation with drip systems, balanced fertilization, and prudent
pruning for shaping and disease prevention are integral to successful cultivation.
Mulching aids moisture retention, weed suppression, and temperature regulation. Vigilance
against pests and diseases is necessary, and harvesting mature, firm fruits requires careful
handling.
Post-harvest, storage in a cool, humid environment preserves freshness. Establishing
effective marketing channels, be it local markets or direct sales, ensures a successful
venture. Adaptation to local conditions and seeking guidance from agricultural experts
enhance the likelihood of profitable lychee cultivation in J&K.
Packaging practice to export and transport Litchi domestically
Effective packaging is paramount for both domestic transport and international export of
lychees to ensure their safe arrival in optimal condition. Key considerations include the
choice of sturdy, clean, and food-grade materials such as cardboard, plastic, or wooden
crates.
Sorting and grading, based on size, colour, and quality, are essential to prevent damage
during transport. Ventilated packaging designs promote air circulation, crucial for
maintaining freshness, and the use of trays or compartments prevents lychees from rolling
and causing damage.
Cushioning materials like foam or paper protect against bruising, while proper labelling
with essential information aids in tracking and traceability. Packaging size and weight
should be manageable to avoid damage or spoilage.
For long-distance transport, refrigerated or cold storage containers are recommended, and
ventilation ensures gas exchange to prevent premature ripening. Insulated packaging or
climate-controlled features are vital when lychees are transported to different climate
zones.
Collaboration with packaging experts and professionals in the agriculture and export
industry is advisable to meet all necessary standards and ensure lychee packaging aligns
with quality preservation and transportation requirements.
Innovations in Litchi crops
Innovations in lychee cultivation are shaping a more sustainable and productive industry.
Disease-resistant varieties reduce reliance on pesticides, enhancing sustainability. High-
density planting optimizes land use, addressing growing demand.
Drip irrigation and precision farming technologies improve water and nutrient efficiency,
combating water wastage. Integrated Pest Management integrates biological control,
minimizing pesticide use.
Post-harvest innovations extend lychee shelf life, reducing losses. Biological control agents
offer environmentally friendly pest management. Biotechnology explores genetically
modified varieties with enhanced traits.
Climate-resilient practices adapt to changing conditions, including adjusting planting times
and introducing drought-resistant varieties. Data analytics, monitoring, and smart farming
enhance orchard management.
Organic practices gain traction, emphasizing sustainability. Improved pollination practices
boost yields. Marketing and branding innovations help growers access new markets.
Resource-efficient systems, such as controlled environment agriculture, explore year-
round production and efficient resource use.
These advancements ensure lychee cultivation's sustainability, competitiveness, and
adaptation to market dynamics and environmental changes. Farmers and researchers are
integral in implementing and further exploring these innovations.
Value Addition Possibilities in Litchi
Value addition in lychee involves enhancing its economic value through various methods.
Processing lychee into diverse products expands market opportunities and increases profits
for growers and processors. Lychee can be turned into juices, purees, jams, syrups, dried
fruits, and concentrates, serving as ingredients in beverages, desserts, and snacks.
Innovative lychee-based snacks, confections, and alcoholic beverages offer unique and
exotic options for consumers. Canned lychee and frozen lychee extend its availability year-
round. Lychee's aromatic and flavourful properties find applications in skincare, beauty
products, health supplements, and aromatherapy items.
Gift sets, souvenirs, and organic fertilizers can be derived from lychee products. While
value addition opens new markets, adherence to food safety regulations and quality
standards is essential. Collaboration with experts ensures the safety and quality of lychee
value-added products, contributing to sustainable economic growth.
Intervention to develop climate resilience in lychee crop
Enhancing climate resilience in lychee crops is imperative for sustainable cultivation amid
changing climate conditions. Key strategies include selecting lychee varieties tolerant to
climate stress, incorporating adaptive planting practices like diverse site selection and
elevation considerations, and efficient irrigation systems, such as drip irrigation and
rainwater harvesting.
Soil health maintenance, pest management through integrated approaches, and the
utilization of weather forecasting and early warning systems are vital.
Pruning, shade management, and climate-resilient infrastructure, like windbreaks and
shelters, protect against extreme weather. Continuous monitoring, data collection, and
research contribute to informed decision-making.
Farmer education, training, and insurance options mitigate risks. Tailoring these
interventions to local climate challenges and fostering collaboration among government
agencies, experts, and farmers are critical components of building climate resilience in the
lychee sector.
Guava
Guava is a popular fruit crop grown in Jammu and Kashmir, with an area of 2,648 hectares
under cultivation in 2023. The major guava producing districts in the state are Jammu,
Kathua, Samba, Udhampur, Pulwama, Anantnag, Srinagar, and Budgam. The popular guava
varieties grown in the state are Allahabad Safeda, Sardar, L-49, Shweta, Red Delicious,
Thailand Pink, and Ruby Red.
Rationale for expansion of Guava Cultivation in J&K
There are a number of reasons why guava cultivation expansion in Jammu and Kashmir is
a good idea for data-driven analysis.
Guava is a high-value crop. Guava is a popular fruit in India and around the world, and it
commands a good price in the market. Expanding guava cultivation in Jammu and Kashmir
could help to increase the income of farmers in the state.
Guava is a nutritious fruit. Guava is a good source of vitamins A and C, as well as fibre.
Expanding guava cultivation could help to improve the health of people in Jammu and
Kashmir.
Guava is a climate-resilient crop. Guava is a drought-tolerant crop that can be grown in a
wide range of climatic conditions. Expanding guava cultivation could help to make
agriculture in Jammu and Kashmir more resilient to the effects of climate change.
Guava cultivation has the potential to create jobs. Expanding guava cultivation would
require additional inputs, such as labour, fertilizer, and pesticides. This would create jobs
in the agricultural sector and support the rural economy of Jammu and Kashmir.
Cultivation Practice for Guava in J&K
Land preparation: The land is prepared by deep ploughing and levelling. Organic matter
such as compost or manure is added to the soil to improve its fertility.
Planting: Guava trees can be planted from seed, air layering, or grafting. However, grafting
is the most common method of propagation in Jammu and Kashmir. Guava trees are
generally planted in pits of 60 cm x 60 cm x 60 cm size. The spacing between the plants
is 5-6 meters.
Irrigation: Guava trees require regular irrigation, especially during the first year of planting.
The frequency of irrigation depends on the climate and the type of soil. In Jammu and
Kashmir, guava trees are generally irrigated every 2-3 days during the summer months.
Fertilization: Guava trees require regular fertilization for good growth and fruiting.
Fertilizers are applied to guava trees in two splits, once in February-March and again in
September-October. The amount of fertilizer applied depends on the age of the tree and
the type of soil.
Pest and disease management: Guava trees are susceptible to a number of pests and
diseases. Common pests of guava include fruit flies, whiteflies, and aphids. Common
diseases of guava include anthracnose, powdery mildew, and leaf spot. Regular inspection
of guava trees is essential to identify pests and diseases early and to take appropriate
control measures.
Harvesting: Guava trees start bearing fruits in 2-3 years after planting. The harvesting
season for guava in Jammu and Kashmir is from June to September. Guava fruits are
harvested when they are fully ripe and have a deep green or pink colour.
Packaging Practice to export and transport Guava domestically
Grading: Guava fruits are first graded according to their size, colour, and ripeness. This
helps to ensure that fruits of similar quality are packed together.
Packing: Guava fruits are packed in a variety of materials, including cardboard boxes,
wooden crates, and plastic trays. The type of packaging used depends on the distance and
mode of transport. For long-distance transport, such as export, guava fruits are typically
packed in sturdy wooden crates or plastic trays. For domestic transport, cardboard boxes
are often used.
Cushioning: Guava fruits are cushioned with soft materials, such as paper, foam, or
shredded wood, to protect them from damage during transport.
Ventilation: Guava fruits require proper ventilation to prevent them from rotting. Packaging
materials with ventilation holes are used to ensure that the fruits have enough airflow.
Guava fruits are also sometimes packaged in individual bags or pouches for domestic
transport. This helps to protect the fruits from damage and bruising.
Best Practices in Guava Cultivation
Guava is a tropical and subtropical fruit crop, but it can also be grown in colder regions like
Jammu and Kashmir with proper care and management. Here are some best practices for
guava cultivation in Jammu and Kashmir:
Choose the right variety: There are a number of guava varieties that are tolerant to cold
weather. Some of the popular cold-tolerant guava varieties grown in Jammu and Kashmir
include Allahabad Safed, Sardar, and Shweta. Pruning helps to remove dead and diseased
branches, and it also stimulates new growth. Pruning guava trees regularly can help to
improve their cold tolerance.
Plant in a sheltered location: Guava trees should be planted in a sheltered location to
protect them from cold winds and frost. Planting guava trees near a wall or building can
help to provide shelter. Mulching around guava trees with organic matter, such as straw,
wood chips, or compost, can help to insulate the roots and protect them from cold weather.
During the winter months, guava trees may need to be protected from frost. This can be
done by covering the trees with a frost blanket or by using a frost protection system.
Water the trees regularly: Guava trees need regular watering, especially during the first
year of planting. However, it is important to avoid overwatering guava trees, as this can
lead to root rot. Guava trees need regular fertilization for good growth and fruiting.
However, it is important to avoid overfertilizing guava trees, as this can lead to problems
such as leaf scorching and fruit drop.
Innovation in Guava Cultivation Practices
Innovative guava cultivation practices tailored for cold regions like Jammu and Kashmir
aim to enhance productivity and resilience in adverse weather conditions. High-density
planting involves closer tree placement, creating a protective microclimate with cover crops
insulating roots.
Drip irrigation minimizes root rot risk by delivering water directly to roots, while fertigation
ensures optimal nutrient supply through the irrigation system. Protected cultivation
practices, including greenhouses and polytunnels, shield guava trees from cold, pests, and
diseases. Biotechnology offers the potential for developing cold-tolerant guava varieties,
while precision agriculture technologies such as drones and sensors assist in effective tree
management.
Artificial intelligence applications can aid decision-making regarding planting, irrigation,
fertilization, and pest and disease control. Implementing these strategies empowers guava
growers in cold regions to improve tree productivity, produce high-quality fruits, and adapt
to challenging climatic conditions.
Value Addition Possibilities for Guava
Guava, a versatile fruit, lends itself to a plethora of value-added products, both traditional
and innovative. Traditional offerings include guava juice, nectar, pulp, puree, jam, jelly,
marmalade, chutney, candy, ice cream, yogurt, smoothies, wine, vinegar, dried fruit,
powder, seed oil, leaf extract, and bark extract.
Beyond these, innovative products emerge, such as guava probiotic drinks, blending guava
juice with probiotics for a healthy beverage. Guava energy bars, crafted from guava pulp,
nuts, seeds, and nutritious ingredients, serve as convenient on-the-go snacks.
Guava protein powder, derived from guava seeds, offers a plant-based protein source rich
in essential amino acids. Guava skincare products, infused with guava extracts and oils,
capitalize on the fruit's antioxidant and vitamin content, promoting skin health.
These varied products cater to diverse consumer preferences, expanding the market for
guava and capitalizing on its nutritional benefits.
Intervention to develop climate resilience in Guava Crops
Choose the right varieties: There are a number of guava varieties that are more tolerant
to heat stress, drought, and other climate-related challenges. Guava growers should
choose varieties that are well-suited to the local climate and conditions.
Plant in the right location: Guava trees should be planted in a location that is protected
from strong winds and hail. It is also important to plant guava trees in well-drained soil.
Mulching around guava trees can help to retain moisture in the soil and protect the roots
from heat stress.
Water the trees regularly: Guava trees need regular watering, especially during the first
year of planting. However, it is important to avoid overwatering guava trees, as this can
lead to root rot.
Fertilize the trees regularly: Guava trees need regular fertilization for good growth and
fruiting. However, it is important to avoid overfertilizing guava trees, as this can lead to
problems such as leaf scorching and fruit drop.
Monitor the trees for pests and diseases: Guava trees are susceptible to a number of pests
and diseases. Guava growers should monitor the trees regularly and take appropriate
control measures when necessary.
In addition to these general practices, there are a number of specific things that guava
growers in Jammu and Kashmir can do to develop climate resilience for their crops. For
example, guava growers can:
Adopting water-efficient drip irrigation minimizes waterlogging and root rot risks in guava
cultivation amidst changing climates.
Employing protected cultivation practices like greenhouses shields guava trees from
extreme weather events, such as frost and hailstorms.
Utilizing precision agriculture technologies, including drones and sensors, aids in effective
monitoring and management of guava trees, enhancing resilience under evolving climate
conditions.
Apple
Scientifically known as Malus domestica, is one of the most widely cultivated and consumed
fruits globally, appreciated for its sweet and crisp texture. This versatile fruit comes in a
variety of colours and Flavors, making it a popular choice for fresh consumption, cooking,
and a range of culinary applications. Apple farming in Jammu and Kashmir is a thriving
industry due to the region's ideal climate and fertile soil, producing high-quality apples.
These orchards yield some of the finest and most sought-after apple varieties, making
Jammu and Kashmir a significant contributor to India's apple production.
The rationale of expansion in J&K
The expansion of apple farming in Jammu and Kashmir (J&K) is not only a strategic
agricultural decision but also a vital economic and environmental one. Several compelling
reasons justify this expansion:
Ideal Climatic Conditions: J&K's unique geography and altitude offer an ideal climate for
apple cultivation. The temperate climate with cold winters and mild summers provides the
necessary chilling hours for apple trees to thrive, resulting in high-quality fruit production.
Economic Growth: Apple farming is a major contributor to J&K's economy, providing
livelihoods for a substantial portion of its population. Expanding apple cultivation can boost
agricultural income and reduce dependency on other sectors, thus promoting economic
self- sufficiency.
Export Potential: J&K apples are renowned for their taste and quality, making them highly
sought after in domestic and international markets. Increased production can open up
opportunities for export, increasing foreign exchange earnings and trade balance.
Diversification: Expanding apple farming diversifies the agricultural sector, reducing
dependence on traditional crops. This mitigates risks associated with crop failures and price
fluctuations, leading to a more resilient agricultural economy.
Environmental Benefits: Apple orchards contribute to environmental conservation through
soil erosion prevention, carbon sequestration, and providing a green cover. Increased
cultivation aids in environmental sustainability, which is particularly crucial in ecologically
sensitive regions like J&K.
Employment Generation: The expansion of apple farming creates employment
opportunities across the entire value chain, from orchard management to post-harvest
handling and marketing. This addresses unemployment issues and fosters rural
development.
Technology Adoption: The modernization and expansion of apple farming in J&K offer an
opportunity to adopt advanced agricultural practices and technologies, enhancing
productivity and yield.
The rationale for expanding apple farming in Jammu and Kashmir is multi-faceted,
encompassing economic, environmental, and social benefits. This strategic move not only
augments the region's agricultural output but also aligns with global efforts towards
sustainable and climate-resilient agriculture.
Cultivation Practice in J&K
Apple cultivation in Jammu and Kashmir (J&K) is a prominent agricultural activity, with over
20 lakh metric tonnes of apples produced annually. The region hosts more than 2.4 million
apple trees, covering approximately 98,000 hectares of land.
Varieties such as Red Delicious, Golden Delicious, and Ambri are cultivated, with Red
Delicious comprising nearly 70% of the total production. Orchards undergo regular pruning
and training, benefiting from an efficient irrigation system requiring approximately 600-
800 mm of water annually.
Soil testing guides fertilization practices, and integrated pest management has reduced
chemical pesticide usage by 20%. Harvesting occurs from August to October, and post-
harvest, apples are stored in cold storage facilities to extend their shelf life, contributing
significantly to the region's economy.
Packages of Practices of Apple
The packaging practices for apples are a critical aspect of the apple industry, ensuring that
the fruit reaches consumers in optimal condition and maintains its quality. Packaging begins
at the orchard, where freshly harvested apples are carefully sorted and graded. Apples are
sorted based on size, colour, and blemishes. These grading criteria help create uniformity
in packaging and ensure consistent quality. The apples are then placed in various types of
packaging containers, with the most common being wooden crates and corrugated
cardboard boxes. These containers provide protection during transportation and allow for
proper ventilation, preventing moisture buildup that can lead to decay.
To further protect the apples, each fruit is often wrapped in soft, protective paper to prevent
bruising. Some packages include foam or plastic separators between layers of apples to
minimize physical contact and damage during transit.
Packaging may also include labelling to convey essential information such as the apple
variety, origin, nutritional facts, and handling instructions. These labels help consumers
make informed choices and ensure food safety.
Once packaged, apples are typically stored in cold storage facilities to maintain their
freshness. Proper temperature and humidity control are essential to extending the shelf
life of the fruit.
Packaging practices for apples prioritize not only protecting the fruit but also presenting it
in an attractive and informative manner for consumers. These practices play a crucial role
in the apple supply chain, from orchard to table, ensuring that consumers receive high-
quality apples that meet their expectations for taste and appearance.
Best Practices of Apple Cultivation
Best practices in apple cultivation are essential to ensure the production of high-quality,
healthy apples. Proper variety selection is the first step, considering local climate and
altitude. Orchards should be sited on well-drained, sunny slopes with sufficient spacing
between trees to promote airflow and reduce disease risk.
Pruning and training trees regularly maintain their shape, encourages sunlight penetration,
and aids in disease prevention. Efficient irrigation systems, like drip or sprinkler irrigation,
ensure consistent moisture supply, while soil testing guides fertilizer application. Integrated
pest management (IPM) minimizes chemical pesticide use, promoting environmental
sustainability.
Apples should be harvested at the right maturity stage, varying by variety, and handled
with care to prevent bruising. Post-harvest storage in cold facilities extends shelf life.
Market research helps align production with consumer preferences. Embracing eco-friendly
practices, such as cover cropping and biodiversity enhancement, reduces environmental
impact. Implementing these best practices enhances apple yield and quality while
promoting sustainable and environmentally responsible farming.
Innovations in Apple Fruit
Innovations in apple crop management have significantly transformed the way apples are
cultivated, resulting in improved yield, quality, and sustainability. Precision agriculture, for
instance, incorporates technology such as GPS-guided machinery to optimize planting and
harvesting processes, leading to a remarkable increase in productivity.
According to recent studies, precision agriculture techniques have boosted apple yields by
up to 20% while reducing resource utilization by nearly 30%, enhancing both economic
and environmental aspects of apple farming. Additionally, the implementation of advanced
sensor systems and data analytics has allowed for real-time monitoring of environmental
conditions, leading to more efficient irrigation practices.
This has led to water savings of approximately 25% in apple orchards, contributing to water
resource conservation. Moreover, the adoption of disease-resistant apple varieties and
genetically modified organisms (GMOs) has resulted in reduced pesticide usage by around
40%, benefiting both the environment and the health of farmworkers. These innovations
have not only increased the global apple production by more than 40% over the past
decade but have also reduced the carbon footprint of apple farming, aligning the industry
with sustainable agricultural practices.
Value Addition Possibilities in Apple
Value addition in the apple industry offers diverse opportunities to enhance the economic
viability of apple cultivation and processing. A significant avenue is apple processing into
various products, such as apple juice, cider, applesauce, and dried apples. For example,
converting apples into juice and cider can significantly increase their value. One ton of
apples can yield approximately 750 litres of juice, valued at around $1,000, compared to
the raw apple's market value of about $200.
Similarly, applesauce and dried apples provide higher returns, with significant potential for
exports. Furthermore, the utilization of apple waste, like peels and cores, for the production
of biogas and animal feed contributes to additional revenue streams.
The extraction of pectin and other by-products from apples also presents opportunities for
value addition, with pectin, in particular, being in high demand in the food industry. These
value-added products not only reduce post-harvest losses and waste but also extend the
shelf life of apples. By diversifying the apple product range and exploring these value
addition possibilities, growers can significantly increase their income while reducing food
waste and contributing to a more sustainable agricultural system.
Interventions to build climate resilience in Apple
Building climate resilience in apple cultivation is of paramount importance given the
increasing challenges posed by climate change. Multiple interventions can bolster the
resilience of apple farming.
First, the selection of climate-resilient apple varieties adapted to changing temperature
and precipitation patterns is crucial. Varietal shifts have been associated with a 10-15%
increase in apple yields in some regions.
Second, effective water management, including the use of efficient irrigation systems and
rainwater harvesting, can reduce water use by 20-30%, mitigating the impact of both
droughts and erratic rainfall patterns. Weather forecasting technologies offer data-driven
decision-making, reducing crop losses by up to 25% during extreme weather events.
Integrated Pest Management (IPM) strategies have successfully cut pesticide use by 40%
while simultaneously boosting apple yields by 15-20% through healthier orchards.
Additionally, investing in modern cold storage facilities has extended the shelf life of apples
by several months, resulting in post-harvest loss reductions of 15-20%. Climate- smart
agricultural practices, such as mulching and cover cropping, have demonstrated a 10- 15%
increase in soil carbon sequestration, bolstering soil health and resilience. Lastly, climate-
resilience financing and insurance mechanisms have provided economic security to apple
growers, safeguarding their livelihoods during climate-induced crop losses. By embracing
these multifaceted interventions, apple farmers can adapt to a changing climate, maintain
or increase their yields, and enhance their overall economic stability.
Citrus fruit
Citrus fruits, scientifically classified under the genus Citrus, stand as a beloved and widely
cultivated fruit family worldwide. This diverse group includes iconic fruits like oranges,
lemons, limes, and grapefruits, celebrated for their vibrant, zesty profiles. Renowned for
their remarkable versatility, citrus fruits add a burst of flavour to both culinary creations
and refreshing beverages. Jammu and Kashmir, with its optimal climate and fertile soils,
boasts thriving citrus orchards that yield an impressive array of citrus varieties. This region
plays a pivotal role in meeting the global demand for citrus fruits, making it a vital
contributor to the citrus industry.
The rationale of expansion of citrus crops in J&K
Promoting citrus cultivation in Jammu and Kashmir (J&K) holds several compelling
rationales from both economic and agricultural development perspectives. Here are key
reasons for advancing the expansion of the citrus industry in the region:
Climatic Advantage: Jammu and Kashmir's climate is well-suited for citrus cultivation. The
region's varying altitudes and temperate climate, characterized by cold winters and mild
summers, create an optimal environment for citrus trees to thrive, ensuring the production
of high-quality fruits.
Economic Diversification: Citrus cultivation introduces diversification to J&K's agricultural
landscape, reducing reliance on traditional crops like rice and wheat. This diversification
enhances income opportunities for farmers, contributing to a more robust and resilient
agricultural economy.
Employment Generation: The citrus industry, from orchard management to post-harvest
processing and marketing, offers significant employment prospects in rural areas.
Expanding citrus production can help alleviate rural unemployment, fostering economic
development and poverty reduction in J&K.
Sustainable Agriculture: Citrus crops are typically perennial and require less frequent
planting compared to annual crops. This characteristic promotes sustainable agricultural
practices by reducing soil erosion and providing a stable, year-round source of income for
farmers.
Government Support: The government of Jammu and Kashmir, along with the central
government of India, may extend incentives, subsidies, and technical assistance to
encourage and bolster the citrus industry, making it an attractive proposition for local
farmers.
Cultural Significance: Citrus cultivation has a historical presence in the region, deeply
embedded in the culture and traditions of Jammu and Kashmir. Expanding the citrus
industry helps preserve cultural heritage and traditional farming practices while fostering
economic growth.
The expansion of citrus farming in Jammu and Kashmir is a holistic approach that can
contribute to economic diversification, employment generation, sustainable agriculture,
and the preservation of cultural heritage, positioning J&K as a significant player in the citrus
industry.
Cultivation practice in J&K for citrus
Citrus cultivation in Jammu and Kashmir (J&K) relies on specific practices to ensure a
successful and productive crop. Here are key cultivation practices for citrus in the region:
Variety Selection: Opt for citrus varieties well-suited to the local climate and soil conditions.
Popular citrus varieties in J&K include oranges, lemons, limes, and grapefruits, each
adapted to the region's unique environment.
Site Selection: Citrus thrives in well-drained soils and benefits from elevated sites that
prevent waterlogging and ensure proper air circulation. The varying altitudes in J&K offer
suitable conditions for citrus cultivation.
Soil Preparation: Adequate soil preparation is essential. Ploughing and incorporating
organic matter, such as compost or well-rotted manure, enhances soil quality and supports
robust root development.
Planting: Citrus trees are typically planted during the dormant season, which is often in
late winter or early spring. Proper spacing should be maintained to accommodate the trees'
mature growth, which can vary based on the specific citrus variety and rootstock.
Pruning: Pruning citrus trees is vital for shaping them, removing dead or diseased
branches, and promoting sunlight penetration. Pruning should be carried out during the
dormant season to minimize stress on the trees.
These cultivation practices ensure the success and productivity of citrus farming in Jammu
and Kashmir, contributing to the region's agricultural prosperity.
Packaging practice to export and transport citrus domestically
Packaging and handling are critical aspects of preserving the quality and safety of citrus
fruits for domestic transportation and export. Proper packaging practices safeguard the
fruits from physical damage, maintain their freshness, and prevent contamination. Here
are essential packaging practices for citrus fruits:
Primary Packaging
Cleaning: Ensure the citrus fruits are thoroughly cleaned and free from dirt or debris before
packaging. Clean fruits reduce the risk of contamination during storage and transportation.
Sorting: Categorize the fruits based on their quality, size, and grade. Only high- quality
fruits should be selected for export or sale.
Protection: Shield citrus fruits from direct sunlight, extreme temperatures, and excess
moisture during transportation. Utilize suitable transportation methods like refrigerated
trucks or temperature-controlled containers, especially for long- distance shipping.
Quality Control: Implement quality control measures throughout the packaging and
transportation processes to promptly identify and address any issues affecting the fruits'
quality and safety.
Adhering to these best practices ensures that citrus fruits reach their destination in optimal
condition, preserving their market value and reputation, whether for domestic consumption
or international export.
Innovation in Citrus crops
Innovations in citrus cultivation hold the potential to enhance productivity, sustainability,
and fruit quality. Here are some promising innovations for citrus crops:
Citrus Varieties: Developing new citrus varieties with high yield, disease resistance, and
adaptability to specific climates can significantly boost citrus production.
Post-Harvest Technologies: Innovations in post-harvest processing, such as advanced
drying methods, sorting, and storage techniques, can elevate citrus fruit quality and shelf
life.
Sustainable Practices: Implementing sustainable farming practices, like precision
agriculture, integrated pest management, and organic farming, can improve soil health
and reduce the environmental footprint of citrus cultivation.
Propagation Techniques: Advancements in propagation methods, including grafting and
tissue culture, can expedite the production of healthy and high-yielding citrus trees.
Genetic Modification: Exploring genetic modification for desired traits, such as pest
resistance and longer fruiting seasons, can contribute to improved citrus crops.
Harvesting Technologies: Innovations in citrus harvesting equipment and automation can
streamline the harvesting process, reducing labour costs and fruit damage.
Product Diversification: Exploring new markets and citrus-based product innovations, like
juices, essential oils, and value-added citrus products, can broaden the citrus industry's
offerings.
Value addition for Citrus crops
Citrus fruits offer a multitude of value-addition possibilities, creating a range of products
that cater to diverse consumer needs and preferences. Some possibilities include:
Citrus Juices: Processing citrus fruits into fresh juices, blends, and concentrates, catering
to the demand for healthy and convenient beverages.
Essential Oils: Extracting essential oils from citrus peels for use in cosmetics,
aromatherapy, and food flavouring.
Citrus-based Snacks: Developing citrus-flavoured snacks, like candied peels or dried citrus
segments, as healthy and tasty alternatives.
Preserves and Marmalades: Creating citrus preserves, jams, and marmalades with a burst
of natural flavour.
Citrus Zest and Gratings: Packaging and selling citrus zest and gratings as flavour
enhancers for various dishes.
Citrus-based Condiments: Producing citrus-infused sauces, dressings, and marinades for
culinary applications.
Citrus-based Cosmetics: Utilizing citrus extracts in skincare and cosmetic products for their
refreshing and aromatic qualities.
Citrus-based Cleaning Products: Developing eco-friendly cleaning solutions with natural
citrus ingredients for their degreasing and fragrance properties.
Value addition not only reduces food waste but also opens up new markets and revenue
streams while leveraging the delightful and aromatic qualities of citrus fruits.
Intervention to develop climate resilience in Citrus Crops
Developing climate resilience in citrus crops is critical to mitigate the impact of climate
change. Key interventions include:
Crop Diversification: Cultivate a variety of citrus species and local varieties with varying
climate tolerances to reduce susceptibility to changing weather conditions.
Advanced Irrigation: Implement efficient and precise irrigation methods, such as drip
irrigation, to conserve water and ensure consistent moisture supply to citrus trees during
droughts.
Weather Monitoring: Employ weather forecasting and monitoring systems to anticipate
extreme weather events and take preventive measures.
Soil Health Management: Promote soil conservation practices, organic matter
incorporation, and soil testing to maintain healthy soil and nutrient balance.
Pest and Disease Management: Implement integrated pest management strategies to
combat emerging pests and diseases that may proliferate with changing climatic
conditions.
Research and Innovation: Invest in citrus research for heat-tolerant varieties, climate-
resilient rootstocks, and sustainable farming practices.
Farmer Training: Educate farmers on climate-resilient practices, emphasizing adaptive
measures and sustainable farming techniques.
Dragon fruit
Dragon fruit, scientifically known as Hylocereus, is gaining popularity in Jammu and
Kashmir for its exotic appeal and potential for cultivation. This unique tropical fruit, with
its vibrant pink or white flesh speckled with black seeds, is being explored as a new addition
to the region's agricultural landscape. While Jammu and Kashmir's climate is traditionally
suited to temperate crops, dragon fruit's adaptability to various climatic conditions offers
an exciting opportunity. The introduction of dragon fruit signifies diversification in
agricultural practices, potentially opening new horizons for local farmers and contributing
to the region's agricultural and economic growth.
The rationale of expansion for Dragon Fruits in J&K
The expansion of dragon fruit cultivation in Jammu and Kashmir (J&K) is a strategic and
forward-thinking agricultural decision driven by several compelling rationales:
Climate Adaptability: Dragon fruit, known for its ability to thrive in various climate
conditions, offers an opportunity for diversification in J&K's agricultural portfolio. The
region's diverse altitudes and microclimates make it suitable for dragon fruit cultivation,
especially in lower-lying areas.
Economic Diversification: Expanding dragon fruit cultivation can reduce the region's
dependence on traditional crops and introduce a high-value, exotic fruit to the market. This
diversification can lead to increased income for farmers and contribute to J&K's economic
growth.
Export Potential: Dragon fruit's growing popularity in domestic and international markets
presents opportunities for export. This can boost foreign exchange earnings and enhance
trade balances.
Environmental Benefits: Dragon fruit plants require relatively low water and pesticide
inputs compared to some traditional crops. Their introduction can contribute to more
sustainable and eco-friendly agricultural practices.
Employment Generation: The expansion of dragon fruit cultivation can generate
employment opportunities across the value chain, from farming to post-harvest handling
and marketing, addressing unemployment and fostering rural development.
Market Demand: The rising consumer interest in healthy, exotic fruits makes dragon fruit
a viable and sought-after product.
Innovation: Dragon fruit cultivation represents an innovative and forward-looking approach
to agriculture in the region, aligning with global trends in sustainable and diversified
farming practices.
Cultivation practice in J&K for Dragon fruit
Cultivating dragon fruit in Jammu and Kashmir (J&K) demands strategic practices attuned
to the region's unique climate. Optimal locations with well-drained soil and abundant
sunlight, particularly in lower altitudes and warmer areas, set the stage for successful
dragon fruit cultivation.
The selection of disease-resistant and high-yielding varieties, like Hylocereus undatus or
Hylocereus megalanthus, tailored to local conditions is pivotal. Supporting the climbing
dragon fruit vines with trellises or structures safeguards against damage and promotes
proper growth.
Ensuring well-drained soil fortified with organic matter enhances water retention and
nutrient availability. Careful planting of dragon fruit cuttings in adequately spaced trenches
facilitates optimal growth and airflow.
A regulated irrigation system is crucial, given dragon fruit's sensitivity to drought, and the
application of balanced organic fertilizers sustains plant growth and fruit production.
Implementing integrated pest management practices protects dragon fruit plants from
potential threats, contributing to healthy yields. Harvesting when ripe, indicated by colour
change and slight yield to pressure, completes the cultivation cycle.
These practices not only foster healthy and high-quality dragon fruit but also contribute to
the agricultural diversity and economic growth of the J&K region.
Packaging practice to export and transport Dragon Fruit domestically
Efficient packaging is crucial when exporting and transporting dragon fruit domestically to
maintain its quality and freshness. Key packaging practices include:
Selection: Choose ripe and firm dragon fruits, ensuring they are free from bruises or
damage.
Cleaning: Thoroughly wash and sanitize the fruits to remove potential contaminants.
Cushioning: Line packaging boxes with cushioning materials, such as foam or padding, to
prevent physical damage during transit.
Ventilation: Use packaging with proper ventilation to maintain airflow and reduce moisture
buildup, which can lead to spoilage.
Labelling: Clearly label packages with essential information, including origin, weight, and
handling instructions.
Temperature Control: For long-distance shipments, consider using temperature-controlled
containers to maintain the fruit at an optimal temperature.
Secure Packaging: Ensure that the dragon fruits are securely packed to prevent shifting
and damage during transportation.
Inspection and Sealing: Inspect each package before sealing and shipping to guarantee
the fruit's quality.
Innovation in Dragon Fruit crops
Innovations in dragon fruit cultivation are essential for improving productivity,
sustainability, and quality. Here are some promising innovations:
Varietal Development: Breeding dragon fruit varieties that are disease-resistant and
adapted to specific climates, thereby increasing yield and reducing pest-related losses.
Climate Adaptation: Innovations in climate control and protective cultivation, like
greenhouses, to extend the growing season and mitigate adverse weather conditions.
Water Management: Implementation of precise irrigation systems, such as drip irrigation,
to optimize water use and conserve this precious resource.
Organic Farming Practices: Adoption of organic and sustainable farming methods to reduce
chemical inputs and enhance environmental sustainability.
Integrated Pest Management: Utilizing biological control and monitoring systems to
manage pests and diseases effectively, reducing the need for chemical treatments.
Post-Harvest Technology: Innovations in post-harvest handling, packaging, and processing
techniques to prolong fruit shelf life and maintain quality.
Market Diversification: Exploring new product innovations like dragon fruit-based
processed goods, such as juices, jams, and skincare products, to create value-added
opportunities and market diversity.
Value addition for Dragon Fruit crops
Dragon fruit offers abundant opportunities for value addition, creating a spectrum of
products that cater to diverse consumer preferences. Some value-addition possibilities
include:
Dragon Fruit Juices: Processing dragon fruit into fresh juices, blends, and concentrates to
meet the demand for healthy and exotic beverages.
Fruit Pulp: Extracting fruit pulp to be used in smoothies, desserts, and exotic culinary
creations.
Essential Oils: Extracting essential oils from the fruit's skin for cosmetics, aromatherapy,
and fragrance industries.
Dried Dragon Fruit Snacks: Producing dried dragon fruit slices and cubes for convenient
and healthy snacking options.
Preserves and Jams: Creating dragon fruit preserves and jams to add a unique and tropical
flavour to breakfast spreads.
Desserts and Pastries: Using dragon fruit in the production of cakes, pastries, ice creams,
and sorbets to cater to gourmet tastes.
Skincare Products: Utilizing dragon fruit extracts in skincare and cosmetic products for
their rejuvenating and antioxidant properties.
These value-addition avenues not only reduce food waste but also diversify the market,
providing consumers with a wide array of dragon fruit-based products while contributing
to the economic growth of the agricultural sector.
Intervention to develop climate resilience in Dragon Fruits Crops
Enhancing climate resilience in dragon fruit cultivation is vital to mitigate the impact of
climate change. Key interventions include:
Varietal Selection: Identifying and cultivating dragon fruit varieties with tolerance to
temperature fluctuations and drought conditions.
Weather Monitoring: Implementing real-time weather monitoring systems to anticipate
extreme weather events and adjust cultivation practices accordingly.
Irrigation Efficiency: Adopting precision irrigation techniques, such as drip irrigation, to
conserve water and ensure consistent moisture levels, especially during dry spells.
Shade Structures: Installing shade nets or protective structures to shield dragon fruit
plants from excessive sun exposure and temperature extremes.
Soil Management: Incorporating organic matter into the soil to enhance water retention
and nutrient availability, promoting healthy plant growth.
Pest and Disease Management: Employing integrated pest management strategies to
prevent and manage threats that can increase with changing climate conditions.
Research and Education: Promoting climate-resilient farming practices through research,
farmer training, and knowledge sharing.
These interventions collectively bolster the resilience of dragon fruit crops, ensuring
sustainable and reliable production despite climate challenges.
Mango
Mango (Mangifera indica) is a tropical fruit celebrated for its sweet, succulent flavour.
Originating in South Asia, it has earned the moniker "king of culmination”; and is globally
adored. Mangoes are outstanding because of their oval or oblong shape, colourful orange-
yellow or green pores and skin, and a big, flat pit in the middle. With a number of cultivars
like Alphonso, Tommy Atkins, and Kent, mangoes provide versatility in flavour, length, and
colour. This fruit isn't always the most effective scrumptious, but also nutritious, and
packed with nutrients, minerals, and antioxidants. Mangoes are quintessential to various
cuisines and represent summertime's essence, abundance, and happiness.
Rationale for expansion of Mango in J&K:
Expanding mango cultivation in the region of Jammu and Kashmir offers numerous
compelling rationales:
Climatic Suitability: Jammu and Kashmir enjoy a variety of climates, from subtropical to
temperate, which could guide numerous mango cultivars. The various climatic zones make
it possible to increase the mango developing season, for this reason, making an allowance
for a staggered harvest, probably increasing common production.
Market Potential: Mangoes are widely eaten up and cherished throughout India. By
cultivating mangoes in Jammu and Kashmir, farmers can tap into the national and
worldwide mango marketplace, doubtlessly growing their income and enhancing the area's
monetary prospects.
Diversification of Agriculture: Mango cultivation can diversify the location's agricultural
practices, lowering dependency on traditional plants like apples. This diversification
facilitates mitigating risks associated with mono-cropping and might beautify the resilience
of the nearby agriculture sector.
Employment Generation: Mango cultivation and its associated value chain activities,
together with processing and advertising, can generate employment opportunities,
specifically in rural areas where job possibilities are constrained.
Tourism Attraction: Mango orchards in full bloom and, at some stage in harvest season can
serve as a vacationer enchantment. This can improve tourism and make a contribution to
the overall improvement of the area's financial system.
Export Potential: Mangoes from Jammu and Kashmir can potentially be exported to
countries with an excessive demand for Indian mangoes. This can open up new markets
and beautify foreign exchange income.
Biodiversity and Conservation: Promoting mango cultivation can help preserve and
rejuvenate traditional and native mango varieties, contributing to biodiversity upkeep and
cultural heritage.
Cultivation practices in Jammu and Kashmir for Mango:
Variety Selection: Choose mango types appropriate for the nearby climate, together with
Amrapali, Dashehari, Langra, or Chaunsa. Opt for properly-drained websites with the right
air stream to save you waterlogging and decrease frost threat. Sloping terrain is prime.
Soil Preparation: Mangoes thrive in nicely-tired, loamy soils with a pH range of 6.5 to 7.5.
Prepare the soil thru ploughing, discing, and adding natural matter like compost.
Planting: Plant mango saplings for the duration of the dormant season, ideally in spring or
early summer, with appropriate spacing (around 10 meters among bushes) to permit a
healthy increase.
Irrigation: Regular and regular irrigation is important, especially throughout the dry
season. Drip irrigation or a basin gadget can be powerful.
Pruning and Training: Prune to shape the tree and cast off lifeless or diseased branches.
Training younger bushes with valuable chief helps hold a balanced form. Apply mulch across
the base of the tree to conserve moisture, control weeds, and regulate soil temperature.
Frost Protection: In colder regions, appoint frost protection measures like protecting young
bushes with blankets or the use of warmers to save you frost harm. Implement integrated
pest and disorder control practices to make certain healthful yields. Regular tracking and
well-timed interventions are essential.
Harvesting: Mangoes are normally harvested within the summer months. Handle the fruit
lightly to keep away from bruising and harm at some stage in the harvesting technique.
Packaging practice to export and transport mango domestically
Proper Containers: Use easy, durable packaging substances like cardboard containers,
timber crates, or plastic bins that offer appropriate airflow and cushioning.
Cushioning: Line the packaging with soft padding or cushioning substances like straw,
paper, or foam to prevent bruising and damage throughout transit.
Ventilation: Promote airflow by developing airflow holes or gaps inside the packaging to
reduce moisture buildup and hold fruit best.
Temperature Control: Maintain premier temperatures by way of using refrigerated vehicles
or coolers to prevent over-ripening throughout shipping.
Stacking and Securing: Stack the applications cautiously to keep away from crushing the
fruit, and secure them with straps or dividers to prevent transferring.
Labelling: Clearly label each package deal with product facts, such as the kind of mango,
grade, and date of packing.
Quality Control: Regularly check out the fruit for ripeness and harm earlier than and in the
course of transportation.
By adhering to these practices, mango manufacturers can make sure that their domestic
shipments arrive in exact circumstances and maintain their freshness and taste.
Best Practices of mango Cultivation
Best practices for a hit mango cultivation encompass selecting suitable sorts, planting in
properly-drained soils, imparting ok irrigation, and retaining the right spacing. Regular
pruning and schooling assist in shaping the tree and managing its increase.
Employ natural mulching for moisture retention and weed manipulation. Implement
incorporated pest and ailment control, tracking for issues regularly. Fertilize in keeping with
soil testing, and follow encouraged utility schedules.
Protect in opposition to frost in cooler climates and control fruit thinning to enhance fruit
finely and save you from overloading.
Harvest at the right degree of ripeness and cope with fruit gently. Adhering to these
practices promotes wholesome, productive mango orchards.
Innovations in Mango crop
Innovations in mango crop control intention to decorate yield, satisfaction, and
sustainability. Precision agriculture employs drones and IoT for unique tracking and
resource control. Grafting techniques, like “smooth-cleft grafting”; improve propagation
success.
Disease manipulation consists of biopesticides and resistant types to lessen chemical use
and preserve tree health. Smart irrigation systems optimize water utilization, even as high-
density planting and dwarfing rootstocks maximize orchard productiveness.
Post-harvest innovations involve controlled environment garages, extending mango shelf
lifestyles. Genetic engineering is exploring pathogen-resistant and longer shelf-lifestyles
mango sorts.
These innovations empower mango growers to increase yields, reduce environmental
impact, and ensure regular delivery of terrific fruit.
Value addition possibilities in Mango
Value addition possibilities in mango are plentiful. Mangoes may be processed into various
products like mango pulp, juice, chutney, and dried slices.
These merchandises have longer shelf lives. Additionally, mango by way of merchandise
like peels and kernels may be used to make biodegradable packaging, natural cosmetics,
and animal feed.
Mango-flavoured liquids, ice creams, and baked items are famous alternatives.
Furthermore, mangoes may be fermented to produce alcoholic beverages like mango wine.
Mango-primarily based fitness merchandise, which includes mango-based supplements or
skincare items, is also a rising trait.
Value addition in mango no longer most effectively extends its application but additionally
boosts profits for farmers and processors.
Interventions to build climate resilience in Mangoes
Crop Diversification: Promote diversification of mango varieties, such as those that can be
more protective against pests, sicknesses, and weather strains.
Irrigation Management: Implement efficient irrigation techniques, which include drip
irrigation, to ensure constant water supply at some point during dry spells.
Weather Forecasting: Use modern-day weather forecasting equipment to assume extreme
weather events and plan for this reason.
Shade Management: Plant colour timber or use shading nets to guard mango timber from
excessive warmness, reducing heat pressure.
Soil Health Improvement: Enhance soil health through organic count enrichment and
decreased chemical inputs, ensuring better moisture retention and resilience to extreme
climate.
Pest and Disease Control: Implemented pest management strategies to mitigate the effect
of changing pest and disorder patterns due to weather change.
Education and Training: Provide education and assets to mango growers about weather-
smart practices, supporting them to adapt to converting situations.
These interventions can assist mango producers in better withstanding the challenges
posed by climate change and ensure an extra-sustainable mango industry.
Walnut
Walnuts are edible nuts, scientifically known as Juglans. There are several species of walnut
trees, but the most commonly cultivated and consumed variety is the English or Persian
walnut (Juglans regia). Walnuts are popular for their rich, earthy flavour and their
versatility in various culinary applications.
The rationale for Walnut Expansion in J&K
Climatic Suitability: Jammu and Kashmir's climate is well-suited for walnut cultivation. The
region experiences cold winters and moderate summers, which are ideal for the growth of
walnut trees. The higher elevations in the Kashmir Valley provide the necessary chilling
hours for walnut trees to produce high-quality nuts.
Economic Diversification: Walnut cultivation diversifies the agricultural economy of J&K.
This diversification is essential to reduce dependency on traditional crops like rice and
wheat and provides an additional source of income for farmers.
Employment Opportunities: Walnut cultivation and processing provide employment
opportunities in rural areas. Expanding walnut production can help reduce rural
unemployment and alleviate poverty in J&K.
Sustainable Agriculture: Walnuts are perennial crops that require less frequent planting
and provide a more stable income source than annual crops. This can promote sustainable
agricultural practices in the region.
Government Support: The government of Jammu and Kashmir, as well as the central
government of India, may provide incentives, subsidies, and technical support to
encourage and support walnut expansion, making it an attractive proposition for local
farmers.
Heritage and Tradition: Walnut cultivation has a long history in the region and is deeply
embedded in the culture and tradition of Jammu and Kashmir. Expanding this industry can
help preserve cultural heritage and traditional farming practices.
Cultivation practice in J&K for walnuts.
Selection of Suitable Varieties: Choose walnut varieties that are well-adapted to the local
climate and soil conditions. Some popular walnut varieties in J&K include the Kashmiri or
Persian walnut (Juglans regia) and the local varieties like 'Dwarf’ and ‘Wadbale'.
Site Selection: Walnuts grow best in well-drained soils. Choose elevated sites to prevent
waterlogging and ensure good air circulation in the orchard. The higher elevations in the
Kashmir Valley are particularly well-suited for walnut cultivation.
Soil Preparation: Prepare the soil by ploughing and incorporating organic matter like
compost or well-rotted manure. Adequate soil preparation ensures good root development.
Planting: Plant walnut trees during the dormant season, typically in late winter early spring.
Ensure proper spacing between trees to allow for their mature growth, which can vary
depending on the variety and rootstock.
Pruning: Prune walnut trees to shape them, remove diseased or dead branches, and
encourage sunlight penetration. Pruning should be done during the dormant season to
avoid stressing the tree.
Packaging Practices:
Walnuts undergo various packaging methods based on their intended use and market. In-
shell walnuts are commonly packaged in bags or boxes, often lined with protective paper
or plastic.
Shelled walnuts typically come in vacuum-sealed bags or plastic containers, preserving
freshness. Retail packaging is designed to be attractive and informative, featuring
nutritional details, recipes, and serving suggestions.
Bags, boxes (cardboard or wood), and plastic containers are specific packaging materials
used. For retail, more visually appealing and informative packaging is employed compared
to bulk sales.
Proper storage conditions, such as cool and dark places, ensure walnuts remain dry and
protected from sunlight. Shelf life varies, with in-shell walnuts lasting up to two years and
shelled walnuts up to six months when stored correctly.
Package labelling includes product details, net weight, ingredients, nutritional information,
storage instructions, and expiration date, ensuring safe and effective walnut packaging.
Innovation in Walnut:
The walnut industry is experiencing significant innovation across various aspects. New
walnut varieties, like the Chandler, are being developed with enhanced taste, texture,
storability, and resistance to pests.
Sustainable growing practices, including precision agriculture technologies, are being
adopted to improve efficiency. Innovations in harvesting involve automated machines for
efficient and damage-free collection.
Product diversification is evident with the development of walnut-based products such as
walnut milk, oil, and flour, expanding market reach.
Sustainability is a key focus, incorporating practices like renewable energy use, waste
reduction, and improved water management.
Walnut breeding and biotechnology techniques, including molecular breeding and gene
editing, aim to create varieties with improved traits.
Value-added products like walnut-based nutraceuticals and cosmetics contribute to market
expansion. These innovations collectively enhance the walnut industry's sustainability,
efficiency, and quality, opening new avenues for growers and processors.
Interventions to build climate resilience in Walnut:
Climate change poses a significant threat to walnut production due to rising temperatures
and extreme weather events.
To enhance climate resilience, interventions include developing climate-resilient walnut
varieties like the Chandler, utilizing precision agriculture technologies, improving soil health
through organic practices, diversifying crops, and implementing efficient water
management techniques.
Protective measures against extreme weather events, such as hail nets and windbreaks,
are crucial.
Additionally, a sustainable focus in the walnut industry involves practices like renewable
energy adoption, waste reduction, and improved water management. To bolster climate
resilience further, interventions include developing early warning systems, providing access
to climate information, offering financial support for adaptation measures, and fostering
collaboration and knowledge sharing among growers and researchers.
These efforts collectively aim to ensure the sustainability and productivity of the walnut
industry amid changing climatic conditions.
Off season Vegetables
Rationale for expansion of Vegetable cultivation
Expanding vegetable cultivation in Jammu and Kashmir (J&K) holds multifaceted benefits.
Economically, it serves as a lucrative income source, meeting high domestic and
international demand, thereby fostering job creation and economic growth.
From a nutritional standpoint, vegetables contribute vital vitamins, minerals, and
antioxidants to diets, enhancing the overall health of the population.
Environmentally, vegetable cultivation enhances soil health, reduces erosion, and promotes
biodiversity, contributing to a healthier ecological balance.
The region’s diverse climate and soil conditions, coupled with abundant water resources
and strategic market proximity, further support the feasibility of expanding vegetable
cultivation.
Government initiatives, including subsidies, training programs, and infrastructure
development, underscore the commitment to fostering this expansion.
In totality, expanding vegetable cultivation positions J&K as a significant vegetable
produce, delivering economic, nutritional, environmental, and cultural advantages.
Cultivation practices in JK for Vegetables:
In Jammu and Kashmir (J&K), vegetable cultivation follows general principles
encompassing soil preparation, irrigation, fertilization, pest and disease control, and
harvesting.
the fertile, well-drained soil in the region is prepared through ploughing and the addition
of manure or compost. Due to variable rainfall, irrigation methods like canals, wells, and
pumps are crucial for maintaining crop health.
Fertilization, tailored to each crop’s needs, plays a vital role in ensuring good yields. Pest
and disease control, essential in a region prone to such issues, involves vigilant monitoring
and a variety of control methods.
Specific crops showcase the diversity of cultivation practices, such as tomatoes, potatoes,
onions, garlic, cauliflower, and cabbage. Planting and harvesting times are tailored to the
climate, ensuring optimal growth. traditional hand harvesting is prevalent, with exceptions
for crops like potatoes and carrots, which may involve machinery.
J&K's farmers are adopting evolving technologies for enhanced yields and reduced
environmental impact. The government's support in promoting sustainable practices, such
as organic fertilizers, pesticides, and water conservation training, signifies a commitment
to environmentally conscious agriculture.
In summary, J&K's vegetable cultivation practices are advancing through technological
adoption, and governmental initiatives are steering the sector towards sustainable and
environmentally friendly methods.
Package of practices of Vegetables:
The package of practices for vegetable cultivation provides essential guidelines for optimal
crop yield and quality. It begins with thorough land preparation involving ploughing,
harrowing, and levelling to ensure well-drained and fertile soil.
Quality, disease-free seeds suitable for the region's climate and soil conditions are crucial.
Sowing depth and spacing vary by vegetable type. Regular irrigation, especially during hot
months, is emphasized, with frequency tailored to the specific crop and climate.
Fertilization is key, with type and amount determined by crop and soil conditions. Pest and
disease management involves vigilant monitoring and immediate action through methods
like pesticides, biological control, and cultural practices.
Harvesting at the right time ensures quality. Additional tips include crop rotation for pest
and disease prevention, the use of organic matter for soil fertility, mulching for moisture
retention and weed suppression, regular watering, and following specific fertilizer
recommendations for each vegetable.
Adhering to these practices is essential for successful vegetable cultivation.
Best practices of Vegetable cultivation:
Successful vegetable cultivation relies on several key practices. Site selection is crucial,
considering factors like sunlight, drainage, soil type, and pH.
Soil preparation involves loosening the soil, adding organic matter, and adjusting pH. When
planting, follow seed packet instructions for depth and spacing.
Regular, deep watering is essential, especially in hot weather. Fertilization, tailored to each
crop and soil conditions, is vital for optimal yields.
Pests and diseases require regular monitoring and immediate control measures, including
pesticides, biological control, and cultural practices. Harvesting at the right time ensures
quality, varying by crop.
Additional tips include crop rotation for pest and disease prevention, the use of organic
matter for soil fertility, mulching for moisture retention and weed suppression, and regular
monitoring for pests and diseases. Adhering to these practices enhances the likelihood of
a successful vegetable crop.
Innovation in Vegetables:
The vegetable industry is experiencing a wave of innovations aimed at enhancing various
aspects of production. New vegetable varieties are being developed with improved taste,
texture, storability, and resistance to pests and diseases, exemplified by tomatoes with
higher yields and fungal disease resistance.
Growing practices are evolving with precision agriculture technologies, allowing growers to
monitor and manage crops more efficiently, thereby reducing water and fertilizer use.
Harvesting and processing technologies, including automated machines, enhance efficiency
and reduce damage risks. Moreover, novel vegetable-based products like milks, flours, and
meat substitutes are expanding the market. Sustainability is a key focus, with initiatives
such as renewable energy use, waste reduction, and improved water management gaining
prominence. Innovations like molecular breeding, gene editing, vertical farming, and
precision agriculture contribute to a more sustainable, efficient, and profitable vegetable
industry, opening avenues to new consumers and markets.
Value addition possibilities in Vegetables:
The vegetable industry offers diverse possibilities for value addition, enhancing both
convenience and market reach.
Processing vegetables into products like canned, frozen, and dehydrated varieties, as
well as vegetable juices, ensures longer shelf life and convenience in usage. Packaging
innovations, including vacuum-sealed bags and containers with added seasonings,
contribute to improved shelf life and consumer convenience.
Additionally, the development of novel vegetable products such as vegetable-based
milks, flours, and meat substitutes expands the market and caters to evolving consumer
preferences.
Frozen vegetables, canned vegetables, dehydrated vegetables, vegetable juices,
vegetable-based milk, vegetable-based flours, and vegetable-based meat substitutes
offer diverse and nutritious alternatives.
Through these value-addition strategies, growers and processors can increase
profitability and tap into new consumer segments, addressing demands for convenience,
nutrition, and sustainability.
Interventions to build climate resilience in Vegetables:
Climate change poses a significant threat to vegetable production due to rising
temperatures, extreme weather events, and shifting precipitation patterns.
To enhance climate resilience, interventions such as selecting climate-resilient varieties,
employing precision agriculture technologies, and improving soil health are crucial.
Diversifying crops, implementing efficient water management techniques, and
safeguarding crops from extreme weather events further contribute to resilience.
Sustainability practices, including renewable energy use, waste reduction, and enhanced
water management, play a key role in mitigating the environmental impact of vegetable
cultivation. Additional measures involve developing early warning systems, providing
access to climate information, offering financial support for adaptation, and fostering
collaboration among growers and researchers.
These interventions collectively aim to fortify vegetable production against the
challenges posed by climate change, ensuring the industry's sustainability and
productivity.
Almond
Almonds are edible tree nuts known for their nutritional value and versatility in culinary
applications. They are a good source of healthy fats, protein, and fibre, and are often
consumed raw or roasted as snacks. Almonds are also used in various forms, such as
almond milk, almond butter, and as ingredients in both sweet and Savory dishes.
Rationale of expansion in J&K:
Almond expansion in Jammu and Kashmir (J&K) holds substantial promise for the region.
The favourable climatic conditions, with cold winters and warm, dry summers, provide
an ideal environment for almond cultivation.
This endeavour is not only economically lucrative but also offers environmental
advantages. Almonds are in high demand, both nationally and globally, making it a
lucrative cash crop that can boost the local economy and generate jobs for the populace.
Furthermore, almond trees play a pivotal role in enhancing the environment. They
combat soil erosion, enhance soil fertility, and serve as a habitat for various wildlife,
contributing to ecological sustainability. The government of J&K has been proactive in
supporting almond cultivation, offering subsidies and establishing processing units to
empower local farmers.
Beyond these advantages, almonds are a nutritious food source, packed with protein,
fibre, and essential vitamins and minerals. Their consumption has been associated with
several health benefits, ranging from heart disease prevention to diabetes management.
By promoting almond expansion, J&K not only enriches its economy and environment
but also fosters rural development, providing sustainable livelihoods for its inhabitants.
Overall, investing in almond cultivation in J&K is a well-rounded strategy that can boost
both economic growth and environmental well-being while enriching the lives of the local
population.
Cultivation Practice in J&K:
Almond cultivation in Jammu and Kashmir (J&K) closely follows global practices with a
few regional considerations due to its unique climatic conditions. Site selection is crucial,
demanding well-drained, sunny locations with fertile soil having a pH of 6.5 to 7.5.
Planting is typically done in the spring, with tree spacing of 15 to 20 feet. Regular and
deep irrigation is essential, especially in the initial years. Fertilization, which varies by
soil type and tree age, should be balanced.
Pruning in winter is necessary for tree health and fruiting. Vigilance against pests and
diseases is vital, with immediate treatment if any issues are detected. Harvesting occurs
in the fall when hulls turn brown, and nuts fall. Drying and proper storage are essential.
For J&K, it's advisable to select almond varieties suited to the local climate, plant in
sheltered locations to shield from strong winds, mulch for moisture retention and weed
control, and ensure proper nutrition and irrigation, particularly during initial growth.
Regular monitoring for pests and diseases is essential. Following these guidelines can
lead to successful almond cultivation in the region.
Packages of Practices of Almond:
Packages of Practices (PoPs) for almond cultivation offer essential guidelines developed
by agricultural experts to support sustainable, high-quality almond production. Key
components include site selection in well-drained, sunny areas with fertile soil, optimal
pH levels, and appropriate variety selection based on local conditions.
Planting in the spring, tree spacing, regular irrigation, and balanced fertilization are
crucial. Annual pruning in winter enhances tree health and fruiting, while pest and
disease management necessitates vigilant monitoring and immediate treatment if issues
arise. Harvesting in the fall when hulls turn brown is followed by proper drying and
storage.
Additional PoPs encompass soil and weed management, ensuring deep, well-drained soil
and implementing weed control measures to prevent competition for water and
nutrients. Integrated pest management (IPM) practices may be advised, emphasizing
the reduction of pesticide use through biological controls and beneficial insect release.
These comprehensive PoPs are invaluable for almond growers seeking to enhance yields
and quality, promoting sustainable and efficient almond cultivation. Local agricultural
extension offices can provide region-specific PoPs for almond cultivation.
Best Practices of Almond Cultivation:
Successful almond cultivation relies on a set of general best practices that ensure high-
quality and sustainable production. These practices begin with site selection in well-
drained, sun-soaked areas with fertile soil and appropriate pH levels, followed by careful
variety selection tailored to local climates and growing conditions.
Planting in spring with proper tree spacing, consistent irrigation during initial growth,
and regular, balanced fertilization are essential.
Pruning in winter shapes healthy trees for optimal fruiting, while vigilant monitoring for
pests and diseases is crucial. Harvesting in the fall after hulls turn brown and drying and
proper storage complete the process.
Additional best practices encompass using cover crops to enhance soil health and reduce
erosion, implementing integrated pest management (IPM) to minimize pesticide usage,
employing water conservation techniques like drip irrigation, and consistently monitoring
tree health. Adhering to these practices allows almond growers to sustainably produce
high-quality almonds.
Innovations in Almond Crop:
New Varieties: Researchers are developing almond varieties that are more resilient, yield
higher output, and adapt to diverse growing conditions, enhancing crop performance.
Precision Agriculture: Technology is enabling precision agriculture practices, optimizing
irrigation, fertilization, and disease monitoring to enhance efficiency and sustainability.
Robotics and Automation: Automation is streamlining tasks like harvesting, pruning, and
weeding, reducing labour costs and improving overall efficiency.
Product Diversification: The development of new almond-based products, like almond
milk, flour, and butter, is expanding the market and increasing profitability.
Almond Hull Utilization: Innovations are finding valuable uses for almond hulls, such as
biofuels, animal feed, and construction materials.
Water Conservation: Water-efficient methods like drip irrigation and cover crops are
being employed to reduce the water footprint of almond farming.
Pollinator Management: Techniques to support pollinator populations, crucial for almond
pollination, are being developed, including planting pollinator-friendly plants and
providing nesting sites for bees.
Genomics: Genomics aids in creating almond varieties with favourable traits, like
resistance to pests, drought tolerance, and increased yields.
Machine Learning: Machine learning is applied for orchard monitoring, pest and disease
detection, and yield prediction.
Blockchain Technology: Blockchain enhances traceability throughout the almond supply
chain, from orchard to consumer.
Value Addition Possibilities in Almond:
Processing: Almonds can be transformed into products like almond milk, flour, butter,
and oil, offering convenience and versatility to consumers.
Packaging: Attractive packaging, including resealable bags, snack packs, and gift boxes,
not only enhances visual appeal but also protects the nuts from damage.
Branding: Creating a unique brand identity distinguishes almonds in the market,
increasing their value and fostering customer loyalty.
Marketing: Effective marketing techniques, such as advertising and social media
campaigns, raise awareness and demand for almonds, thereby increasing their value
and sales.
Specific value-added almond products include almond milk as a dairy alternative, gluten-
free almond flour, protein-rich almond butter, and versatile almond oil.
Beyond these, almond snacks, supplements, cosmetics, and even almond tourism
experiences are emerging as innovative avenues to add value to almonds. As almond
demand continues to surge, businesses continue to find novel ways to capitalize on the
growing popularity of these nutritious nuts.
Interventions to build climate resilience in Almond:
Climate change poses significant challenges to almond production due to increased heat
stress, drought, and heightened pest and disease risks. To build climate resilience in
almond cultivation, various interventions can be adopted.
These include choosing climate-resilient almond varieties, practicing deficit irrigation to
conserve water, implementing cover crops for improved soil health and water retention,
and adopting integrated pest management (IPM) to reduce pesticide use and bolster
pest resistance.
Furthermore, water management measures like drip irrigation and soil moisture sensors
help optimize water use. Diversifying crops with drought-tolerant alternatives,
developing contingency plans, and utilizing precision agriculture to target inputs more
precisely are additional strategies to enhance resilience.
Automation and robotics can reduce labour and resource costs, while drought-tolerant
rootstocks can bolster tree resilience.
These innovative interventions collectively reduce the vulnerability of almond production
to climate change, ensuring long-term sustainability for the almond industry.
Plum
Plums are sweet and juicy stone fruits, known for their delicious flavour and versatility.
They come in various colours, including red, purple, yellow, and green. Plums can be
eaten fresh or used in a wide range of culinary applications, such as making jams, jellies,
pies, and sauces. They are also dried to create prunes.
Rationale of expansion in J&K:
The expansion of plum cultivation in Jammu and Kashmir (J&K) offers numerous
compelling reasons. J&K boasts a favourable climate with cold winters and warm, dry
summers, ideal for plum cultivation.
The demand for plums in India and globally is on the rise, making it a high-value crop
with economic potential, generating income and employment for farmers.
Plum trees contribute to environmental well-being by reducing soil erosion, enhancing
soil fertility, and providing a habitat for wildlife. Government support through subsidies
and processing units further encourages plum farming.
In addition to these advantages, plums are a nutritious fruit, rich in vitamins, minerals,
and antioxidants, linked to various health benefits. Plum expansion fosters rural
development, offering a sustainable income source and job opportunities.
Overall, plum expansion in J&K is a mutually beneficial endeavour, providing economic,
environmental, and nutritional advantages while creating employment opportunities.
Cultivation Practice in J&K:
Site Selection: Choose well-drained, sunny locations with fertile soil and an optimal pH
range of 6.5 to 7.5.
Planting: Spring planting, after the last frost, with recommended tree spacing of 15 to
20 feet.
Irrigation: Plum trees need consistent watering, particularly during the initial years, with
deep watering once or twice a week.
Fertilization: Regularly apply balanced fertilizer based on tree age and soil type.
Pruning: Annual winter pruning helps maintain tree health and promote fruiting.
Pest and Disease Management: Regular tree inspections are vital to identify and address
pest and disease issues promptly.
Harvesting: Ripe plums with a deep purple colour are typically harvested in summer,
with care to avoid tree damage.
Additional tips include selecting climate-suited plum varieties like Santa Rosa, providing
wind protection, mulching for moisture retention and weed control, and ensuring
adequate irrigation and nutrition during the initial years.
Regular monitoring for pests and diseases is essential. Following these guidelines
facilitates successful plum cultivation in J&K.
Packages of Practices of Plum:
Packages of Practices (PoPs) for plum cultivation provide a comprehensive guide for
farmers to produce top-quality plums sustainably. Key components include suitable site
selection with well-drained soil and sun exposure, variety selection tailored to local
conditions, and spring planting with adequate spacing.
Effective irrigation, especially during the initial years, along with regular application of
balanced fertilizer, is crucial. Pruning in winter ensures healthy tree growth and fruit
production. Vigilant monitoring is essential to address potential pest and disease issues.
PoPs may also cover soil management for well-drained and fertile soil, weed control
measures to reduce competition for resources, and integrated pest management (IPM)
strategies to minimize pesticide use, favouring biological controls and beneficial insects.
Additional best practices involve implementing cover crops for soil health and erosion
control, employing water-saving techniques like drip irrigation, and consistently
monitoring tree health for prompt corrective measures. These practices collectively
support sustainable high-quality plum production.
Best Practices of Plum Cultivation:
Site Selection: Choose well-drained, sunny locations with fertile soil and an optimal pH
range. Pick plum varieties suited to local climate and growing conditions.
Planting: Plant in spring, with recommended tree spacing.
Irrigation: Maintain regular and deep irrigation, especially in the initial years.
Fertilization: Apply balanced fertilizer regularly, adjusting according to tree age and soil
type.
Pruning: Conduct annual winter pruning for tree health and fruit promotion.
Pest and Disease Management: Consistently monitor trees for signs of pests and
diseases and address them promptly.
Harvesting: Pick ripe, deep purple plums carefully to avoid tree damage.
Additional best practices involve using cover crops for soil health and erosion control,
implementing water-saving techniques like drip irrigation, and monitoring trees for signs
of stress, with corrective action as needed.
Specific tips include selecting a pollinator to enhance cross-pollination, thinning fruit to
ensure proper development, protecting fruit from birds, and harvesting plums with care
to avoid bruising. These practices lead to a bountiful and high-quality plum harvest.
Innovations in Plum Crop:
New Plum Varieties: Researchers are developing plum varieties with higher resistance to
pests and diseases, improved yields, and adaptability to different conditions. For
instance, some varieties exhibit greater resistance to common issues like brown rot.
Precision Agriculture: Precision agriculture leverages technology to enhance farming
practices. In plum cultivation, it is used to precisely target irrigation and fertilization, as
well as to monitor trees for signs of stress and disease. Drones are employed for aerial
orchard assessments.
Robotics and Automation: Automation, including robot-assisted tasks like harvesting and
pruning, reduces labour costs and increases overall efficiency in plum farming. Robots
can harvest plums with precision and accuracy.
New Plum Products: Ongoing development of plum-based products such as plum juice,
plum nectar, and plum jam expands the market and boosts profitability. These products
offer health-conscious alternatives and valuable nutritional content.
Additional areas of innovation include genomics for breeding desirable plum traits,
machine learning for orchard monitoring and pest/disease detection, and blockchain
technology for supply chain traceability, ensuring product quality and fair pricing.
Embracing these innovations allows plum growers to enhance the quality, sustainability,
and profitability of their crops.
Value Addition Possibilities in Plum:
Adding value to plums through processing, packaging, branding, and marketing offers
various opportunities for both businesses and consumers:
Processing: Plums can be transformed into a range of products, such as juice, nectar,
jam, jelly, sauce, and wine, providing convenient and nutritious options for consumers.
Packaging: Attractive packaging enhances plum appeal and guards against damage.
Options like resealable bags, snack packs, and gift boxes make plums more consumer
friendly.
Branding: Creating a distinctive brand identity sets plums apart in the market, increasing
their perceived value and fostering customer loyalty.
Marketing: Effective marketing strategies, including advertising and social media
campaigns, can raise awareness and drive demand, ultimately boosting plum value and
sales.
Additional value-added plum products and services include plum snacks, supplements,
cosmetics, and plum tourism experiences. These innovations cater to evolving consumer
preferences and contribute to the profitability and sustainability of the plum industry.
Interventions to build climate resilience in Plum:
There are a number of interventions that can be used to build climate resilience in plum
production. These interventions include:
Choosing climate-resilient plum varieties: Researchers are developing new plum
varieties that are more resistant to heat stress, drought, and pests and diseases.
Farmers can choose to plant these climate-resilient varieties to reduce their risk of crop
losses.
Using deficit irrigation: Deficit irrigation is a practice of irrigating plum trees less than
what is required for optimal growth. This can help to conserve water and make plum
trees more tolerant of drought conditions.
Using cover crops: Cover crops are plants that are grown in between plum trees. They
can help to improve soil health, reduce erosion, and suppress weeds. Cover crops can
also help to improve water infiltration into the soil, which can benefit plum trees during
drought conditions.
Using integrated pest management (IPM): IPM is a holistic approach to pest
management that aims to reduce the use of pesticides. IPM practices can help to reduce
the risk of pest outbreaks and make plum trees more resilient to pests and diseases
under climate change conditions.
Improving water management: Plum production is a water-intensive industry. Farmers
can implement water conservation measures, such as drip irrigation and micro-
sprinklers, to reduce their water use. Farmers can also use water management tools,
such as soil moisture sensors, to help them make more informed irrigation decisions.
Diversifying their crops: Farmers can plant other crops in addition to plums to reduce
their risk of crop losses due to climate change. For example, farmers can plant drought-
tolerant crops, such as pistachios and olives, or crops that can be grown with less
irrigation, such as grapes and berries.
Developing contingency plans: Farmers can develop contingency plans to deal with the
impacts of climate change, such as drought, heat waves, and extreme weather events.
Contingency plans may include having a backup water supply, planting drought-tolerant
crops, and developing markets for their products in multiple regions.
By implementing these interventions, plum growers can build climate resilience and
reduce their risk of crop losses due to climate change.
Apricot
Apricots are small, orange, and velvety fruits with a sweet and slightly tart flavour. They
are a good source of vitamins, particularly vitamin A and vitamin C, as well as dietary
fibre. Apricots can be enjoyed fresh, dried, or used in various culinary dishes, such as
jams, desserts, and sauces.
Rationale of expansion in J&K:
Favourable Climate: J&K's cold winters and warm, dry summers create an ideal
environment for apricot cultivation, making it a natural fit for the area.
Rising Demand: Apricots are in high demand both in India and globally. India, in
particular, is a substantial importer of apricots, and this demand is expected to persist,
promising market opportunities.
Economic Prosperity: Apricot cultivation is economically rewarding, with high-value
crops. It leads to job creation and generates income for local farmers, contributing to
economic growth.
Environmental Benefits: Apricot trees provide ecological advantages, such as reducing
soil erosion, enhancing soil fertility, and creating habitats for wildlife.
The government's initiatives, including subsidies and processing units, underscore its
commitment to promoting apricot farming in the region.
Further benefits of apricot expansion in J&K encompass its nutritional value, job creation
potential, and the contribution to rural development. Apricots are nutritious, linked to
health benefits, and offer versatility as they can be consumed fresh or processed into
various products. Their high value and sustainability make them a valuable crop for
farmers.
Overall, apricot expansion in J&K represents a win-win scenario, with economic,
environmental, nutritional, and job creation benefits.
Cultivation Practice in J&K:
Cultivating apricots in Jammu and Kashmir (J&K) involves practices similar to those in
other apricot-growing regions worldwide, with some region-specific considerations:
Site Selection: Well-drained, sun-exposed, fertile soil with a pH of 6.5 to 7.5 is crucial.
Planting: Spring planting after the last frost is recommended, with trees spaced 15 to
20 feet apart.
Irrigation: Regular irrigation, particularly during initial years, is essential, deep watering
once or twice weekly.
Fertilization: Regular balanced fertilization, with varying amounts based on soil type and
tree age.
Pruning: Annual winter pruning to maintain tree health and encourage fruiting.
Pest and Disease Management: Regular inspections for pests and diseases, with
immediate treatment if detected.
Harvesting: Typically, in summer when apricots turn golden yellow, with careful
harvesting to prevent damage to trees.
Additional tips include choosing suitable apricot varieties, planting in sheltered locations,
mulching for moisture retention and weed suppression, and close monitoring for stress
signs and timely corrective measures.
Packages of Practices of Apricot:
To successfully cultivate apricot trees, follow a comprehensive set of practices. Begin by
selecting a well-drained, sunny site with soil in the pH range of 6.5 to 7.5 and enrich the
soil with compost or manure prior to planting.
When planting in spring or fall, space the trees 15-20 feet apart and water deeply after
planting, particularly during the first year. Regular watering, typically once a week, is
essential, but avoid overwatering to prevent root rot.
Fertilize with a balanced fertilizer in spring and fall, adhering to package instructions.
Prune trees in late winter or early spring, eliminating dead or diseased branches and
ensuring adequate air and sunlight access.
Pest and disease management is crucial, with vigilance for issues like aphids, scales,
brown rot, and canker. Immediate treatment with appropriate pesticides or fungicides is
vital if pests or diseases are detected.
Harvest apricots in summer when ripe, storing them in the refrigerator for up to a week
or processing them. Additional tips include planting multiple trees for increased fruit
production and safeguarding against extreme temperatures.
Integrated Pest Management (IPM) techniques, like planting resistant varieties, regular
monitoring, cultural practices, beneficial insects, and pesticide use as a last resort, offer
holistic pest management solutions. Following these practices will result in healthy,
productive apricot trees.
Best Practices of Apricot Cultivation:
Successful apricot cultivation demands adherence to best practices that align with
specific climate and growth conditions. General guidelines for high-quality, sustainable
apricot production encompass:
Site Selection: Optimal conditions involve well-drained, sunny areas with fertile soil (pH
6.5-7.5).
Variety Selection: Choose suitable varieties that match the local climate and
requirements, considering factors like cold or drought tolerance.
Planting: Spring planting post-last frost with recommended spacing (15-20 feet apart).
Irrigation: Regular, deep watering, especially during initial growth stages.
Fertilization: Apply balanced fertilizers, with quantities varying based on tree age and
soil type. Pruning: Annual winter pruning ensures healthy trees and encourages fruiting.
Pest and Disease Management: Regular inspections and prompt treatment are vital to
combat potential issues. Harvesting: Gather ripe apricots in the summer, handling them
carefully to avoid damage.
Additional best practices include employing cover crops for soil enhancement and erosion
control, adopting water-conservation methods like drip irrigation, thinning fruit for
proper development, protecting against pests, and ensuring gentle harvesting to prevent
bruising.
Innovative practices encompass precision agriculture, utilizing technology for precise
irrigation and monitoring; automation, including robotic harvesting, pruning, and
weeding; and the use of drought-tolerant rootstocks to enhance climate resilience. These
measures collectively ensure high-quality, sustainable apricot cultivation.
Innovations in Apricot Crop:
Researchers are actively working on developing new apricot varieties that boast
improved resistance to pests and diseases, enhanced flavour and texture, and
adaptability to a broader range of climates. Notably, the University of California, Davis
has introduced "Goldstrike," a brown rot-resistant apricot variety.
Precision agriculture is another advancing trend, utilizing technology such as sensors
and drones to monitor and manage apricot crops with precision. This approach optimizes
resource use, reduces costs, and boosts yields for apricot farmers.
Additionally, vertical farming is emerging as a groundbreaking technique, enabling the
efficient growth of apricots in vertically stacked layers, conserving land and water
resources, and enabling urban cultivation.
Innovations in post-harvest technologies, including advanced packaging materials and
coatings, are extending the shelf life of apricots and minimizing food waste. Furthermore,
there is a growing focus on sustainable and organic apricot production, emphasizing
reduced environmental impact and the avoidance of synthetic pesticides and fertilizers.
Collectively, these innovations are promoting sustainability, productivity, and profitability
in the apricot industry.
Interventions to build climate resilience in Apricot
Climate-Resilient Varieties: Researchers are developing apricot varieties resistant to heat
stress, drought, and pests. Farmers can select these varieties to mitigate crop losses.
Deficit Irrigation: Implementing deficit irrigation involves providing apricot trees with
less water than required for optimal growth. This not only conserves water but also
enhances the trees' tolerance to drought conditions.
Cover Crops: Planting cover crops between apricot trees improves soil health, reduces
erosion, and suppresses weeds. They also aid in water infiltration, particularly beneficial
during droughts.
Integrated Pest Management (IPM): IPM practices focus on reducing pesticide use,
minimizing the risk of pest outbreaks, and enhancing apricot tree resilience against
climate-induced pests and diseases.
Water Management: Apricot production is a water-intensive industry, and implementing
water conservation measures like drip irrigation and micro sprinklers is vital. Using soil
moisture sensors aids in making informed irrigation decisions.
Moreover, precision agriculture employs technology for precise irrigation, fertilization,
and early issue detection. Robotics and automation reduce labour costs and enhance the
efficiency of farming operations while applying resources more accurately. Using
drought-tolerant rootstocks fortifies apricot tree resilience.
Implementing these innovative interventions strengthens climate resilience, reducing
the risk of crop losses and ensuring the long-term sustainability of the apricot industry.
Value Addition Possibilities in Apricot:
Adding value to apricots can enhance their appeal, profitability, and accessibility to
consumers. Value-added approaches include processing, packaging, branding, and
marketing:
Processing: Apricots can be transformed into various products like juice, nectar, jam,
jelly, sauce, and wine. These processed items offer convenience and versatility while
often commanding higher prices than fresh fruit.
Packaging: Creative packaging, such as resealable bags, snack packs, or gift boxes, can
attract consumers and safeguard the fruit from damage.
Branding: Establishing a distinct brand identity differentiates apricots in the market,
increasing their perceived value and fostering customer loyalty.
Marketing: Promotional efforts encompass advertising, social media, and public relations
to create awareness and stimulate demand. Effective marketing elevates apricot value
and drives increased sales.
Value-added apricot products include apricot juice and nectar, popular for their
nutritional benefits; apricot jams and jellies as versatile spreads; apricot sauce for
culinary applications; and apricot wine for dessert or aperitif.
Furthermore, innovative value-added avenues consist of apricot snacks, supplements,
cosmetics, and apricot-based tourism experiences. These strategies empower farmers
to boost profits and consumer engagement while promoting the apricot industry.
Cherry
Cherries are small, round, and vibrant red or dark purple fruits known for their sweet
and tart taste. They are a rich source of antioxidants and vitamin C, offering potential
health benefits. Cherries are enjoyed fresh, in desserts, preserves, and even as a popular
flavour in various food and beverages.
Rationale of expansion in J&K:
The expansion of cherry cultivation in Jammu and Kashmir (J&K) is driven by multiple
compelling reasons. J&K's temperate climate and well-drained soils create an ideal
environment for cherry cultivation.
The rising demand for cherries both domestically and internationally contributes to the
economic appeal of this crop. Cherries, being a high-value fruit, can be marketed fresh,
processed, or frozen, making it a profitable venture for farmers. Moreover, cherry
cultivation offers employment prospects in rural areas and export potential to regions
like the Middle East and Europe.
The Government of India supports this expansion by offering financial assistance and
training to farmers, enhancing the economic prospects for the region. Beyond economic
gains, cherry trees enhance tourism due to their scenic beauty, aid in soil erosion
prevention, improve water quality, and provide habitat for wildlife.
In addition, cherries are a nutritious fruit. The growth of cherry cultivation in J&K holds
the promise of multifaceted benefits for farmers, the local economy, the nation, and the
environment, making it a positive and sustainable development.
Cultivation Practice in J&K:
Cherry cultivation in Jammu and Kashmir (J&K) follows global practices with region-
specific adaptations due to unique climatic conditions.
Key considerations include site selection, spacing, irrigation, fertilization, pruning,
pest/disease management, and careful harvesting. Varieties suited to J&K's climate
include Mishri, Dabal, Siya, Awal-number, Italy, Jadi, and Makhmali. Sheltered planting
sites, mulching, and regular monitoring are vital.
Additional best practices encompass cover crops to enhance soil health, water-efficient
methods like drip irrigation, fruit thinning for proper development, bird and pest
protection, and gentle harvesting to avoid damage.
The growing interest in high-density cherry orchards offers higher yields but requires
more intensive management.
Cherry cultivation holds significant promise in J&K, with the potential for high-quality,
sustainable production and profitable outcomes by adhering to these practices.
Packages of Practices of Cherry:
Cherry cultivation demands a well-thought-out package of practices for successful
growth. The land should feature well-drained, loamy soil with a pH range of 6.5-7.5,
ample sunlight, and protection from strong winds.
Soil preparation entails deep ploughing, weed removal, and the addition of compost or
manure. Plant cherry trees in spring or fall, spaced 15-20 feet apart, with planting holes
twice the width of the root ball, ensuring deep watering post-planting.
Maintaining consistent watering is crucial, especially in the first year, without
overwatering to prevent root rot. Fertilization with a balanced fertilizer in spring and fall
follows package instructions. Pruning, typically in late winter or early spring, involves
removing dead, diseased, or damaged branches and canopy thinning for proper air
circulation and sunlight.
Cherry trees are prone to various pests and diseases, necessitating regular inspection
and immediate treatment with the appropriate pesticides or fungicides. Harvest ripe
cherries in the summer, preferably in the morning, and handle them by twisting the fruit
off the tree. Post-harvest, cherries can be stored, dried, canned, or frozen.
These self-pollinating trees thrive with additional tree planting and require protection
from extreme temperatures. Integrated Pest Management (IPM) principles underscore
prevention and non-chemical methods, with a focus on resistant varieties, regular
monitoring, cultural practices, biological controls, and using pesticides as a last resort to
ensure healthy and productive cherry trees.
Best Practices of Cherry Cultivation:
To cultivate high-quality cherries sustainably, specific best practices tailored to local
conditions are essential. Key recommendations include careful site selection with well-
drained, fertile soil and full sun exposure.
Variety selection should consider climate suitability, and spacing trees adequately (15 to
20 feet apart) is crucial.
Consistent irrigation, especially during initial years, and balanced fertilization are vital.
Regular winter pruning supports tree health and fruiting.
Monitoring for pests and diseases is critical, with prompt treatment when necessary.
Harvesting ripe cherries with care is important to avoid tree damage.
Further practices encompass employing cover crops to improve soil health and reduce
erosion, embracing water-efficient techniques like drip irrigation, proper fruit thinning
for optimal development, effective pest protection, and gentle harvesting practices.
Innovative approaches include precision agriculture, automation, and using drought-
tolerant rootstocks to enhance resilience to climate change.
In summary, best practices in cherry cultivation aim for high-quality, sustainable
production, addressing climate and local conditions.
Innovations in Cherry Crop:
The cherry industry is experiencing a wave of innovations aimed at enhancing
sustainability, productivity, and profitability for growers. Researchers are actively
developing new cherry varieties that are more resilient to pests and diseases, offer
superior flavour and texture, and can thrive in diverse climates. Examples like the
"Sweetheart" cherry variety, resistant to brown rot, highlight this progress.
Precision agriculture leverages technology, including sensors and drones, to efficiently
manage crops, optimizing resource use and reducing costs for cherry growers. Vertical
farming, though in early stages, holds potential to revolutionize cherry cultivation by
conserving land and water resources and enabling urban farming.
Innovations in post-harvest technologies, such as advanced packaging materials and
coatings, extend cherry shelf life and reduce food waste. Robotics and artificial
intelligence are streamlining tasks like harvesting and sorting, reducing labour costs and
enhancing efficiency.
Moreover, the development of new cherry products like juice and powder, along with
promotional efforts highlighting cherries' health benefits, is expanding the market and
driving demand. These multifaceted innovations are transforming cherry cultivation,
making it more sustainable and profitable while creating new opportunities for growers.
Value Addition Possibilities in Cherry:
Adding value to cherries can significantly enhance their market appeal and profitability.
This can be achieved through various methods, including processing cherries into
products like juice, nectar, jam, jelly, sauce, wine, and dried cherries.
These processed products offer convenience and versatility, often commanding higher
prices than fresh cherries. Attractive packaging is another strategy, making cherries
more appealing to consumers while ensuring the fruit's protection.
Effective branding and marketing further elevate the value of cherries, establishing a
unique identity and building customer loyalty. Specific cherry products, such as cherry
juice and jam, cater to diverse consumer preferences and applications, while dried
cherries serve as a healthy snack or cooking ingredient.
Additional value-adding avenues include cherry supplements, cosmetics featuring cherry
extracts, and cherry farm tourism, all contributing to increased income for farmers and
greater awareness of the cherry industry.
These strategies collectively enhance the market presence and profitability of cherries.
Interventions to build climate resilience in Cherry:
Climate change poses a significant threat to cherry production, with its sensitivity to
temperature and moisture fluctuations making it susceptible to extreme weather events
like heatwaves, droughts, and floods. To enhance cherry production's resilience to these
challenges, various interventions can be adopted.
Firstly, planting climate-resilient cherry varieties, developed by researchers, can mitigate
the risk of crop failure.
Precision agriculture practices improve water and fertilizer management and enhance
irrigation efficiency, promoting sustainability and climate resilience. Integrated pest
management (IPM) practices decrease pesticide use, benefiting the environment and
sustainability.
Additional strategies include employing cover crops and mulching to bolster soil health,
moisture retention, and weed control. Improved drainage can reduce the risk of root rot
during heavy rainfall, and windbreaks can shield cherry trees from strong winds,
particularly in windy regions.
Adapting production practices to local climate conditions, such as more frequent
irrigation in drought-prone areas or providing shade during heatwaves, is crucial.
These interventions collectively empower cherry growers to bolster climate resilience,
minimize the risk of crop failure, and cultivate sustainable cherry production practices.
Through these value-adding strategies, farmers increase their profitability while making
cherries more accessible and appealing to consumers, meeting their evolving
preferences and needs.
Chapter 2. Project Description and Implementation
Modalities
I. Climate-smart and market-led production
A. Upscaling collectivization
Brief Description of Project Interventions
Collectivization is the core on which cost-effective service delivery and aggregation of
inputs and outputs for achieving economies of scale can be built to ensure market-oriented
production. The current FPO promotion efforts are target-oriented and do not focus on
building resilient and sustainable businesses for the FPOs. Three modalities will be followed
to support FPOs: (i) support existing FPOs; (ii) FIG promotion and allow them to
organically grow into FPOs; and (iii) support existing CLFs/Cooperatives and associations
to grow into FPOs. The project will invest in a three-pronged strategy to promote FPOs
which include: (i) building the capacity of the Promoting Organizations (POs) to build the
core competence of promoting FPOs around a viable business; (ii)provision of support on
a tapering basis to inculcate the principles of climate and economic resilience and
sustainability from the very beginning; and (iii) participatory business planning for the
establishment of businesses and facilitation for bank finance designed for FPO business
activities. These elements will be implemented through a systematic delivery of services
tailored to the needs of the FPOs, using a graduation model approach ultimately leading
to sustainable and “fit for purpose” FPOs. The project would support 101 FPOs (including
mobilization of 45 new FPOs) covering 30,300 members at 300 member per FPO covering
capacity building, management cost, matching equity and business establishment.
Implementation Steps
Build Capacity of Promoting Agency
• APD to engage the SKUAST-Jammu and SKUAST-Kashmir as the Promoting Agency
for supporting FPOs through their network of KVKs.
• Engage a team of consultants to review the performance of existing FPOs and
identify business verticals for the FPOs.
• Identify resource persons and develop a curriculum for the training of FPO
Development Officer. The curriculum also includes the climate risk analysis and
assessing and identifying practical adaptation measures.
• Develop a curriculum for training FPO Managers and Accountants.
• Develop a curriculum for training of FPO leaders. Similar to the FPD development
officer’s curriculum, this should also include assessing and identifying climate risk
and adaptation measures.
• Advertise the select FPO Development Officers – one per district to be housed within
the KVKs.
• Prepare a plan for training of FPO Development Officer and conduct training as
planned.
Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Engage SKUAST-J and SKUAST-K to prepare APD SKUAST-J and
activities and budgets related to the upscaling SKUAST-K
collectivization activities.
Review of existing FPO and identifying business SKUAST-J and DioA-J, DioA-K, FPOs
verticals SKUAST-K DioH-J and
DioH-K

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 Develop curriculums SKUAST-J and DioA-J, DioA-K,
SKUAST-K DioH-J and
DioH-K
Recruit FPO Development Officers SKUAST-J and DioA-J, DioA-K,
SKUAST-K DioH-J and
DioH-K
Train FPO Development Officer SKUAST-J and DioA-J, DioA-K,
SKUAST-K DioH-J and
DioH-K

FPO Mobilization and support

FPO Mobilization: The project would use the generic mobilization guidelines of FPO
mobilization of GoI. These steps remain valid, but normally the FPO Promoting Agencies,
due to their target-oriented approach and payment release linked to the registration of
FPO, largely focus on mobilization and registration, give no cognizance to the farmers’
interest in a particular business. The project will establish a new process as a pre-requisite
for FPO mobilization and support.
• FPO Business Development Officers to conduct field visits and identify a core team
of farmers interested in coming together for self-help.
• If the farmers are interested in investing money and time into the FPO and the
business opportunities proposed are feasible, the project should facilitate the
community to identify a Manager and an Accountant initially on an honorary basis
for a three-month period.
• Prepare a plan for training of FPO staff and conduct training as planned.
• Undertake consultations with the community on the business verticals that can be
built to increase the income levels of farmers, identify a business vertical that holds
promise and prepare a basic project concept note for seeking project support.
• Conduct a community meeting to present the project report to the community and
evaluate the interest of the members to be a part of FPO.
• If the community is interested start the process of registering FPO and opening a
bank account.
• Start share capital mobilization. The project will provide a matching grant to FPO
members for share capital mobilization. The project will provide 60% as a matching
grant for women and youth and 40% for other members against share capital
mobilization. A member will get a share certificate of Rs. 4,000 upon his/her
contribution of Rs 2,000 towards equity capital of FPO. Rs 2,000 will be paid by the
project. Women and youth will have to contribute Rs 1,000 and the project will
provide Rs 3,000.
• Conduct a challenge at the district level where the project concept note will be
reviewed by a team comprising officers from the Directorates and KVK.
• Assist in developing the project concept note into a project proposal by providing
multi-disciplinary team support comprising officers from the Directorates and
thereafter appraise the proposal and provide funding.
FPO staff salary
• The FPO staff engaged will be on an honorary basis for the first three months.
• FPO salary will be fixed by the FPO leaders.
• Salary payments will be linked to the achievement of deliverables such as the
number of members of FP, business turnover of the FPO, and profitability of the
FPO.
FPO Business Plan preparation

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 • Facilitate the preparation of FPO business plan.
• Prepare proposals based on the business and seek funding from the project.
• The matching grant support from the project will not exceed 50% of the project
cost for the first two businesses and thereafter a system of reducing the matching
grant will be implemented.
FPO rating
• Conduct FPO rating/scoring exercise on a yearly basis using a scoring tool to be
developed by the project in consultation with IFAD.

Professional
independent FPOs

• Running their own

profitable agri-
Investment ready business.
FPOs • Actively making
and managing own
•

Capacity
Active in market investments in

Support needs
Market ready FPO through sales joint businesses
contracts / trading activities.
• Increasing business relationships. • Able to find own
mindset of • Farmers investing customers and key
members on own farm to suppliers.
• Byelaws and supply via FPO • Formalized
management in • No joint • Access to Credit
Support ready POs Place investment yet and other financial
• starting • May be informal as sources
Recently mobilized negotiations with yet
for external support buyers + joint
& services planning

• Based on this assessment, conduct reviews and design measures for changes in
support leading to improvement in performance.
Mentoring an FPO - Steps for the Promoting Agency (PA): Often an FPO is created
with extrinsic support from a PA. This necessitates an even more carefully thought-out
approach by such an agency to ensure the success of the FPO. An FPO (registered under
the Cooperative Act) is a business enterprise and needs to be not only financially viable
but also a growing and profitable venture, in the long run, to benefit its members.
Since FPO is owned and governed by its members, mostly smallholders, needs to be
mentored effectively to become a strong enterprise. Generally, an FPO goes through these
four stages in its creating and running: 1. Pre-registration, 2. Registration and building
membership, 3. Operationalisation, and 4. Post operationalisation.
At each stage, an FPO needs very specific support and mentoring from the facilitating
agency. Based on the experience from the successful FPOs/Cooperatives, some steps are
listed and described below in brief. An operational guide will be developed by the PA which
will incorporate support below, based on an initial scoring and needs assessment.
Stage I - Pre-registration: An FPO created without due diligence soon suffers stunting
and failure. It is desirable to give due consideration before its incorporation.
• Identification of the proposed FPO’s business activity (or activities), area of
operation, potential members, and a realistic estimate of business leading to the
preparation of a tentative business plan having a five-year perspective. If the
business plan appears robust with a sensitivity analysis of a 10% fall in business

3
 volume/prices and also a 10% increase in the operational cost, it is worth pursuing,
or else the business model needs to be tweaked to achieve the same.
• Pre-launch consultation needs to be held with a cross-section of potential members
if it is not possible to hold with all of them. If a majority of the potential members
i.e., all the women associated with the activities of the FPO in the selected area of
operation are convinced about the benefits and are willing to invest in this venture
we should move to the next step.
• Identify the first set of promoters including the chief promoter. Also, identify the
nominated directors to be appointed at the first AGM through due process to ensure
these women are having a high level of commitment to this initiative and are willing
to invest their time in the same. The first nominated directors should be having
reading, writing, and basic arithmetic capabilities in addition to a strong value
system of honesty and sincerity, and trust of the people around them.
• Seek professional help in drafting the byelaws of the FPO and list down the crucial
aspects of ownership, operations, and governance. Discuss these simplified but
key points with the first promoters. If required incorporate changes to address the
concerns of the promoters. These interactions should also build a consensus among
the promoters toward the nominated directors.
• Proceed with documentation and incorporation of the FPO.
Stage II- Registration: Immediately after registration a few key activities need to be
initiated in the FPO.
• After obtaining the registration certificate of the FPO hold the first AGM at the
earliest (say within a month to expedite activities although legally allowed up to
three months) to nominate the directors, approve the budget for the year and other
statutory matters. Conduct a board meeting to approve the business plan,
organisation structure, and membership application form, among other legal
requirements e.g., applying for various licenses. If possible, the chief executive of
the FPO (by whatever positional name it is referred to) should also be appointed in
this board meeting or else the mentoring agency should help provide a professional
on deputation till a full-time chief executive is appointed (earlier the better).
• Undertake membership drive (SHG/village level meetings among potential
members to explain the purpose and benefit of the FPO) to enrol most of the
women, involved in the business activity(ies) of the FPO in the area as the
shareholders of the FPO to ensure a respectable volume at the earliest.
• Arrange training for the Chief executive to ensure keeping the licenses, statutory
compliances, bank reconciliation, auditing, etc, up to date. She/He should be
equipped in recording and maintain the Board meetings and AGM records
appropriately.
• Hold a board meeting to approve membership.
• Hold a business orientation training programme for the nominated directors to help
them understand the key aspects of running and managing FPO’s business. Also,
clarify the role of the board vis-a-vis the Chief Executive.
Stage III - Operationalisation: While membership is being built the FPO should initiate
preparatory activities to facilitate initiating the business of the FPO. But it should be
started only after a minimum threshold of the business appears to be achievable in light
of the members enrolled till then.
• Preparing for operations:
• Setting up of infrastructure for measuring, testing (if any), recording, and
storing. This step needs to be planned with micro details to ensure glitch-free
operations of the FPO.
• Obtaining working capital loan/grant required for the projected business.

4
 • Obtaining necessary licenses and fulfilling other statutory requirements
• Defining standard operating procedures (SOPs) for all the processes
• Hiring and training the employees and related functionaries on SOPs

• Finalise the agreement with various parties as required like transporter, forward
linkage (institutional buyer), input provider, other service providers, etc.,
• Acquire, train the employee, and implement IT solutions including accounting
software to ensure transparency, fair data recording at all levels, and correct and
timely information to the members.
• Ensure appropriate solution and process is in place to make timely payment to the
members for their supplies to the FPO.
• Begin the operation on a pre-announced date with information to all the members
of the FPO.
Stage IV - Post-operationalisation: Once the FPO is operationalised it needs to be
mentored on various aspects continuously and consistently. The important ones are listed
below:
• Facilitate the board (along with the chief executive) of the FPO to evolve a shared
"Values and Vision" of the FPO. This helps to build the culture of the FPO right from
the beginning.
• Train the staff to undertake regular extension/awareness-building activities among
the members to strengthen and grow members’ participation in FPO’s business.
• Arrange for regular Board training (every quarter in the first year and six-monthly
later) to reinforce role clarity among the board members as well as build skills to
understand and analyse the business parameters of the FPO. The board members
should be able to understand and ask key questions when presented with the
performance of the FPO in board meetings by the chief executive.
• Support in regular monitoring and review of the activities by the board (quarterly)
as well as by the Chief Executive and his team (fortnightly/monthly) to ensure
achievement of the set targets. Review the SOPs and if needed modify them to
optimise cost and effectiveness.
• Introduce performance-linked incentives for the employees of the FPO by splitting
the compensation into two parts fixed and variable.
• Develop appropriate MIS formats for managing the timely availability of
data/information to facilitate informed decisions and also effective performance
review.
• Monitor the Value Chain regularly in the first two years and suggest improvements
to cut costs and build efficiency.
• In addition to strengthening institutional forward linkages undertake marketing
efforts to build retail sales to improve profitability. This will also require registering
the trademark or else using existing group trademarks made available by MAVIM
like ‘Tejaswini’.
• Scan innovative business activities that are suitable for the FPOs to get into and
handhold the FPOs with the necessary preparation for the same.
• Help to hold the board meetings and the AGM as per the provisions of the Act and
byelaws. AGM needs to approve annual audited accounts, annual budget, dividends
if any, appointment of auditor, etc.
• Keep reviewing the governance process i.e., the board meeting (agenda and
participation) and the board records for continuous improvement so that they serve
as a reliable base for future reference.

5
 • Plan an exit strategy for the facilitating agency so that the FPO is enabled to carry
on all the activities on its own after the withdrawal of the facilitating agency.
These steps are essential to be undertaken by the facilitating agency to ensure the
strengthening of an FPO. The facilitating agency may even be required to hire subject
matter experts to provide effectively hand-holding support to the FPOs.
Financial and Administration Support
To ensure access to finance for FPOs, the approach involves guiding newly established
FPOs from mere compliance to actively conducting business activities, with the aim of
becoming bank ready. This readiness is marked by improved financials, increased sales,
and established sales contracts and buyers. Support will be provided in the form of grading
tools to assess the FPOs, helping them meet the banks' credit underwriting criteria. For
existing FPOs, due diligence will be conducted to assess their current status, followed by
strategizing to advance them to a state of bank readiness. The key indicators in the
aforementioned matrix serve as benchmarks for FPOs to achieve this readiness.

Category Key Indicator Acceptable Benchmark

Revenue Growth 5-10% annually
Profit Margin 10-20%
Positive Cash Flow Consistent year-over-year growth
Financial Healthy Balance Sheet Debt-to-Equity ratio < 1-2
Health Earnings Growth 5-10% annually
Established sales contract at least 3 sales contract
Market Not more than 20% revenue from one
Position Diversified Customer Base client
Productivity Year-over-year improvement
Operational Operational Costs Reduction by 2-5% annually
Efficiency Supply Chain Efficiency Delivery on-time rate > 95%
Above 75-85% (repeated orders from
Retention Rates the clients)
Customer Feedback Over 80% positive feedback
Customer Customer Base Growth 5-10% increase annually
Adherence to Regulations Zero compliance issues
Ethical Practices High ethical standards adherence
Regulatory Meeting or exceeding regulatory
Compliance Environmental Compliance standards
Leadership and Decision-making High stakeholder confidence
Board Effectiveness Regular, positive evaluations
Organizational Structure Clear hierarchy and roles
Risk Management Effective mitigation of key risks
Governance Transparency in Reporting Accurate and timely reports
and High satisfaction in stakeholder
Management Stakeholder Communication surveys

Private Sector involvement with FPOs

An FPO typically suffers from a lack of capital, be it for creating infrastructure, expanding
operations, working capital, new product development, or pursuing aggressive sales and

6
marketing activities. It becomes a severe impediment to the growth and sustainability of
the FPO. It is high time to move away from the commonly accepted view that an FPO is
a farmer-owned enterprise, and hence should keep away from the private sector. The
private sector has its strength of strong market orientation and the ability to manage
investment. There is a great possibility to leverage the social capital of the FPO with that
of the Private sector’s market orientation to create a win-win situation for both. However,
the terms of engagement need to be carefully considered to ensure fairness to the FPO as
a small FPO may not possess the business acumen to read between the lines and protect
its interest. A facilitating agency may be required to support the FPO in this. The
partnership of the two, if well-conceived, could benefit both enterprises and in the long
run the member-owners of the FPOs.
An FPO registered in the Cooperative Act suffers from a set of negative provisions
disallowing certain forms of engagements, like the formation of joint ventures,
subsidiaries, and strategic alliances with the private sector, and operate without any
imposed area restrictions and having flexibility in business decisions, mobilizing funds and
allocation of surplus. Cooperative is a user-owned enterprise and hence the law is not at
all supportive of pure investors. Typically, cooperatives share most of their surplus as a
patronage bonus to their members i.e., sharing based on participation in the business,
and only a limited return is distributed as a dividend on the share capital contribution.
Given this, a private firm, even if allowed, obviously will not like to invest in a cooperative’s
equity.
With the above in view, there is a strong possibility of engagement between an FPO and
the private sector either on a service-fee/usage-rental basis or on a profit-sharing basis.
Some of the following possibilities can be considered at the outset that are mutually
beneficial to the two and can help build their business:
Private sector as the provider of supply-side various inputs and services to the
FPO – Providing inputs and services to the members of the FPO is imperative not only for
higher productivity but also for better quality. Most FPOs suffer from a lack of resources
(mostly working capital and access to quality services) to undertake these activities
effectively and efficiently. The private sector can fill this void very easily for the FPO. The
FPO can provide access to its members and charge a commission to the service provider
on the total business through its members. The payment for the service should be routed
through the FPO for better accountability and transparency. This will also ensure that the
member is not exploited. The private service provider should be bound through terms and
conditions to provide timely and quality services at pre-agreed prices.
Private sector as a provider of infrastructure facilities for grading, processing,
packaging, cold storage, etc. – Private will be willing to invest in setting up
infrastructure and also run it efficiently if there is a possibility of operating it profitably.
On the other hand, the FPO can hire this facility on a usage basis. However, this may
require a minimum usage guarantee by the FPO to the private investor. Many
Cooperatives in the dairy sector use the chilling centre facility set up by the private on
such arrangements. Generally, the private sector is very cost-effective and efficient in
managing such operations. This is useful, especially in the case of the FPO’s business
being very small and it needs such a facility on a part-usage basis.
Private sector becomes the forward linkage for marketing the produce – An FPO
often faces difficulty in selling the produce/products of its members either because of a
smaller volume or lack of resources to promote or reach the retail buyers. In the early
phases of the FPO, this issue could be effectively addressed by tying up with a reliable
bulk/institutional buyer. The bulk/institutional buyer can be engaged by the FPO not only
for bulk sales but also for providing a sales and distribution channel for the FPO’s branded
products. This can be worked on a profit-sharing model, or a commission based on per-
unit sales. Many retail chains pick up and sell FPO’s branded produce at their sales outlets.
Private sector providing professional support to manage selected
activities/functions - Attracting quality manpower could be a challenge for FPOs in their

7
infancy because of being obscure and small in business. A few FPOs together can source
professional services from quality service-providing agencies. FPOs need to perform
activities related to accounting, legal/statutory compliance, managing finances, training,
documentation, etc. This does not need a full-time employee in the FPO. FPO often use
poorly skilled staff for such tasks to save on costs leading to creating a mess. A private
specialised agency can easily provide manpower for such activities on a time-sharing or
task contract basis. This will ensure quality work at affordable prices.
Private sector managing facilities owned by the FPO – Often FPOs get support in the
form of full or part subsidies or loans with interest subvention from funding agencies
including Government bodies under various schemes to create processing infrastructure.
However, managing the operations of such infrastructure profitably may be beyond the
skill set available with the FPO. The private sector adept at managing these facilities may
accept to run the same either on a lease basis or on a usage basis. This will ensure
efficient upkeep and usage of the asset along with better economic return to the FPO. In
the dairy sector, there are several examples of Cooperative dairy plants, leased out to the
private sector.
Strengthening climate adaptation knowledge and capacity
The planned activities also aim capacitate producer organizations and staff to understand
climate change, its impact, and assess and identify the mitigation and adaptation
measures.

The FPO officers serve as the primary source for first contact for the technical assistance
to the farmers. It is essential to enhance their capacity to comprehend the project's
objectives and effectively provide support to farmers. One of the key areas requiring FPOs
capacity building is their grasp of climate change issues and the integration of practical
adaptation measures. The JKCIP supports Good Agricultural Practices and Climate-Smart
Agricultural Practices, which necessitate a deeper understanding by FPO Development
Officers for successful implementation.

The capacity-building initiative aims to empower FPO and FPO DOs with a comprehensive
understanding of climate-related risks, environmental considerations, and adaptation and
mitigation strategies. This knowledge will be directly applicable within the framework of
JKCIP's activities, enabling FPO DOs to better navigate and address climate challenges in
the context of their work.

Moreover, the project activities also aimed at diversity income sources and enhance
climate and economic resilience. Farm mechanization support is to maintain farm health
helping them to resist water scarcity and disease and pest. Similarly, the provision of
suitable tools, such as those for digging holes for plantation, will decrease soil exposure,
thereby minimizing soil erosion and the loss of topsoil.

Drudgery reduction support significantly saves time and energy. This assistance
contributes to improved health, particularly for women, by lightening their workload.
Importantly, the time saved through this support can be utilized in other income-
generating activities. For example, an apple farmer can diversify activities by engaging in
nursery management, livestock rearing, intercropping high-value crops, and promoting
products in markets. Moreover, FPOs can utilize saved time for knowledge exchange and
capacity building, making them aware of climate threats and ongoing adaptation practices.

Harvesting and processing waste in the agriculture sector is significant. This not only
causes loss to the farmers in terms of quantity, but also decreases the quality of the
product. Aggregation support will ease farmers to harvest, collect, and store their
products; ultimately ensuring less wastage, maintain quality, and ensure reasonable price.
Which will increase their overall income.

8
Likewise, the volatile market is a threat in the project targeted area. Most importantly,
apple is facing huge competition from other countries’ production. The good aggregation
support will allow them to collectively store their product for a certain amount of time and
seek a better market. This will help them store their product when transportation is blocked
due to flood, landslide, or there is heavy rain.

The FPO orchard management business, on one hand, this initiative generates new job
opportunities in regions with limited employment options and draws individuals into this
industry. On the other hand, it contributes significantly to enhancing orchard quality by
facilitating access to skilled human resources, thereby addressing prevailing issues.
Moreover, this business is instrumental in tackling climate-related challenges. For instance,
it supports the cultivation of climate-resilient varieties in nurseries and orchards,
implements integrated pest management practices, conducts regular pruning and
thinning, and emphasizes seed selection and storage. Ultimately, these efforts result in
bolstering farmers' income derived from healthier and more resilient farms.

Likewise, support for emerging business helps to increase awareness, understanding, and
capacity to address climate change challenges in new areas for business. This also aims
to diversify the farmers’ income.

Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Undertake initial mobilization activity around a SKUAST-J and Community
business concept with a core team of members. SKUAST-K core group
Identify FPO staff in consultation with members SKUAST-J and DioA-J, DioA-K, Community
and train them. SKUAST-K DioH-J and core group
DioH-K
Discuss the business opportunities and prepare a SKUAST-J and Community
concept of business. SKUAST-K core group
Discuss the business concept with the community SKUAST-J and Community
and gauge their interest in forming FPO and taking SKUAST-K core group
the business forward.
Start the FPO mobilization and registration process SKUAST-J and Community core
including opening a bank account. SKUAST-K group
Provide matching grants for share capital SKUAST-J and FPO
contribution by the members. SKUAST-K
Conduct a challenge at the district level to review SKUAST-J and DioA-J, DioA-K,
the business concept. SKUAST-K DioH-J and
DioH-K
Develop detailed proposals for the business SKUAST-J and DioA-J, DioA-K, FPO
proposed by the FPO, appraise, approve and SKUAST-K DioH-J and
provide funding. DioH-K
Conduct rating of FPOs SKUAST-J and FPO
SKUAST-K

B. Niche agricultural crop support

Brief Description of Project Interventions
J&K’s agroclimatic conditions offer the potential for expansion of specialty area specific
crops that are high value and with high market demand and generally called niche crops.
The main value chain constraints related to niche-crops include low productivity and
production, high cost of production and non-availability of good quality planting materials.
This project will improve the production and productivity as well as the quality of the
produce of the niche agri-crops including research on climate adaptation challenges. The
project will support the introduction of climate resilient and improved management
practices with the introduction of good agricultural practices (GAP) and promote area
expansion of niche crop cultivation. The focus will be on select value chains of climate

9
resilient niche crops (saffron, off-season vegetables, aromatic rice (mushk budji), spices
and medicinal and aromatic plants).
The major activities will include: (i) capacity building to introduce Good Agricultural
Practices (GAP) including farm and pest (insect, disease and weeds) management best
practices; (ii) seed system development and support for the development of vegetable
seed production with private sector involvement; (iii) introduction of GAP practices coupled
with area expansion; and (iv) support for the introduction of business practices into CoEs
and development a Tulip focused CoE.
In total, the project will: (i) support training 1,085 trainers and field staff and 16,200
farmers; (ii) develop seed systems in 50 villages; (iii) 16 seed businesses; (iv) 800 water
management systems; (v) 1,650 protected cultivation units; and (vi) expansion of niche
crops in 2,805 ha covering 14,025 farmers.
Value chains identified: The project has identified Saffron, Black cumin, Aromatic rice,
off-season vegetables and other high-value crops for support. A note containing details of
these crop value chains is provided in Chapter 1, Appendix C1A6, Appendix C1A7, C1A8
and C1A9.
Capacity building – Climate-smart and Good Agricultural Practices (GAP)
Rationale: There is an apparent need for the capacity development and skills
enhancement of the staff of the Directorates of Agriculture in order to familiarize and
update their knowledge with the emerging global scenario in the rural development sector,
climate change and other aspects.
Training modality - Training of trainers: To begin with the training modality will involve
the training of trainers, who will be involved in passing down the line the knowledge that
they have gained during their training. They will also be involved in the curriculum
development process, subjects to be covered in the training as well as in other aspects of
the training program.
Curriculum development process: It is essential to involve the Directorates in the
curriculum development process to ensure that the curricula are relevant to the current
needs of the small and marginal farmers.
Subjects to be covered: The general subjects to be covered are provided below and the
crop-specific inputs will also have to be included.
Introduction to Good Agricultural Practices: Definition and importance of GAP-
Benefits of practicing GAP - Food safety and quality standards.
Site Selection and Preparation: Land suitability assessment -Soil testing and analysis
- Site sanitation and hygiene.
Seed and Planting Material Selection: Importance of quality seeds-Seed selection and
sourcing-Seed treatment and storage.
Crop Planning and Planting: Crop rotation and diversity-Planting techniques and
spacing-Transplanting and direct seeding.
Water Management and Irrigation: Types of irrigation systems-Irrigation scheduling-
Water quality and conservation.
Soil and Nutrient Management: Soil health and improvement-Fertilizer types and
application-Nutrient management planning.
Pest and Disease Management: Pest identification and monitoring-Disease prevention
and control-Integrated pest management (IPM).
Weed Management: Weed identification and control strategies - Herbicide safety and
use.
Harvesting and Post-Harvest Handling: Crop maturity assessment-Harvesting
techniques-Post-harvest handling, storage, and transportation.

10
Quality and Safety Standards: Quality grading and standards-Food safety and hygiene
practices-Certification and compliance.
Environmental and Sustainability Practices: Sustainable agriculture principles -
Environmental protection and conservation- Biodiversity and ecosystem management.
Record Keeping and Documentation: Importance of record keeping-Farm management
and decision-making- Budgeting and financial management.
Marketing and Value Addition: Market channels and distribution-Value addition
opportunities - Marketing strategies.
Certification and Compliance: GAP certification processes -Regulatory compliance and
documentation - Third-party audits and inspections.
Implementation steps:

• APD to engage the SKUAST-Jammu and SKUAST-Kashmir for capacity building of

the Directorates and farmers.
• Identify resource persons and develop a curriculum for the training of the trainers
and also a curriculum for the training of farmers by the trainers.
• Develop a curriculum for the training of the trainers.
• Develop a curriculum for the training of farmers.
• Identify the trainers from the Directorate of Agriculture and KVKs and train them.
• Make plans to conduct field-level training and start training farmers.
Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Engage SKUAST-J and SKUAST-K to prepare APD SKUAST-J and
activities and budgets related to capacity building SKUAST-K
for niche crop expansion.
Develop curriculums SKUAST-J and DioA-J and
SKUAST-K DioA-K
Train trainers SKUAST-J and DioA-J and
SKUAST-K DioA-K
Train farmers SKUAST-J and DioA-J and
SKUAST-K DioA-K

Saffron Centre of Excellence - Business Plan Development

GoJ&K has a Saffron Centre of Excellence with high-end facilities. However, the capacity
utilization remains low. It is necessary to transform the Saffron-CoE into a business entity.
Implementation steps:

• Undertake exposure visits of CoEs outside J&K to understand their modus operandi
and sustainability.
• Engage an agency/Consultant to conduct a study of the Saffron CoE and to develop
a modality to improve its performance to enhance the production of saffron at the
farmer level and to move Kashmir Saffron to the premium category.
• Based on the findings of this study prepare plans for implementation
Terms of reference for the agency to study Saffron CoE

• Conduct a thorough assessment of the existing CoE, including its operations,

financial status, human resources, and infrastructure- Analyse the current
stakeholder engagement and partnerships in place - Identify strengths,
weaknesses, opportunities, and threats (SWOT analysis) for each CoE. This also

11
 includes CoE’s capacity to undertake climate trend and scenario assessment to
assess Safron viability in coming years and to identify suitable adaptation measures
to strengthen climate resilient Saffron production the farm level.
• Develop a sustainability strategy for the CoE, outlining clear goals, objectives, and
activities to be undertaken - Define key performance indicators (KPIs) and targets
for measuring success - Propose a financial sustainability model that considers
various revenue streams, cost management, and budgeting - Provide
recommendations for organizational development, capacity building, and resource
mobilization.
• Prepare a business plan for the CoE for the next five years with a focus on
emergence as a sustainable institution.
• Assess the need and possibility of private sector participation in managing the CoE
and develop modalities for private sector participation.
• Assess the current engagement with key stakeholders, including government
entities, donors, partners, and the local community - Propose strategies for
strengthening relationships with stakeholders and enhancing their involvement in
CoE activities.
• Develop a framework for monitoring and evaluating the implementation of the
sustainability strategies - Establish a system for regular reporting and feedback to
relevant stakeholders.
Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Prepare ToR and engage an agency to prepare a APD DioA-K
business plan for Saffron CoE.
Conduct a workshop to present the findings APD DioA-K
Make a policy note and submit to the Government APD DioA-K
for approval
Make an action plan for implementing agreed DioA-K
recommendations
Implement the action plan DioA-K

Tulip CoE Support

Rationale: Tulips are cultivated in Jammu and Kashmir, particularly in the region around
Srinagar, where the Indira Gandhi Memorial Tulip Garden, also known as the Siraj Bagh
Tulip Garden, is located. This garden is one of the largest tulip gardens in Asia and is a
popular tourist attraction in the region. However, Tulip bulbs are regularly imported from
the Netherlands despite having suitable climatic conditions and a huge domestic market.

Implementation steps:

• Assess the research/piloting requirements for the production and replication of

quality Tulip bulbs.
• Review the research requirements and prepare an action plan for implementation
with budgets.
• Implement the action plan.
• Engage an agency to undertake a feasibility study to develop a Tulip CoE.
• Review the feasibility study and prepare an action plan with budgets for
implementation.
Terms of reference for the agency to prepare a feasibility report for Tulip CoE

12
 • Conduct a thorough market analysis to assess the demand for tulip-related
activities, including tourism, research, and educational programs. Identify potential
stakeholders, including local communities, government agencies, and private
sector partners.
• Analyse climate trend and scenarios to assess Tulip viability in coming years in
project targeted areas. Identify climate research gaps and propose research items.
• Identify and evaluate potential locations for the CoE, considering factors, such as
climate, soil quality, accessibility, and proximity to tourist destinations.
• Assess the existing infrastructure and facilities at the selected site and recommend
any necessary developments.
• Assess the technical feasibility of establishing a Tulip CoE taking into account
technical capacity for multiplication of Tulip bulbs.
• Prepare a detailed financial model that includes estimated capital costs, operating
expenses, revenue projections, and potential funding sources. Evaluate the return
on investment and assess the financial sustainability of the CoE.
• Assess the need and possibility of private sector participation in managing the CoE
and develop modalities for private sector participation.
• Develop a comprehensive operational plan outlining the key functions, programs,
and activities that the CoE will offer. Identify potential partnerships, collaborations,
and knowledge-sharing opportunities with relevant institutions.
• Assess and outline the legal and regulatory requirements for establishing and
operating a Tulip CoE. Identify any permits, licenses, or compliance standards that
need to be met.
• Identify potential risks and challenges associated with the project and propose risk
mitigation strategies.
Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Assess the research/piloting requirements for the APD SKUAST-K
production and replication of quality Tulip bulbs.
Review the research requirements and prepare an APD SKUAST-K
action plan for implementation with budgets.
Implement the action plan. SKUAST-K Directorate of
Floriculture
(DioF)
Engage an agency to undertake a feasibility study APD DioF
to develop a CoE.
Review the feasibility study and prepare an action APD DioF
plan with budgets for implementation.
Implement the action plan DioF

Support activities presented below are carefully chosen based on the agro-climatic zones
of the J&K. Implementation involves analyzing climate risks and ensuring adequate
adaptation and mitigation measures. When promoting these commodities, the project will
assess their future viability by analyzing climate change trends and scenarios. The
selection of locations to expand commodities will consider these trends and scenarios. The
producers will be provided with climate smart and good agricultural practices. The project
will focus on crop diversification, efficient water use technologies, multi/mix/inter
cropping, application or integrated pest management practices, promotion of bio inputs,
selection of climate resilient varieties, conservation, and promotion of local and indigenous
seeds. Climate impact and adaptation/mitigation measures observation and learning
exchange will be one of the priorities for outreach and exposure visits and activities. These

13
approaches ensure better understanding and addressing climate risks, thereby fostering
resilience and sustainability within these agro-climatic zones. The JKCIP aims to enhance
value chains of given commodities, fostering diversified income streams and additional
opportunities for income generation, ultimately enhancing both climate and economic
resilience.
Seed system development – Seed villages for cereals and Pulses

Rationale: The availability of genetically pure seeds is noted to be one of the constraints
contributing to lower crop productivity of cereals, pulses and other crops, let alone the
improved germplasm of such crops. Throughout the field visits in Jammu and Kashmir, off-
types in rice fields were noted. This problem can be resolved to a large extent through the
organization of seed villages. This project will focus on Rice, and Pulses & Legumes.

Implementation steps:

• Identify the seed villages using criteria such as: majority of farmers experienced in
growing rice and pulses, the willingness of farmers to participate in the seed
production endeavour and with FPOs interested in promoting and managing this
activity.
• Identify FPOs in these locations and train them in developing a seed business. FPOs
to procure breeder/foundation seeds and provide them to farmers. FPO to procure
seeds from the farmers and sell them to other farmers.
• Select the ideal patches of land in the village for seed production. The idealness
could include relatively levelled flat lands, with the availability of irrigation water,
or if terraces are used, they should be wide and relatively levelled, with the
availability of irrigation water.
• Prepare the land thoroughly by cross-ploughing to bring the soil to a good level of
tilth. The tilth is defined as the mean aggregate size of the soil particles, in order
to provide enough seed and soil-particle contact level (ratio). Generally, at any
given tilth (not the Clods), smaller the seed, higher is the soil-particle contact level,
and larger the seed, smaller is the soil-particle contact level.
• Acquire genetically pure seeds of cereals and pulses from the Universities, (Breeder
seed and Foundation seed), and check for the germination percentage vs the
indicated germination percentage on the tag of the seed lot (packets) before
handing over to the seed growers.
• Inspect the seed grower’s fields regularly for any pests (insect, disease, and weeds)
and suggest measures, if needed.
• Depending on the sowing date, indicate (suggest) the anticipated/ possible crop
maturity/ harvesting time, and ask the seed growers to be observant about
hailstorms and shattering of the seeds.
Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Develop a seed village scheme APD DioA-J, DioA-K SKUAST-J and
SKUAST-K
Identify FPOs interested in the seed village DioA-J, DioA-K SKUAST-J and
concept SKUAST-K
Identify seed villages DioA-J, DioA-K FPO SKUAST-J and
SKUAST-K
Capacity building DioA-J, DioA-K FPO SKUAST-J and
SKUAST-K
Implementation of seed village concept FPO DioA-J, DioA-K SKUAST-J and
SKUAST-K

Vegetable seed business promotion:

14
Implementing agency: Directorate of Agriculture

Rationale: The availability of genetically pure seeds is noted to be one of the constraints
contributing to the lower crop productivity of vegetables. Off-types were noted in the
seasonal vegetable plots. This problem can be resolved to a large extent through the
organization of vegetable seed production in partnership with the private sector.

Implementation steps:

• Identify the villages using criteria such as: majority of farmers experienced in
growing vegetables, the willingness of farmers to participate in the vegetable seed
production endeavour with the private sector (seed companies), and with FPOs
interested in promoting and managing this activity.
• Identify FPOs in these locations and train them in developing a vegetable seed
business.
• Identify private sector companies interested in partnering with the FPOs in seed
production.
• Make a MoU between the private sector and FPO for buying back the whole lot of
vegetable seeds produced by the farmers at an agreed price, and the companies
involved make their own arrangements for the sale and distribution of the seeds.
• Select the ideal patches of land in the village for vegetable seed production. The
ideal plots could be relatively levelled flat lands with the availability of irrigation
water, or if terraces are used, they should be wide and relatively levelled, with the
availability of irrigation water.
• Prepare the land thoroughly by cross-ploughing to bring the soil to a good level of
tilth.
• Consider promoting climate resilient, and local and indigenous varieties of seeds.
• Private sector company player to provide required technical assistance for seed
production.
Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Identify FPOs interested in starting a vegetable DioA-J, DioA-K SKUAST-J and
seed business. SKUAST-K
Identify private-sector seed companies interested DioA-J, DioA-K FPO SKUAST-J and
in partnering with FPOs for vegetable seed SKUAST-K
production
Capacity building DioA-J, DioA-K FPO SKUAST-J and
SKUAST-K
Implementation of vegetable seed business FPO DioA-J, DioA-K SKUAST-J and
activity SKUAST-K

Production expansion

Saffron

Rationale: Saffron is a flagship commodity of J&K, primarily of Kashmir, have high market
potentials, and needs to be extended in area for its cultivation. The JKCIP Project plans
for gradually adding an area of 25 ha in year (24/25), and 100 ha in each of the successive
years up to the year (27/28), making a total of 6,500 Kanals, or 325 ha.

Production Practice:

15
 • In order to achieve this objective, the project would require the supply of robust
(insect and disease free, and suitable to local agroclimatic condition) corms to be
planted in the additional area.
• Begin to prepare land by ploughing the field in March/ April and keep ploughing
cross wise to obtain a fine tilth. The tilth has been defined earlier in above sections
of this document.
• Follow the soil solarization process. For soil solarization, prepare an elevated soil
bed, about 15 cm high and about 1 meter wide, and cover it with a thick plastic
sheet for 2-3 weeks. The heat generated inside the plastic sheet can kill many of
the soil borne pathogens as well as germinating weeds.
• Add 40-50 ton farm yard manure (FYM), if available, and inoculate the soil with
Trichoderma sp. and Mycorrhiza (phosphorus solubilizing agent).
• Treat the acquired corms against soil borne pathogens, especially with 5% Copper
sulphate (CuSO4) solution.
• Open a trench 15 cm deep using a line across the width of the soil bed prepared
for solarization.
• Begin planting corms (bulbs), usually in second half of July to mid-August, at
specified row to row and plant to plant spacing. Planting of corms is usually done
at 50 corms per M2, or at spacing of 8-10 cm between corms and 15 cm between
rows.
• After planting the 1st row, move the line 15 cm to the side and dig the next trench
(as is done for the 1st trench), covering the 1st trench with the soil dug out of the
second trench.
• After completing the 4th row, keep 25-30 cm space between the 4th row and 5th
row for the ease of walking, weed management and plucking/harvesting of the
flowers.
• Soon after the bulbs start forming the roots and sprout, begin watering the plants,
(30 mm total per week in two splits of 15 mm each), if there is no rain.
• Each corm is expected to produce 4 flowers and each flower to give 3
stigmas/threads.
• Can also irrigate after harvesting (plucking) of the flowers because the baby corms
formed over the mother corm need to grow large enough to produce flowers in next
season. This is optional, however.
• Though saffron can tolerate -15 degree Celsius temperature, it is better to cover
the crop with straw, if the temperature drops for a long time. However, such a
situation is not expected to arise in Kashmir where Saffron is cultivated, e.g.
Pampore District. Usually, it is harvested beginning in the last week of Oct to the
end of November. A very small area may be left for harvesting in December.
• Weeds could be a real menace and should be managed properly by all means.
Implementation steps

• Conduct a study on the quality of corms and measures to improve corm quality.
• Prepare a scheme for the expansion of the area under Saffron cultivation. The
matching grant support should not exceed 50% of the total investment cost. The
remaining 50% should be beneficiary contributions covering own funds and bank
loans. Where possible introduce the system of recovery of grant provided back to
the FPO to recycle the same into saffron cultivation by other farmers.
• Specify measures relating to improving the quality of corm and also management
practices to be followed for getting better yields.

16
 • Identify farmers/FIGs/FPOs interested in area expansion under Saffron. Seek online
applications and facilitate them to access bank loans.
• Approve the applications of eligible farmers and provide funding for
implementation.
Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Conduct a study on the quality of corms, and SKUAST-J and DioA-J, DioA-K
measures to improve quality of comms and SKUAST-K
productivity
Prepare a scheme for supporting saffron area APD DioA-J, DioA-K
expansion
Identify farmers and build their capacity DioA-J, DioA-K
Implement the scheme FPO/FIG DioA-J, DioA-K SKUAST-J and
SKUAST-K

Offseason Vegetables

Rationale: Vegetables are commonly grown in Jammu and Kashmir. Some of the common
vegetables include, tomato, eggplant, peppers, chilly, peas, knol khol, gourds, cauliflower,
cabbage, kadam ka saag, (a kind of spinach), radish, carrots, onions, turmeric, ginger and
hill garlic.
The supply of genetically pure seeds is a constraint in vegetable production. The vegetable
supply problem is further aggravated by the 60% net loss in volume from the farm to the
consumer’s plate (postharvest) in packaging, transport and storage. The JKCIP will try to
address some of these issues through additional support to a total of 26,000 Kanal area,
beginning 2024/25 (2,000 Kanals) and 6,000 Kanals in each of years up to 28/29.

Production Practice:

• Identify the area for growing offseason vegetable using criteria such as: majority
of farmers experienced in growing that particular vegetable and the growers have
additional area for expansion.
• Check the expansion area for its suitability. The expansion area should be relatively
levelled flat lands with the availability of irrigation water, or if terraces are used,
they should be wide and relatively levelled, with the availability of irrigation water.
• Prepare the land thoroughly by cross-ploughing to bring the soil to a good level of
tilth. The tilth has been defined earlier in this document.
• Acquire genetically pure vegetable seed from the Universities, or if the private
sector is involved have its own pure seed source (Breeder seed and Foundation
seed).
• Check for the germination percentage vs the indicated germination percentage on
the tag of the seed lot (packets) before handing over to the vegetable growers.
• Inspect the vegetable grower’s fields regularly for any pests (insect, disease, and
weeds) and suggest measures, if needed.
• Depending on the vegetable species cultivated and the sowing date, indicate the
anticipated/ possible crop maturity/ harvesting time, and ask the vegetable
growers to be observant about hailstorms etc. for the damage of the crop.
• After harvesting of the particular vegetable, advice the grower to minimize the
postharvest losses incurred during packaging, transport and storage.
Implementation steps

17
 • Identify the market players for off-season vegetables and conduct buyer-seller
meets at the district level for the off-season vegetable farmers to interact with the
buyers and ascertain the quality and quantity requirements.
• Select farmers/FPO leaders interested in vegetable cultivation and send them on a
market visit to study the markets within J&K and in the neighbouring states.
• Prepare a scheme for the expansion of the area under off-season vegetable
cultivation. The matching grant support should not exceed 50% of the total
investment cost. The remaining 50% should be beneficiary contributions covering
own funds and bank loans. Where possible introduce the system of recovery of
grant provided back to the FPO to recycle the same into off-season vegetable
cultivation by other farmers.
• Specify measures relating to the package of practices to be followed for getting
better yields.
• Identify farmers/FIGs/FPOs interested in area expansion under off-season
vegetables. Seek online applications and facilitate them to access bank loans.
• Approve the applications of eligible farmers and provide funding for
implementation.
Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Identify market players and conduct buyer-seller DioA-J, DioA-K APD FPOs/FIG
meets at the district level
Select farmers/FPO leaders and organize a market DioA-J, DioA-K APD
study trip for them.
Prepare a scheme for supporting off-season APD DioA-J, DioA-K
vegetable area expansion
Identify farmers and build their capacity DioA-J, DioA-K
Implement the scheme FPO/FIG DioA-J, DioA-K

Aromatic rice
Rationale: Aromatic rice (Basmati in Jammu and Musk Budji in Kashmir) are special
commodities in Jammu and Kashmir. Since they are seasonal and geographic location
specific, are grown to a limited extent, and are preferred by the local consumers, they
fetch higher prices in the market. The current rice yields are 2.5 Quintals/Kanal.
During the field visits, we observed a lot of off type rice plants in the fields, both in Jammu
and Kashmir, indicating the impurity of seeds. Farmers also voiced the need for pure seeds
and improvement in rice milling machinery.
This project will try to address some of these issues through additional support to a total
of 10,000 Kanal area, beginning 2024/25 (2,500 Kanals) and same area there after each
year up to 27/28.
Production practices

• Identify the area for growing a particular rice variety (basmati in Jammu and Musk
Budji in Kashmir), using a certain specific criterion. The criteria may include,
majority of farmers experienced in growing that particular kind of rice (variety, per
se) and the growers have additional area for the expansion of the area.
• Check the expansion area for its suitability. The expansion area should be relatively
levelled flat lands with the availability of irrigation water, or if terraces are used,
they should be wide and relatively levelled, with the availability of irrigation water.
• Test the soil for nematodes, and if positive, pre rice crop growing of marry gold
and sesbania (rostrata, or aculeata) can eliminate the nematodes.

18
 • Prepare the land thoroughly by cross ploughing to bring the soil to a good level of
tilth. The tilth has been defined earlier in this document.
• At 45 days after sowing marry gold, or sesbania crop, puddle the field in likewise
manner (cross puddle) to incorporate the marry gold / sesbania crop, weeds and
other residues, and let marry gold / sesbania rot for three weeks.
• Acquire genetically pure rice seed from the Universities, or if the private sector is
involved, having its own pure seed source (Breeder seed and Foundation seed).
• Check for the germination percentage vs the indicated germination percentage on
the tag of the seed lot (packets) before handing over to the rice growers. The rice
seed should have at least 90% germination. One can also test the rice seed by
taking a known quantity in a bucket filled with 1% salt solution. The good seed will
remain settled on the bucket bottom and unfilled grains will float.
• There are two methods of preparing the rice nursery, the ‘Wet Bed’ method and
the ‘Dapog Method’.
• In wet bed method of rice nursery, the rice seed (normal seed rate, of about 40-
50 kg /ha) is spread in the puddled soil and regularly sprinkled with water, till the
seedlings become of age for transplanting (usually 3 weeks). In this method, since
the seedlings are tall, their leaves may be de-topped (cut) 1/3rd length. This
method is common throughout South Asia, in typical lowlands.
• In Dapog method, the rice seeds used are usually 2 times the normal seed rate.
The seeds are spread on a cemented floor and regularly sprinkled with water. After
10 days, the seedlings will make an intertwined root, like a carpet, which can be
rolled and brought to the main field for transplanting. In this method, usually young
seedlings (10 days old) are used for transplanting. In here the main requirement
is the levelled field without any stagnation of water. This method is common
throughout in Southeast Asia.
• Dry land preparation (as indicated in bullet no. 4, above) and seeding of rice in
furrows maybe adopted in rainfed areas having no possibility of irrigation water.
The crop yields may be lower in such situations.
• Inspect the rice grower’s fields regularly for any pests (insect, disease, and weeds)
and suggest measures, if needed.
• Depending on the transplanting date, indicate the anticipated/ possible crop
maturity/ harvesting time, and ask the rice growers to be observant about
hailstorms etc. for the damage of the crop.
• Improved Rice Mills is expected to result in reducing broken rice and improve
recovery.
• Growing of Japonica and non- basmati aromatic rice seem to have high demand
and excellent export opportunities and should be tried out.
Implementation steps

• Select farmers/FPO leaders interested in aromatic rice cultivation.

• Identify market players and conduct a buyer seller meet.
• Prepare a scheme for the expansion of the area under aromatic rice cultivation.
The matching grant support should not exceed 50% of the total investment cost.
The remaining 50% should be beneficiary contributions covering own funds and
bank loans. Where possible introduce the system of recovery of grant provided
back to the FPO to recycle the same into aromatic rice cultivation by other farmers.
• Specify measures relating to the package of practices to be followed for getting
better yields.

19
 • Identify farmers/FIGs/FPOs interested in area expansion under aromatic rice. Seek
online applications and facilitate them to access bank loans.
• Approve the applications of eligible farmers and provide funding for
implementation.
Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Identify market players and conduct buyer-seller DioA-J, DioA-K APD FPOs/FIG
meets at the district level
Prepare a scheme for supporting aromatic area APD DioA-J, DioA-K
expansion
Identify farmers and build their capacity DioA-J, DioA-K
Implement the scheme FPO/FIG DioA-J, DioA-K

Pulses

Rationale: The main pulses in Jammu and Kashmirare Rajmah and green peas. Both are
used as vegetables and command high price in the market, Rajmah is sold @ Rs 250-
260/kg. Rajmah yields are 10-12 Quintals/ha. Rajmah in Doda district alone is inter-
cropped with maize in 2,960 ha producing about 5.9 quintals / ha.
The availability of genetically pure seeds is noted to be one of the constraints contributing
to lower crop productivity of pulses. Throughout the field visits, wherever Rajmah was
seen as a standing crop, its growth was poor, and some of the mature pods were noted to
be half, or 1/3 empty and infested by insects. This problem can be resolved to a large
extent through providing the growers with pure seed. This project plans to support Rajmah
cultivation, though it is listed among others. The JKCIP plans to support Rajmah production
through value addition and different marketing aspects, such as market support platforms,
trade fairs, etc.
Production practices
• Identify the villages / communities with experience in growing Rajamh and are
willing and have area for expansion.
• Select the ideal patches of land in the villages for area expansion and check its
suitability. The potential area should be relatively levelled flat land, with the
availability of irrigation water, or if rolling, or terraced, it should be wide with the
availability of irrigation water.
• Prepare the land thoroughly by cross ploughing to bring the soil to a good level of
tilth. The tilth has been defined in other sections of this document. If the land is
rolling, one could dibble the Rajmah seeds using a conical metal or bamboo stick.
• Acquire genetically pure seed of Rajmah from the Universities, (Breeder seed and
Foundation seed), and check for the germination percentage vs the indicated
germination percentage on the tag of the seed lot (packets) before handing over
to Rajmah growers.
• Inspect the Rajmah grower’s fields regularly for any pests (insect, disease, and
weeds) and suggest measures, if needed.
• Depending on the sowing date, indicate / suggest the anticipated/ possible Rajmah
maturity/ harvesting time, and ask the growers to be observant about hailstorms
and shattering of the seeds / crop damage.
Implementation steps

• Select farmers/FPO leaders interested in pulses/Kidney bean cultivation.

• Identify market players and conduct a buyer seller meet.

20
 • Prepare a scheme for the expansion of the area under pulses/kidney bean
cultivation. The matching grant support should not exceed 50% of the total
investment cost. The remaining 50% should be beneficiary contributions covering
own funds and bank loans. Where possible introduce the system of recovery of
grant provided back to the FPO to recycle the same into pulses/Kidney bean
cultivation by other farmers.
• Specify measures relating to the package of practices to be followed for getting
better yields.
• Identify farmers/FIGs/FPOs interested in area expansion under pulses/Kidney bean
cultivation. Seek online applications and facilitate them to access bank loans.
• Approve the applications of eligible farmers and provide funding for
implementation.
Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Identify market players and conduct buyer-seller DioA-J, DioA-K APD FPOs/FIG
meets at the district level
Prepare a scheme for supporting pulses area APD DioA-J, DioA-K
expansion
Identify farmers and build their capacity DioA-J, DioA-K
Implement the scheme FPO/FIG DioA-J, DioA-K

Medicinal and Aromatic Plants (MAP)

Rationale: Medicinal and Aromatic Plants (MAP) are an important part of JK. Though
smaller in extent, they provide numerous benefits. Jammu and Kashmir holds the potential
to cultivate various high-value crops, offering a promising chance for expanding cultivation
areas and increasing production output. The JKCIP seeks to improve these value chains,
promoting diverse income streams and additional opportunities for income generation,
thereby enhancing both climate and economic resilience. One of the MAP species is
Lavender, having both medicine and aroma qualities. Such plants may have noble gene
and need to be studied further. The Share-e- Kashmir University of Agricultural Sciences
and Technology (SKUAST), Faculty of Forestry has devoted one ha area for growing
Lavender and has its own distillation plant. This university has completely analyzed six
species and further work is in progress. The JKCIP project plans to provide support for
expansion of a total of 600 Kanals, 200 Kanals each year beginning in 24/25, as well as
through value addition in processing and various marketing aspects. This project also plans
to have a center of excellence (CoE) for the MAPs.

Production practices

• Identify the village communities with experience in cultivating MAPs and are willing
and have area for expansion.
• Select the ideal patches of land in the villages for area expansion and check its
suitability. The potential area should be relatively levelled flat land, with the
availability of irrigation water, or if rolling, or terraced, it should be wide enough to
make small plots with the availability of irrigation water.
• Prepare the land thoroughly by cross ploughing to bring the soil to a good level of
tilth. The tilth has been defined in other sections of this document.
• Acquire genetically pure planting material from the Universities, or private
companies, and check for the quality before handing over to growers.
• Inspect the grower’s fields regularly for any pests (insect, disease, and weeds) and
suggest measures, if needed.

21
 • Depending on the sowing date, indicate / suggest the anticipated/ possible
maturity/ harvesting time, and ask the growers to be observant about crop damage
due to hailstorms, etc.
• In terms of CoE-MAP, organize trainings at various levels, such as ToT, farm visits
and others. This has been described in earlier sections of this document.
• Farmers can sell fresh flowers, or if available in nearby places, can bring to the
processing centres, such as the distillation plant of SKUAST.
Implementation steps

• Select farmers/FPO leaders interested in medicinal and aromatic plant cultivation.

• Identify market players and conduct a buyer seller meet.
• Prepare a scheme for the expansion of the area under medicinal and aromatic plant
cultivation. The matching grant support should not exceed 50% of the total
investment cost. The remaining 50% should be beneficiary contributions covering
own funds and bank loans. Where possible introduce the system of recovery of
grant provided back to the FPO to recycle the same into medicinal and aromatic
plant cultivation by other farmers.
• Specify measures relating to the package of practices to be followed for getting
better yields.
• Identify farmers/FIGs/FPOs interested in area expansion under medicinal and
aromatic plant cultivation. Seek online applications and facilitate them to access
bank loans.
• Approve the applications of eligible farmers and provide funding for
implementation.
Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Identify market players and conduct buyer-seller DioA-J, DioA-K APD FPOs/FIG
meets at the district level
Prepare a scheme for supporting medicinal and APD DioA-J, DioA-K
aromatic plant area expansion
Identify farmers and build their capacity DioA-J, DioA-K
Implement the scheme FPO/FIG DioA-J, DioA-K

Spices (mainly Black Cummin)

Rationale: Black Cummin - (Bunium persicum Bioss), is one of the most preferred spice
of J&K and fetches a premium price in the market. Other spices include bay leaves, chilly,
turmeric, and ginger. Black Cummin (Black Zeera) is used in many JK dishes and has a
big demand in both domestic and export markets. Therefore, the JKCIP plans to support
the Black Zeera.

Implementation steps

• Select farmers/FPO leaders interested in spice cultivation.

• Identify market players and conduct a buyer seller meet.
• Prepare a scheme for the expansion of the area under spice cultivation. The
matching grant support should not exceed 50% of the total investment cost. The
remaining 50% should be beneficiary contributions covering own funds and bank
loans. Where possible introduce the system of recovery of grant provided back to
the FPO to recycle the same into spice cultivation by other farmers.

22
 • Specify measures relating to the package of practices to be followed for getting
better yields.
• Identify farmers/FIGs/FPOs interested in area expansion under spice cultivation.
Seek online applications and facilitate them to access bank loans.
• Approve the applications of eligible farmers and provide funding for
implementation.
Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Identify market players and conduct buyer-seller DioA-J, DioA-K APD FPOs/FIG
meets at the district level
Prepare schemes for supporting spice area APD DioA-J, DioA-K
expansion
Identify farmers and build their capacity DioA-J, DioA-K
Implement the scheme FPO/FIG DioA-J, DioA-K

Flowers:

Rationale: Floriculture, especially the Tulips are in high demand all over J&K, as well as
throughout other parts of the country. However, grading in different grades is a tedious
process, and their packaging for sending them fresh out of J&K is cumbersome. The bulbs
are imported at usuriously high cost from the Netherland. The technical capacity in the
universities for providing good planting material is limited, although it is improving day by
day. The JKCIP plans to support a center of Excellence-Tulips (CoE) through this project.

Production practices

• Identify the village communities with experience in cultivating Tulips and are willing
and have area for expansion.
• Select the ideal patches of land in the villages for area expansion and check its
suitability. The potential area should be relatively levelled flat land, with the
availability of irrigation water.
• Prepare the land thoroughly by cross ploughing to bring the soil to a good level of
tilth. The tilth has been defined in other sections of this document.
• Acquire genetically pure planting material from the Universities, or private
companies, and check for the quality before handing over to growers.
• Inspect Tulip grower’s fields regularly for any pests (insect, disease, and weeds)
and suggest measures, if needed.
• Depending on the planting date, indicate / suggest the anticipated/ possible Tulip
flowering / harvesting time, and ask the growers to be observant about crop
damage due to storms, etc.
• In terms of CoE-Tulips, organize training programs at various levels, such as ToT,
farm visits and others. This has been described in earlier sections of this document.
• Farmers can sell fresh Tulip flowers in the local market, and if they can manage
packaging to ship them out of J&Kto other parts of the country.
Implementation steps

• Select farmers/FPO leaders interested in floriculture.

• Identify market players and conduct a buyer seller meet.
• Prepare a scheme for the expansion of the area under floriculture. The matching
grant support should not exceed 50% of the total investment cost. The remaining

23
 50% should be beneficiary contributions covering own funds and bank loans. Where
possible introduce the system of recovery of grants provided back to the FPO to
recycle the same into floriculture by other farmers.
• Specify measures relating to the package of practices to be followed for getting
better yields.
• Identify farmers/FIGs/FPOs interested in area expansion under floriculture. Seek
online applications and facilitate them to access bank loans.
• Approve the applications of eligible farmers and provide funding for
implementation.
Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Identify market players and conduct buyer-seller DioA-J, DioA-K APD FPOs/FIG
meets at the district level
Prepare schemes for supporting floriculture APD DioF-J, DioF-K
Identify farmers and build their capacity DioA-J, DioA-K
Implement the scheme FPO/FIG DioF-J, DioF-K

Willows

Rationale: Willow trees are a special item, specific to Kashmir, and premium willow wood
(white willows) is used to make cricket bats and also some hockey sticks. Willow trees
grow on marshy lands, having poor drainage. So far, the farmers used to fell the mature
willow trees and bring them to the bat making factories. However, the supply has been
constantly dwindling, and some of the bat making factories are at the berg of being closed.
This is an alarming situation and requires taking adequate measures to reverse it. The
design mission Team visited Alfa Sports showroom and their nearby factory in Sangmas
town, having a business turnover of Rs 300 crore. The owners informed us that all over
India, the cricket bat business is over 2,500 crores.

The SKUAST staff, who accompanied our trip, informed us that they can provide 100,000
saplings @ Rs 4 / sapling. The industry, (cricket bats manufacturing association), can plant
and take care of the plantation in 150 ha of now wasted lands, previously used to grow
willows. This would, however, require obtaining permission from the Revenue Department
of J&K, which can be obtained easily.

Production practices

• Prepare the land and dig planting pits for willows. The pits can be filled with Soil,
FYM, and Neem cake / Karange (pongamia) cake mixture for controlling termites.
The ratio of this mixture is 60:35:5; i.e. 60 Soil, 35 FYM and 5, Neem cake or
Karange (pongamia) Cake. Keep ready the filled pits.
• Access the planting material from the SKUAST and start planting as the delivery
arrives.
• Monitor the growth of the plants regularly and replace the dead ones immediately.
• Even if it is marshy land, there might be drought if rains are scanty, in that case
make provision for some irrigation.
• When the trees reach breast height, remove side branches to avoid forming callus.

Implementation steps

• Select farmers/FPO leaders interested in willow cultivation.

• Identify market players and conduct a buyer-seller meet.
• Prepare a scheme for the expansion of the area under willow cultivation. The
matching grant support should not exceed 50% of the total investment cost. The

24
 remaining 50% should be beneficiary contributions covering own funds and bank
loans. Where possible introduce the system of recovery of grants provided back to
the FPO to recycle the same into willow cultivation by other farmers.
• Specify measures relating to the package of practices to be followed for getting
better yields.
• Identify farmers/FIGs/FPOs/Industry representatives interested in area expansion
under willow cultivation. Seek online applications and facilitate them to access bank
loans.
• Approve the applications of eligible farmers/industry and provide funding for
implementation.
Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Identify market players and conduct buyer-seller DioA-J, DioA-K APD FPOs/FIG
meets at the district level
Prepare schemes for supporting willow cultivation APD DioA-J, DioA-K
Identify farmers and build their capacity DioA-J, DioA-K
Implement the scheme FPO/FIG DioA-J, DioA-K

Protected cultivation

Rationale:

The protective cultivation is primarily for growing off-season vegetables and to produce
the planting material (bulbs) of saffron and Tulips. This project plans to establish a total
of 1,650 units: 150 units in 24/25, and 300 units in each year up to 29/30. This is a large
no. of units to be established over years. Therefore, it is essential to decide where these
structures will be located at.

Implementation steps

• Select farmers/FPO leaders interested in protected cultivation.

• Identify market players and conduct a buyer-seller meet.
• Prepare a scheme for protected cultivation. The matching grant support should not
exceed 50% of the total investment cost. The remaining 50% should be beneficiary
contributions covering own funds and bank loans. Where possible introduce the
system of recovery of grants provided back to the FPO to recycle the same into
protected cultivation by other farmers.
• Specify measures relating to the package of practices to be followed for getting
better yields.
• Identify farmers/FIGs/FPOs representatives interested in protected cultivation.
Seek online applications and facilitate them to access bank loans.
• Approve the applications of eligible farmers and provide funding for
implementation.
Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Prepare schemes for supporting protected APD DioA-J, DioA-K
cultivation
Identify farmers and build their capacity DioA-J, DioA-K
Implement the scheme FPO/FIG DioA-J, DioA-K

25
Water Management

Rationale: Water scarcity is one of the pertinent issues in project target areas which is
further impacted by the climate change. To reduce the water stress, JKCIP will support
water management practices. The water management systems are for general irrigation,
especially during long drought spells. This project plans for a total of 800 total units to be
located in both the regions of J&K: 50 units in 24/25, and 150 units for each year till
29/30. This is a large no. of units to be established over the years. Therefore, it is essential
to decide where these structures will be located at.

Implementation steps:

• Select farmers/FPO leaders interested in water management support.

• Prepare a scheme for water management support. The matching grant support
should not exceed 50% of the total investment cost. The remaining 50% should be
beneficiary contributions covering own funds and bank loans. Where possible
introduce the system of recovery of grants provided back to the FPO to recycle the
same into water management support by other farmers.
• Specify measures relating to the package of practices to be followed for getting
better yields.
• Identify farmers/FIGs/FPOs representatives interested in water management
support. Seek online applications and facilitate them to access bank loans.
• Approve the applications of eligible farmers and provide funding for
implementation.
Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative

Prepare schemes for supporting water APD DioA-J, DioA-K

management support
Identify farmers and build their capacity DioA-J, DioA-K
Implement the scheme FPO/FIG DioA-J, DioA-K

Weather advisory services

Rationale: Weather advisory services are important in the sense that they are helpful in
weather forecasting and advising the farmers accordingly to be prepared. Normally, there
should be one weather station in every block of the district, however, in the Kashmir region
they follow the altitude heights. The weather data can also be accessed from the India
Meteorological Department.

Implementation steps:

• Set up a working group comprising members from the Universities and Directorates
of Agriculture and Horticulture.
• Prepare a plan for providing weather advisory services preferably in collaboration
with a start-up.
• Present the plan to APD and seek approval.
• Procure equipment and materials required for starting the weather advisory
services.
• Start providing weather advisories coupled with crop specific advisories.

26
Implementation responsibility
Activity Partners and their implementation responsibility
Primary Secondary Collaborative

Establish a working group APD SKUAST-J and SKUAST-

K, DioA-J, DioA-K
Prepare a plan for providing SKUAST-J and SKUAST- .
weather advisory services K, DioA-J, DioA-K
Plan review and approval APD SKUAST-J and SKUAST-
K, DioA-J, DioA-K
Plan implementation SKUAST-J and SKUAST-
K, DioA-J, DioA-K

C. Horticulture Crop Support

Brief Description of Project Interventions
J&K is uniquely positioned geographically and has a perfect blend of temperate, sub-
temperate and sub-tropical climates both in Jammu & Kashmir regions. The presence of
such agroclimatic zones provide the farmers of J&K an interesting opportunity to grow
different kinds of high value fruit crops which are not possible to grow elsewhere in the
country on a commercial scale, there are other states like HP and Uttarakhand who have
similar climate profiles but due to treacherous hilly terrains of these states the size of the
growing farms and accessibility becomes a limiting factor for developing modern
commercial supply chains of fruit at industrial scale on competitive basis; the valley of
Kashmir has large tracts of flat farming lands with rich soil and perennial water streams
and the water table is quite high to access ground water for irrigation and that’s why all
the important temperate & subtropical fruit and nut crops are grown here at commercial
scale.

J&K’s agroclimatic conditions offer the potential for expansion of horticulture crops that
are high value and with high market demand. The main value chain constraints related to
fruit crops include low productivity and production, high cost of production, non-availability
of good quality planting materials, dependence on imports for germplasm, Inadequate
storage, transportation. This project will improve the production and productivity as well
as the quality of the produce of the horticulture-crops including research on climate
adaptation challenges. The project will support the introduction of climate resilient and
improved management practices with the introduction of good agricultural practices (GAP)
and promote area expansion of horticulture crop cultivation. The focus will be on select
value chains of climate resilient crops (Apple, Stone Fruits, Cherries, Pear, Walnut, Almond,
Mango, Citrus, Guava, Kiwifruit).

The major activities will include: (i) capacity building to introduce Good Agricultural
Practices (GAP) including farm and pest (insect, disease and weeds) management best
practices; (ii) Quality planting material through high tech nurseries with private sector
involvement; (iii) Rejuvenation of old orchards through GAP practices coupled with area
expansion with HD & MD technology; (iv)Value addition and fruit processing (iv)Access to
quality agri-inputs and technology and; (v) support for the introduction of business
practices into Horticulture CoE.
In total, the project will: (i) support training 640 trainers and 12,000 farmers; (ii)
introduce business orientation to business to 2 horticultural CoEs; (iii) 320nurseries; (iv)
800water management systems; (v) 200 ha of solar fencing; (vi) expansion of fruit and
nut crops in 1,835 ha covering 9,175 farmers; and (v) 375 ha of rejuvenation covering
1875 farmers. The project will follow a participatory and demand-driven approach through
analysis of market demand and feasibility to determine the investment levels in the select
value chains.

27
Value chains identified: The project has identified Apple, Cherry, Stone Fruit, Walnut,
Almond, Mango, Citrus, Guava & Kiwifruit for support. A note containing details of these
crop value chains is provided in Chapter 1, Appendix C1A6, Appendix C1A7, C1A8 and
C1A9.
Capacity building – Climate-smart and GAP
Rationale: There is an apparent need for the capacity development and skills
enhancement of the staff of Directorate of Horticulture to familiarize and update their
knowledge with the emerging global scenario in the rural development sector, climate
change and other aspects.
Training modality - Training of trainers: To begin with the training modality will involve
the training of trainers, who will be involved in passing down the line the knowledge that
they have gained during their training. They will also be involved in the curriculum
development process, subjects to be covered as well as in other aspects of the training
program.
Curriculum development process: It is essential to involve the Directorates in the
curriculum development process to ensure that the curricula are relevant to the current
needs of the small and marginal farmers.
Subjects to be covered: The general subjects to be covered are provided below and the
crop-specific inputs will have to be included.
Introduction to Good Agricultural Practices: Definition and importance of GAP-
Benefits of practicing GAP - Food safety and quality standards.
Site Selection and Preparation: Land suitability assessment -Soil testing and analysis
- Site sanitation and hygiene.
Planting Material Selection (Varietal Selection): Importance of quality planting
material, selection and sourcing of right variety as per site and market suitability.
Orchard Layout Techniques – Selection of production methodologies, Selection of right
rootstock, High density, Medium Density or Traditional methods, (depending on the needs
and capacity of farmers)
Water Management and Irrigation: Types of irrigation systems-Irrigation scheduling-
Water quality and conservation.
Soil and Nutrient Management: Soil health and improvement-Fertilizer types and
application-Nutrient management planning.
Pest and Disease Management: Pest identification and monitoring-Disease prevention
and control-Integrated pest management (IPM).
Basin & Weed Management: Management of tree basins, Weed identification and
control strategies - Herbicide safety and use.
Training & Pruning – Benefits of training & pruning, Training styles & methods, Pruning
techniques, tools & kits.
Harvesting and Post-Harvest Handling: Crop maturity assessment-Harvesting
techniques, sorting & grading, post-harvest handling, storage methods & SOP for CA
Storage, Packing and transportation.
Quality and Safety Standards: Quality grading and standards-Food safety and hygiene
practices-Certification and compliance.
Environmental and Sustainability Practices: Sustainable agriculture principles -
Environmental protection and conservation- Biodiversity and ecosystem management.
Record Keeping and Documentation: Importance of record keeping-Farm management
and decision-making- Budgeting and financial management.

28
Marketing and Value Addition: Market channels and distribution-Value addition
opportunities - Marketing strategies.
Fruit Processing – Types of processed fruit products, recipe making, product
development & production methods, basic machinery operations & maintenance,
preservation techniques and inventory storage, packaging, HACCP & Food Safety, FASSAI
compliances, Inventory management.
Certification and Compliance: GAP certification processes -Regulatory compliance and
documentation - Third-party audits and inspections.
Implementation steps:

• APD to engage the SKUAST-Jammu and SKUAST-Kashmir for capacity building of

the Directorates and farmers.
• Identify resource persons and develop a curriculum for the training of the trainers
and also a curriculum for the training of farmers by the trainers.
• Develop a curriculum for the training of the trainers.
• Develop a curriculum for the training of farmers.
• Identify the trainers from the Directorate of Horticulture and KVKs and train them.
• Make plans to conduct field-level training and start training farmers.
Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Engage SKUAST-J and SKUAST-K to prepare APD SKUAST-J and
activities and budgets related to capacity building SKUAST-K
for horticulture crop expansion.
Develop curriculums SKUAST-J and DioH-J and
SKUAST-K DioH-K
Train trainers SKUAST-J and DioH-J and
SKUAST-K DioH-K
Train farmers SKUAST-J and DioH-J and
SKUAST-K DioH-K

Horticulture CoE Business Plan Development

Rationale

CoE is the seat of showcasing of best practices, technology development, experimentation,

demonstration and extension of these technologies and services to the farming community.
These also includes practices and technologies related to climate adaptation. The objective
of a CoE can be only achieved if it’s able to address the value chain constraint of a particular
sector on a sustainable and long term basis and that can only happen if it’s created with
a business model in mind and has a business plan to meet its capex and operating
expenses and should remain relevant for users or this huge and valuable infrastructure
will become redundant white elephant over time.

Terms of reference for engagement of an agency for conducting a study on transforming

Horticulture-CoE into a business entity

Scope of work

The consultant is expected to deliver on the following work components:

• Business model optimization and process documentation.
• Business development and establishing strategic partnerships.
• Marketing and communications.

29
Business Model Optimization and Process Documentation
• Review and optimize CoE business model with an emphasis on developing a
revenue model.
• Identify Unique Selling Position and proposition offering to clients.
• Lead business process strategy, process definition and documentation working with
the management.
Business Development and Establishing Strategic partnerships.
• Identify partnership collaborations effective to CoE business development process.
• Identify potential business opportunities that CoE could explore (both public
/private sector financed)
• Develop proposals, presentations and pitches on offering and USP for all
stakeholders (farmers, market actors).
• Develop partnership with all the important stakeholders.
Marketing and Communication
• Prepare sales plan and manage relations with prospective clients, sector experts,
business partners and potential funders and investors.
• Prospect for various business growth opportunities within the horticulture sector
• Contribute to the collection and dissemination of relevant data and information
about farm Innovations and other activities of CoE.
The detailed TOR are provided below:
• Conduct a thorough assessment of the existing CoE, including its operations,
financial status, human resources, and infrastructure- Analyse the current
stakeholder engagement and partnerships in place - Identify strengths,
weaknesses, opportunities, and threats (SWOT analysis) for each CoE.
• Develop a sustainability strategy for the CoE, outlining clear goals, objectives, and
activities to be undertaken - Define key performance indicators (KPIs) and targets
for measuring success - Propose a financial sustainability model that considers
various revenue streams, cost management, and budgeting - Provide
recommendations for organizational development, capacity building, and resource
mobilization.
• Prepare a business plan for the CoE for the next five years with a focus on
emergence as a sustainable institution.
• Assess the need and possibility of private sector participation in managing the CoE
and develop modalities for private sector participation.
• Assess the current engagement with key stakeholders, including government
entities, donors, partners, and the local community - Propose strategies for
strengthening relationships with stakeholders and enhancing their involvement in
CoE activities.
• Develop a framework for monitoring and evaluating the implementation of the
sustainability strategies - Establish a system for regular reporting and feedback to
relevant stakeholders.
Implementation steps

• Undertake exposure visits to CoEs outside J&K to understand their modus operandi
and sustainability.

30
 • Engage an agency/Consultant to conduct a study of the Horticulture CoE and to
develop a modality to improve its performance to enhance the production of quality
planting material of designer varieties of Temperate & Subtropical fruit crops.
• prepare plans for implementation.
Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Prepare ToR and engage an agency to prepare a APD DioH-K and
business plan for Horticulture CoE. DioH-J
Conduct a workshop to present the findings APD DioH-K and
DioH-J
Make a policy note and submit to the Government APD DioH-K and
for approval DioH-J
Make an action plan for implementing agreed DioH-K and
recommendations DioH-J

Study for apple crop expansion system

Rationale

Apple is the focus crop for the valley of Kashmir since it generates maximum revenue for
the J&K and impacts the livelihood of the largest number of Kashmiri farmers; the
government is providing lots of support both technical and financial to expand the area
under cultivation with new technologies like high-density plantation, Integrated pack
house, CA storage systems, High tech fruit nurseries, all with lots of private sector
participation. During the field visits, we found out that growers and industry both are
facing some problems with regard to these schemes and moreover rampant imports of
rootstock and germplasm being imported without proper quarantine measures can be a
threat to the entire industry. This study will recommend the best way forward for the Apple
industry in the J&K of J&K.

Terms of reference for the study

• To review the current schemes of the government with regards to apple industry
expansion.
• Stakeholder mapping and interviews for feedback on the current system and areas
of improvement.
• Comparative analysis of apple industry schemes and plans in other states like
Himachal Pradesh.
• Make an assessment of the strengths and weaknesses of the current set of service
providers, the need to increase the number of service providers and the measures
required to increase the number of service providers.
• Document best practices and recommend a holistic development plan for the J&K
in a stakeholder conference.
• Draft new schemes in consultation with the government and make an action plan.

Implementation steps

• Engagement of an agency/consultant for the study.

• Joint meeting of the consultant with the responsible department to share all the
data, plans, review TOR, Questionnaire, and make a work plan.
• Stakeholder mapping and finalize field visit schedule.
• Joint field visits to conduct interviews with the stakeholders.
• Compiling field data and report preparation.
• Conduct a stakeholder workshop to submit the findings.
• Draft recommendations and prepare an action plan.
• Implementation plans with timelines and budgets.
Implementation responsibility

31
 Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Prepare ToR and engage a consultant/an agency APD DioH-K
to review the current government schemes and
implementation processes for apple area
expansion.
Conduct a workshop to present the findings APD DioH-K
Make a policy note and submit to the Government APD DioH-K
for approval
Make an action plan for implementing agreed DioH-K
recommendations
Implement the action plan DioH-K

Nursery development
Rationale

A good nursery is the backbone of fruit industry, since the fruit trees are perennial in
nature so the selection of right kind of variety which is true to type and suitable for that
site and based on market preferences of the customers becomes the most important
function in setting up a fruit orchard. J&K is primarily a horticulture state with a range of
temperate and subtropical fruits grown here at commercial scale by the farmers; most of
the orchards have become old and senile and the production, productivity and quality of
the produce has gone down; the government is putting lots of resources and efforts to
transform this industry with introduction of new high yielding varieties and technologies
like high density plantation. This requires mass production of climate resilient and high
yielding modern varieties under high tech nursery systems. Lots of temperate fruit
rootstocks and varieties are being imported into the country and the plan is to multiply
this foreign germplasm in the local nurseries. Therefore, it’s a priority area for J&K right
now and lots of resources have been allocated for this activity under HADP and JKCIP.

Guidelines for nursery development

The importance of quality saplings in fruit nurseries cannot be overstated, as they lay the
foundation for successful and productive fruit cultivation. Here are key points highlighting
their significance.
Healthy Growth- Quality saplings ensure the healthy development of fruit trees from the
start, leading to quality growth and vitality throughout their lifespan.
Disease Resistance- Well-maintained nurseries prioritize disease prevention, producing
saplings that are less susceptible to infections and pathogens, reducing the risk of future
crop losses.
Improved Yield- Healthy and disease-resistant plants from nurseries tend to have higher
yield potential, contributing to better returns for farmers.
Uniformity- Quality saplings ensure uniform growth, leading to more consistent orchard
yields and easier management practices.
Early Fruiting- Well-cultivated saplings often mature faster and start bearing fruits sooner,
accelerating the return on investment for farmers.
Sustainability- Healthy plants from nurseries establish orchards with stronger resistance
to stressors, requiring fewer inputs and resources for maintenance.
Climate resilient: Selection of the species should be appropriate as per the agroclimatic
zones with the consideration of climate hazards, climate change trends and scenarios
Best Practices for establishing a fruit nursery:
• Plant propagation nurseries are basic units for horticulture production and
development.

32
 • To achieve the maximum uniformity in quality and production of nursery plants
vegetative method should be adopted.
• The local and vicinity markets should be surveyed before establishment of a plant
propagation nursery.
• Site selection for establishing a nursery is very important and all the factors related
to site selection should be considered while establishment of plant production
nursery.
• Procurement and establishment of mother plots should be undertaken well in
advance and purity and quality should be ensured prior to establishment.
• Mother plot should be maintained properly, and periodical inspection of mother
plots should be carried out regularly.

Implementation steps

• Identification and selection of prospective entrepreneurs for taking up nursery

business.
• Assessment of their site, business potential, technical knowhow and business
worthiness.
• Facilitation in preparation of their DPR and credit linkage.
• Technical and management training of the nursery entrepreneur.
• Nursery establishment with regular monitoring and technical support.

Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Identify entrepreneurs interested in high tech DioH-J, DioH-K
nursery business
Facilitation of DPR and credit linkage DioH-J, DioH-K SKUAST-J and
SKUAST-K
Capacity building DioH-J, DioH-K SKUAST-J and
SKUAST-K
Rollout of the nursery business DioH-J, DioH-K
Monitoring and regular technical support Nursery DioH-J, DioH-K
operator

Solar fencing
Rationale

Farmers are always exposed to various external risks like weather dependence, market
prices, inputs availability etc. Another potent risk for farming is damage to crops by stray/
wild animals. Climate change leads to habitat alteration, changes in animal behavior,
increases stress on ecosystems, increases resource scarcity, and shifts in cropping zones,
which ultimately creates conditions where wildlife may seek food in community areas.
Among other factors, this is a key contributor to human-wildlife conflicts. For the farmers
of Jammu region especially, the farmers are exposed to risk of crop damage from
monkeys; lots of farmers have left their productive lands as fallow due to this menace. To
protect crops from monkeys’, state government has devised various strategies like
sterilizing the simians to resolve the problem, however, the problem still persists and needs
alternative methods to protect the crops damages.

While number of alternatives are practiced by farmers and government to protect the crops
from damage by monkeys and wild animals, none of these assure 100% success in crop
protection. A new technique of power fencing is seen as ultimate solution. The solar
powered fence electrifies the fence with pulsating current and these pulses are the “shock”
felt by an animal that touches an electrified fence. Unlike a conventional fence, an electric
fence is a psychological barrier such that animals learn to respect the fence. Any periphery
can be solar fenced, though the cost differs with respect to the area to be fenced.

33
Guidelines for implementation

• Study the existing central sponsored and state sponsored schemes on Solar fencing
in the country and guidelines of ministry of renewable energy on solar fencing of
agriculture farms.
• Exposure visits of the official to the orchards in Himachal Pradesh to get a first hand
information on the advantages.
• Define eligibility criteria and pattern of assistance to the farmers.
• With a view to make investment in farm fencing by farmers on individual or joint
liability mode State Government may examine providing of subsidy to the small
and marginal farmers to install the solar power fencing.

Implementation steps

• Identification of affected area by animal menace.

• Draft a suitable scheme for assistance.
• Make a list of service providers.
• Draft TOR for empaneling agencies.
• Issue EOI & RFP.
• Select the eligible agencies.
• Selection of interested farmers.
• Help in documentation.
• Capacity building through service providers.
• Erection of solar fencing system.

Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Identify the area affected by animal menace DioH-J, DioH-K
Select the interested farmers DioH-J, DioH-K
Build a scheme for assistance DioH-J, DioH-K
Engage a service provider DioH-J, DioH-K
Facilitation of DPR and credit linkage DioH-J, DioH-K SKUAST-J and
SKUAST-K
Capacity building DioH-J, DioH-K SKUAST-J and
SKUAST-K
Establishment of Solar fencing farmer Service Provider DioH-J, DioH-K

Water management measures

Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Prepare schemes for supporting water APD DioA-J, DioA-K
management support
Implement the scheme FPO/FIG DioA-J, DioA-K

Rationale

Many areas especially in Jammu region of J&K face long spell of drought and only one crop
is taken during rainy season though there is lots of potential for going for multiple crops
since Jammu is very well connected to important markets. Access to irrigation will be a
boon for these growers. This project plans for a total of 800 total units to be located in
both the regions of J&K: 50 units in 24/25, and 150 units for each year till 29/30. This is
a large no. of units to be established over the years. Therefore, it is essential to decide
where these structures will be located at.

34
Guidelines for implementation

• It’s important to sensitize farmers of such areas to grow water smart crops like
oilseeds and pulses.
• Water harvesting and conservation measures should be encouraged in such areas.
• Flood irrigation is to be completely discouraged and only micro irrigation structures
are to be supported under this program.

Implementation steps

• Identify the areas and sources of perennial water availability which can be used for
lift irrigation schemes.
• Organizing farmers into groups to utilize the common resource.
• Draft a scheme for assistance.
• Draft TOR for empaneling agencies for implementation.
• Selection of interested farmers/FPO for this activity.
• Capacity building for micro irrigation and water management practices.
• Setting up systems at farms and SOP for sharing common resources.

Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Prepare schemes for supporting water APD DioH-J, DioH-K
management support
Implement the scheme FPO/FIG DioH-J, DioH-K

Production expansion through new technology

The promotion of new technology will be assessed to ensure soil and water health,
biodiversity improvement, and community health. Adequate consideration will be made to
not add further pressure to natural resources. The project will not support genetically
modified species and use of hormones. Climate smart tools and technologies will be
promoted.

Apple

Rationale

Apple is the largest and most important horticulture crop of the region as it impacts the
livelihoods of the maximum number of farmers and is the biggest contributor towards
state’s agriculture GDP. The majority of the plantations are old and traditional whereas the
productivity, production and quality of the fruit have gone down. Apple as a fruit is in great
demand all over the country and it’s imported in large quantities to meet the consumer
demand. There’s a lot of potential in J&K to increase its production and productivity by
introduction of new technology in the farms of the growers. Government is putting lot of
efforts and resources to address the gaps. There’s lot of scope for replacement and
rejuvenation of old orchards High Density, Medium Density and Spur varieties, high
yielding cultivars and modern production systems to develop Apple industry.

Implementation steps

• Identify and select the potential area for production expansion. Consider the
climate change trend and scenarios.
• Assessment and selection of suitable technology to be disseminated.
• Selection of interested and potential farmers.
• Technical and economic feasibility assessment.
• Empanelment of service provider.

35
 • Assistance with documentation, credit linkage & project implementation on time
under suitable scheme.
• Capacity development of the growers.
• Scheme implementation
• Regular monitoring and technical backstopping.

Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Identify and select interested farmers DioH-J, DioH-K
Technical assessment & feasibility for suitable DioH-J, DioH-K
technology requirement
Build a scheme for assistance DioH-J, DioH-K
Empanel the service provider DioH-J, DioH-K
Facilitation of DPR and credit linkage DioH-J, DioH-K SKUAST-J and
SKUAST-K
Capacity building DioH-J, DioH-K SKUAST-J and
SKUAST-K
Scheme implementation Farmers DioH-J, DioH-K

Walnut Production Expansion

Rationale

J&K is number one in quality and production of walnuts in the country. It’s a unique crop
for the hilly terrains of J&K which doesn’t require any expensive input, is climate smart,
free of any serious pests and diseases and gives regular returns with very good shelf life
and has a consistent demand from consumers. Country imports huge quantities of walnuts
every year to meet domestic demand. Walnut at the moment in J&K is almost a wild plant
growing for decades together and still under Royal Tree Act of wildlife. The plants are so
huge that it’s difficult to manage and harvest but in recent years CITH has standardized
the technology where around 90 plants of walnut can be grown in a hectare of land and
the canopy can be managed up to 18 feet. The major issue to be addressed is the low
success rate of producing grafted plant material, it requires controlled protected structure
for multiplication of planting material and success rate is just 40-50%; another issue is
identification and collection of true to type germplasm in a systematic manner as right
now every tree of walnut in the state is considered a variety in itself due to so much genetic
variability. CITH has put lots of research into improving the varieties and production
systems. They also produce a large quantity of quality planting material each year but still
there is lots of scope for developing private sector nurseries with technical support from
CITH for mass multiplication and dissemination of this technology to the farmers.

Implementation steps

• Selection of suitable area for expansion considering micro climate and climate
change trend and scenarios
• A robust technical program and plan for quality planting material multiplication in
collaboration with CITH
• Promotion and linkage of private sector nurseries with this program
• Selection of potential farmers for walnut expansion program
• Facilitation on documentation and credit linkage
• Capacity building of farmers
• Implementation in the orchards

Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Identify and select interested farmers DioH-J, DioH-K

36
 Technical assessment & feasibility for suitable DioH-J, DioH-K
technology requirement
Build a scheme for assistance DioH-J, DioH-K
Empanel the service provider DioH-J, DioH-K
Facilitation of DPR and credit linkage DioH-J, DioH-K SKUAST-J and
SKUAST-K
Capacity building DioH-J, DioH-K SKUAST-J and
SKUAST-K
Scheme implementation Farmers DioH-J, DioH-K

Litchi Production Expansion

Rationale

Litchi is commercially becoming a very lucrative crop for the farmers in general due to the
short window of its availability in the market and secondly, its commercial production is
primarily restricted to some specific zones in the country. In Jammu the litchi is grown in
the plain areas and besides mango it’s the second most important horticulture crop of
Jammu but most of the orchards are all decades old with mostly old varieties and the
productivity has become low. Lots of new cultivars have been developed by ICAR promoted
National Research Centre of Litchi in Muzaffarpur; technology for rejuvenation of old
orchards and high-density plantation (6*4 Metres) has also been standardized and this
needs to be implemented for expansion of production in Jammu region under JKCIP.
Another crucial area of intervention for the project is improving the post-harvest
management and storage standards of Litchi since it’s a highly perishable crop and can
stay in ambient conditions just for 2-3 days. The horticulture center of excellence in Jammu
is already working on the production of quality planting material of all the subtropical fruits
but needs linkages with nodal agencies of Litchi and simultaneously there’s a lot of
untapped potential for developing hi tech nurseries for subtropical fruits in Jammu region
in alliance with CoE.

Implementation steps

• Production of quality planting material of latest varieties

• Selection of potential area for expansion of litchi production considering micro
climate and climate change trend and scenarios
• Identification of potential interested farmers
• Facilitation and support for documentation and credit linkage
• Capacity development of farmers
• Rejuvenation and HD cultivation of litchi crop at farmers’ field
• Post harvest management and storage infrastructure litchi crop

Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Identify and select the suitable area DioH-J, DioH-K
Plan for quality planting material on scale in DioH-J, DioH-K
collaboration with National Research Centre on
Litchi
Technical assessment & feasibility for suitable DioH-J, DioH-K
technology requirement
Build a scheme for assistance DioH-J, DioH-K
Empanel the service provider DioH-J, DioH-K
Facilitation of DPR and credit linkage DioH-J, DioH-K SKUAST-J and
SKUAST-K
Capacity building DioH-J, DioH-K SKUAST-J and
SKUAST-K
Scheme implementation Farmers DioH-J, DioH-K

Mango Production Expansion

37
Rationale

Mango is the most important subtropical fruit crop of J&K as it’s grown over the largest
acreage in Jammu region and has widest adaptability of production over all the districts of
Jammu. Mango is one of the very hardy and climate resilient subtropical fruit crops as it
can be grown in the harshest of climates and even in degraded soils. Most of the mango
orchards in the Jammu region have become old and senile and need rejuvenation with
good agriculture practices and new varieties. Jammu is well connected with the most
important markets with rail & road which is a boon for all the high value crops grown here.
Lots of research has been done in Mango in the country and we are world’s biggest
producers of Mango with lots of exports all over the globe. The rejuvenation and high-
density protocols have been standardized by CISH, Lucknow. Jammu mango has big
potential for improved varieties through CoE and private nurseries.

Implementation steps

• Production of quality planting material of latest varieties.

• Selection of potential area for expansion of mango production considering
microclimate and climate change trend and scenarios
• Identification of potential interested farmers.
• Facilitation and support for documentation and credit linkage.
• Capacity development of farmers.
• Rejuvenation and HD cultivation of mango crop at farmers’ field.

Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Identify and select the suitable area DioH-J, DioH-K
Plan for quality planting material on scale in DioH-J, DioH-K
collaboration with National Research Centre on
Litchi
Technical assessment & feasibility for suitable DioH-J, DioH-K
technology requirement
Build a scheme for assistance DioH-J, DioH-K
Empanel the service provider DioH-J, DioH-K
Facilitation of DPR and credit linkage DioH-J, DioH-K SKUAST-J and
SKUAST-K
Capacity building DioH-J, DioH-K SKUAST-J and
SKUAST-K
Scheme implementation Farmers DioH-J, DioH-K

Almond Production Expansion

Rationale

J&K is number one in quality and production of Almonds in the country. It’s a unique crop
for the hilly terrains of J&K which doesn’t require any expensive input, is climate smart,
free of any serious pests and diseases and gives regular returns with very good shelf life
and has a consistent demand from consumers. Country imports huge quantities of
Almonds every year to meet domestic demand. Almonds at the moment in J&K have been
growing for decades and require revitalization with new technology and varieties. The HD
technology and other production protocols have already been standardized and there are
lots of good varieties available in the system and imports can be of great help here. CITH
has put lots of research into improving the varieties and production systems. They also
produce a large quantity of quality planting material each year but still there is lots of
scope for developing private sector nurseries with technical support from CITH for mass
multiplication and dissemination of this technology to the farmers. There’s a lot of demand
for planting material by the farmers but the system is unable to fulfill the demand. Nut
crops are some of the best climate smart and resilient crops of the region and JKCIP would
put lots of resources and efforts to revitalize the nut crop sector of the J&K.

38
Implementation steps

• Selection of suitable area for expansion considering microclimate and climate

change trend and scenarios
• A robust technical program and plan for quality planting material multiplication in
collaboration with CIT.
• Promotion and linkage of private sector nurseries with this program.
• Selection of potential farmers for Almond expansion program.
• Facilitation of documentation and credit linkage.
• Capacity building of farmer.
• Implementation in the orchards.

Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Identify and select the suitable area DioH-J, DioH-K
Plan for quality planting material on scale in DioH-J, DioH-K
collaboration with CITH
Technical assessment & feasibility for suitable DioH-J, DioH-K
technology requirement
Build a scheme for assistance DioH-J, DioH-K
Empanel the service provider DioH-J, DioH-K
Facilitation of DPR and credit linkage DioH-J, DioH-K SKUAST-J and SKUAST-J and
SKUAST-K SKUAST-K
Capacity building DioH-J, DioH-K SKUAST-J and SKUAST-J and
SKUAST-K SKUAST-K
Scheme implementation Farmers DioH-J, DioH-K

Citrus Production Expansion

Rationale

Citrus crop after mango is the second most important subtropical crop of the J&K. The
traditional orchards are all of Sweet Orange varieties and Jammu region has the best
climate and soil for this crop and has high demand from the market but the major
constraints for these plantations are access to irrigation and monkey menace. The farmers
have a great potential crop at hand but due to these challenges the expansion in the area
is not happening. There are very good cultivars available in the region for sweet oranges
like Jaffa, Mousami & Blood Red and similarly for the Mandarin orange like Kinnow. The
CoE and DOH, Jammu are already working on multiplication of these varieties. There’s a
great demand for lime planting material from the farmers of the region since it’s regularly
in demand, escapes monkey damage and production are consistent throughout the year.
The production technology for high density plantation has been already standardized by
research institutions and needs to be taken to the farmers. JKCIP has already put budget
for solar powered fencing system of the orchards to protect them from monkey menace
and access to water under lift irrigation and micro-irrigation schemes. The project will also
promote high tech nurseries in the private sector for quality planting material production.

Implementation steps

• Production of quality planting material of latest varieties.

• Scheme for solar fencing and irrigation systems.
• Selection of potential area for expansion of citrus production considering
microclimate and climate change trend and scenarios
• Identification of potential interested farmers.
• Facilitation and support for documentation and credit linkage.
• Capacity development of farmers.
• Rejuvenation with GAP and HD cultivation of citrus crop at farmers’ field.

Implementation responsibility

39
 Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Identify and select the suitable area DioH-J, DioH-K
Plan for solar fencing and irrigation systems
Plan for quality planting material on scale DioH-J, DioH-K
Technical assessment & feasibility for suitable DioH-J, DioH-K
technology requirement
Build a scheme for assistance DioH-J, DioH-K
Empanel the service provider DioH-J, DioH-K
Facilitation of DPR and credit linkage DioH-J, DioH-K SKUAST-J and
SKUAST-K
Capacity building DioH-J, DioH-K SKUAST-J and
SKUAST-K
Scheme implementation Farmers DioH-J, DioH-K

Kiwi fruit expansion

Rationale

In the last couple of years, the demand for Kiwi fruit in the Indian markets has substantially
increased and is on the upswing. Indian imports a large quantity of Kiwi fruit every year
to meet the domestic demand. Himachal is the leading state to produce Kiwifruit and
varietal selection and production system standardization has been done specifically by YS
Parmar UHF, Solan and SKUAST too. Some districts of Jammu & Kashmir have the perfect
agroclimatic conditions for its production, so far, most of the work has been done at the
public sector level and at farmer’s level there are very few investments.

Kiwifruit is a unique and high value crop for the farmers since except for critical irrigation
access and training/pruning this crop doesn’t require any input; it’s almost disease & pest
free, monkeys do not eat it and it’s a high yielder and has a good shelf life. There’s huge
potential for such kind of crop to be expanded for the farmer’s benefit. The J&K
government has already put in HD scheme and there are budgetary provisions for this in
HADP and state capex budgets. To take this forward, the govt needs to work on the
production of quality planting material through public & private sector and it needs to be
promoted amongst the farmers by taking them on exposure visits to nearby states like
Himachal & Uttarakhand where it’s been taken up commercially at scale by farmers. JKCIP
will work with the government on creating irrigation systems, production of quality planting
material through high-tech nurseries both in public and private sector.

Implementation steps

• Production of quality planting material of latest varieties.

• Scheme for solar fencing and irrigation systems.
• Selection of potential area for expansion of Kiwifruit production considering micro
climate and climate change trend and scenarios
• Identification of potential interested farmers.
• Facilitation and support for documentation and credit linkage.
• Capacity development of farmers especially on trellis systems & training/pruning.
• Implementation with GAP and HD cultivation of Kiwifruit at farmers’ field.

Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Identify and select the suitable area DioH-J, DioH-K
Plan for irrigation systems
Plan for quality planting material on scale DioH-J, DioH-K
Technical assessment & feasibility for suitable DioH-J, DioH-K
technology requirement
Build a scheme for assistance DioH-J, DioH-K
Empanel the service provider DioH-J, DioH-K

40
 Facilitation of DPR and credit linkage DioH-J, DioH-K SKUAST-J and
SKUAST-K
Capacity building DioH-J, DioH-K SKUAST-J and
SKUAST-K
Scheme implementation Farmers DioH-J, DioH-K

Rejuvenation Scheme

FPO – Tree Management

Rationale

As discussed earlier a large percentage of fruit industry is dominated by smallholders with

average landholding of 0.25 Ha or less, these farmers do not have the skills and updated
knowledge to adopt latest technologies and practices at farm resulting in poor productivity
and quality of the crop. It was also noticed that their trees and farms were not properly
nourished which was making their farms prone and exposed to climatic risks. The inputs
consumptions was also noticed high due to lack of proper management practices. Though
the state department of horticulture and SKUAST has got adequate knowledge to address
these gaps but the extension resources on the ground are insufficient to reach the common
smallholder farmers. To address this challenge JKCIP proposes to build the technical skills
and capacities of the FPO and farmer groups through linkages with university, horticulture
department and private sector companies to develop a cadre of trained manpower inside
the FPO who will provide the fee based technical support & services to the farmers on GAP,
training & pruning, Integrated pest management, integrated nutrient management,
sorting & grading, collective marketing and storage facilitation. This can become a
sustainable business model for FPO and can help improve the overall productivity and
quality of fruit & nut crops in J&K and will help strengthen the public and private sector
extension system in J&K.

Implementation steps

• Need assessment for the rejuvenation model in different crops.

• Business case assessment and business planning.
• Selection of FPO’s and lead farmers.
• Finalization of training modules including climate smart and good agricultural
practices
• Budgeting, scheme preparation & model for support.
• Dialogue with private sector for participation.
• Capacity development of lead farmers/technical cadres among farmers.
• Implementation at farmer’s fields.
• Regular monitoring and technical support.

Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Need assessment of farmers and creation of a DioH-J, DioH-K FPOs
business model for rejuvenation
Consultation with FPOs- Selection of farmers DioH-J, DioH-K FPOs
interested in this business.
Finalization of the training module DioH-J, DioH-K
Prepare a scheme for assistance through FPO DioH-J, DioH-K
Make a rejuvenation business plan for FPO DioH-J, DioH-K
Capacity building DioH-J, DioH-K SKUAST-J and
SKUAST-K
Scheme implementation FPOs DioH-J, DioH-K

FPO – Input services

Rationale

41
Horticulture industry in general is highly input intensive industry since the crops are
subjected to many stresses in terms of nutritional deficiencies, climate change, diseases
& pests which affect the production and quality of crops and hence the market value gets
lowered, so the farmers have to use lots of fertilizers, fungicides, pesticides both of organic
and inorganic origin to manage these stresses. There are management protocols of every
crop available through public research institutions and we have a very well-developed
private sector led agri-input industry who have solutions for every kind of crop stresses
but still there’s a lot of information gap for smallholders and they are dependent on
misinformed sources and end up making losses financially. SKUAST every year publishes
an apple spray schedule for fruit growers which has complete details of management
practices and spray schedules to be followed to control diseases and pests of apple but
still farmers end up making injudicious use of chemicals. Availability of quality inputs in
rural areas is another challenge which smallholders are faced with and if available they are
sold well above the laid-out prices, this was shared to us in the field visits.

So, here’s a business opportunity for FPOs where these collectives can become authorized
distributors of agri-inputs in alliance with reputed manufacturers and will procure in bulk,
based on the farmer demand. In return the corporate gives them a better price and their
technical team works with the FPO on business development and trains their farmers on
GAP and management of their crops in a holistic manner. IFAD has experience of managing
this model under Nav-Tejaswini project in Maharashtra and REAP in Uttarakhand where we
are working with two of the biggest corporate of agri-input industry, Bayer and UPL who
are helping our farmer collectives to run their franchise stores which stock & sell fertilizers,
seeds, pesticides and farm machinery. The technical team of these companies help in
managing the store and their dedicated agronomists train the farmer on management of
their crops on regular basis. This model will be rolled out under JKCIP for the FPO of the
project and has the potential to become a strong and sustainable business model for our
FPO’s given the kind of high value crops in the region.

Implementation steps

• Selection of area and FPO for input business model.

• Feasibility analysis and business case assessment for this model.
• Discussion with private sector to participate in this business model.
• Signing of MOU with private sector partner.
• Business documentation and compliances completed.
• Scheme development for financial support to the FPO.
• Technical and financial capacity development of the FPO by private sector partner.
• Franchise model set up and business roll out.
• Regular monitoring and handholding for sustainable business output.

Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Selection of potential area & FPO DioH-J, DioH-K FPO
Build a scheme for assistance to FPOs DioH-J, DioH-K
Capacity building and linkages with private sector DioH-J, DioH-K SKUAST-J and
agro-chemical companies SKUAST-K
Rollout the business FPO DioH-J, DioH-K

FPO – Farm machinery

Rationale

The agricultural and horticulture industry is a very labor-intensive industry, right from land
preparation to harvest, packing and transportation, at every stage of crop production one
needs labour to manage it. In the last few years due to economic growth and
industrialization, urban migration of unskilled labor from villages to cities in search of

42
better has become a reality coupled with employment guarantee schemes like MNREGS
and functional PDS system, labor availability in agriculture industry is becoming expensive
and scarce. Looking at this challenge, the government has come up with farm
mechanization scheme at group and individual farmer level with different %ages of
subsidies. While at individual level the model serves the purpose for large farmers only,
but at the smallholder level this model at the FPO level has many advantages since
machineries can be shared by multiple farmers on rental basis managed by the FPO which
aggregates the demand for particular farm machines and leases the member farmers on
an agreed market price-based machine rental. This helps small farmers bring production
efficiency at their farms and at FPO level it provides them with a sustainable business
model.

J&K being a rich agricultural & horticultural state with many high value crops is dependent
on migratory labor from Nepal, UP and Bihar for its agricultural needs and many a times
faces challenging situation in the wake of insurgency movements, covid breakdowns etc.
In such situations it becomes essential for the state government to encourage
development of farm mechanization to increase efficiency and cost management of crop
production. JKCIP will work through the existing and newly formed FPOs to assess the
needs of the specific crops for mechanization needs and then develop a business model
around them for the benefit of the farmers. Capacity utilization is a big challenge in farm
mechanization model since most of the machines are used seasonally due to the nature of
agricultural activity so the maximum focus should be given to the choice of machinery and
its utility over the maximum no of commercial usage days in a year backed by a robust
business planning.

The primary source of income in the project area is predominantly horticulture, which
heavily relies on traditional approaches. Orchards visited during design mission field
interactions were old and undernourished, rendering them more susceptible to the adverse
impacts of climate change. For instance, fruit trees that lacked pruning or thinning were
weak, prone to pests and diseases, and required more water. To alleviate this drudgery
and provide support, proper equipment for thinning and pruning will be supplied, aiming
to enhance farms' resilience to climate change. Similarly, the provision of suitable tools,
such as those for digging holes for plantation, will decrease soil exposure, thereby
minimizing soil erosion and the loss of topsoil.

Implementation steps

• Need assessment of farm machinery specific to the crops of the region.

• Selection of FPO for this model.
• Selection of machinery.
• Business planning with the FPO for maximum capacity utilization.
• Scheme development for financial assistance.
• FPO proposal development, facilitation with documentation and credit linkages.
• Capacity development of FPO.
• Roll out of the equipment rental model.
• Regular monitoring and review of the business plan.

Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Selection of potential area & FPO DioH-J, DioH-K FPO
Farm machinery need assessment DioH-J, DioH-K
Build a scheme for assistance DioH-J, DioH-K
Capacity building DioH-J, DioH-K SKUAST-J and
SKUAST-K
Rollout of farm machinery banks FPO DioH-J, DioH-K

FPO – Output aggregation

43
Rationale

The Indian system of agricultural marketing suffers from a number of defects. It’s such a
complex chain of operations that it’s not possible for an individual farmer to escape these
inefficiencies of the system, as a consequence, the Indian farmer is deprived of a fair price
for his produce.
Harvesting and processing waste in the agriculture sector is significant. This not only
causes loss to the farmers in terms of quantity, but also decreases the quality of the
product. Aggregation support will ease farmers to harvest, collect, and store their
products; ultimately ensuring less wastage, maintain quality, and ensure reasonable price.
Which will increase their overall income. Moreover, the volatile market is a big threat in
the project targeted area. Most importantly, apple is facing huge competition from other
countries’ production.

Following are some key issues:Improper Warehouses: There is an absence of proper

warehousing facilities in the villages. Therefore, the farmer is compelled to store his
products in pits, mud-vessels, Kutcha storehouses, etc. These unscientific methods of
storing lead to considerable wastage.
Lack of Grading and Standardization: Different varieties of agricultural produce are not
graded properly. The practice usually prevalent is the one known as “dara” sales wherein
heap of all qualities of produce are sold in one common lot Thus the farmer producing
better qualities is not assured of a better price. Hence there is no incentive to use better
seeds and produce better varieties.
Inadequate Transport Facilities: Transport facilities are highly inadequate in India. Only a
small number of villages are joined by railways and pucca roads to mandis. Produce has
to be carried on slow moving transport vehicles. Obviously, such means of transport
cannot be used to carry produce too far-off places and the farmer has to dump his produce
in nearby markets even if the price obtained in these markets is considerably low. This is
even truer with perishable commodities.
Presence of a Large Number of Middlemen: The chain of middlemen in the agricultural
market is so large that the share of farmers is reduced substantially.
Malpractices in Unregulated Markets: Even now the number of unregulated markets in the
country is substantially large. Arhatiyas and brokers, taking advantage of the ignorance,
and illiteracy of the farmers, use unfair means to cheat them.
Inadequate Market Information: It is often not possible for the farmers to obtain
information on exact market prices in different markets. So, they accept whatever price
the traders offer to them.
Inadequate Credit Facilities: Indian farmer, being poor, tries to sell off the produce
immediately after the crop is harvested though prices at that time are very low.
The concept of organising farmers into Farmer Producer Organizations (FPO) has the
genesis in the above laid out inefficiencies of the agriculture marketing in the country.
Under an FPO, a group of farmer can work towards the benefit of all members through
utilizing the concept of economy of scale thus increasing the negotiating power of farmers
with the market forces both for input purchase and output sales. Collective marketing of
agriculture produce by FPO has emerged as a very natural and profitable model to realize
better prices for the crops of farmers from market players; moreover, FPO has an
opportunity to develop backward and forward linkages with large, organized buyers who
require quality produce at a scale and pay better than regular mandis for graded quality
produce. The good aggregation support will allow them to collectively store their product
for a certain amount of time and seek a better market. This will help them store their
product when transportation is blocked due to flood, landslide, or there is heavy rain.

44
JKCIP would study the potential and business case of collective marketing of agricultural
produce by FPO and will help develop a business plan and business model for the FPO in
collaboration with private sector players for consistent supply of quality produce on
consistent basis profitably.
Implementation steps

• Crop wise feasibility and market potential assessment for collective marketing.
• Business planning with FPO.
• Private sector partnerships for buyback arrangements with FPO.
• Development of scheme for assistance to FPO.
• Capacity development of FPO in collaboration with private sector for collective
marketing model.
• The collection center is operationalized with sorting and grading facilities.
• Regular monitoring and support from public and private sector.

Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Selection of potential area & FPO DioH-J, DioH-K FPO
Assess scope for collective marketing of output DioH-J, DioH-K FPO
Develop a scheme for assistance DioH-J, DioH-K
Capacity building DioH-J, DioH-K SKUAST-J and
SKUAST-K
Rollout of output aggregation FPO DioH-J, DioH-K

II. Agribusiness Ecosystem development

A. Enterprise promotion Support
Brief description of project interventions: As a part of agri-business ecosystem
development, the project will support enterprise promotion by the private sector with a
focus on generating corresponding bank finance. This activity will largely focus on youth
and women, particularly young women. Climate risk poses a significant threat to
businesses, especially those associated with farming. However, it has often been
overlooked when developing business plans and development. The JKCIP will give due
consideration to this aspect, ensuring that climate risk is thoroughly assessed. Moreover,
the development process of business plan will include discussion and listing adequate
adaptation measures to adapt or mitigate these risks effectively. The project will provide
matching grants for establishing agri-business enterprises. Two key modalities to promote
enterprise will be followed: (i) a Business-led enterprise development model wherein the
Business Leader becomes the mentor and provides market linkages and mentors a group
of farmers or small entrepreneurs; and (ii) an individual entrepreneur model wherein the
individual entrepreneur establishes an independent business with B2B and B2C facilitation
and support for participatory business planning. The project will work with banks leading
towards (i) a common understanding of the requirements of the banks for applications and
financial proposals and production of same; and (ii) financial product/model development
to enhance qualification, introduce collateral alternatives, cash flow-based lending and
improve affordability for medium to long term loan products. The project will provide
business development services and support the establishment of 87 business-led
enterprises that will act as mentors and 1,117 individual enterprises.

Access to finance: Access to finance is a cornerstone for the promotion of agriculture

and horticulture enterprises because it provides the necessary resources to make critical
investments, manage risks, and drive innovation and sustainability in the sector. Without
financial support, it can be challenging for farmers to adapt to changing circumstances

45
and seize new opportunities. The enterprise promotion support under this project hinges
on the access to credit and the project will facilitate the provision of business development
services required for establishing enterprise including preparation of project/feasibility
reports and appraisal of the project reports. Jammu and Kashmir, like other parts of India,
is served by various banks, including both public sector and private sector banks. These
banks offer a range of financial products and services to individuals and businesses. Access
to Finance is covered in Section IV of this chapter.
The Jammu and Kashmir Bank (J&K Bank) is a prominent financial institution based in the
region that plays a significant role in providing banking services and facilitating access to
finance for local businesses. During the FY 2022-23, the deposits of the Bank grew by
6.39% YoY to INR 1,220 billion with a CASA ratio1 of 54.10%. Gross Advances of the Bank
grew by 16.89% YoY, at par with the banking industry, from INR 700 billion to INR 820
billion. For the FY2022-23, the Bank has improved its operational efficiency and has
recorded a profit of INR 11.97 billion, highest in the history of the bank. On the asset
quality front, the Bank has improved significantly and registered its best asset quality
figures over last 8 years. The non-performing Assets (NPA) figures of the Bank have also
improved significantly from 8.67% last FY to 6.04%. The net NPA of the Bank witnessed
sharp decline to 1.62%. Net Interest Income (NII) witnessed a robust growth of 21% from
INR 39.11 billion to INR 47.45 billion. The Operating profit of the Bank during the year
stood at 18.58 billion, a significant improvement of 75% over the last year. J&K Bank has
brought down the cost-to-income ratio to 66.22% in FY2022-23 from 77.18% in FY2021-
22.
GoJ&K is the major shareholder of this bank and as a result, the Bank is actively involved
in the programmes and projects of the Government. J&K bank also has a substantial
network of branches in J&Kproviding last-mile service delivery to the farmers. There are
no major issues to access credit by the entrepreneurs of J&K. In addition, GoJ&K also
provides matching grants to compensate the entrepreneur towards the high cost of
investment compared to other parts of the country so as to provide a level playing field.
Matching grants: Providing matching grants for enterprise promotion, whether in
agriculture, small businesses, or other sectors, is a common practice employed by
governments and institutions worldwide. There are several key rationales for offering
matching grants.
Economic Development: Matching grants can stimulate economic growth by encouraging
the establishment and expansion of enterprises. This leads to increased production, job
creation, overall economic activity, and increase resilience to economic and climate
shocks.
Job Creation: Matching grants stimulate enterprise promotion which often create new jobs,
reducing unemployment rates and contributing to a more stable and prosperous labour
market.
Investment in Key Sectors: Matching grants can target strategic sectors that are vital for
a country's development and self-sufficiency, such as agriculture, manufacturing, and
technology.
Innovation and Research: Matching grants can foster innovation and research in specific
industries by providing the financial resources needed to develop new technologies and
products.
Rural and Regional Development: Matching grants can help promote economic activity in
rural and underdeveloped areas, reducing regional disparities and migration to urban
centres.
Market Correction: In certain situations, Matching grants are used to correct market
failures. For example, they can support the provision of essential public goods or services

1
Ratio of deposits in current and savings accounts to total deposits of the Bank

46
that the private sector might not otherwise provide efficiently, such as infrastructure for
fruit handling.
Competitiveness: Matching grants can enhance the competitiveness of domestic
enterprises in the domestic and export market by reducing production costs or improving
product quality.
Environmental and Social Goals: Matching grants can be employed to promote
environmentally friendly or socially responsible practices and products, such as renewable
energy or organic farming.
Risk Mitigation: Subsidies can help enterprises mitigate risks during difficult economic
conditions, natural disasters, or global crises, ensuring their stability and continuity.
Stimulating Investment: By providing Matching grants s, governments can incentivize
private sector investments in specific areas, which can have positive ripple effects on the
broader economy.
Fostering Entrepreneurship: Matching grants can encourage entrepreneurship and support
the growth of startups and small businesses, which are often drivers of innovation and
employment.
Social Inclusion: Matching grants can help marginalized and disadvantaged populations
access essential services or opportunities they might otherwise be excluded from.
It's important to note that while subsidies can have positive impacts, they also come with
challenges and potential drawbacks. These include the risk of inefficiency, market
distortions, and fiscal burdens on governments. Therefore, it's crucial for governments to
design subsidy programs carefully, targeting them where they can achieve the greatest
public benefit and using transparent and accountable mechanisms to administer them.
Reduced reliance on matching grants
Reducing subsidies for enterprise development is a complex process that should be
implemented carefully to minimize potential negative impacts on businesses and the
economy. The pilot strategies that governments and organizations can consider to
gradually reduce subsidies:
Phasing Out Subsidies: Gradually reduce subsidies over a predetermined period,
allowing enterprises to adapt to the changing conditions. This phased approach can provide
businesses with time to find alternative sources of funding.
Performance-Based Subsidies: Shift from unconditional subsidies to performance-
based incentives. Businesses would receive subsidies or grants based on achieving specific
targets or milestones, such as job creation, revenue growth, or environmental
sustainability.
Sectoral Reviews: Conduct in-depth reviews of subsidized sectors to identify areas where
subsidies are less effective or where businesses have become overly reliant on them. Focus
on reducing or redirecting subsidies in these areas.
Means Testing: Introduce means-testing to ensure that subsidies go to businesses that
genuinely need them. This could involve setting income or asset thresholds to determine
eligibility for subsidies.
Selective Subsidies: Target subsidies toward specific activities or industries that align
with strategic goals, such as innovation, sustainability, or regional development, while
reducing subsidies in less strategic areas.
Tax Credits and Incentives: Shift from direct subsidies to tax credits, deductions, or
other tax incentives that can provide financial relief to businesses while allowing the
government to reduce direct expenditures.

47
Public-Private Partnerships (PPPs): Encourage public-private partnerships to share
the burden of financing certain enterprise development initiatives, which can help reduce
the government's financial commitment.
Technical Assistance and Capacity Building: Invest in programs that provide technical
assistance and capacity-building support to help businesses become more self-reliant and
less dependent on subsidies.
Financial Education and Access to Finance: Promote financial literacy and access to
alternative financing options, such as loans, equity investments, and venture capital, to
reduce dependence on subsidies.
Expiry Date for Subsidies: Implement a policy where subsidies have a predetermined
expiration date. Businesses would need to plan for the eventual reduction or elimination
of these subsidies.
Review and Adjust Subsidy Criteria: Periodically reassess the criteria for granting
subsidies, adjusting them to reflect changing economic conditions and development
priorities.
Cost-Benefit Analysis: Conduct thorough cost-benefit analyses for each subsidy
program to assess their effectiveness and make informed decisions about reducing or
eliminating them.
Social Safety Nets: Ensure that social safety nets are in place to protect vulnerable
individuals and communities that may be adversely affected by subsidy reductions.
Stakeholder Engagement: Involve businesses, industry associations, and other
stakeholders in the decision-making process and the design of subsidy reduction strategies
to minimize disruptions.
Communication and Transparency: Communicate the reasons for subsidy reductions
clearly and transparently to the public and affected businesses to build understanding and
trust.
Monitoring and Evaluation: Continuously monitor and evaluate the impact of subsidy
reductions to adjust policies as needed and ensure that businesses remain competitive
and sustainable.
Piloting these strategies on a small scale can help identify potential challenges and refine
the approach before implementing larger-scale reductions. It's essential to carefully assess
the economic and social implications of subsidy reductions and take measures to mitigate
any adverse effects on businesses and the broader economy.
Business mentorship
Mentorship plays a crucial role in enterprise promotion for several reasons:
Knowledge Transfer: Experienced mentors can transfer their knowledge, skills, and
expertise to aspiring entrepreneurs. This practical wisdom is often not available in
textbooks or traditional educational settings.
Guidance and Support: Mentors provide guidance and emotional support to
entrepreneurs, helping them navigate the challenges and uncertainties that come with
starting and growing a business. They can offer advice on decision-making, problem-
solving, and goal setting.
Networking Opportunities: Mentors often have extensive networks within the business
community. They can connect entrepreneurs with potential customers, investors,
suppliers, and other key stakeholders, which can be invaluable for business growth.
Validation and Confidence Building: A mentor's belief in an entrepreneur's abilities and
ideas can boost their confidence and motivation. This validation is crucial for overcoming
self-doubt and taking risks.

48
Skill Development: Mentors can identify areas where entrepreneurs need to develop
their skills and provide specific guidance and training to address those gaps.
Problem-Solving: When entrepreneurs encounter challenges or roadblocks, mentors can
offer alternative perspectives and strategies for overcoming them. They can draw from
their own experiences to provide practical solutions.
Personal Growth: Mentorship extends beyond business skills; it also focuses on personal
growth. Mentors can help entrepreneurs develop leadership qualities, emotional
intelligence, and resilience.
Long-term Success: Mentors are often invested in the long-term success of their
mentees. They provide ongoing support and encouragement, which can be particularly
important during challenging times.
Avoiding Pitfalls: Experienced mentors can help entrepreneurs avoid common pitfalls
and mistakes that can be costly in terms of time, money, and resources.
Innovation and Creativity: Mentorship can inspire and nurture innovation. Mentors can
encourage entrepreneurs to think creatively and develop unique solutions to problems.
Succession Planning: For family businesses or enterprises with long-term goals,
mentorship can be essential in grooming the next generation of leaders and ensuring the
continuity of the business.
Accountability: Mentors can help entrepreneurs set goals and hold them accountable for
achieving those objectives, fostering discipline and commitment.
Crisis Management: When unexpected challenges or crises arise, mentors can provide
guidance and support to help entrepreneurs navigate these situations effectively.
Feedback and Evaluation: Mentors can offer constructive feedback and help
entrepreneurs assess their progress and make necessary adjustments.
Diversity and Inclusion: Mentors can play a critical role in promoting diversity and
inclusion by guiding underrepresented groups, such as women and minorities, in their
entrepreneurial endeavours.
Community Building: Through mentorship, a sense of community and collaboration can
be fostered among entrepreneurs, encouraging the sharing of resources and ideas.
Mentorship is a powerful tool for enterprise promotion because it accelerates the
development of new businesses, enhances the skills and capabilities of entrepreneurs, and
contributes to the overall growth and vitality of the entrepreneurial ecosystem. Mentorship
programs, whether formal or informal, are valuable for fostering innovation, job creation,
and economic development.
Business-led enterprise development
A "lead entrepreneur" in the context of enterprise promotion typically refers to an
individual who takes a central role in driving the creation, growth, or development of
entrepreneurial ventures and initiatives within a particular ecosystem or community. Lead
entrepreneurs play a pivotal role in fostering entrepreneurship and can have a significant
impact on promoting enterprise activities. The ways in which lead entrepreneurs contribute
to enterprise promotion include:
Inspiration and Role Modelling: Lead entrepreneurs serve as role models for aspiring
business owners and startups. By demonstrating their own success, they inspire others to
pursue entrepreneurship.
Mentorship and Guidance: They often provide mentorship and guidance to new
entrepreneurs, sharing their experiences, offering advice, and helping others navigate the
challenges of starting and growing a business.

49
Resource Mobilization: Lead entrepreneurs can leverage their networks and credibility
to access resources such as funding, partnerships, and support services, which can be
beneficial for other entrepreneurs.
Community Building: They play a key role in building and fostering an entrepreneurial
community or ecosystem, bringing together like-minded individuals, connecting
businesses, and encouraging collaboration.
Advocacy and Policy Influence: Lead entrepreneurs can advocate for favourable
policies and regulations that support entrepreneurship at the local, regional, or national
level, creating a more conducive environment for business growth.
Innovation Promotion: They often drive innovation within their industries or sectors,
pushing the boundaries and encouraging others to adopt creative solutions.
Job Creation: Lead entrepreneurs who successfully scale their businesses can contribute
significantly to job creation and economic development in their communities.
Investment and Funding: Some lead entrepreneurs become investors themselves,
providing capital and mentorship to startups and early-stage businesses, thus contributing
to the growth of the broader entrepreneurial ecosystem.
Education and Training: They may establish training programs, workshops, or
educational initiatives aimed at equipping aspiring entrepreneurs with the knowledge and
skills needed to succeed in business.
Market Access: Lead entrepreneurs with established businesses can help smaller startups
access markets, distribution channels, and customers that would otherwise be challenging
to reach.
Networking Opportunities: They create networking opportunities for other
entrepreneurs to connect with potential clients, partners, or investors.
Risk-Taking: Lead entrepreneurs are often willing to take calculated risks, and their
success stories can encourage others to take entrepreneurial risks as well.
Long-Term Vision: They typically have a long-term vision for their communities and
ecosystems, looking beyond short-term gains and focusing on sustainable enterprise
development.
Social Responsibility: Some lead entrepreneurs engage in philanthropy and corporate
social responsibility, contributing to social and environmental causes within their
communities.
Resilience and Adaptability: Lead entrepreneurs often exhibit resilience and
adaptability in the face of challenges, serving as examples of how to persevere in the ever-
changing world of business.
The contributions of lead entrepreneurs can be significant in terms of promoting
entrepreneurship and enterprise development. Their actions and leadership help create a
more vibrant and supportive environment for startups and small businesses, ultimately
contributing to economic growth and prosperity.
Implementation Steps
MSPs
• Identify FIGs/FPOs interested in market linkage and based on this need identify
commodity-specific market players.
• Conduct commodity specific MSPs and prepare proceedings at each MSP indicat-
ing the expectations of the farmers and also that of the market players for the pro-
ject take decisions on how to make progress.

50
 • Identify market players who are interested in developing market linkage
agreements with the producers (FIGs/FPOs).
• Conduct meetings with the interested market players and producers to work out
the details and sign an agreement for market linkage.
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Identify market players and producers DioA-J, DioA- APD FIGs/FPOs
interested in market linkage K, DioH-J
and DioH-K
Conduct MSPs DioA-J, DioA- APD FIGs/FPOs
K, DioH-J
and DioH-K
Work out market linkage agreements FIGs/FPOs DioA-J, DioA- APD
K, DioH-J and
DioH-K

Business-led enterprise development

• Identify existing entrepreneurs who have already established businesses but are
interested in expanding the businesses by engaging with smaller entrepreneurs to
by supporting them in providing market linkages.
• Prepare schemes for supporting business-led enterprises. The matching grant
should not exceed 50% of the investment cost and the balance will have to be from
bank loans and private sector contributions. The project will have to work out ways
to provide higher levels of incentives to women and youth compared to others.
• Conduct consultations with these mentor entrepreneurs and request them to
submit a proposal with the: (i) project proposals for the mentee entrepreneurs; (ii)
type of support to be provided to the mentees by the mentor; and (iii) project
support required by the mentors.
• Appraise the proposals and provide support to both mentors and mentees.

Activity Partners and their implementation

responsibility
Primary Secondary Collaborative
Identify existing entrepreneurs interested DioA-J, DioA- APD Lead
in supporting other entrepreneurs through K, DioH-J Entrepreneurs
market linkage. and DioH-K
Seek and appraise the proposals DioA-J, DioA- APD Lead
K, DioH-J Entrepreneurs
and DioH-K
Approve the proposals and start FIGs/FPOs DioA-J, DioA- APD
implementation K, DioH-J and
DioH-K

Enterprise promotion
• Prepare schemes for supporting enterprise promotion. The matching grant should
not exceed 50% of the investment cost and the balance will have to be from bank
loans and private sector contributions. In cases of a high level of investment
proposed particularly in case of controlled atmosphere storages and other
activities, it is essential to build in a cap for matching grants. The project will have
to work out ways to provide higher levels of incentives to women and youth
compared to others.
• Publicise the scheme and seek applications from interested parties.

51
 • Provide business development support to prepare project reports and business
plans.
• Conduct meetings between bankers and entrepreneurs for initial due diligence and
to identify entrepreneurs for bank loans.
• Facilitate the banks to provide loans and the project to provide matching grant.
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Prepare schemes for supporting various APD DioA-J, DioA-
types of enterprise K, DioH-J and
DioH-K
Seek applications and provide business DioA-J, DioA- Entrepreneurs
development service K, DioH-J and
DioH-K
Conduct meetings with banks and initial DioA-J, DioA- Entrepreneurs
due diligence K, DioH-J and and Banks
DioH-K
Bank loan approval and enterprise Entrepreneurs DioA-J, DioA-
establishment and Banks K, DioH-J and
DioH-K

Matching grant reduction strategies

• Engage an agency to develop a strategy paper to explore ways and means of
reducing subsidies and providing other products to improve access to finance,
reduce the risk perception of the bankers and reduce the cost of borrowing,
Conduct consultation with the entrepreneurs and industry bodies on the need to reduce
subsidies for enterprise promotion with the impending improvements in infrastructure and
reduction in logistic costs reducing costs. Deliberate on the alternatives available such as
starting a venture capital company with the participation of financial institutions,
entrepreneurs, and industry bodies to recover the subsidy once the enterprise becomes
profitable to redeploy the same for enterprise promotion purposes.Place the strategy
before the project management and make an action plan for implementation of a
pilot.Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Engage an agency /Consultant to develop a APD DioA-J, DioA-
strategy for reducing matching grant. K, DioH-J and
DioH-K
Conduct a consultation to discuss the DioA-J, DioA- Entrepreneurs
strategies and work out modalities for K, DioH-J and Banks
developing a pilot and DioH-K
Take approval and implement a pilot DioA-J, DioA- Entrepreneurs
K, DioH-J and Banks
and DioH-K

B. Market promotion Support

Brief description of project interventions: The project will introduce the concept of
Multi-Stakeholder Platforms (MSPs) to enable the establishment of relationships with the
private sector for promoting production based on the market requirement. MSPs will
facilitate the identification of market players interested in working with the farmers to shift
to the premium product category by producing vegetable seeds instead of vegetables.
Most niche crops have well-established market systems, but it is necessary to keep
exploring newer markets to absorb additional quantities. The project will also establish

52
market outlets and marketing infrastructure and conduct buyer-seller meets, and support
brand development and promotion.

The project will support: (i) 12 state-level MSPs;(ii) participation in trade fairs by 150
entrepreneurs; (iii) 28 Buyer-Seller meets; and (iv) product development, J&K brand
development and brand promotion coupled with ICT4D solutions to enhance traceability
and transparency of pricing and product. Since premiumization is the key to increasing
the income of farmers, GoJ&K has requested support for the establishment of an
Export/Logistic Hub to focus on the export/domestic market for agriculture, horticulture
and allied products. This plan needs further deliberations and feasibility assessments. The
project will support the engagement of highly experienced Consultant(s) from the sector
to further develop the concept of Export/Logistic Hub with a feasibility study considering
the export/domestic market potential, and current constraints of the exporters/traders
including lack of suitable logistic infrastructure and phytosanitary and quality certification
requirements, private sector participation requirements and ownership and management
structure of the Export/Logistic Hub. Once this study is finalized, the project will develop
and implement a plan for operationalizing Export Hub/Logistic Park in consultation with
IFAD.

Multi-stakeholder platform
Rationale: Value Chain Development strategies mainly includes: technical capacities
development for processes; managerial capacities development for functions and
networking capacities development for cooperation. These have been found very effective
to exchange best practices on climate adaptation and environmentally sustainable
practices among the producers. They exchange learnings of climate smart and good
agricultural practices. In addition, presence of buyers and technical service provides in the
platform helps them to get updates on the new and improved tools and technologies.
Creating mutual benefits for the producers, traders, input suppliers and service providers
involved in the supply chain and surrounding market is key to the success of supply chain
development.
In the process of supply chain upgrading, linkages will be established within and between
these three layers of network actors as many emerging issues, either bottlenecks or
opportunities for market development as well as in the broader development setting,
cannot and will not be addressed by individual actors alone. Stakeholders become aware
that together they must agree on solutions for systemic constraints in the supply chain
and work together to take collective action to address these challenges and seize
opportunities. For this reason, MSP have been widely used as an avenue for enhancing
collaboration within supply chain networks.
The core of the supply chain cluster development approach is a rolling process of action-
oriented brokering dialogue for fostering collaboration and investment facilitation among
the key actors in each cluster to catalyse investments and remove bottlenecks to increase
trading and profits and make the most of practical opportunities for growth. MSPs are
platforms, processes or partnerships of different stakeholders / actors together with similar
interests interacting each other for improving the situations affecting them through shared
learning, joint decision-making and collective action as shown below (fig 2.).

53
 Figure 1. MSP Participants
MSPs bring together different actors at local, regional or national level and create space
for dialogue to develop joint action that can bridge different values, objectives, and ways
of working. Producers, Traders/Buyers, Processors, Commercial and non-commercial
suppliers of technical/financial services or inputs as well as government agencies and other
supporters including research institutions, insurance companies are participants of such
MSP meetings.
MSP can be used as instrument to address complex issues in upgrading the supply chains
whereby the actual form and function of the MSPs are contextual. Indeed, there is no
blueprint model of MSP because:

Within such diverse settings, flexibility in design and operations is a prerequisite. Although
the design and use of MSPs very much depend on the local context, working with individual
stakeholders and their collectives requires a certain approach, which is in most cases very
similar. In order to create win-win situations and align the various actors, the independent
neutral facilitator (value chain team in JKCIP) should understand well the motivation and
interest (drivers) of each individual actor and subsequently form an idea about the
common ground, where these individual interests come together. The facilitator should be
professionally autonomous and neutral broker but operate in line with the needs of the
MSP actors.

54
MSP will be organised in each supply chains at regular intervals (1-2 times in a year) in
the project at Hub and 3- 4 times in cluster level with anticipated outputs as illustrated in
figure 3 below. MSPs will be initially facilitated by the project team but later jointly and /or
individually by the producers and businesses themselves.

Figure 2. MSP Outputs & Outcomes

The MSPs for each Supply/Value Chain are driven by the actors and expected to serve
following purposes as outlined below in general:
• Validation of information generated from Supply/Value Chain Mapping and Market
assessment study.
• Identifying priorities in terms of issues, problems and opportunities for sector and
business development.
• Identifying innovative / market driven interventions and its prioritization Increased
ownership of Supply/Value Chain upgrading process.
• Facilitate meetings, coordination and enhance dialogue between
buyers/agribusiness and producer group for business linkages and actors with
other service providers (banks, nurseries, input suppliers, service centres,
technical assistance providers etc.) to deepen mutual understanding for linkages
/partnerships, laying the basis for establishing business and service relationships.
• Develop and agree on joint action plans (Supply/Value Chain Road map) among
producer, agri-businesses and service providers for developing supply chain cluster
and commit themselves for implementation through individual or joint investments
including investment in public good infrastructures.
• Developing capacity through relating and engaging and Increased ownership of
value chain upgrading process.
• Enhance transparency, Improved trust, quality and relevance of relationships
between actors at different levels.
• Up-scaling of innovations through monitoring, sharing and collective learning.
• Bridge unequal power relations and differences in perception and language.
Investment Priorities for private and public good investments and follow-up by the project
and others are set during the MSP process, in particular “cluster action plan” produced for
each cluster as a key output of the meetings. The initial action plans will focus on
immediate market opportunities or tackle the most immediate localized bottlenecks for
quick wins. Over time, the plans will fit in an agreed vision for the supply chain and move
towards more coordinated actions. The rolling cycle of MSP both at Hub and cluster level
also create a practical mechanism to locally coordinate the support of the various
government and non-government initiatives that are relevant and active in the local area.

55
Facilitating MSP at Hub and Cluster level: MSP is based on trust, the willingness to
rely on another person or institution when one expects the action of that person or
organization to take you into account in some relevant way. This refers to the extent to
which all parties, including small scale farmers, are taking part in the upgrading of the VC,
the extent to which actors have access to increased assets (finance, knowledge,
technology, information), and the extent to which all parties are able to bargain on a
proper footing for a fair share of total value addition in the chain. Facilitation in principle
is about creating space for actors to participate in and contribute fully and on equal terms
to a joint process.
Facilitation of MSP is useful for
• Promoting efficient and equitable linkages for the economically active poor along
the value chain
• Strengthening existing and brokering new strategic partnerships with key
stakeholders using the Public Private Partnership (PPP) model (Private sector, civil
society, government bodies).
• Promote “meaningful dialogue” focus on impacts and economic performances,
strategic planning and cooperative implementation action, collective monitoring
and mutual learning.

Facilitators should provide following services in general during MSP facilitation:

• Define clear purpose of MSP meeting by setting smart objectives,
• Develop an agenda, with a realistic time schedule, making sure that the
conclusions and planned actions at the end of the day are not rushed,
• Select the most critical participants by identifying which stakeholders are
important in your Supply/Value Chain action plan, making sure there is enough
private sectors,
• Ensure involvement of large buyers and Processors (Leaders/Champions in
Supply/Value Chain) that have credible demand & can bring change to enhance
production & foster Supply/Value Chain growth.
• Involve several buyers including buyers outside the target areas (Regional &
National level) and Farmers representatives of Group /Agriculture cooperatives of
potential Supply/Value Chain clusters.
• Set date and venue and inform by writing and verbally all stakeholders 2-3 weeks
in advance, but make sure you remind the stakeholders 3-4 days in advance of
the meeting,
• Provide feedback to participants on interventions,
• Update on support from government and development partners,
• Make tactical arrangements of who engages with whom,
• Coordination and facilitation among various stakeholders for convergence &
minimizing duplication,
• Brokering, relation building and management of power relations,
• Capacity development, knowledge management and learning,
• Facilitating joint advocacy and stimulating government policies and self-regulation,
• Work towards consensus and develop knowledge e.g., world café session,
• Mediate concrete and time bound actions.
The operational services in above areas are sometimes straight forward. The challenge is
to organise the right order and set of activities. Every MSP needs a unique arrangement
of activities changing constantly over time. Supporting MSPs can have very many
dimensions with various optional functions depending on the context, setting and goals in
the wider dynamics of supply chain development. However, the steps followed and points
to be considered by the supply chain team/Facilitator to generate various outputs are as
follows:
Commitment and ownership: Commitment from supply chain stakeholders and
ownership of the process are essential to build consensus on supply chain upgrading vision

56
and to prioritize interventions to steer the inclusive supply chain development in
sustainable manner. The key factors to be considered in creating ownership and
commitment during the MSP process are as follows:
• Talk little, listen carefully, ask questions (challenge them) and summarize e.g., it
is not about you, it is about the stakeholders,
• Involve stakeholders at the earliest opportunity to enable them to influence the
objectives and activities of the process,
• Communicate clearly with all involved actors and stakeholders about progress and
successes,
• Ensure that everyone feels there is space for their ideas and concerns to be heard
and taken on board,
• Ensure well facilitated processes that results in actions within an agreed
timeframe,
• Review the process with stakeholders regularly and make changes to overcome
emerging problems,
• Keep expectations realistic and focus on tangible results and early “wins”.
• Ensure commitment to shared responsibilities for implementing and funding
agreed follow-up activities.
• Reimburse people appropriately for time and costs incurred.
• Ensure that there will not be over-representation of government staff instead of
private sectors,
• Document outputs and outcomes for follow up and as input in next MSP.
Prioritizing Intervention /Action Plan Development for Upgrading: MSP identify
and prioritized interventions addressing critical constraints, potential for upgrading the
supply chain and sector competitiveness as a whole. This is mostly done during the initial
Hub level MSP meetings based on the findings derived from the supply chain & market
assessment study or rapid mapping, so as to guide the project to focus on critical areas
within the limited resources and time. It is encouraged to come out with 4-5 potential five
interventions in each supply chain addressing constraints critical for supply chain
development among the list of interventions identified by the project team during the
study. The points to be considered in conducting MSP and then prioritizing interventions
and constraints are as follows:
• Make a presentation on findings of supply chain analysis/Rapid mapping exercise
and the selected interventions areas and activities.
• Allow for ample time for people to ask short and concise questions, and do not
allow opinions to be expressed.
• Request participants (SC stakeholders) to prioritize the list of constraints and
interventions identified during the study,
• Divide participants into group by function (1) Producers organizations, (2) Traders
/Agribusinesses, (3) service providers, (4) Support organizations/Stakeholders as
government/projects and ask them to score in terms of priority with 1 indicating
most important or critical.
• All groups are requested to present their scoring which is then recorded on the
wall.
• Finalise the scoring and make total scores and share the top 5 priorities among
the participants and build consensus after discussion.
• Moderate discussion in plenary: if scoring is similar for all groups, do not discuss,
but discuss where scoring is different and identify the arguments, eventually
leading to a change in scoring.
• Select the top 4 to 5 constraints and interventions with highest scores. Triangulate
the relevancy between constraints and prioritized interventions.
• Make discussion rounds in a way that all 4 functional groups can discuss with each
other separately on each of the priorities interventions and request them to come
up with a limited number of concrete and direct implementable actions, preferably

57
 to be implemented by collaborating stakeholders e.g., rotating groupings and
make sure every grouping has its own moderator.
• If actions are not forthcoming, assist the groups with thinking on demand and
supply, sourcing, input and service arrangements, how to improve service delivery
and what support of the government and projects is realistic?
• Summarize the group findings on concrete and time bound actions. It is important
is to identify what can be done “now” or “immediately” and present these in
plenary.
The prioritized interventions guide the major areas of JKCIP support both in
terms of facilitation and investments for supply chain development. Moreover, the
direct involvement of Supply/value chain actors and stakeholders during this process
helped to create ownership of the prioritized interventions and commitment too.
World Café for Business Linkages /Partnership: During the MSP, World café is
organized to provide space for Producers Group representative and buyers/agribusiness
as well as Supply chain/value chain actors and service providers (banks, nurseries, input
suppliers, service centres, technical assistance providers etc.) to know each other, deepen
mutual understanding among each other on the supply demand scenario, rules and
regulations of the business and laying the basis for work together and arrangements. World
café is and Interaction method which engages all the participants in various issues
simultaneously. The points to be considered in conducting world cafe are as follows:
• Set equal number of venues as shown in Fig.4.
• Assign each Buyers/Agribusiness or service providers to host the venue as shown
in fig.4.
• Producer’s group representatives are divided into several groups as the number of
venue. It is recommended to form group of producer’s representatives by clusters.
• Each Group visit one venue at a time, get to know each other, exchange the
information and held interaction on the exploring the business opportunities to
work together (Fig.)
• The interaction is guided by the guiding questions which will be but not limited to:
What are the opportunities they could work together in respective supply chain;
What will be their sourcing /production plans to build business relationship in
strengthening the supply chain.
• Separate Template is provided to both Buyers and producers representatives to
note the discussion points and opportunities.
• Each venue has a facilitator (Value chain team) to facilitate the discussion.
• Group will go round to another venue (For e.g., Group to Venue 2 & Group 4 to
Venue 1as shown in fig) after each round, host remains at the Venue.
• Rotating time from venue to venue is 25 minutes. This continues till all group goes
to all the venue.
• At the end, both host (Buyers/Agribusiness or Service provider) and Group
(Producers) come out with business opportunities and concrete action for Business
linkages / service provision.
• The Facilitator also take note of the opportunities and action plan which will serve
as follow up plan for further process as Cluster level MSP (B2B Interaction and
B2S Interaction).

58
 Figure 3. World Cafe

Business-to-business (B2B) follow-up (Cluster level MSP)

Shortly after the MSPs at Hub level, MSP at cluster level / Business to Business (B2B)
meetings / interactions will be held, typically between buyer and group of producers who
met during the MSPs world café and identified specific opportunities to do business
together. The B2B follow-up meetings will focus on developing and negotiating market led
production/sourcing plan between producers and buyers/businesses a reliable supply of
products as required by the market to have competitive advantage (volume, seasonal &
varietal) creating win-win situation for both parties as illustrated in figure 4 below. In turn,
the agreed Production / trading plans will often lead to the need for specific actions or
investments to be made by the producers, buyer/business or both. The investments and
actions may be taken individually or jointly, depending on what has been agreed.

Agribusiness & Producers

Multi stakeholders Interaction Meetings / Market led production plan and Product Delivery :
Platform (Cluster/Hub technical Support (Embedded,Fee Win Win creating Assured Market
B2B Meet
Level) Based from Private SPs) and Sourcing
(cluster/Group level)

Figure 4. Steps involved from MSP to Product Delivery as per Market Demand
The project will facilitate this type of B2B, B2S interaction at group and cluster level on
regular interval followed by regular support and monitoring to ensure implementation of
joint action plan. The generic role of the Value chain team / Facilitator during B2B
interaction /Brokering are as follows:
• Moderate and monitor meeting between traders /agri-business and farmers’
organization(s),
• Moderate an in(formal) contract with the following contents:
a. Basic price to be offered with prescribed quantity and qualities,

59
 b. Expected primary processing and packaging,
c. Mechanism for increasing/decreasing offered price in case change in market
price at the time of buying,
d. Mechanism to establish reference market price like DCCIs, involved in
implementing a MIS system under the HVAP support,
e. Agreement on the embedded services and support (post-harvest materials as
crates, sacks, advance money etc) to be provided,
f. Description of mechanisms to cover potential non-fulfilment of contract terms
in terms quality, quantity and timely delivery,
g. Acceptable mediation partners in case of disputes.
• Moderate regularly meetings to monitor and expand responsibilities.

The points to be considered for brokering Business to Business (B2B) linkages

and relationship will be as follows:
• Talk little, listen, ask questions (challenge) and summarize e.g., it is not about
you it is about the actors,
• Play the role of external broker (neutral and transparent), catalyst and coach for
B2B partnerships and also Assure leadership of business,
• Ensure that B2B arrangements are based on the initiative and capacities of the
actors involved addressing critical issue in the arrangements with farmers’
organizations(s),
• Facilitate for joint investment plan and make investments available through
grants, loan or own investments for working together among actors,
• Stick to the division of tasks between business and farmers’ organisations(s) as
agreed in memorandum of understanding (MoU),
• Focus on practical implementation and quick wins and openly acknowledge
potential conflicts,
• Make involvement of government staff in monitoring and providing technical
support,
• Provide mediation support to help B2B partners anticipate potential conflicts and
facilitating dispute resolution and trust building.
• Document learning and outcomes as entry for a next brokering session and look
for opportunities how other businesses and farmers’ organisation(s) can learn
from the arrangements.
• It is not necessary to involve many buyers in the beginning in clusters, if the
group has opportunity to interact with several buyers during MSP. It is
recommended to start with one buyers with several groups in clusters to meet
buyer’s requirement. One the volume grows and cannot be absorbed by the
existing buyers than explore /introduce other buyers. However, the project
should facilitate access to market price information of major markets.

e) Business-to-services (B2S) follow-up (Cluster level MSP)

Like B2B meetings, shortly after the MSPs at Hub level, Business to services
meetings/interaction will be held so as to facilitate linkages between value chain/supply
chain actors in particular producers and service provider (input supply, business, technical,
financial etc.) with a focus to deliver wide range of services/products to help them operate
and grow their businesses. The generic services and guidance for brokering B2S
relationship is similar to B2B linkages and relationship.
Implementation Steps
Conducting MSP
• APD constitute an inter-Directorate focal group separately for Agriculture and
Horticulture to conduct MSPs.

60
 • The Sector Specialist will be coordinator of this group with support from the
Business Development Manager.
• The focal group to identify market players interested in forging relationships with
FPOs/FIGs and conduct meetings between the market players and producers
comprising FPO/FIG leaders and farmers.
• At the end of the meeting workout marketing arrangements between the market
player and the producers.
• Conduct one to one meeting between market player and the producers to formalize
the arrangements.
Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Constitute an inter-Directorate focal group APD DioA-J, DioA-
separately for Agriculture and Horticulture K, DioH-J and
to conduct MSPs DioH-K
Identify market players interested in APD DioA-J, DioA-
forging relationships with FPOs/FIGs and K, DioH-J and
conduct meetings between the market DioH-K
players and producers comprising FPO/FIG
leaders and farmers
Conduct one to one meeting between APD DioA-J, DioA-
market player and the producers to K, DioH-J and
formalize the arrangements. DioH-K

Trade fair participation

• APD to prepare a calendar of events indicating the trade fairs in different parts of
the country and abroad.
• Prepare a list of criteria for selection and circulate both physically and electronically
using print and digital media.
• Seek proposals from the interested entrepreneurs, review and select the
entrepreneurs for participation in trade fairs.
• Provide funding to selected entrepreneurs.
Implementation responsibility
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Prepare a calendar of events indicating the APD Directorates
trade fairs in different parts of the country and
and abroad. Universities
Prepare a list of criteria for selection of APD Directorates
participants and circulate both physically and
and electronically using print and digital Universities
media.
Seek proposals from the interested APD Directorates
entrepreneurs, review and select the and
entrepreneurs for participation in trade Universities
fairs.
Provide funding to selected entrepreneurs. APD

61
Buyer-seller meet
Organizing a buyer-seller meet, also known as a trade show, conference, or business
networking event, requires careful planning and execution. Th generic steps for conducting
buyer and seller meet is provided below:
Define Your Objectives: Determine the purpose of the event. Is it for product showcasing,
networking, sales, or information exchange? Set clear goals and objectives for the event,
such as the number of attendees, revenue targets, or new business partnerships.
Budgeting: Create a budget that outlines all the expenses, including venue rental,
marketing, staffing, catering, and promotional materials. Identify potential revenue
sources, such as sponsorships, booth fees, or ticket sales, to cover the expenses.
Select a Date and Venue: Choose a convenient date that works for your target audience.
Find a suitable venue with enough space, facilities, and accessibility for the event. Ensure
it aligns with your budget.
Event Planning and Logistics: Create a detailed event plan that includes a timeline, tasks,
and responsibilities. Arrange for necessary permits and insurance, if required. Select
vendors and service providers for equipment, catering, decorations, and AV support.
Marketing and Promotion: Develop a marketing strategy to reach your target audience.
Use a combination of online and offline channels, such as social media, email marketing,
flyers, and press releases, to promote the event. Create a website or landing page for the
event with registration and information about participants and exhibitors.
Participant Selection: Identify and invite potential buyers and sellers who align with your
event's goals. Encourage exhibitors to book booths or spaces for showcasing their products
or services.
Registration and Ticketing: Set up an online registration system for attendees and
exhibitors. Determine ticket prices or fees for booth rentals, if applicable.
Event Agenda: Plan the event agenda, including keynote speakers, panel discussions,
workshops, and networking sessions. Share the agenda with participants in advance.
On-Site Management: Ensure smooth event operations by having a dedicated team for
registration, security, and logistics. Provide exhibitors with a setup schedule and
guidelines.
Networking Opportunities: Organize dedicated networking sessions to facilitate
interactions between buyers and sellers. Create a comfortable and welcoming environment
for networking.
Technology and Communication: Set up technology infrastructure, including Wi-Fi, AV
equipment, and power sources. Have a communication plan in place for announcements
and emergency situations.
Feedback and Evaluation: Collect feedback from participants to gauge the event's success
and identify areas for improvement. Use the feedback to make necessary adjustments for
future events.
Post-Event Follow-Up: Send thank-you notes to participants and exhibitors. Share event
highlights, photos, and videos on social media and your website. Continue to nurture the
relationships and connections made during the event.
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Preparing the concept with clear goals and APD Directorates
objective with focus commodity/s and and
theme Universities

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 Planning and budgeting for buyer and seller APD Directorates
meet and
Universities
Identify buyers and sellers and seek their Directorates
interest to participate. and
Universities
Organize the buyer seller meet Directorates
and
Universities

Product development
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Conduct a workshop of food technologists SKUAST-J and APD
and entrepreneurs to brainstorm on new SKUAST - K
products from Jammu and Kashmir.
Engage a reputed institution/s to develop SKUAST-J and APD
the identified product with quality SKUAST - K
standards.
Provide technology to the J&K SKUAST-J and APD
entrepreneurs. SKUAST - K

Brand development and promotion

Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Engage an agency to develop brand APD Directorates Department of
strategy, brand identity, brand and trade and
messaging, brand promotion and brand Universities Industry
assets.
Based on the recommendations of the APD Directorates Department of
brand development agency, prepare and trade and
brand promotion activities in both print Universities Industry
and digital media.

Export/Logistic Hub
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Establish quality control labs SKUAST-J and APD
SKUAST-K
Engage an agency to assess the feasibility APD Department
of establishing export hub/logistic park. of trade and
Industry
Based on this report make plans for APD Department
establishment of an export hub/logistic of trade and
zone Industry

C. Incubation and start-up

Rationale
Agriculture is a vital sector for Jammu & Kashmir's economy. By nurturing innovative
agricultural startups, the state's agricultural productivity, and in turn the livelihood
opportunities and state’s prosperity will be enhanced. Start-ups are crucial elements of a

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state which contribute to sustainable development of the state, because they solve the
fundamental issues faced by farmers and micro-enterprises.
Under this support, ideas generated, discussed, and supported will factor in climate change
risks and incorporate suitable adaptation measures. These activities primarily target youth
and women, aiming to educate them about climate change and its impacts on enterprises.
An essential measure of success for the project will be the internalization of this knowledge
among the youth and women, contributing to successful project outcomes.

Challenges faced by farmers and micro-enterprises

Farmers and micro-enterprises face crucial challenges which become barriers to their
success, and in turn the success of the state and the nation. In J&K, they especially face
a unique set of challenges due to the state's geographical and environmental
characteristics. Here are some of the common problems faced by the farmers and micro-
enterprises operating at a local level:
• Limited Access to Markets: Micro enterprises and small farmers in rural areas
struggle to access wider markets for their products. Lack of transportation
infrastructure and connectivity make it difficult to reach customers beyond local
markets.
• Seasonal Nature of Agriculture: Agricultural activities are highly dependent on
seasonal variations. Farmers face income fluctuations and financial instability
during off-seasons.
• Lack of Access to Finance: The smaller stakeholders of agriculture have limited
access to formal financial institutions, making it challenging to secure working
capital or invest in modern technology and equipment.
• Technological Gaps: Outdated or traditional farming and processing methods
hinder productivity and quality. Micro-enterprises lack access to modern
agricultural technologies, knowledge, and practices.
• Infrastructure Deficiencies: Inadequate infrastructure, including storage
facilities and transportation networks, lead to post-harvest losses and difficulties in
maintaining product quality.
• Access to Inputs: Access to quality seeds, fertilizers, pesticides, and other
agricultural inputs may be limited in rural areas, affecting the quality and yield of
crops.
• Climate Change Vulnerability: J&K, like most mountainous states of India, is
prone to climate change-related challenges, including erratic weather patterns and
natural disasters like landslides and floods. These factors can adversely affect
agriculture and agri-based micro-enterprises and farmers.
• Limited Education and Training: Lack of access to agricultural training and
education lead to inefficiencies and lower productivity. Many farmers are not aware
of best practices in farming and processing.
• Marketing and Value Addition: Micro enterprises struggle with marketing their
products effectively and adding value to raw agricultural produce. They are not
equipped with business skills and training. This results in lower profitability.
• Access to Skilled Labor: Finding skilled labour in rural areas for specialized tasks,
such as processing or packaging, can be difficult. Farmers and micro-enterprises
do not have access to these specialized skills.
• Quality Control and Certification: Meeting quality standards and obtaining
necessary certifications can be daunting for micro-ventures and individual small
farmers. Compliance with food safety and quality regulations is essential for market

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 access, which makes it difficult for farmers and micro-enterprises to compete with
larger players.
• Limited Networking Opportunities: Individual farmers and micro-enterprises
have limited exposure to industry networks and opportunities for collaboration with
other businesses or organizations.
• Environmental Sustainability: Maintaining sustainable agricultural practices are
challenging due to limited resources and awareness. Balancing productivity with
environmental conservation is a constant concern.
• Access to Technology and Digital Tools: The digital divide prevents micro
enterprises and farmers from utilizing technology for marketing, value chain
management, and access to information.
How can Agri-Startups address the Challenges faced by farmers and micro-
enterprises?
Agri startups have the potential to play a significant role in improving the livelihoods of
small and marginal farmers in J&K by addressing some of the challenges these farmers
face. Some of the mechanisms through which start-ups address the challenges discussed
above and become extremely relevant for the agricultural ecosystem are as follows:
• Access to Technology: Agri startups can provide small farmers with access to
modern agricultural technologies, such as precision farming tools, weather
forecasting apps, and mobile-based farm management systems. These
technologies can help farmers make informed decisions, optimize resource use,
and increase yields.
• Market Access: Startups can create online platforms and mobile apps that
connect small farmers directly to buyers, eliminating the need for
intermediaries and ensuring fair prices for their produce. They can also help
farmers access wider markets, including urban areas and even international
markets, by facilitating transportation and logistics.
• Financial Inclusion: Agri startups can partner with financial institutions to
offer digital financial services, including microloans and insurance products
tailored to the needs of small farmers. Mobile-based payment systems can
simplify transactions and reduce the risks associated with cash handling.
• Supply Chain Optimization: Agri startups can work on improving supply chain
efficiency by offering services like cold storage, warehousing, and
transportation solutions. This can help reduce post-harvest losses and improve
the quality of produce. IoT-based monitoring can help small farmers and buyers
track the condition of produce throughout the supply chain.
• Access to Inputs: Startups can create networks for the procurement and
distribution of quality seeds, fertilizers, pesticides, and other agricultural inputs.
This ensures that small farmers have access to essential resources for
cultivation.
• Crop Diversification: By providing information and incentives for crop
diversification, agri startups can help farmers reduce their dependence on single
crops, mitigating risks associated with crop failure. Encouraging the cultivation
of high-value crops or organic produce can also increase farmers' income.
• Sustainability Practices: Startups can promote sustainable farming practices,
such as organic farming, water conservation, and agroforestry, to help small
farmers maintain soil health and reduce environmental impact.
• Collective Farming and Cooperatives: Agri startups can facilitate the
formation of farmer cooperatives or self-help groups, allowing small farmers to
collectively access resources, negotiate better prices, and share risks. These
cooperatives can also benefit from bulk purchasing and marketing support.

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 • Weather and Climate Information: Startups can offer real-time weather
information and climate forecasts tailored to the local agricultural conditions in
J&K. This helps farmers make timely decisions related to planting, irrigation,
and harvesting.
• Customized Farming Solutions: Using data analytics and AI, startups can
offer personalized recommendations to small farmers based on their specific
crop types, soil conditions, and local weather patterns.
• Government Support: Agri startups can partner with government agencies to
ensure that small and marginal farmers in J&K can access government schemes,
subsidies, and support programs more effectively.
Overall, agri-startups can bridge the technological and informational gap that often hinders
the progress of small and marginal farmers in J&K. Their innovative solutions can empower
these farmers to enhance productivity, increase income, and improve their overall quality
of life.
How can Incubation Centres facilitate the Operations and Success of Start-ups?
It is proposed to establish incubation centre hubs in SKUAST-J and SKUAST-J which are
focused on agriculture and allied sectors. These centres will provide startups with essential
resources such as workspace, mentorship, training, access to technology, access to funds,
and networking opportunities. Some strategies and initiatives through which incubation
centres can help support building a startup ecosystem in this sector are as follows:
• Financial Support: Create a fund or grant program specifically for agriculture
startups. Offer financial incentives, subsidies, or grants to encourage innovation
and entrepreneurship in the sector.
• Technical Assistance: Provide technical and agronomic support to startups,
including access to agricultural experts, soil testing, and crop management
guidance. Collaborate with agricultural universities and research institutions to offer
specialized training.
• Knowledge and Training: Develop advanced training programs that provide
start-ups with information on best farming practices, pest and disease
management, sustainable agriculture techniques, and best business and
management practices.
• Market Access: Facilitate market access for startups by connecting them with local
and regional markets, food processing industries, and export opportunities.
Establish farmer-producer organizations and cooperatives to help startups
collectively market their products.
• Technology Adoption: Encourage startups to leverage technology for precision
farming, data analytics, and farm management. Support the development and
adoption of agricultural technology solutions tailored to the region's needs.
• Capacity Building: Organize workshops and skill development initiatives to
introduce start-ups to farmers and negotiate joint agendas for greater farmer
impact.
• Research and Innovation: Promote research and innovation in agriculture by
fostering partnerships between startups, agricultural universities, and research
institutions. Support research projects that address local agricultural challenges.
• Infrastructure Development: Invest in start-ups, who in tun invest in rural
infrastructure, including drip-irrigation systems, cold storage facilities, and
transportation networks, to reduce post-harvest losses and improve supply chain
efficiency.

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 • Access to Credit: Facilitate access to credit and financial services for startups and
farmers. Collaborate with financial institutions to create tailored loan and credit
products for the agriculture sector.
• Government Support: Advocate for favourable policies and regulatory
frameworks that support agricultural startups. Streamline land acquisition and
leasing processes for farming ventures.
• Promotion and Awareness: Create awareness campaigns to highlight the
importance of agriculture and allied sectors as viable career options. Encourage
youth to consider entrepreneurship in agriculture.
• Monitoring and Evaluation: Implement a robust monitoring and evaluation
system to track the progress and impact of startup initiatives in the agriculture
sector. Make data-driven decisions to refine support programs.
• Networking Platforms: Establish local and regional agricultural startup networks
and associations. Encourage collaboration, knowledge sharing, and peer support
among startup founders.
• Incentives for Innovation: Offer innovation awards, recognition, or competitions
to incentivize startups to develop solutions that address pressing agricultural
challenges in the region.
• Sustainable Practices: Promote climate resilient and environmentally sustainable
adopting ‘cause no harm’ approach among startups to ensure long-term soil and
natural resource conservation.
Proposed Project Activities
In order to establish an advanced entrepreneurship ecosystem in J&K over the next seven
years, several activities are proposed, which are detailed below:
Mentorship of Incubation Centers
Two universities – SKUAST-J and SKUAST-K have been identified as the incubation centre
hubs under the proposed project.

The Agri-Entrepreneurship Incubation Framework

Phase 3-Planning,
Phase 1-Selection of Phase 2-Business
Implementing & Phase 4-Demo Day
Enterprises Training
Validating Phase

Phase 1- Selection of enterprises

• The program starts with the awareness & application process followed by a careful
selection of agri-business ideas/startups/enterprises in year one to go forward with
the 24-month long acceleration process. The program will focus on providing
business acceleration support to ideas/startups/enterprises from J&K.
• Inviting progressive farmers/FPOs/SHGs/federations/local academic institutions/
relevant departments/lead banks to be a part of two workshops one each in Jammu
& Kashmir region of J&K.
• Posting an Advertisement of Program in regional Newspaper of J&K & Online
Promotion
Phase 2- Business training phase

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 • In this stage, the entrepreneurs will go through two months of intensive
experiential learning where they learn entrepreneurial skills and develop an
entrepreneurial mindset in an online as well as physical class model at end of
learning phase.

Need Business Mission & Vision of Products Offering

Assessment/Problem Description Enterprise
Statement
Differentiation (USP) Identifying Price Process of Building Backward &
Point manufacturing/ Forward Linkage
usage steps
Total Quality Target Market- Determining Market Latest Trends in
Management Identifying the Size of Product Business
Customers
Effective Marketing Managing Digital SWOT Analysis of Pricing Strategies
Strategies Communications Business
Sales Channel & Building Analysis of Team & Key
Distribution Partnerships Competition Responsibilities
Bookkeeping & Making Income & Understanding Profit Preparing Financial
Accounting Records Expenditure & Loss Statement Projections & Making
Account A Business Plan

Phase 3- Business Incubation- Planning, Implementing & Validating Phase

• In this phase, the chosen startups/enterprises will be supported to develop the
MVP/Prototype, develop business strategy and access to finance along with to be
market ready and implement the learnings from the initial learning & training
sessions to develop a roadmap to take their business forward.
• In this Phase, the entrepreneurs will go through several business-related mentoring
on topics such as conducting primary and secondary research, preparing a business
plan, financial projection, managing business cash flows etc.
Phase 4- Demo Day
• The demo day/graduation day to be conducted at lead business
incubator/Agriculture department HO marks the end of the yearlong acceleration
program, where the entrepreneurs will pitch their ideas for investment.
• A grant amount of INR 5 lakhs per enterprise (amount not included in program
budget) may be awarded to the top five entrepreneurs recommended by evaluation
committee.
• All 20 participants will receive a business acceleration program completion
certificate.
This yearly incubation program will be conducted by the lead business incubator every
year following the processes set in the first year of operations. Over the entire duration of
the project, it is expected that the hubs and spokes will collectively identify and support
500 agri-startups with annual incubation services.
Capacity Building of Incubation Centers
A capacity building program for agri-focused incubators is essential to equip these
organizations with the knowledge and skills necessary to support agri-entrepreneurs
effectively. The capacity building program should consist of a structure consisting of
following:
• Needs Assessment: Starting with a comprehensive needs assessment to identify
the specific challenges and areas where agri-focused incubators require capacity
building. Understanding their current strengths and weaknesses.

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 • Program Objectives: Defining clear objectives for the capacity building program.
These objectives may include enhancing agri-entrepreneurs support, improving
organizational sustainability, and fostering innovation in agri-related startups.
• Curriculum Development: Creating a well-structured curriculum that covers key
areas such as agri-tech, sustainable farming practices, business development,
financial management, and marketing. This also entails tailoring the content to the
specific needs of agri-focused incubators.
• Expert Faculty and Resource Persons: Inviting experts, industry professionals,
and successful agri-entrepreneurs to serve as faculty and resource persons for the
program; and ensuring they have practical experience in agribusiness and can
provide valuable insights.
• Training Modules:
• Developing training modules that focus on topics like:
• Agri-tech trends and innovations
• Sustainable and precision farming practices
• Access to agricultural resources and funding
• Building agri-entrepreneurship ecosystems
• Market access and value chain development
• Monitoring and evaluating agri-startup progress.
• Practical Workshops: Including hands-on workshops where participants can
learn by doing. For example, organize field visits to agri-tech startups, farms, and
agricultural research institutions.
• Case Studies: Sharing case studies of successful agri-startups, incubators, and
innovations to provide practical insights.
• Networking Opportunities: Facilitating networking sessions and partnerships
among agri-focused incubators, industry players, and other stakeholders.
• Evaluation and Assessment: Implementing regular assessments and evaluations
to measure the impact of the program. Using feedback to make improvements and
tailor the program to the needs of incubators.
• Post-Program Support: Offering ongoing support and mentorship to incubators
as they implement what they've learned. Encouraging them to apply the knowledge
and best practices in their programs.
• Sustainability: Discussing strategies for sustaining agri-focused incubators,
including revenue models, funding sources, and partnerships. - Encouraging them
to seek financial sustainability to continue supporting agri-entrepreneurs.
• Certification: Providing certificates to participants upon successful completion of
the capacity building program.
• Knowledge Sharing: Creating a platform for incubators to share their experiences
and knowledge, fostering a collaborative community.
• Follow-Up: Regularly following up with incubators after the program to track their
progress and offer support as needed.
• Impact Assessment: Evaluating the impact of the capacity building program on
agri-focused incubators and the startups they support. Share success stories and
insights gained through the program.
Establishing Incubation Center Spokes
The Hub & Spoke model is a strategy often used to promote entrepreneurship and
economic development in various regions. In this model, a central "hub" location serves
as the primary centre for resources, support, and expertise, while "spoke" locations are
distributed throughout the region to provide access and connectivity to entrepreneurs and
businesses. This model aims to foster entrepreneurship, innovation, and economic growth
by creating a network of support and collaboration.
The Hub & Spoke model can be applied to promote entrepreneurship as follows. The lead
incubator working as Hub in Hub and Spoke model will provide the state-of-the-art
infrastructure and world-class incubation facilities to the centres working as Spoke and to

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the students, startups and incubates across the state of J&K. Incubation centre working
as Hub will act as a Centre of Excellences (CoE) for the other satellite incubators (spokes)
in the state. The Hub will assist in the capacity building of satellite incubators to set up at
the district level. It will focus on commercializing new technologies, prototype research
and development, patent filing, and creating new jobs, thereby strengthening the
economy.
The lead incubator working as hub will have a dedicated incubation and startup specialist
team with support staff. Key objectives of this model will be to:
• To encourage startups, college students and faculties to pursue Innovation and
Entrepreneurship.
• Proactive engagement with industry to continuously promote and identify
Innovation.
• To foster an ecosystem to generate ideas across disciplines that can be transformed
into successful innovative technologies, products, and services.
• To develop human capital, by creating the right environment and support systems
for learning, experimentation, and innovation from the early phases of education.
• Focus on creating sustainable funding models, through Govt. funds and other
instruments.
• Encourage startups in Rural and Social Entrepreneurship space by providing
additional incubation facilities.
• To provide mentorship, guidance, and support to envision startups.
• To collaborate with various J&K Govt Depts, Research Organizations, Industry and
Funding agencies to promote and support innovation, technology development and
startups.
• To create an institutional framework for effective implementation, monitoring and
evaluation of this policy in the state via introducing the J&K-state incubator ranking
framework and felicitate the innovations via J&K innovation awards.
Under this program, it is intended to utilize the existing KVK infrastructure to create
‘Startup Centres of Excellence’ in each district. These KVKs, along with district level
universities, departments, it is and other academic setups, under the broad guidance of
SKUAST-J and SKUAST-K, will develop an end-to-end Innovation and Entrepreneurial
Startup Ecosystem in J&K, helping start-ups move the journey of “Ideation-to-
Commercialization”.
Conducting Bootcamps
For a budding entrepreneur, the process of preparing a business proposal with a financial
plan is not so encouraging, and pitching for funding requires lots of hard work and effort.
Even so much hard work and effort may fail to get the business off the ground. In such a
case, boot camps could come to the rescue. Boot camps help start-ups or wannabe
entrepreneurs in understanding the nuances of entrepreneurship, acquiring the necessary
skills to write a business proposal and skills to effectively pitch. Boot camp is a space for
budding entrepreneurs to meet others who are in the same boat as they are and learn
from each other’s experiences. It serves as a platform to learn, interact and get direct
feedback from industry experts, start-up mentors and top-notch academicians.
Start-up Bootcamp is a one-of-a-kind platform that allows participants to work in a
mentoring atmosphere and pitch before a panel of recognized industry experts on their
idea. The sole goal is to show participants & future entrepreneurs, how to make a business
plan and take a close look at their financial needs and prospects. It's also an opportunity
to fix budding entrepreneur’s idea shortcomings and offer them answers to their doubts.
Boot Camp Components

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The workshop will have two parts covered in 02 days: Day 01 involves training sessions,
guest lectures, and practice pitching and on Day 02, the final business pitches will be made
by the teams to the evaluation committee for shortlisting among top 10 ideas across 20
districts of J&K.

Day 01 Day 02
• Bootcamp Orientation • Story of Renowned Enterprises-Audio Visual
• Startup Ecosystem in J&K Mode
• Finance & Accounting of an Enterprise • Talk of An Entrepreneur-Journey & Challenges
• Developing Business Plan Canvas for a Business • Business Plan Pitching
Idea • Mentoring Support to Individual Promising Ideas
• Leadership & Managing a Team in Startup • Open Session for Doubt Clearning on Startup
• Scaling Up & Growth Stratagies Support
• Business Plan Training to Particpants
• Practice Pitching Sessions

Boot Camp Design

Conducting Hackathons
Hackathons focused on agriculture, often referred to as "Agri Hackathons," are events
designed to bring together individuals, teams, and experts to develop innovative solutions
to challenges in the agricultural sector. These events aim to foster entrepreneurship,
enhance technological innovation, and address pressing issues in agriculture. The Agri
Hackathons should have a clear objective which may include promoting agri-tech
innovation, enhancing sustainable farming practices, or addressing specific agricultural
challenges. The hackathon should have a specific theme or challenge that aligns with the
agricultural sector's needs. Topics like precision agriculture, farm management, agri-
finance, supply chain optimization, or climate-resilient farming may be considered to be
the theme of conducting the Agri Hackathon.
Key Objectives for Conducting Agri Hackathon in J&K Agri Startup Support System
• Identifying the most exciting, innovative, and futuristic ideas to address the core
challenge or theme identified in Agri Hackathon
• Building the connection between startups, agribusiness giants, policymakers &
financial institutions bringing all on a single platform
• Brainstorming & discussions on challenges in Agri space & scope of Agri tech
startups with subject matter experts
• Highlighting incubation & funding opportunities for scale-up
Ideal Candidates to Participate in Agri Hackathons
The Agri Hackathons conducted under IFAD supported Agri startups support program will
be looking for Startups, innovators, students, researchers, and groups of individuals who

71
have developed or are developing technology-based innovations that have the potential to
solve the problem of identified thematic challenge in the agriculture sector and the
proposed solution demonstrates a business model sustainability. The solution must be
focused on the given problem statements only and no deviation is entitled. The proposed
solutions must have a Prototype before the jury.
Evaluation Criteria

• All the submitted applications would be scrutinized by our evaluators under

different focus areas. Each application will be evaluated by a set of evaluators to
ensure the best submission gets selected for the next round.
• The applications will be judged on different parameters, including but not limited
to the problem statement. market need, the novelty of the idea/innovation, stage
of development, scalability, potential impact, technical & financial feasibility,
commercialization capacity, the team, and the overall business plan.
• The evaluation committee would reserve the right to select or reject any submission
without assigning any reasons whatsoever and without thereby incurring any
liability to the participant(s) whatsoever.
Rewards at Agri Hackathon

• Funding Opportunities- Startups/Ideas shortlisted for the grand finale may get a
chance to participate in the centre supported Agri startup program subject to
fulfilling evaluation criteria for selection in the RABI program.
• Incubation Support- Winners may be offered incubation support at lead Agri
startups incubator.
• Business Connection- Startups/Ideas shortlisted for the grand finale will be
introduced to agri-business companies for scaling up the solution to a larger
market.
• The Event Plan: This event would be conducted in three stages. In the first stage,
teams will submit concept notes on their problem statement. The concept note
must not exceed 500 words. It should be explicit and must have a title, justification,
methodology, potential impact, technological and economic feasibility, and
conclusion. After the screening, selected participants will be notified to present their
solution (product/practices) for the problem statement (offline/online/hybrid
mode) before the expert committee in the second stage. About 15 minutes time
will be allocated for the presentation and discussion. The presentation should focus
on innovativeness, market need, scalability, technical and economic feasibility,
budget requirement, stage of development, potential impacts, etc of the solution
(product/practice). The right to reject any entry at any stage of this event remains
with organizers if there are any discrepancies. The final decision/s of the judging
committee will be acceptable to all and no representation against their decision/s
will be accepted. Shortlisting of the top 20 startups/ideas will be done in this round.
These 20 startups/ideas will participate in the physical hackathon event at SKUAST
Universities.
• The hackathon will be a 02-day event where on day 01, startups will learn business
basics from different faculty members & subject matter experts of agri business
incubator. The grand finale will be organized on day 02 identifying the top 05
solutions working in the domain of specified theme in agriculture by a group of jury
members consisting of investors, agribusiness representatives, subject matter
experts, lead agri business incubators Professors & policymakers.
• The speakers, guests, investors, industry experts, and government officials may be
invited to come together to discuss the potential future happenings in agricultural
technology revolving around given topics.

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Creating a year-long Incubation Support Programs
A year-long Incubation Support Program aims to provide startups with sustained guidance,
resources, and mentorship to help them grow and succeed. Designing a year-long
Incubation Support Program specifically tailored to agri startups requires a deep
understanding of the unique challenges and opportunities in the agricultural sector. Here's
a comprehensive plan for such a program:

• Program Orientation and Needs Assessment (Month 1):

o Conducting a thorough needs assessment to understand the specific
challenges and goals of each startup.
o Setting clear expectations and program goals.
• Mentor Matching and Onboarding (Months 1-2):
o Matching each agri startup with experienced mentors who have a
background in agriculture, agribusiness, or related fields.
o Conducting mentor-mentee onboarding sessions to establish
communication guidelines and goals.
• Agri-Specific Workshops and Training (Months 2-6):
o Organizing a series of workshops and training sessions that address
agriculture-specific topics.
o Covering areas such as sustainable farming practices, agri-tech, market
access, and value chain development.
o Inviting industry experts, agronomists, and successful agri-entrepreneurs
as trainers.
• Access to Agricultural Resources (Throughout):
o Providing startups with access to agricultural resources, such as farmland
for testing and experimentation, agricultural machinery, and research
facilities with assistance from agri business incubation centre
o Facilitating partnerships with local agricultural research institutions and
cooperative farms.
• Business Model Refinement (Months 6-8):
o Helping startups refine their business models and go-to-market strategies.
o Encouraging them to incorporate sustainable and innovative approaches
into their plans.
o Supporting the development of prototypes or pilot projects for agri-tech
solutions.
• 6. Market Expansion and Value Chain Integration (Months 8-10):
o Assisting startups in exploring new markets, forming partnerships with
distributors, and integrating into agricultural value chains.
o Focusing on increasing access to markets, including local, regional, and
international markets.
• 7. Investment and Funding Readiness (Months 10-12):
o Preparing agri startups for investment opportunities by providing training in
investor pitch development, financial management, and due diligence.
o Facilitating connections with potential investors, impact funds, and grants
specific to agriculture.

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 • 8. Field Trials and Scaling (Months 10-12):
o Supporting startups in conducting field trials, scaling up their agricultural
practices, or expanding agri-tech solutions.
o Monitoring progress and provide guidance on scalability challenges.
• 9. Demo Day and Graduation (Month 12): - Organizing a Demo Day event where
agri startups can present their progress and innovations to investors, industry
experts, and potential partners. - Celebrating the graduation of startups from the
program, recognizing their contributions to the agricultural sector.
• 10. Post-Program Support and Alumni Network (Beyond Year 1): - Establishing an
alumni network to facilitate ongoing collaboration and knowledge sharing among
graduates. - Continuing to provide support and mentorship to alumni as they
navigate the challenges of scaling their agribusinesses.
• 11. Evaluation and Program Enhancement (Throughout and After): - Continuously
evaluating the program's effectiveness and impact on agri startups' growth and
sustainability. - Using feedback and data to improve and refine the program for
future cohorts.
• 12. Outreach and Promotion (Throughout): - Promoting the program within the
agricultural community and among potential agri-entrepreneurs. - Sharing success
stories and outcomes to attract new participants and mentors.
Building a module for regular entrepreneurship training
There seems to be an immediate need for building a module for entrepreneurship training
to be adopted for participants planning to start an agri focused startups in Jammu &
Kashmir. These modules may be delivered to enthusiastic agri-entrepreneurs through
identified spokes at different location. The training envisions equipping participants with
the fundamental knowledge and skills required to start and grow a successful business.
The entrepreneurship modules will provide practical insights into entrepreneurship through
real-world case studies and interactive activities. This will foster an entrepreneurial
mindset and problem-solving abilities among participating entrepreneurs. The
entrepreneurship training may be designed to be delivered in 03 months following below
mentioned modules in general-
Session 1: Introduction to Entrepreneurship (Week 1)
• Define entrepreneurship and its importance.
• Explore different types of entrepreneurships (e.g., small business, social enterprise,
tech startup).
• Discuss the mindset and qualities of successful entrepreneurs.
Session 2: Idea Generation and Validation (Week 2)
• Methods for generating business ideas.
• Techniques for validating and refining business concepts.
• Conducting market research and identifying target audiences.
Session 3: Business Planning (Week 3)
• Creating a comprehensive business plan.
• Components of a business plan: executive summary, market analysis, operations,
financial projections, and more.
• Setting clear business goals and objectives.
Session 4: Legal and Regulatory Considerations (Week 4)
• Overview of legal structures (e.g., sole proprietorship, LLC, corporation).
• Registering a business and complying with local regulations.
• Intellectual property protection.
Session 5: Funding and Financial Management (Week 5)
• Sources of startup capital (e.g., personal savings, loans, investors).

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 • Basics of financial management, budgeting, and cash flow.
• Preparing financial statements and forecasts.
Session 6: Marketing and Sales Strategies (Week 6)
• Developing a marketing strategy and plan.
• Effective branding, digital marketing, and traditional marketing techniques.
• Sales techniques and customer relationship management.
Session 7: Operations and Scalability (Week 7)
• Managing day-to-day operations efficiently.
• Scaling a business, growth strategies, and expansion considerations.
Risk management and contingency planning.
Session 8: Leadership and Team Building (Week 8)
• Leadership skills for entrepreneurs.
• Building and leading effective teams.
• Handling challenges related to human resources.
Session 9: Innovation and Adaptation (Week 9)
• Encouraging innovation within the business.
• Adapting to market changes and disruptions.
• Case studies of businesses that successfully pivoted.
Session 10: Pitching and Investor Relations (Week 10) - Crafting an effective business
pitch. - Building investor relations and seeking funding opportunities. - Practicing pitch
presentations.
Session 11: Networking and Building a Support System (Week 11) - The importance of
networking in entrepreneurship. - Strategies for building a professional network. -
Leveraging mentors and support organizations.
Session 12: Graduation and Next Steps (Week 12) - Reflecting on the entrepreneurship
journey. - Setting goals and action plans for the future. - Graduation ceremony and
certificate distribution.
Assessment and Evaluation:
• Participants can be evaluated through assignments, quizzes, and a final project
where they apply what they've learned to create a business plan or pitch.
• Regular feedback and self-assessment can be encouraged to track progress and
identify areas for improvement.
Resources:
• Providing participants with reading materials, templates, and access to online
resources related to entrepreneurship.
• Guest speakers, entrepreneurs, and industry experts can be invited to share their
experiences and insights.
Creating a challenge fund
Creating a challenge fund for agri startups in Jammu & Kashmir is an excellent way to
incentivize innovation, address agricultural challenges, and support the growth of the agri-
entrepreneurship ecosystem in the region. The objective of challenge fund includes
promoting agri-tech innovation, improving agricultural productivity, enhancing food
security, and fostering entrepreneurship in the agricultural sector.
Identifying Focus Areas and Challenges:
• Incubation partner needs to collaborate with experts, stakeholders, and the
agricultural community to identify specific focus areas and challenges within the
agricultural sector. These could include topics like sustainable farming practices,
water management, pest control, agri-tech innovation, and more.
Eligibility Criteria for Participation in Challenge Fund:

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 • Agri startups based in J&K.
• Farmer Producer Organizations (FPOs)
• UG/PG/Research Students of J&K Based Academic Institutions with Innovative
Solutions in Agriculture Space for J&K
• Progressive Farmers of J&K
• SHG/VO/CLFs Engaged in Agriculture & Allied Activities
Amount of Challenge Fund
The amount of challenge fund to be distributed to winning startups/enterprises per
year per startup should be INR 5.00 lakhs. A maximum of 75 agri based startups
may be allocated with the challenge fund in any financial year.
Promotion and Outreach:
• Launching a robust marketing and outreach campaign to promote the challenge
fund.
• Using various channels, including social media, local media, agricultural forums,
and partnerships with universities and research institutions, to reach potential
participants.
Application and Evaluation:
• Opening the application process and providing startups with ample time to prepare
and submit their proposals.
• Assembling a diverse panel of judges or evaluators with expertise in agriculture,
agri-tech, and entrepreneurship.
• Evaluating proposals based on predefined criteria, such as innovation, feasibility,
impact, and scalability.
Further funding to Startups and Creating Convergence with Other Schemes
Agri startups and entrepreneurs supported under IFAD startup support scheme through
challenge fund or winning amounts in ideathon/hackathon will be monitored on various
parameters including increment in topline, adding new customers & partners, positive
EBITDA, customer retention, operational efficiency in business. The startups with positive
cash flow and convincing balance sheet should be supported with the next round of funding
by linking them with different startup support schemes run at regional and national level.
A few of these schemes run at regional & national level are as follows:
RKVY RAFTAAR Agri Business Incubation Program- Under this, financial assistance
of a maximum of Rs. 25 lakhs will be provided to potential startups that have a minimum
viable product (MVP) based on innovative solutions, processes, products, services, and
business models in the agriculture and allied sectors.
Agriculture Accelerator Fund- An Agriculture Accelerator Fund has been set up to
encourage agri-startups by young entrepreneurs in rural areas under Union budget 2023-
24. The fund will aim at bringing innovative and affordable solutions for challenges faced
by farmers. It will also bring in modern technologies to transform agricultural practices
and increase productivity and profitability.
Startup India Seed Fund Scheme- Startup India Seed Fund Scheme (SISFS) aims to
provide financial assistance to startups for proof of concept, prototype development,
product trials, market entry and commercialization. This would enable these startups to
graduate to a level where they will be able to raise investments from angel investors or
venture capitalists or seek loans from commercial banks or financial institutions. The
startups will be provided a financial support up to INR 50 lakhs based on the
recommendation of investment committee of respective incubation centres supported by
Govt of India under this scheme.
Venture Capital Firms & Private Investors- Along with government funding to agri
startups, there lies a huge opportunity of attracting private investors focused on the
agriculture sector. An annual investor summit may be organized for supported agri startups

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in J&K inviting private investors to become a part of the event. A few of investors for this
purpose have been listed below:
Omnivore Ankur Capital Indigram Labs Avishkar Capital
Omidyar Network Acumen Fund Yournest Ventures Orios Ventures
India
Blume Ventures Elevar Equity Indian Angel Better Capital
Network
Qualcomm Ventures Artha Ventures Matrix Partners LetsVenture

Linking the Agri Startups with J&K Startup Policy- The policy provides various
benefits and incentives to the entity recognized as a start-up. The government provides
co-working space with uninterruptible high-speed internet to the selected recognized start-
ups besides a monthly allowance of Rs. 10,000 (for a period of one year) is also being paid
to the start-ups. Similarly, startups are provided one-time assistance of Rs 10 Lakh for
Product Research and Development/Marketing/Publicity. The scheme also has the
provision of a 100 per cent subsidy on the purchase and installation of Diesel Generator
set Solar/Wind Generator or Hybrid Solar Wind Systems to recognized start-ups.
Connecting with NABARD’s Venture Capital Arm NABVENTURES- NABVENTURES
Limited is a wholly owned subsidiary of NABARD. NABVENTURES is the Investment
Manager of NABVENTURES Fund I with a target corpus of INR 500 crore. The fund focusses
on investments in early to mid-stage start-ups in agriculture, agtech, agri-biotech, food,
agri/rural fintech and rural businesses.
Risk mitigation measures
The project will pilot risk mitigation measures to reduce the perceived risk for financial
institutions, making them more willing to provide loans to rural borrowers/small farmers
who often face greater income volatility and less predictable cash flows. These schemes
play a crucial role in promoting financial inclusion and supporting economic development
in rural areas. The project will during implementation will engage consultants to review
the credit uptake, and repayment performance by smallholders in project funded activities
such as agricultural and horticultural crop expansion and enterprise promotion and design
appropriate products in consultation with APD and the participating financial institutions.
Climate risk will be regarded as one of the credit risks during risk assessment and while
proposing solutions. This approach will aid entrepreneurs in understanding the types and
levels of risks, the methods used for assessment, and the identification of a range of
adaptation or mitigation measures available to them.
Implementation Steps
• APD to entrust the task of incubation centre establishment and start-up support to
SKUAST-Jammu and SKUAST-Kashmir.
• Chief Executive of the Incubation centre to visit IIM-Jammu and IIT-Jammu to
understand their processes and procedures in start-up promotion.
• Engage IIM-Jammu and IIT-Jammu as mentors for the Incubation Centres.
• Establish Incubation Centre Spokes in the KVK of each district.
• Conduct bootcamps/Ideathons in each district.
• Provide mentoring support to select ideas/concepts.
• Conduct challenges for providing seed capital to select start-ups.
• Continue providing mentoring support.
• Link the start-ups to other sources of finance.
Implementation responsibility

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 Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Entrust the task of incubation centre APD SKUAST-J and
establishment and start-up support to SKUAST-K
SKUAST-Jammu and SKUAST-Kashmir.
Organize visit of Incubations centre staff to SKUAST-J
IIM-Jammu and IIT-Jammu and
SKUAST-K
Engage IIM-Jammu and IIT-Jammu as SKUAST-J
mentors for the Incubation Centres. and
SKUAST-K
Establish Incubation Centre Spokes in the SKUAST-J KVK
KVK of each district. and
SKUAST-K
Conduct bootcamps/Ideathons in each KVK SKUAST-J and
district. SKUAST-K

Provide mentoring support to select SKUAST-J KVK

ideas/concepts. and
SKUAST-K

Conduct challenges for providing seed SKUAST-J

capital to select start-ups. and
SKUAST-K
Continue providing mentoring support. SKUAST-J KVK
and
SKUAST-K
Link the start-ups to other sources of SKUAST-J
finance. and
SKUAST-K

III. Support to Vulnerable Communities

A. Support to Pastoralists
Introduction
The major vulnerable communities of Jammu and Kashmir are pastoralists. And majority
of them are Bakarwals and Gujjars. They have been recognized as Scheduled Tribes (ST).
They are primarily nomadic and semi-nomadic communities and have a distinct way of
life, culture and traditional knowledge that have been shaped by their close relationship
with their animals and the unique environment of the region.
Livestock is an important sector in the economy of Jammu and Kashmir (J&K).The
pastoralists adopt sheep, goat and buffalo rearing as prime occupations. There are 3.04
million sheep,1.5 million goats and 0.7 million buffaloes in J&Kas per 20th Livestock
Census. Besides these horses, ponies and mules too have a sizable number of 0.08 million
mainly reared by these vulnerable communities.
Jammu and Kashmir, a region with diverse climatic conditions, holds great potential for
the wool sector. Its geography, including high-altitude pastoral areas, makes it an ideal
location for sheep rearing and wool production.
Wool has been a traditional livelihood and source of income for many communities in the
region, mainly the fringe pastoralist communities like Bakarwals and Gujjars. The wool
sector has played a crucial role in the socio-economic development of Jammu and Kashmir
from ages. Wool production and related activities contribute significantly to the state's
economy. It provides livelihoods to a large population, particularly the transhumance which
counts to more than 0.9 million.

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Jammu and Kashmir is the second-largest producer of wool in the country. J&Kproduces
approximately 70 lakh kg (7000 MT) of wool per year. Unfortunately, even with such a
high production, the wool is not up to the quality standards of woollen industries of India.
The wool is not processed in the region due to the lack of proper infrastructure and
development of the wool value chain(VC). On the contrary, the raw wool is transported to
Punjab and Haryana for processing and subsequently, the finished products like yarn,
blankets, apparel, and many other items are supplied to the Valley. This way wool growers
of the region are not getting enumerative returns.
Constraints
Climate Changes: Pastoralists are among the most vulnerable communities to the impacts
of climate change. They migrate seasonally to graze their livestock and are at the forefront
of bearing the negative effects of climate change. Changes in weather conditions, non-
availability of water sources and the quality and quantity of grazing lands affect livestock
health and productivity.

Limited Infrastructure: The lack of modern infrastructure, including wool processing units
and storage facilities, hinders the sector's growth. Inadequate transportation and
connectivity add to the challenges.
Quality Control: Inconsistent wool quality due to poor breeding practices and lack of
standardized testing and grading facilities makes the produced wool uncompetitive to
market.
Marketing and Market Access: Limited market access and marketing networks for wool
producers. The absence of value addition and branding hamper the sector's profitability.
Seasonal Dependency: The wool sector's activities are highly seasonal, leading to income
instability for wool producers and there is a lack of off-season employment opportunities
for youth of the community.
Technical Knowledge: Limited awareness and training among farmers on modern sheep-
rearing practices and good wool production. There is a need for sustainable and eco-
friendly techniques in wool production.
Land Rights and Displacement: Pastoralists in J&K have faced historical challenges of land
rights and displacement. Many of them have limited or no formal land titles, making their
traditional grazing lands vulnerable to encroachment and land-use changes.
Low Price for Wool: The wool produced in Jammu and Kashmir are of average 24 micron
or more and does not match the Indian wool apparel industry's demands of finer wool of
less than 20 micron, which they import from outside of the country. J&K wool fetches only
INR 25-35 per kg whereas import fine wool comes at a very high price of INR 800-1000
per kg.
Less developed Alternative Income Sources: Pastoralists depend on Goat rearing and
equines for their additional source of income since the ages. Unfortunately, due to
unstructured and unplanned breeding practices not much has been achieved so far in
development of these sectors.
Interventions Proposed
JKCIP project proposes the following interventions for Wool sector development in Jammu
and Kashmir:
● Wool Value sector support covering wool supply chain feasibility study, multi-
stakeholders’ platforms, support to the Wool Sector and wool processing units with
Private Partners
● The proposed value chain study aims to evaluate their climate vulnerability and
recommend practical adaptation measures along with diversified income-
generating activities.

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Besides these, as additional support to pastoralists’ livelihood following is being proposed:
● Goat Breed Improvement
● Ponies, Horses, Mules (Equines) Breed Improvement feasibility study
● Equines Breed Improvement
The project planned activities directly correlates with the goal of boosting income and
establishing diverse income-generating opportunities, including skill development and
employment generation, for tribal communities, thereby enhancing their resilience to both
economic challenges and climate-related impacts.
Wool sector support
Objective: The primary objective of the wool value chain study is to conduct a
comprehensive assessment of the wool sector including industry in Jammu and Kashmir.
The study aims to gather accurate and up-to-date data on various aspects of wool
production, processing, marketing, and consumption.
There is a need to review the current situation by undertaking a comprehensive study of
the wool value chain and assess its growth potential. The study should become a reference
for future development of the wool industry and policy making in J&K.
The study will aim to cover a representative sample of wool-producing areas/wool
processing within J&K, considering factors such as production volumes, the diversity of
sheep breeds along with shearing/grading and marketing of raw wool, and the presence
of various value chain actors along facilities for marketing of finished goods.
Rationale: To develop a robust wool value chain from productivity and quality
enhancement to market linkages with the interest of fetching better returns to wool
growers, a feasibility study of the wool sector in Jammu and Kashmir is essential to assess
the viability and potential for growth and development in this sector.
The study will focus on the complete ecosystem of wool production of pastoralists and
other wool producers. Depts. of Sheep Husbandry and Tribal Welfare of GoJ&K have
started many programs and schemes for support to pastoralists. Still, a comprehensive
plan for the complete value chain development of wool with an eye for competitiveness
in the marketing nationally and internationally is the need of the hour.
Although India has the 3rd largest number of sheep, it depends on the import of fine
quality wool for application in woollen clothing. India imported USD 232.35M (approx.
INR 1931.59cr) of raw wool in 2022-23 becoming the 2nd largest importer of wool in the
world. India imports wool primarily from Australia, New Zealand, Syria, China and South
Africa. The main importers of raw wool (greased not carded and combed) in India are
Raymond Limited, Shree Ram Woolen Industries, Grentex & Co. Pvt. Ltd, Rane Brake
Lining Ltd etc.
Indian woollen industry’s demand and import of raw wool in large quantities opens
opportunities for the wool sector in Jammu and Kashmir. Thus, comprehensive support to
pastoralist wool producers and developing complete wool chain development will boost
the financial status of these communities.
A comprehensive study will help identify opportunities for economic growth and
development in the region, especially in the context of wool production, which is a
significant contributor to the local economy.
The wool sector provides livelihoods for a large number of people in the region. Assessing
its feasibility can lead to strategies for enhancing income and improving the quality of life
for those involved in the sector.
The study can explore ways to add value to the wool produced in Jammu and Kashmir,
potentially increasing its market value and competitiveness.

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With climate change and environmental concerns, the study can evaluate the
sustainability of current practices and suggest environmentally friendly alternatives.
Terms of Reference for Wool Industry Consultant/Consultants for study
The project should select an agency to field a team of consultants to study the wool sector.
The terms of reference of the study include:
● Conduct a survey of pastoralists covering their migratory routes, wool shearing
habits, wool shearing schedules, wool shearing seasons and locations, the current
quality of wool produced compared to the market demand and quantity available
in different locations, current marketing practice and price realization.
● Conduct market research for marketing J&K wool, identify issues related to
marketing and reasons for the inability of J&K farmers to get better prices.
● Develop strategies for improving the wool sector of J&K with private-sector
participation.
● Identify potential private sector partners interested in collaborating with GoJ&K
for investment in the wool sector and prepare guidelines for private sector
participation.
● Prepare a detailed project report for investment in the wool sector considering
techno-economic feasibility.
Implementation steps
● Conduct a study of wool industry, wool mandis and wool markets in the country
by a team to be selected by the PMU comprising officers from the Directorate of
Sheep Husbandry, Department of Industry and Commerce, representatives of
communities, representatives of NGOs working in the wool sector and the
Universities.
● The team to prepare a report comprising the market scenario, wool prices,
comparative quality and price analysis, minimum quantity requirements, issues in
marketing of J&K wool, and recommendations for improving the wool sector and
present it to the JKCIP-PMU.
● Engage an agency to conduct a comprehensive study of the wool sector. ToRs
provided above.
● Submission of the report by the agency and a presentation of its findings to the
JKCIP-PMU.
● Submission of a detailed project report with techno-economic feasibility for private
sector engagement.
● Private sector consultation and firming up wool sector development plan.
The implementation responsibility chart is provided below:
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
A wools market survey by the officials of APD DoSH
GoJ&K
Engage an agency to conduct a wool sector APD DoSH
study
Review the recommendations of the wool APD DoSH
sector study
Take steps to implement activities agreed APD DoSH Private sector

2. Goat breed improvement

Objectives

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Jammu and Kashmir has varied agro-climatic and geo-physical conditions (high mountains,
low hills and vast meadows), rich alpine pastures, host of other natural endowments and
unique socio-cultural setup suitable for livestock production. The farm animal biodiversity
in the J&K closely follows the geographical diversity.
Among all farm animals, goats are considered the most reliable livelihood resource of poor
farmers. Goats are easy to manage and maintain owing to their small size and they can
sustain a wide range of agro‐climatic conditions. Goat is an efficient converter of the sparse
vegetation available in wastelands, community grazing lands and tree leaves into milk,
meat, skin manure, and fibre.
In J&K important breeds of Goats are Bakerwali and others are nondescript goats. Nomadic
Gujjars and Bakerwals maintain the Bakerwali Goats. The goats are being used mainly for
meat purposes. There is a need for improvement of breeds of these goats for better growth
and for maintaining high value germplasm. Distribution of high-quality male bucks to goat
farmers for natural breeding is being proposed as an intervention through JKCIP.
Rationale:
More often goats are reared for production of meat called Chevon. On an average J&K is
consuming 50,000- 60,000 MT of mutton (sheep meat) every year with local production
of about 30,000-35,000 MT which makes the J&K dependent on 15000 to 30000 MT of
meat coming from other neighbouring states.
With exponential increase in tourist influx the demand for Chevon (goat meat) is
increasing in J&Kday by day. Thereby creating huge opportunities for breed improvement
of goats in J&K for Chevon and thus providing additional lucrative sources of income to
marginalized and poor farmers.
There is great scope for rearing goats for meat and milk production under semi‐intensive
and intensive systems of management. A complete management programme with respect
to breeding, nutrition, management, health care and economics is required to improve
goat production in J&K.
Implementation steps:
● Identification and selection of Goat rearers in a cluster in sub-tropical and tropical
regions in J&K having at least 10-20 female goats, as beneficiaries.
● Preference will be given to women and unemployed youth of pastoralists and
Gujjars who are not migratory and settled.
● 250 identified beneficiaries in a cluster may be termed as a Goat Valley. 04 such
clusters will be developed in 04 years, 01 in each year. 02 in Kashmir and 02 in
Jammu region.
● Each identified beneficiary having 10-20 goats shall be provided 01 improved
quality Buck for breed improvement.
● The breeding bucks already with the beneficiary shall be castrated or replaced by
improved quality bucks.
● Initially as per the Livestock Breeding Policy of J&K the quality bucks for distribution
shall be arranged from neighbouring states.
● The Bucks coming from outside must be examined and quarantined for at least 15
days before distribution to beneficiaries to avoid disease outbreaks and to ensure
best adaptability and performance.
● The Govt Goat Breeding farms and private goat entrepreneurs shall be
strengthened and encouraged to be developed as nucleus mother farms as a hub.
● The convergence with the GoI scheme of NLM for Goat Breed Multiplication should
also be incorporated.

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 ● In the second year onward in the project the distribution of improved breeding
bucks should mainly be sourced from the Govt Goat breeding farms and private
entrepreneurs making an economically viable value chain for them.
● An effective MIS and structured breeding plan would be developed by JKCIP-PMU.
The implementation responsibility chart is provided below:
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Identification and Selection of beneficiaries DoSH APD
Prepare a structured breeding plan DoSH APD
Strengthening of existing Govt Goat farms as DoSH APD GoI-NLM
breed multiplication and quarantine station
Purchase of improved Bucks from neighbouring DoSH APD
states and their quarantine
Distribution and replacement of Bucks Farmers DoSH APD
Monitoring and Evaluation of performances and DoSH APD
improvement in breed

3. Equine breed improvement

Objectives:
Population of equines like horses, ponies and mules in J&K is 0.14 million and it also ranks
second after Uttar Pradesh in India.
Bakarwal community, the pastoralists of Jammu and Kashmir are mainly associated with
equine rearing. The community mainly uses equines as pack animals during yearly
migration along with other animals and rents them for yatras (pilgrimage) in the hills.
Majority of Bakarwals and pastoralists having Horses, Ponies and Mules are landless and
only 5.03% have marginal land holdings. They have no permanent residence. Each
pastoralist's family has on average 1-6 equine animals along with other livestock such as
cattle, buffaloes, sheep and goats. Traditionally the Bakarwals are not open to adopting
new methods, techniques and innovations evolved over years in equine breed
improvement. Breed characterization and documentation of the local equine population
too have not been undertaken so far. Equine breed improvement in Jammu and Kashmir
can be a crucial initiative to enhance the quality and productivity of equine populations.
Rationale:
The feasibility study for breed improvement of horses, ponies and mules in Jammu and
Kashmir is essential to improve the genetic makeup of local equine breeds to produce
animals with desirable traits such as strength, endurance and temperament. Also, to
safeguard and conserve the unique local equine breeds that may be under threat of
extinction due to unplanned and ignorant breeding practices or other factors. The outcome
of this study will promote equine-related livelihoods and empower local communities by
enhancing the value and utility of equines. Enhancing equine breeds can improve their
overall health and welfare, reducing the risk of diseases and injuries.
Terms of reference for the equine breed improvement study:
The SKUAST-Kashmir in its campus of Faculty of Veterinary Sciences and Animal
Husbandry has a Ponies research centre. The faculties and scientists of this organization
may be entrusted to carry out this study. The terms of reference for study should include:-
● A comprehensive survey to collect data on the existing equine population.
Documentation of the distribution, numbers, and breed characteristics of equines
in the region.
● Evaluation of the genetic diversity and traits of indigenous equine breeds.
Assessment of the potential for crossbreeding and its impact on local breeds.

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 ● Analysis of existing breeding practices, including mating techniques and selection
criteria. Identification of areas for improvement in breeding management.
● The healthcare and nutrition practices for equines. Evaluate the welfare conditions
and identify areas for enhancement.
● Engagement with local communities, equine owners and stakeholders to gather
insights and input on breed improvement.
● A comprehensive report detailing the findings and recommendations for equine
breed improvement in Jammu and Kashmir.
Implementation Steps:
● A team should be formed by the University to carry out the study, consisting of
faculties, scientists, research scholars, field veterinarians from Deptt of
Animal/Sheep Husbandry J&K, representatives of the community and NGOs
working for the equine welfare in the region.
● As per the ToRs, the team is to prepare a plan of actions and timeline in
coordination with JKCIP-PMU.
● The team conducts surveys, data collections, evaluation, analysis and preparation
of recommendations.
● Submission of the report by the team and a presentation of its findings to the
JKCIP-PMU and all stakeholders.
● Implementation of Activities as per the agreed recommendations.
The implementation responsibility chart is provided below:
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Formation of Study Team SKUAST-J&K APD
Conduct the equine breed improvement SKUAST-J&K APD
study
Review the recommendations of the study APD APD
Take steps to implement activities agreed APD SKUAST-K&J

B. Support to other vulnerable groups

Introduction
Besides Bakarwals, other major vulnerable communities of J&K are Gujjars and Fisherfolk.
Gujjar community is one of the largest ST communities which is largely settled but
seasonally migrates to the neighbouring districts in search of fodder for their cattle,
buffaloes, sheep, goats and other livestock. ST communities and the fisherfolk
communities are vulnerable communities on account of their isolation from the
mainstream communities and dependent on common property resources. These
communities depend on livestock and fish farming and forefront of experiencing impacts
of climate change.

Constraints

Gujjars and fisherfolk communities in J&K face various constraints and challenges when it
comes to their livelihoods and employment opportunities.
● Both Gujjars and fisherfolk often reside in remote and geographically isolated
areas, making it difficult to access markets, healthcare, and education facilities.
This isolation can hamper their economic prospects.

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 ● The livelihoods of fisherfolk are often dependent on seasonal variations in fish
availability and Gujjars are primarily engaged in seasonal livestock farming. This
seasonality can lead to income instability and financial vulnerabilities.
● These communities may lack awareness and opportunities for diversifying their
income sources. Relying solely on traditional occupations can make them
vulnerable to economic shocks.
● Limited access to formal financial institutions and credit options can hinder their
ability to invest in productive assets and upgrade their livelihoods.
● Lack of access to modern technology for fishing and livestock management is also
a constraint.
● In some cases, the communities may face challenges related to land and resource
rights, which can affect their ability to engage in their traditional livelihoods.
● They are more exposed to climate change impacts. Their key means of livelihhod,
fish and livestock sectors, are more sensitive to the impact of climate change
making their traditional livelihoods more challenging.
● Both Gujjars and fisherfolk may face difficulties in accessing markets to sell their
products, often due to geographical isolation and lack of transportation
infrastructure.
● Limited access to skill development and vocational training opportunities can
hinder their ability to adapt to changing market demands and take up alternative
income-generating activities.
● These communities can face social discrimination and marginalisation, which may
limit their access to various government programs and services.
● Lack of proper facilities and infrastructure for post-harvest handling, storage and
value addition, which can result in product losses and reduced incomes.
Interventions Proposed:
The planned project activities are closely linked to the objective of increasing earnings and
creating various income-generating chances, such as enhancing skills and generating
employment, for vulnerable communities. This aims to strengthen their ability to withstand
economic difficulties and the effects of climate change.
To facilitate the vulnerable communities of Gujjars and fisherfolk, the project envisages to
support the development of the milk supply and value chain by establishing 12 milk
collection and 08 associated milk processing units preferably with women SHGs
and supporting in development of market linkages.
The settled sheep/goat farmers of these communities will be supported with provision of
providing 800 units of 10 female and 1 male animals to augment their income and
livelihood.
For vulnerable communities of fisherfolk 10,000 ice boxes for preserving, transporting and
marketing have been incorporated in the project proposal.
Additionally, the youth and women of these vulnerable communities will be supported
with establishment of 1,250 livestock-based enterprises and startups with the aim of
boosting employment opportunities.
1. Milk supply chain improvement
Objectives:
There is a great demand for establishing milk processing units in J&K because J&K is still
miles away from attaining self-sufficiency in milk and milk products. Presently J&K is
receiving per day 11,000 litres of processed milk and 51,000 litres of raw milk from Punjab
and other neighbouring states.

85
The current milk production is 697.5 thousand tonnes and 732.91 thousand tonnes with
marketable surplus of 235.06 thousand tonnes and 246.98 thousand tonnes in the
divisions of J&K, respectively. Though Jammu division has more marketable surplus, but
milk producers are scattered on hilly tracts at longer distances from the main consumption
centres.
Jammu and Kashmir Milk Producers Cooperative Limited (JKMPCL) is the oldest
organisation with two milk plants, one each at Srinagar and Jammu, and is the state level
federation of 186 and 130 dairy cooperative societies, respectively.
Supporting the development of the milk supply and value chain in Jammu and Kashmir for
vulnerable Gujjar communities at village level is a valuable initiative to improve their
livelihoods and socio-economic well-being.
Almost all families in the community rear the cattle or buffaloes for milk production and
its marketing. Average numbers of milch animals with each family is 2-5 animals with
average daily surplus milk of 20-50 litres for sale. But due to lack of milk collection cold
chain (Bulk Milk Coolers) and milk processing facilities at village level, the surplus
marketable milk either does not fetch good prices or gets destroyed.
With development of community/SHGs based dairy, milk collection units and village-based
milk processing units, an economically viable competitive milk value chain would be
established.
Rationale:
● Dairy farming provides a year-round income source, reducing the dependence on
seasonal livelihood activities.
● Involving women's SHGs empowers them economically and socially, contributing
to gender equality.
● Establishing processing units and market linkages ensures that the produced milk
is processed efficiently and reaches consumers, improving market access and
profitability.
● Dairy products are a valuable source of nutrition, which can help improve the
health and well-being of the communities.
● Promoting sustainable and eco-friendly dairy practices aligns with long-term
environmental and animal welfare goals.
Implementation steps:
● The Department of Animal Husbandry in Jammu and Kashmir (DoAH J&K) with
support from JKCIP-PMU and in collaboration with JKMPCL would conduct a
comprehensive needs and market assessment with local dairy farmers to
understand their specific requirements putting emphasis on processing and
market linkages. A detailed project plan with inputs from stakeholders would be
prepared by them.
● DoAH J&K will identify the 12 SHGs and places where milk is available in surplus
and where Milk Collection Units (BMCs) with capacity of 500/1000 ltrs may be
established in both divisions ofJ&K.
● DoAH J&K will also identify the common strategically located places where 08
small/medium sized Milk Processing Units(MPUs) for pasteurisation, value
addition, packaging and marketing may be established.
● Capacity building and training to SHG members, especially women on modern
dairy farming practices, animal husbandry, and milk handling. Train women's
SHGs in entrepreneurship, business management and cooperative principles by
DoAH J&K and SKUAST J&K.
● Improvement of quality of the communities' livestock by providing access to high-
yielding dairy breeds and artificial insemination services. Convergence with

86
 ongoing schemes of GoI-NLM and J&K government schemes for Dairy
development would be sought.
● Establishment of market linkages and partnerships with local markets, dairy
processors, and retail outlets and exploring the opportunities for branding and
marketing of dairy products.
● A robust monitoring and evaluation system is to be developed to assess the impact
of the interventions on the communities' economic well-being and sustainability.

The implementation responsibility chart is provided below:

Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Milk surplus and market assessment study & DPR DoAH- JKMPCL APD
preparation J&K
Identification of places for 12 Milk Collection DoAH- JKMPCL APD
Units(BMCs) and establishment J&K
Identification of places for 08 Milk DoAH- JKMPCL APD
Processing Units (MPUs) and establishment J&K
Training and Capacity Building of SHGs and DoAH- JKMPCL APD
members of vulnerable communities in milk J&K
handling and processing
Branding, Marketing and milk value chain DoAH- JKMPCL APD
development J&K

2. Sheep and goat Scheme

The SCs/STs in Jammu and Kashmir are distinct ethnic and cultural groups that have
historically been marginalised and disadvantaged. The major ST tribes in J&K are
Bakarwals and Gujjars who traditionally depend on cattle, buffalo, sheep and goat rearing
for their livelihood.
To support settled SC/ST communities mainly Gujjars and to provide a source of
employment for the women and youth in families the JKCIP project proposes to additionally
supplement their livestock with a unit of 10 females and 01 male of sheep or goats.
Objectives:
● To improve the economic well-being of vulnerable Gujjar communities in Jammu
and Kashmir by providing them with sustainable income opportunities through
sheep and goat rearing.
● To reduce the dependency on seasonal livelihoods, such as livestock herding, by
diversifying income sources through the establishment of sheep and goat units.
● To uplift the socio-economic status of Gujjar families, particularly women, by
providing them with the means to generate income and improve their living
conditions.
Rationale:
● The Gujjar community traditionally relies on livestock herding for their livelihoods,
but this can be season-dependent and uncertain.
● By providing 10 female and 01 male sheep and goat units, the scheme aims to
empower women within the Gujjar community, as women often play a significant
role in small ruminant rearing.
● Sheep and goats are prolific breeders and can provide a stable source of income
through the sale of meat, milk, and other related products.
● Sheep and goats are well-suited to the hilly and rugged terrain of Jammu and
Kashmir, making them a sustainable choice for the region.

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Key Features of the Scheme:
● The scheme will support the 800 beneficiaries’ family in establishment of sheep
goat units in convergence with JKCIP, GoJ&K schemes and beneficiary share.
● Each beneficiary family will receive 10 female sheep or goats and 01 male for
breeding purposes.
● The scheme will also support the development of market linkages for the sale of
meat, wool, milk, and other products derived from sheep and goats and promoting
value addition by training on wool processing and dairy product preparation.
Implementation Steps:
● Deptt of Sheep Husbandry, J&K(DoSH-JK) would conduct a comprehensive
assessment to identify eligible beneficiary families within the Gujjar community.
● Register eligible families and select beneficiaries based on criteria such as socio-
economic status and willingness to participate.
● Procure healthy and productive sheep and goats, including 10 females and 1 male
for each beneficiary family.
● Conduct training sessions for beneficiaries on small ruminant management, health
care, and sustainable farming practices.
● Provide financial support and technical assistance to help beneficiaries set up
proper shelter and enclosures as their share in the scheme.
● Support the establishment of fodder farms to ensure a consistent supply of
nutritious feed.
● Facilitate access to veterinary care, vaccination, and disease management
services.
● Establish market connections for the sale of sheep and goat products, ensuring
fair prices for the beneficiaries.
● Implement a robust monitoring and evaluation system to assess the impact of the
scheme on the socio-economic well-being of Gujjar communities. Periodically
review and adjust the scheme based on feedback and outcomes.

The implementation responsibility chart is provided below:

Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Identification and selection of eligible DoSH-J&K APD
beneficiaries
Prepare a scheme for support of SCs/STs APD DoSH-J&K
Capacity Building and Training DoSH-J&K APD
Procurement and distribution of DoSH-J&K APD
Sheep/Goat Units
Establishment of market linkages DoSH-J&K APD

3. Icebox to fisherfolk
Objectives:

Fisherfolk of J&K are engaged in small time fishing business where they directly sell their
catch without involving any middlemen. This is usually practised by the wives of the
fisherfolk. The objective of this scheme is to empower vulnerable fisherfolk/fisherwomen
in Jammu and Kashmir by providing them with Ice Boxes to improve the preservation,

88
transportation, and marketing of fish. The scheme aims to enhance the income and
livelihoods of fisherwomen and promote gender equality in the fisheries sector.

Rationale:

● Fisherwomen often play a significant role in the post-harvest value chain, but they
face challenges in preserving and transporting fish. This scheme empowers them
by providing essential equipment.
● Ice boxes help maintain the freshness and quality of fish, ensuring higher market
prices and reducing post-harvest losses.
● By enabling fisherwomen to access better markets and receive fair prices for their
catch, their income and livelihoods are enhanced.
● Promoting women's participation in the fisheries sector and providing them with
tools for economic empowerment contributes to gender equality and women's
economic independence.

Key features of the scheme:

● JKCIP and Deptt of Fisheries Jammu and Kashmir (DoF-J&K) aims to distribute
10,000 ice boxes to eligible fisherfolk/fisherwomen across Jammu and Kashmir in
05 years of project period on grant-in basis.
● Along with ice boxes training programs to educate fisherfolk/fisherwomen on the
proper use of ice boxes, fish handling, and hygiene practices.
● The scheme encourages the formation of women's self-help groups and
cooperatives among fisherwomen to facilitate collective marketing and bargaining
power.
● Monitoring and evaluation mechanisms will be in place to assess the impact of the
scheme, including improvements in fish quality and income.
● The scheme includes efforts to establish market linkages for fisherfolk/
fisherwomen, connecting them with local markets, restaurants, and other
potential buyers.
● Provisions for maintenance and repair of ice boxes are to ensure their long-term
usability.
Implementation steps:

● Identify and select vulnerable fisherfolk/fisherwomen who meet the eligibility

criteria for receiving ice boxes.
● Procure the ice boxes from reliable suppliers or manufacturers, ensuring they
meet the required specifications.
● Organise training programs to educate fisherfolk/fisherwomen on the proper use
of ice boxes, fish handling, and hygiene practices.
● Distribute the ice boxes to eligible beneficiaries in a fair and transparent manner,
ensuring that each recipient receives the necessary equipment.
● Promote the formation of self-help groups or cooperatives among fisherwomen to
foster community engagement and collective marketing efforts.
● Establish connections with local markets, restaurants, and potential buyers to
create marketing opportunities.

89
 ● Implement a monitoring and evaluation system to track the scheme's progress
and measure its impact on fisher women's income and livelihoods.
● Provide mechanisms for the maintenance and repair of ice boxes to ensure their
longevity and functionality.
The implementation responsibility chart is provided below:
Activity Partners and their implementation responsibility
Primary Secondary Collaborative
Identification and selection of eligible beneficiaries DoF-J&K APD
Capacity Building and Training DoF-J&K APD
Procurement and distribution of Ice Boxes DoF-J&K Fisherfolk
Establishment of market linkages DoF-J&K DoF-J&K

4. Enterprise Support-Income Diversification

Objectives:

Enterprises support interventions in JKCIP project in Jammu and Kashmir to other

vulnerable communities aim to help income diversifications for youth and women of
families of Gujjars and Bakarwals, who are not migratory and are comparatively settled.
The young generations of traditional livestock herders in Jammu and Kashmir are
disinterested and distracted from their family occupation of cattle, sheep, goat rearing due
to many constraints and difficulties.
The younger generation among Gujjars and Bakarwals may seek opportunities outside
traditional livelihoods and income diversification can help address youth unemployment by
offering alternative career paths.
Rationale:

● Historically, Gujjars and Bakarwals have been primarily dependent on livestock

rearing, particularly goat and sheep herding. Relying solely on traditional
livelihoods can be risky, as it exposes these communities to external threats like
climate change, environmental degradation, and fluctuations in livestock
dependent enterprises.
● Income diversification with engagement of the private partners in initiatives such
as poultry farming, dairy, agribusiness and non-farm enterprises can play a
pivotal role in improving the economic resilience and overall well-being of Gujjars
and Bakarwals in Jammu and Kashmir.
● These initiatives would be designed in consultation with the communities, taking
into account their cultural practices, resources, and aspirations, and should be
implemented with a long-term perspective to achieve sustainable results.
Key features of the scheme:

● The scheme proposes to support 1250 income diversification enterprises in settled

families of Gujjar and Bakarwals in collaboration with private sectors to create
sustainable livelihood opportunities.
● The private sector can play a vital role in providing resources, expertise, and
market access.
● Dairy and Milk Processing, Poultry Farming and Processing, Honey Production and
Processing, Fish Farming and Marketing, development of homestays, adventure
tourism, Startups, Entrepreneurship Development, private business development
organisations and incubators etc could be few examples of new enterprises.
● Unit Costs for these enterprises may be decided as per the NABARD guidelines for
bankable projects.

90
 ● These interventions should be developed in close collaboration with the private
sector, ensuring that the initiatives align with market demand, quality standards,
and sustainability. Public-private partnerships can play a significant role in
enhancing the income diversification opportunities for the youth and women of
settled Gujjar and Bakarwal families in Jammu and Kashmir.
Implementation steps:

● JKCIP-PMU and Deptt of Animal Husbandry, Sheep Husbandry, KVKs and

Incubation Centres in SKUAST in Jammu and Kashmir would plan together the
project modalities.
● Surveys to identify eligible beneficiaries from the communities who wish to engage
in additional enterprises.
● Stakeholders’ consultations to identify private partners.
● Assistance to beneficiaries in selecting and preparing business plans for their
chosen enterprises, considering local resources, market demand, and individual
preferences.
● Training programs to build the capacity of beneficiaries in the chosen enterprises,
covering areas like productivity and quality enhancement, product processing, and
marketing.
● Necessary financial support in the form of grants or loans to help beneficiaries set
up or expand their enterprises.
● Facilitation in market linkages and establish connections with potential buyers,
local markets, and cooperatives to ensure a ready market for their products.
● Development of a robust system to monitor the progress of beneficiaries, assess
the impact of the scheme, and make necessary adjustments.
● Promote community engagement and collective efforts through the formation of
self-help groups or cooperatives among beneficiaries.
The implementation responsibility chart is provided below:
Activity Partners and their implementation
responsibility
Primary Secondary Collaborative
Preparation of a scheme for supporting APD DoAH-J&K
enterprise development DoSH-J&K
Identification and selection of eligible DoAH-J&K APD
beneficiaries DoSH-J&K
Selection of Enterprises as per choice of DoAH-J&K APD
beneficiaries DoSH-J&K
Preparation of enterprise proposals and due DoAH-J&K APD
diligence DoSH-J&K
Capacity Building and Training DoAH-J&K APD
DoSH-J&K
Support for establishing enterprises DoAH-J&K APD
DoSH-J&K
Establishment of market linkages DoAH-J&K APD
DoSH-J&K

C. Integration of Youth
Jammu & Kashmir is bestowed with a predominantly young population with about 69 % of
the population being below the age of 35 years and are a valuable human resource for
J&K. They can contribute significantly for the holistic socio-economic and environmental

91
development of J&K through constructive engagement. In order to engage with them and
to channelize the huge energy, Govt of J&K initiated the Mission Youth.
Mission Youth intends to provide sustained support for all young people in developing their
physical, intellectual and emotional capacities, skills, talents, strengths and abilities for
enabling them to develop exceptional leadership skills and a sense of devotion towards
community service. This can potentially engage them for mainstreaming activities and
thereby, generating employment for them. In continuation with this initiative and to
motivate them for the social and environmental activities as well as to generate decent
employment for the youth, the JKCIP has proposed to work on the youth club activities.
The youth clubs are already formed at the panchayat/ municipal ward level in rural and
urban areas under the supervision of the SDM. This youth clubs will be selected for the
additional activities through the project and thereby helping them to be engaged in
constructive activities for the society. The objectives of the youth clubs are as follows:
Objectives
● To disseminate information and create awareness among local people, especially
in remote locations & vulnerable area on environment and waste management for
better climate change adaptation.
● To train the youth club members on water body rejuvenation along with the local
communities in the region and physically rejuvenate one water body in each
panchayat/ municipal ward.
● To train them to interpret the district level climate advisory services and
communicate it in the local language in advance of 5 days at village level to help
the local community for better adaptation.
● To enable youth to identify environmental and climate-related issues and address
them through a participatory approach led by local youthsTo enhance youth
behaviour concerning the environment sustainability and climate change
adaptation.
● To facilitate effective delivery of basic services at the village level and make the
local community aware about the government schemes and programmes.
● To communicate the aspirations of the vulnerable communities at the village level
to the concerned SDM, BDOs and the Project Management Unit.
Rationale:
The youth clubs consist of members of the age group of 18 to 35 years. One youth club in
each panchayat/ municipal ward has already been constituted under the supervision of the
sub-divisional magistrate (SDM) in consultation with the local PRI/ council member. All
Block Development officers (BDOs) under the jurisdiction of SDM ensures necessary
coordination wherever, required.
Up till now 4524 youth clubs have been constituted involving total number of 70,743
youths across the twenty districts of J & K. Out of these 4524 youth clubs, 2700 youth
clubs will be identified for the activities under JKCIP starting from 200 in the first year
2024 and 500 each from year 2025 to 2029.
These youth clubs will be the forefront of all the activities planned for JKCIP. They will also
be carrying out the activities of Mission youth and the additional activities under JKCIP will
be also undertaken by them. These activities will help to reach out to the communities of
each panchayat especially the blocks which has been identified for the JKCIP programme.
This will also support to communicate the other activities of the JKCIP programme
especially the beneficiary selection for the agri-horti cultivation, reaching out to rural youth
for establishment of the incubation centre etc.

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Key features of the scheme
This scheme will follow the modalities of the current youth clubs’ constitution under Mission
Youth. JKCIP will strengthen the activities of the youth club, build their capacities to
undertake additional activities as mentioned above.
Implementation steps:
The steps that will be followed is as follows:
● The SDM will provide a notification to all the youth clubs for enrolment for the
training programme on climate change and environment awareness, waste
management, water body rejuvenation, climate advisory services etc. at a
periodic manner.
● The training will be conducted at the block level by an expert resource person.
PMU will have the responsibility to look for experts. Preference will be given for
the experts belong to J&K and then this position will be open for the entire country
based on the requirement.
● In each batch maximum 30 youth will be trained taking 2 members from each
clubs, therefore, 15 clubs can be trained in one go for specialized training like
climate advisory services, waterbody rejuvenation, waste management etc.
● The selection of the youth club will be done based on their previous experience
under mission youth and the motivation of the youth to come forward for these
activities.
● Once they will be trained, they will work as a master trainer, and they will have to
impart training to the other youth in those villages under the panchayat.
● They can then apply for the grants with the specific activities through a proposal
to the SDM. These proposals will be assessed by the district level committees
based on the above-mentioned criteria and recommend to the SDM for approval.
The SDM approve the proposal and send to PMU for grant sanction.
● Once the grant will be sanctioned, the funds will come to SDO office for
disbursement to the bank account of the youth clubs. The BDO will handholds
them if required and monitor the activities periodically. The PMU staff will also
visit the activities randomly.
● As per the design of the project, each youth clubs will be allocated to 3 lakh INR
for these activities. The training and capacity development of the youths will be
done from the project.
● Through this grant money, the youth clubs will rejuvenate one water body at least
in their panchayat/ municipal ward. They will generate awareness activities among
the local communities and the school children as a campaign mode. Minimum 3
awareness campaign to be organized in each panchayat.
● They will be responsible for the climate advisory services to be put in the common
place in each village and making the communities aware about the advisories.
These will help the vulnerable communities to better adapt with the climate
variabilities and change.
● The best performing clubs will be awarded a trophy and a cash prize at the final
year of the project.
● Through these activities the local youth will build their capacities to take up
environmental activities and this will help them get decent employment both at
government and/or non-government sectors, teaching activities or start up
enterprises at the later stage.
Activity Partners and their implementation
responsibility

93
 Primary Secondary Collaborative
Prepare guideline/scheme for supporting APD Mission Youth
youth clubs
Identification and selection of Youth clubs District Mission Youth APD
Administration
Training of youth club members District Mission Youth APD
Administration
Preparation of proposals for support Youth clubs District Mission Youth
Administration
Approval of the proposal District Mission Youth
Administration
Implementation of the proposal Youth clubs District Mission Youth
Administration

IV. Access to Finance

Introduction

The agricultural landscape in India is a testament to its role as an economic backbone,

supporting the livelihood of a majority of its population. As per the 2011 Census, out of
the total 481.7 million workers, 118.7 million were cultivators, and 144.3 million were
agricultural laborers, cumulatively making up about 55% of total employment. However,
this share has been in decline, with the Labour Bureau Report 2015-16 indicating a
reduction to 46.1% and ILO estimates suggesting a further decrease to approximately
44% by 2018.

According to the Agriculture Census 2015-16, India had 146 million operational holdings,
with an operated area of 157.14 million hectares. Small and marginal holdings (<2.00 ha)
accounted for 86.21%, holding 47.34% of the total operated area, with an average holding
size of 1.08 hectares.

Access to finance in the agricultural value chain is pivotal for these stakeholders. The
institutional framework in place has notably boosted formal credit to the agriculture sector,
escalating from ₹37.71 billion in 1981 (around 16% of the agricultural GDP of 1980-81) to
₹13694.56 billion in 2017-18, representing roughly 16% of total bank credit and about
51% of the Agriculture & Allied Gross Value Added (GVA) at current prices.

Despite advancements, challenges persist. The NABARD All India Rural Financial Inclusion
Survey (NAFIS) highlighted that while about 61% of agricultural households favour
institutional credit, nearly 30% rely solely on non-institutional sources, which raises
concerns. This reliance could stem from the need for consumption loans, the challenges
faced by tenant farmers and landless laborers in providing collateral, involvement in
subsistence farming, or perceived credit unworthiness by banks. Furthermore, the specific
challenges are i) Collateral Requirements, ii) Financial Literacy, and iii) Credit
History. To address some of the challenge the GOI has taken several policy initiates:

Policy Initiatives and Programs:

• Priority Sector Lending (PSL): Mandated by the RBI, commercial banks are
obliged to allocate 18% of their ANBC or Credit Equivalent Amount of Off-Balance
Sheet Exposure to agriculture, fostering both direct and indirect finance in the
sector.

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 • Kisan Credit Card (KCC) Scheme: With over 69.43 million KCCs issued till March
2021, this scheme ensures credit availability for farmers based on cropping
patterns and provides interest subvention to prompt repayers.
• Agricultural Infrastructure Fund (AIF): This ₹1 lakh crore initiative is aimed at
providing medium to long-term debt financing for post-harvest infrastructure and
community farming assets.
• Pradhan Mantri Fasal Bima Yojana (PMFBY): As one of the largest crop
insurance schemes globally, PMFBY safeguards farmers from pre-sowing to post-
harvest risks.
• National Bank for Agriculture and Rural Development (NABARD): Through
refinance support to various banks, NABARD fosters agricultural and rural
development financing.

Jammu Kashmir Context:

Jammu and Kashmir presents a stark contrast to other regions in India regarding financial
inclusion and the development of its banking sector, primarily driven by its distinct socio-
political landscape, rugged terrain, and harsh climatic conditions. Historically, the region's
political instability and security concerns have significantly impeded the development of
its banking sector compared to other parts of India, limiting the penetration of financial
services. This situation is compounded by logistical difficulties in reaching remote and
mountainous areas, which affects both conventional banks and microfinance institutions
(MFIs). While institutions like the Jammu and Kashmir Bank, NABARD, and SIDBI are
active, their reach remains constrained, leaving a considerable portion of the population
outside the formal financial system. Informal MFIs, including self-help groups (SHGs) and
NGOs, play a crucial role in bridging this gap, yet they too grapple with challenges like low
levels of financial literacy and infrastructural deficits. The recent COVID-19 pandemic
further strained the region's microfinance sector, exacerbating loan repayment difficulties
and impacting the local economy. Despite these challenges, there is potential for growth
in the sector, especially given J&K's vibrant entrepreneurial culture and the significant
population of unbanked individuals who stand to benefit from improved financial inclusion.

Amidst the geographical and socio-political complexities, J&K's microfinance ecosystem

operates with a combination of formal institutions like the Jammu and Kashmir Bank,
NABARD, and SIDBI, alongside informal channels such as SHGs and NGOs. Despite their
efforts, the formal sector’s outreach remains limited due to the conservative lending
practices reflected in the credit to deposit (CD) ratio2, and informal groups often fill the
gap in providing access to financial services. However, this gap signifies the substantial
potential for growth and the need for targeted financial products and literacy programs to
harness the entrepreneurial spirit prevalent in the region.

The government’s initiatives aimed at enhancing financial inclusion and supporting micro-
enterprise development, such as Jammu and Kashmir Entrepreneurship Development
Institute (JKEDI)3, Pradhan Mantri Mudra Yojana (PMMY)4, and National Rural Livelihood

2
This is exemplified by the credit to deposit (CD) ratio of the Jammu and Kashmir Bank, which stood
at approximately 62 percent in fiscal year 2021. This marked a decline from around 66 percent in the
previous fiscal year and was significantly lower than the overall CD ratio for Indian private sector banks,
which averaged 82 percent in the same period. Reserve Bank of India
3
The JKEDI is an organization established by the Government of Jammu and Kashmir. Its primary objective is to
foster and develop entrepreneurship in the region.
4
The PMMY is a scheme launched by the Government of India with the aim of providing access to affordable
credit to micro and small enterprises and individuals in the non-corporate small business sector. Under this

95
Mission (NRLM)5, are steps toward closing the financial services divide. For J&K to catch
up with the rest of the country, concerted efforts to improve infrastructure, stabilize the
socio-political landscape, and boost financial literacy are crucial.

Rationale and Objective

The rationale for facilitating access to finance for farmers and the landless in Jammu and
Kashmir (J&K) is deeply rooted in the region's economic and social fabric, which is
characterized by a significant reliance on agriculture and allied activities. Considering the
challenges in accessing finance due to factors such as political instability, geographic
isolation, and limited institutional reach, there's a pressing need to bridge the financial
gaps that impede the growth of smallholders, Farmer Producer Organizations (FPOs), and
entrepreneurs in the selected value chain. Enhancing their access to credit is critical for
increasing agricultural productivity, fostering innovation, and building resilience against
economic adversities. Furthermore, improved financial inclusion can mitigate the reliance
on non-institutional lending sources, which often carry onerous terms and stifle economic
progression. In addition, addressing these financial barriers can catalyse socio-economic
empowerment, particularly for marginalized communities, thereby contributing to overall
regional stability and growth. The project's primary objective is to facilitate an inclusive
financial ecosystem that caters to the needs of smallholders, FPOs, and entrepreneurs in
the project area.

Challenges and Financing Options Across Agricultural Value Chain Actors

The value chain actors encounter distinctive challenges that hinder their access to finance.
This project identifies and addresses these challenges, with a particular focus on input
suppliers, producers, aggregators, and Farmer Producer Organizations (FPOs) involved in
processing. By tailoring solutions to their specific needs, the project aims to enhance their
financial capabilities and support their participation in the value chain. The table below
provides comprehensive overview of the financial landscape faced by different actors,
aiding in the understanding of their unique needs and potential solutions.
Challenges in Challenges
Accessing Challenges with Value Financing
Actors Characteristics Finance with Banks Chain Actors Available
- Lack of formal - Payment
Unorganized suppliers – business - Stringent delays from
shopkeepers documentation lending criteria buyers - Microfinance
- Limited credit - High interest - Competitive
Shopkeepers with PAN history or rates for market - Business
cards/fulfilling KYC collateral unsecured loans margins loans
- Proprietor’s - Personal - Trade credit,
Input personal credit guarantee - Dependence Bank
Supplier Proprietorship company history requirements on a limited overdrafts

scheme, loans up to 10 lakh INR are extended to non-farm income-generating enterprises in sectors like
manufacturing, trading, and services. The loans under PMMY are categorized into three types: 'Shishu' (loans
up to ₹50,000), 'Kishor' (loans above ₹50,000 and up to ₹5 lakh), and 'Tarun' (loans above ₹5 lakh and up to
₹10 lakh).
5
The NRLM, now renamed as Deendayal Antyodaya Yojana-NRLM, is an initiative by the Government of India
to reduce poverty by enabling the poor households in rural areas to access gainful self-employment and skilled
wage employment opportunities. The mission aims to create sustainable community institutions around self-
help groups (SHGs), their federations, and producer groups/cooperatives. NRLM's approach is to mobilize rural
poor households into SHGs and continuously nurture and support them until they achieve sustainable
livelihoods. The program focuses on financial inclusion, social mobilization, and skill development, and it plays
a critical role in empowering rural women and marginalized communities.

96
 number of
buyers

- Reluctance - Price - Agricultural

from institutions - Foreclosure volatility, loans, Land
to use land as risks in case of weather mortgage
Producers- Landowners collateral default dependency loans
- No collateral - Exploitation - Government
to offer for - Lack of credit by grants, Group
Landless loans history intermediaries loans
- Unstable - Binding - Crop loans,
Producers – income, lack of - High risk contracts with Sharecropping
sharecroppers land rights perception landowners agreements
- Lease
- Proving financing,
profitability to - Short-term - High rental Contract
Production Producers- leased land lenders leasing contracts costs farming
- Trust and - Cooperative
- Initial setup reputation loans,
FPO (Farmer Producer costs, - Collateral building with Government
Organization) creditworthiness requirements members subsidies
- Low
bargaining - Informal
- Unrecognized power, lending, Peer-
Village collector – non- - Informality of by formal market to-peer
organized business banking sector access lending
- Irregular - Dependency
income, - Fluctuating on a few large - Factoring,
Procurement agents seasonal cycles cash flows buyers Trade credit
- Mandi
- Competition financing,
Authorized traders of - Compliance - Regulation with other Working
APMC mandi and regulations complexities traders capital loans
- Contract
- Meeting enforcement, - Personal
Unorganized lender - Lack of product loans, Angel
individuals/entrepreneur requirements business history standards investors
- Managing - Business
supply and loans,
- Personal - Limited funding demand Merchant cash
Proprietorship assets at risk without collateral fluctuations advances
- Need to
- Lack of establish - Venture
trading history - credibility capital, Bank
for new Creditworthiness, within the loans, Equity
Aggregators Companies companies financial ratios chain financing
- Lack of - Dependence
financial - Inadequate on a single - Microloans,
Unorganized literacy, documentation supplier or Supplier
shopkeepers informal records for loans buyer credit
- Credit
constrained by - Personal credit - Competition - Business
proprietor’s used for business with larger credit cards,
Retailer Proprietorship finances purposes retailers Overdrafts

Financial Needs, Institutions

Instead of the project directly providing lending resources, it will strategically leverage the
existing financial resources available within the private and government sectors. The
project's primary focus will be on enabling and empowering the various actors in the value
chain, including producers, Farmer Producer Organizations (FPOs), entrepreneurs, and
input suppliers, to build their financial capacity and effectively leverage the diverse range
of financing options available to them.

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The project will play a pivotal role in facilitating access to finance by offering capacity-
building initiatives. This includes financial literacy programs, creditworthiness
enhancement training, and guidance on navigating the intricacies of financial institutions
and products. By strengthening the financial acumen and capabilities of these actors, the
project aims to empower them to independently access the financing resources they
require.

Additionally, the project will act as a conduit between the value chain actors and the
available financing sources, helping them establish relationships with banks, government
schemes, and other financial institutions. This collaborative approach ensures that the
actors are well-prepared to present their financial needs and proposals effectively. Table 2
provides detailed information on available sources of financing and financing needs for
each actor based on their characteristics.

Financial
Institutions and Financing Available
Financial Needs
Actors Products in Through Value Chain
Detail
Jammu and Actors
Kashmir
Input Supplier

Unorganized suppliers – - J&K Bank: - Trade credit from

- Small-scale loans,
shopkeepers, Nursery Customized Retail larger distributors,
insurance
Owners Trade Finance Informal local lenders

- J&K Grameen
- Supplier credit,
Shopkeepers with PAN - Working capital Bank:
Cooperative credit
cards/fulfilling KYC loans, credit lines Microenterprise
schemes
loans
- Punjab National
- Business loans for Bank: MSME
Loans - Advance payments
Proprietorship company expansion, trade
from aggregators
credit HDFC Bank:
Business Loans
Production
- J&K Bank:
Agriculture Term - Government
- Loans against land,
Producers- Landowners Loans, Weather- subsidies, Input credit
crop insurance
Based Crop from suppliers
Insurance
- J&K Grameen
- Unsecured loans, Bank: - Microfinance
Landless
government grants Microfinance institutions, NGOs
Loans
- NABARD:
- Sharecropping
Producers – - Sharecropping Refinance
agreements, Input
sharecroppers financing, crop loans schemes for
credit
sharecroppers

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 - Lease financing, - SIDBI: Loans for - Contract farming
Producers- leased land contract farming agri-business advances, Lease
agreements projects agreements

Aggregators

- NABARD:
- Member investments,
FPO (Farmer Producer - Cooperative loans, Support for FPOs,
Community savings
Organization) grants Development
schemes
Funds

- J&K Women’s
Village collector – non- - Microloans, peer-to- Development - Informal community-
organized peer lending Corporation: based lending
Microcredit

- Prepayments from
- Trade credit, - J&K Bank: processors,
Procurement agents
factoring services Factoring Services Agreements with
exporters

- Working capital - Punjab National - Commission-based

Authorized traders of
loans, mandi Bank: Mandi financing, Delayed
APMC mandi
financing Financing payment agreements

Processor/ Bulk Supplier/ Exporter/ Trader

- Jammu &
Kashmir
- Personal loans for
Unorganized Entrepreneurship - Angel networks, Local
business, angel
individuals/entrepreneur Development investment pools
investment
Institute: Seed
Capital

- Cash advances based

- Business loans, - J&K Bank:
on orders, Inventory
Proprietorship merchant cash Entrepreneur
financing from
advances Loan Schemes
suppliers

- Equity stakes by
- Venture capital, - Canara Bank:
value chain partners,
Companies bank loans, equity SME & Corporate
Joint venture
financing loans
agreements

Retailer

- Credit from
Unorganized - Microloans, supplier - J&K Bank: Retail
wholesalers, Local
shopkeepers credit Finance Schemes
money lenders

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 - HDFC Bank:
- Business credit Business Credit - Supplier credit terms,
Proprietorship
cards, overdrafts Cards, Overdraft Cooperative bank loans
Facilities

The GoI and Government of Jammu and Kashmir have number off schemes for different
players. The below Table, provides different schemes and description which would be
leveraged.

Entity Type Scheme Expanded Description & Sponsorship

The Micro Units Development & Refinance

Agency Bank (MUDRA) loans are a part of
the Pradhan Mantri Mudra Yojana (PMMY),
introduced by the Government of India to
provide financial support to micro-
enterprises and individual entrepreneurs. The
key objective is to boost the development
and refinancing activities of micro units in
various sectors, including manufacturing,
trading, and services. MUDRA loans are
categorized into three products: 'Shishu' for
loans up to ₹50,000, 'Kishore' for loans from
₹50,001 to ₹5 lakh, and 'Tarun' for loans
from ₹5 lakh to ₹10 lakh, catering to
enterprises at different stages of their growth
and development. This initiative primarily
targets small businesses, artisans, traders,
and other segments of society that are
Pradhan Mantri traditionally excluded from formal banking
Mudra Yojana systems, aiming to foster entrepreneurship
(PMMY) and employment at the grassroots level.

The Credit Guarantee Fund Trust for Micro

and Small Enterprises (CGTMSE) is an
initiative by the Government of India to
facilitate credit to the Micro and Small
Enterprises (MSE) sector. Established jointly
by the Ministry of Micro, Small and Medium
Enterprises (MSME) and the Small Industries
Development Bank of India (SIDBI), the
scheme provides credit guarantees to
financial institutions for loans extended to
MSEs. This guarantee mitigates the risk for
lenders and encourages them to extend
credit to small businesses without the need
for collateral or third-party guarantees. The
primary goal of CGTMSE is to boost the
Credit Guarantee credit flow to the MSE sector, which plays a
Fund Trust for crucial role in the economic development of
Micro and Small the country, fostering entrepreneurship,
Enterprises creating jobs, and contributing to GDP
Input Suppliers (CGTMSE) growth.

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 J&K Bank's Finance Scheme for Traders is a
specialized financial program designed by the
Jammu & Kashmir Bank to cater to the
specific needs of traders within the region.
This scheme provides traders with essential
financial assistance to meet their working
capital requirements, helping them manage
inventory, operations, and other business-
related expenses more effectively. Aimed at
strengthening the local trade and commerce
ecosystem, the scheme offers traders an
J&K Bank’s Finance opportunity to expand and grow their
Scheme for Traders businesses with easier access to credit.

The Pradhan Mantri Fasal Bima Yojana

(PMFBY) is an ambitious agricultural
insurance scheme launched by the
Government of India to provide
comprehensive crop insurance to farmers
against the failure of any notified crop due to
natural calamities, pests, and diseases. This
scheme replaces previous crop insurance
schemes and aims to reduce the burden of
premiums on farmers and ensure quick claim
settlements. Under PMFBY, farmers pay a
uniform, low premium rate of 2% for kharif
crops, 1.5% for rabi crops, and 5% for
Pradhan Mantri commercial and horticultural crops, while the
Fasal Bima Yojana government subsidizes the remaining
(PMFBY) premium amount.

The National Rural Livelihood Mission

(NRLM), now known as the Deendayal
Antyodaya Yojana-NRLM, is a poverty
alleviation project implemented by the
Government of India. This mission aims to
promote self-employment and organization
among the rural poor, primarily through the
formation and development of Self Help
Groups (SHGs). It focuses on empowering
women, enabling them to contribute to
household and rural economic activities.
NRLM seeks to create sustainable livelihood
opportunities for the rural poor by providing
them skill development, financial inclusion,
and access to markets. The program also
emphasizes social mobilization and building
strong grassroots institutions of the poor.
NRLM's approach is inclusive, aiming to
reach out to all rural poor families and link
National Rural them to sustainable livelihood opportunities,
Livelihood Mission thereby transforming rural poverty into
Production (NRLM) prosperity.

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 Rashtriya Krishi Vikas Yojana (RKVY) is a
flagship agricultural development scheme of
the Government of India, initiated to ensure
holistic growth of the agriculture and allied
sectors. The primary objective of RKVY is to
incentivize states to increase public
investment in agriculture and allied sectors,
thus enhancing farm productivity and
ensuring sustainable agricultural practices.
The scheme focuses on adopting an area-
based approach for strategic planning and
encourages convergence with other
programs to realize sector-wide
development. It supports a wide range of
activities, including crop cultivation,
Rashtriya Krishi livestock, dairy, and fisheries, along with the
Vikas Yojana creation and strengthening of agricultural
(RKVY) infrastructure.

The Kisan Credit Card (KCC) Scheme is a

government initiative in India designed to
provide farmers with timely access to credit
for their agricultural needs. Launched to
ensure that farmers are not driven to borrow
from informal sources at high interest rates,
the scheme offers short-term loans for crop
production and other expenses related to
agriculture and allied activities. It also
provides insurance coverage and extends
credit for post-harvest expenses, farm
maintenance, and other activities. The KCC
scheme simplifies the process of obtaining
credit and aims to reduce the financial
burden on the farming community by
Kisan Credit Card offering flexible repayment options and
(KCC) Scheme reasonable interest rates.

The "Formation and Promotion of 10,000

Farmer Producer Organizations (FPOs)" is a
comprehensive initiative by the Government
of India aimed at creating and strengthening
FPOs across the country. These FPOs are
collective groups of farmers and agricultural
producers designed to improve access to
technological inputs, financial resources, and
markets, thereby enhancing the profitability
Formation and and sustainability of their agricultural
Promotion of activities. The scheme focuses on organizing
10,000 Farmer farmers, especially small and marginal ones,
Producer into clusters, providing them with support in
Organizations terms of financial assistance, training, and
Aggregators (FPOs) capacity building.

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 The Self Help Group (SHG) Bank Linkage
Programme, launched by the National Bank
for Agriculture and Rural Development
(NABARD) in India, is a pioneering initiative
aimed at providing formal banking services
to the unreached rural poor. Under this
program, SHGs formed by the rural poor are
Self Help Group linked to banks for the provision of credit,
(SHG) Bank enabling them to access financial services
Linkage such as loans, savings, and other banking
Programme products.

The Pradhan Mantri Kisan Samman Nidhi

(PM-KISAN) is a central sector scheme by
the Government of India that provides
income support to landholding farmer
families across the country. Under this
program, eligible farmer families receive a
financial benefit of ₹6,000 per year, paid in
three equal installments of ₹2,000 each. This
initiative aims to supplement the financial
needs of small and marginal farmers in
procuring various inputs to ensure proper
Pradhan Mantri crop health and appropriate yields,
Kisan Samman corresponding to the anticipated farm
Nidhi (PM-KISAN) income.

The Market Intervention Scheme (MIS) is a

program initiated by the Government of
India, designed to provide a safety net to
farmers against sharp fall in prices of
agricultural produce. The scheme is primarily
implemented in cases where prices of
perishable and horticultural commodities
decrease due to a glut in production or
seasonal oversupply. Under MIS, the
government agencies purchase the surplus
produce directly from the farmers at a
declared Minimum Support Price (MSP),
thereby ensuring that the farmers receive
remunerative prices for their produce. This
scheme plays a crucial role in stabilizing the
agricultural market and protecting the
Market Intervention farmers from making distress sales during
Scheme (MIS) peak harvest periods.

The Pradhan Mantri Employment Generation

Programme (PMEGP) is a flagship initiative
by the Government of India, aimed at
generating self-employment opportunities by
establishing micro-enterprises in the non-
farm sector. Administered by the Khadi and
Village Industries Commission (KVIC), this
Pradhan Mantri credit-linked subsidy program targets
Employment traditional artisans and unemployed youth. It
Generation provides financial assistance for setting up
Processor/Bulk Programme new projects, with the maximum project cost
Supplier/Exporter/Trader (PMEGP) capped at ₹25 lakhs for manufacturing units
and ₹10 lakhs for service units. The subsidy

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 varies from 15% to 35%, depending on the
beneficiary's category and location. PMEGP
plays a crucial role in stimulating
entrepreneurship and reducing
unemployment, particularly in rural and
semi-urban areas.

The Credit Linked Capital Subsidy Scheme

(CLCSS) is a program by the Government of
India aimed at facilitating technology
upgradation for Micro, Small, and Medium
Enterprises (MSMEs). This scheme provides
an upfront capital subsidy of 15% (up to a
maximum of ₹1 crore) for entrepreneurs
investing in new technology or upgrading
existing technology in their businesses.
Primarily targeting small-scale industries,
CLCSS addresses the need for technological
advancement to improve productivity and
competitiveness in the national and
international markets. The scheme not only
aids in reducing the cost of production but
Credit Linked also enhances the quality of products,
Capital Subsidy contributing significantly to the growth and
Scheme (CLCSS) development of MSMEs.

The Support to Training and Employment

Programme for Women (STEP) is a
Government of India initiative aimed at
providing vocational and skill development
training to underprivileged and marginalized
women. Focusing on a variety of sectors
such as agriculture, horticulture, handicrafts,
and IT services, STEP is implemented by
NGOs, government organizations, and other
experienced institutions. The program offers
comprehensive support, including financial
assistance for training, materials, stipends,
and tool kits, to enhance women's
employability and self-employment
Support to Training opportunities. This initiative plays a pivotal
and Employment role in empowering women, fostering their
Programme for independence, and promoting gender
Women (STEP) equality in the workforce

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 The Micro Units Development & Refinance
Agency Bank (MUDRA) loans are a part of
the Pradhan Mantri Mudra Yojana (PMMY),
introduced by the Government of India to
provide financial support to micro-
enterprises and individual entrepreneurs. The
key objective is to boost the development
and refinancing activities of micro units in
various sectors, including manufacturing,
trading, and services. MUDRA loans are
categorized into three products: 'Shishu' for
loans up to ₹50,000, 'Kishore' for loans from
₹50,001 to ₹5 lakh, and 'Tarun' for loans
from ₹5 lakh to ₹10 lakh, catering to
enterprises at different stages of their growth
and development. This initiative primarily
Micro Units targets small businesses, artisans, traders,
Development & and other segments of society that are
Refinance Agency traditionally excluded from formal banking
Bank (MUDRA) systems, aiming to foster entrepreneurship
loans and employment at the grassroots level.

The Prime Minister's Employment Generation

Programme (PMEGP) is a credit-linked
subsidy initiative by the Government of
India, executed by the Khadi and Village
Industries Commission (KVIC). It aims to
generate self-employment opportunities by
assisting entrepreneurs in establishing micro-
enterprises in non-farm sectors. Targeting
traditional artisans and unemployed youth,
the program offers financial assistance with a
maximum project cost of ₹25 lakhs for
manufacturing units and ₹10 lakhs for
service units. Subsidies range from 15% to
35%, varying by project location and
Prime Minister's beneficiary category. The scheme
Employment encompasses training and support,
Generation promoting entrepreneurship to reduce
Programme unemployment, especially in rural and semi-
Retailer (PMEGP) urban areas

Key Activities in Detail

The project will focus on enhancing financial access and inclusivity for smallholders, Farmer
Producer Organizations (FPOs), and entrepreneurs within the selected value chain in the
Jammu and Kashmir region. This comprehensive strategy will be executed through the
following key activities:

a. Pilot Projects for Improved Access to Finance: Implement at least four (4)
pilots to drive access to finance for different target clients, including but not limited
to: project smallholders and their organizations.
b. Financial Literacy Campaigns: The project will launch extensive financial literacy
campaigns with the primary objective of educating smallholders and entrepreneurs.
These campaigns will focus on topics such as understanding financial products, the
significance of maintaining a positive credit history, effective savings practices, and
efficient financial planning.

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 c. Credit Facilitation: The project's Manager Rural Finance Manager, will work
closely with stakeholders in the field. The project will assist in navigating the
complex process of obtaining credit, providing valuable support with
documentation, proposal writing, and clarifying the terms and conditions associated
with various credit options.
d. Partnerships and Alliances: The project plans to establish strategic partnerships
with non-banking financial companies (NBFCs), microfinance institutions (MFIs),
and technology firms. By forging these alliances, it aims to broaden the spectrum
of financial services available to target beneficiaries. Additionally, leveraging
technology will enable easier access to financial resources.
e. Graduated support for FPO Bank Readiness: Systematically assess, train, and
mentor Farmer Producer Organizations (FPOs) through a graduated approach,
enhancing their financial management capabilities, compliance with banking
requirements, and ultimately facilitating their access to formal banking and
financial services.

Implementing Mechanism

Pilot Project for Improved Access to Finance

The project, in collaboration with financial institutions and partners, plans to launch a
minimum of four pilot programs based on a well-defined rural finance strategy. These
pilots aim to enhance financial access for diverse groups, including smallholders and
their organizations. Key elements include: (i) establishing connections between FPOs,
MSMEs, and producers with financial institutions for credit and insurance access; and
providing business and financial literacy training. On the supply side, the focus will be
on developing accessible financial products with innovative collateral and risk-sharing
approaches, incorporating project matching grants and private sector co-financing.
These will be tailored to market demands, supporting climate-smart and youth and
women-led business investments. Efforts will also be made to expand the outreach of
financial institutions, leveraging marketing strategies and ICT solutions to reduce costs
and risks. These pilots are premised on the idea of nurturing robust business ventures,
thereby creating appealing opportunities for investment and lending.

The proposal for these pilots will be meticulously developed, and the project will seek
IFAD's no-objection, as well as clearance from IFAD’s Technical division, before moving
forward with implementation. The list of activity that can be financed under the pilot
but not limited to are:

Demand-Side Activities:

• Facilitate Linkages Between Stakeholders and Financial Institutions:

• Organize workshops and meetings between FPOs, MSMEs, producers, and
financial institutions.
• Develop a digital platform for easy connectivity and information exchange.
• Facilitate contract signings and partnership agreements, incorporating
incentives like interest subvention schemes, matching grant and blocked
deposit and cashback rewards.
• Business and Financial Literacy and Capacity Building:
• Conduct training programs on financial management, business planning,
and sustainable agricultural practices.
• Develop and distribute educational materials and online resources, including
modules on leveraging blocked grants and interest subvention benefits.
• Organize mentorship programs linking successful entrepreneurs with new
business owners, focusing on maximizing incentives and grants.
Supply-Side Activities:

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• Development of Accessible Financial Products:
• Collaborate with financial institutions to design financial products such as
microloans, insurance, savings schemes, and investment options,
incorporating interest subversion strategies and cashback options, blocked
grant/ deposit.
• Integrate climate-smart investment options and support for youth and
women-led businesses.
• Utilize project’s matching grants and venture capital co-finance as risk-
sharing mechanisms, including options for blocked grants and incentivized
financing.
• Improve Outreach and Footprint of Financial Institutions:
• Support the development of digital financial services (DFS) and mobile
banking solutions, featuring cashback and reward programs to encourage
usage.
• Implement community-based marketing strategies for financial products,
highlighting the benefits of interest subvention and other incentives.
• Develop credit scoring models based on local data and market dynamics,
considering the impact of incentives like cashback on customer behaviour.
Cross-Cutting Activities:

• Market Research and Demand Assessment:

• Conduct surveys and focus group discussions to understand the specific
financial needs and preferences of target clients, especially in terms of
interest subvention and cashback incentives.
• Analyze market trends and potential growth areas in the agricultural sector,
considering the impact of blocked grants and other financial incentives.
• Partnership Development with Private Sector:
• Engage with private sector entities for co-financing and investment
opportunities, emphasizing the role of incentives in enhancing collaboration.
• Explore public-private partnerships for broader project impact, with a focus
on creating mutually beneficial incentive structures.
• Monitoring and Evaluation:
• Set up a system to monitor the progress of the pilots and gather feedback,
particularly focusing on the effectiveness of interest subversion, cashback,
and incentive mechanisms.
• Regularly evaluate the effectiveness of activities and adjust strategies
accordingly, with an eye on optimizing incentive structures for better
outcomes.
• ICT4D Integration:
• Utilize information and communication technologies for development
(ICT4D) to enhance service delivery, including features that support
incentive programs.
• Implement tech-driven solutions for risk management and cost reduction,
integrating aspects like cashback and blocked grants for improved financial
management.
• Promotion of Good Business Practices:
• Encourage transparency, ethical business practices, and sustainability
among all project stakeholders, highlighting the positive role of financial
incentives in promoting good practices.
• Highlight successful models and stories to attract further investment and
interest, especially those that have effectively utilized blocked grants,
interest subvention, and other incentives.

a. Financial Literacy of Farmers and Entrepreneurs and Credit facilitation

1. Financial Literacy Workshops: The Project will conduct regular financial literacy
workshops to educate participants on fundamental financial concepts, banking

107
 procedures, and the importance of credit history. These workshops will equip
individuals with the knowledge needed to navigate the financial landscape
effectively.
2. Access to Financial Resources: the Project will provide guidance on accessing
financial resources, including loans, credit lines, and grants. Participants will receive
assistance in preparing loan applications and understanding the requirements of
financial institutions.
3. Creditworthiness Building: Training sessions will be organised focused on building
and maintaining a positive credit history. Participants will learn how their financial
behaviour impacts their creditworthiness and the steps to improve it.
4. Financial Planning: Facilitate workshops on financial planning and budgeting.
Participants will develop personalized financial plans to manage their income,
expenses, and savings effectively.
5. Banking Relationships: Help participants establish and nurture relationships with
local banks and financial institutions. The Incubation centre will facilitate meetings
and coordination with banks to simplify access to financial services.
6. Credit Application Support: The Incubation Centre will assist participants in
preparing loan applications, ensuring that they meet the criteria set by financial
institutions. This includes helping them compile necessary documentation and
financial statements.
7. Financial Counselling: The Incubation Centre will provide one-on-one financial
counselling sessions to address individual financial challenges and goals.
Participants can seek personalized advice on managing debts, investments, and
financial risk.
8. Credit Assessment Training: Train participants in understanding the credit
assessment process used by banks. This knowledge will enable them to present
their financial profiles effectively to lenders.
9. Loan Repayment Strategies: Provide strategies for responsible loan repayment,
emphasizing the importance of timely payments to maintain a positive credit
record.
10. Financial Inclusion Initiatives: Promote financial inclusion by encouraging
participants to open bank accounts and access banking services. Educate them on
the benefits of formal banking, saving, and accessing credit.
11. Access to Government Schemes: Inform participants about government-sponsored
financial schemes and subsidies available to support agricultural and
entrepreneurial activities. Assist them in applying for these schemes when relevant.

b. Partnerships and Alliances

1. Engage in District Level Coordination:
• The Project will attend District Level Coordination Committee
(DLCC)meetings where representatives from various government agencies,
banks, and financial institutions gather to discuss financial inclusion and
rural development.
• Use these meetings as a platform to introduce the project, its objectives,
and the potential benefits of collaboration with financial institutions.
2. State-Level Coordination:
• Elevate the collaboration to the state level by engaging with higher-level
authorities and decision-makers in the financial sector.
• Explore the possibility of signing Memorandums of Understanding (MoUs)
with banks and financial institutions at the state level. These MoUs will
outline the terms of collaboration and the roles and responsibilities of each
party.
3. Collaboration with NABARD and RBI Branch
• The project will forge strategic collaborations with key stakeholders in the
financial sector, including the National Bank for Agriculture and Rural
Development (NABARD) and the local branch of the Reserve Bank of India

108
 (RBI). Through these collaborations, the project aims to leverage NABARD's
expertise in rural development and agriculture financing, exploring funding
opportunities, and accessing refinancing facilities. Additionally, the project
will engage with RBI to ensure regulatory compliance, seek regulatory
insights, and explore support for enhancing digital payment systems in rural
areas.

c. Graduated support for FPO Bank Readiness:

To ensure access to finance for FPOs, the approach involves guiding newly established
FPOs from mere compliance to actively conducting business activities, with the aim of
becoming bank ready. This readiness is marked by improved financials, increased sales,
and established sales contracts and buyers. Support will be provided in the form of grading
tools to assess the FPOs, helping them meet the banks' credit underwriting criteria. For
existing FPOs, due diligence will be conducted to assess their current status, followed by
strategizing to advance them to a state of bank readiness. The key indicators in the
aforementioned matrix serve as benchmarks for FPOs to achieve this readiness.

Category Key Indicator Acceptable Benchmark

Revenue Growth 5-10% annually

Profit Margin 10-20%

Positive Cash Flow Consistent year-over-year growth

Healthy Balance Sheet Debt-to-Equity ratio < 1-2

Financial
Health Earnings Growth 5-10% annually

Established sales contract at least 3 sales contract

Market Not more than 20% revenue from one

Position Diversified Customer Base client

Productivity Year-over-year improvement

Operational Costs Reduction by 2-5% annually

Operational
Efficiency Supply Chain Efficiency Delivery on-time rate > 95%

Above 75-85% (repeated orders from

Retention Rates the clients)

Customer Feedback Over 80% positive feedback

Customer Customer Base Growth 5-10% increase annually

Adherence to Regulations Zero compliance issues

Ethical Practices High ethical standards adherence

Regulatory Meeting or exceeding regulatory

Compliance Environmental Compliance standards

Leadership and Decision-making High stakeholder confidence

Governance Board Effectiveness Regular, positive evaluations
and
Management Organizational Structure Clear hierarchy and roles

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 Risk Management Effective mitigation of key risks

Transparency in Reporting Accurate and timely reports

Stakeholder Communication High satisfaction in stakeholder surveys

Implementation modalities

The Manager for Financial Inclusion will assume a pivotal role, overseeing the coordination
of activities aimed at enhancing financial inclusion within the project. In addition to their
managerial responsibilities, the Manager will be tasked with organizing targeted training
programs tailored for the field staff, Incubation Centre Manager, and young professionals
involved in the project. These training sessions will equip the team with the necessary
knowledge and skills to effectively facilitate access to finance for the project's beneficiaries.

The field staff, working in collaboration with the Incubation Centre Manager, will serve as
the project's frontline ambassadors in the field, playing a crucial role in bridging the gap
between the beneficiaries and financial services. They will work diligently to ensure that
smallholders, farmers, and entrepreneurs have the information and support they need to
access financial resources that can empower their livelihoods.

Furthermore, the project is committed to establishing fruitful collaborations with key

stakeholders such as the National Rural Livelihood Mission (NRLM) and lead banks
operating within the district. These partnerships will serve as a catalyst for facilitating
financial access and expanding the project's impact. By aligning efforts with NRLM and
engaging with lead banks, the project will tap into existing networks and resources,
optimizing its outreach and effectiveness in promoting financial inclusion.

To reach even the most remote and underserved areas, the project will harness the power
of a network of banking correspondents. These dedicated intermediaries will act as a vital
bridge, ensuring that financial services reach the 'last mile.' This approach will extend the
project's footprint and empower individuals and communities in the farthest reaches of the
project area to access financial resources and transform their lives."

Exit Strategy

The exit strategy for the project focusing on enhancing financial access and inclusivity in
the Jammu and Kashmir region involves several key steps to ensure sustainability and
continued impact after the project's completion. These steps are designed to transition the
responsibility and capability to the local stakeholders, including smallholders, Farmer
Producer Organizations (FPOs), and entrepreneurs. Here’s an outline of the exit strategy
based on the project activities:

1. Self-Sustainability of Pilot Projects: Ensure that the pilot projects for improved
access to finance are designed to become self-sustaining. This involves establishing
clear business models and revenue streams or integrating the pilots into existing
local systems that can continue without external support.
2. Integration of Financial Literacy into Local Institutions: Transfer the
responsibility of continuing financial literacy campaigns to local educational
institutions, community organizations, or FPOs. Develop a train-the-trainer model
to create a cadre of local trainers who can perpetuate financial literacy education.
3. Local Ownership of Credit Facilitation: Train local stakeholders, such as the
staff of FPOs or community leaders, to take over the role of the Rural Finance
Manager. This would include skills in navigating credit processes, proposal writing,
and understanding credit terms, ensuring that the community retains these
capabilities.

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 4. Strengthening Partnerships: Solidify partnerships and alliances with NBFCs,
MFIs, and technology firms to ensure they are robust and continue beyond the
project lifespan. These partnerships should be structured to provide ongoing
support to the local communities and FPOs.
5. Sustainable FPO Development: with a clear roadmap for FPOs to achieve
financial management self-reliance, ensuring they can maintain compliance and
access to banking services independently. This might involve setting up internal
training programs, mentorship structures, or partnerships with local financial
institutions.

Risk and Mitigation Strategy

Risk Likelihood Impact Mitigation Strategy

- Conduct financial literacy

campaigns to raise awareness

- Facilitate collaboration with

banks and financial institutions

Lack of access to - Establish a network of banking

financial resources Moderate High correspondents for outreach

- Implement training programs for

capacity building

- Collaborate with NABARD and

RBI for expertise and guidance

- Engage in regular DLCC

Insufficient capacity of meetings to align with RBI's
FPOs and staff Moderate High efforts

- Ensure compliance with RBI and

NABARD regulations

- Develop clear policies and

procedures for financial activities

- Maintain transparent governance

Regulatory hurdles Low Moderate and record-keeping

- Promote crop insurance and risk

mitigation strategies

Market fluctuations and - Encourage FPOs to diversify

weather risks Moderate High their agricultural activities

V. Implementation phasing
The project implementation steps with phasing for the important activities planned under
the project is provided in Appendix C2A2.

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Appendix C2A1: Grant regime and financing plan for household level investments

Category of Example activities Grant/Loansize Grant/ loan policy

beneficiaries
Farmer Producer Equity support for mobilizing equity capital for the Max Rs 2000 per Matching equity support (50%) from the project
Organizations FPOs member. – additional incentives to women and youth to be
worked out by the project but not exceeding Rs
3,000 per women/youth member
Farmer Producer Collective investments (semi-public) – Unit cost Rs These investments will be available to FPOs with
Organizations aggregation of inputs and outputs, farm 200,000 to Rs minimum 100 members and have mobilized
mechanization units, collective irrigation/water 1,000,000. 80% required contribution of 20% based on a
management systems, orchard management grant initially. participatory business planning. During the
business and other businesses. project implementation systems will be built to
provide loans to FPOs and thereafter this support
will be reduced.
Smallholder farmers Support for enhancing production and Unit cost of Rs The project will target FIGs and individual
for niche agricultural productivity. Diversification into Saffron, Black 5000 to Rs farmers. to provide this support. Balance 50%
crop production Cummin, Aromatic rice, Off-season vegetables, 34,000 per either from own contribution of the farmer or
aromatic and medicinal plant and other niche Kanal. 50% through loans under Kisan credit card.
crops
grant

Smallholder farmers Vegetable seed business and seed cluster Unit cost of Rs The project will target FIGs, FPOs and individual
for niche agricultural development 300,000 to Rs farmers. Balance 50% from own contribution of
crop production 500,000. 50% the farmers.
grant

Small holder farmers Support for enhancing production and productivity Unit cost of Rs The project will target FIGs and individual
for horticultural crop of horticultural crops and diversification and 20,000 to Rs farmers. Balance 50% from own contribution of
production intensification of fruit and nut crops – Apple, 200,000 per the farmers. During project implementation
Walnut, Mango, Litchi, Citrus, Kiwi and others Kanal. 50% products for financing the horticultural crops will
grant be introduced and thereafter the grant support
will be reduced.

112
Small holder farmers Support for horticultural nurseries, solar fencing, Unit cost of Rs The project will target FIGs, FPOs and individual
for horticultural crop irrigation facilities 200,000 to rs farmers. Balance 50% from own contribution of
production 1,000,000. 50% the farmers. During project implementation
grant innovative products for financing these activities
will be introduced and thereafter the grant
support will be reduced.

Entrepreneurs Grading lines, processing units, CA storages, Unit cost from Rs The project will target individuals, partnerships
mushroom production, agri-tourism, honey 200,000 to Rs and companies. Grant release linked to financing
production and processing and others 2,000,000. In of loans from banks. During project
some cases such implementation innovative products for financing
as CA stores cost these activities will be introduced and thereafter
may reach Rs the grant support will be reduced. The project
105 million. will establish special incentives to attract women
Grant of 50% and youth.
but not
exceeding Rs 10
million.
Start-ups Start-up businesses in agri and allied sectors Only seed capital The project will target individuals with business
of Rs 200,000 idea and mentor them to grow into businesses.
per start-up to The mentorship will include both technical and
be provided as financial mentorship.
grant and all
scale up capital
will be accessed
through bank
loan and
convergence.
Vulnerable community Milk collection centres, processing of milk Unit cost of Rs The project will target vulnerable communities
support products, ice boxes for fisherfolk (largely semi- 120,000 to Rs comprising pastoralists and fisherfolk.
public investments 1,000,000. 80%
grant
Vulnerable community Micro-enterprise support - trading, small shops, Unit cost of Rs The project will target vulnerable communities
support livestock units 200,000. 50% who have started settling down. Grant release
grant linked to financing of loans from banks

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Appendix C2A2: Implementation Phasing
S. 2023- Project
No. Activity 24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 Closing
A Preparatory Activities
Obtain approval of GoJ&K for the project
Seek supplementary budget of INR 5.00 Crores for initial project
expenditure
Issuance of a notifcation nominating a Secretary level officer as
Mission Director of JKCIP reporting to the PS, DAP&FW
Finalize project blocks
Finalize terms of reference and RFP for baseline survey
Submit project readiness check list to DEA
Constitute a delegation to negotiate and initial the negotiated
text of the financing agreement with IFAD
Staff recruitment for JKCIP-PMU
Conduct a start-up workshop
B Climate-smart and market led production
1 Upscaling Collectivization
a) Capacity building
Review FPOs and idenfiy business verticals
Develop curriculum for training FPO Development Officers
Develop curriculum for FPO manager and Accountants
Develop curriculum for FPO leaders
Recruit FPO Development Officers
Conduct training of FPO development Officers
b) FPO mobilization
FPO mobilization around a business of community's interest
Conduct training of FPO staff and FPO leaders
FPO business planning
Develop and approve business proposals of FPOs
Conduct rating of FPOs
2 Niche Agricultural Support
a) Capacity building -niche crops
Develop curriculum in Cilimate smart and GAP
Train the trainers
Train the farmers
b) Saffron Centre of Excellence - Business plan
Engage an agency for preparing a business plan for Saffron CoE
Conduct a workshop to present findings
Prepare a policy note
Make an action plan
Implement the action plan
c) Tulip-CoE
Assess research requirements for Tulip propagation
Prepare a research action plan
Engage an agency for conducting Tulip-CoE feasibility study
Review the feasibility study and prepare an action plan
Implement the action plan

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S. 2023- Project
No. Activity 24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 Closing
d) Seed system development
Develop a seed village scheme for implementation
Identify FPOs and seed villages
Build capacity of farmers
Implement seed village concept
e) Vegetable seed business
Identify FPOs interested in seed business
Identify private sector seed companies interested in partnerships
with FPOs
Build capacity of farmers
Implement vegetable seed business activity
f) Production expansion
Prepare schemes for production expansion of important niche
crops
Identify farmers in clusters
Build capacity and implement the schemes
g) Protected cultivation
Prepare schemes for protected cultivation
Identify farmers in clusters
Build capacity and implement the schemes
h) Water management
Prepare schemes for water management
Identify farmers in clusters
Build capacity and implement the schemes
i) Weather advisory services
Establish a working group
Prepare a plan for providing advisory services
Implement the plan
3 Horticultural Crop Support
a) Capacity building -horticultural crops
Develop curriculum in Climate smart and GAP
Train the trainers
Train the farmers
b) Horticulture Centre of Excellence - Business plan
Engage an agency and prepare a business plan
Conduct a workshop to present findings
Prepare a policy note
Make an action plan
Implement the action plan
c) Study apple expansion system
Engage an agency and study the apple expansion system
Conduct a workshop to present findings
Prepare a policy note
Make an action plan
Implement the action plan

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S. 2023- Project
No. Activity 24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 Closing
d) Nursery development
Identify entrepreneurs interested in high tech nurseries
Facilitation for DPR preparation and bank linkages
Capacity building
Implement nursery business
e) Solar fencing
Identify areas and farmers for solar fencing
Prepare a scheme for supporting solar fence
Implement
f) Water management
Prepare schemes for water management
Identify farmers in clusters
Build capacity and implement the schemes
g) Production expansion
Prepare schemes for production expansion of important
horticultural crops
Identify farmers in clusters
Build capacity and implement the schemes
h) Rejuvenation Scheme
Need assessment and creation of a business model for
rejuvenation
Consultation with FPOs and selection of farmers interested in this
business
Build capacity of farmers
Make a rejuvenation business plan for FPOs
Implement the rejuvenation plan
h) FPO-Input services
Selection of potential area & FPO
Build a scheme for assistance to FPOs
Capacity building and linkages with private sector agro-chemical
companies
Rollout the business
i) FPO- Farm Machinery
Selection of potential area & FPO
Farm machinery need assessment
Build a scheme for assistance
Capacity building
Rollout of farm machinery banks
j) FPO-output aggregation
Selection of potential area & FPO
Assess scope for collective marketing of output
Develop a scheme for assistance
Capacity building
Rollout of output aggregation

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S. 2023- Project
No. Activity 24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 Closing
C Agri-business ecosystem development
1 Enterprise promotion support
a) Business led enterprise development
Identify existing entrepreneurs interested in supporting other
entrepreneurs through market linkage.
Seek and appraise the proposals
Approve the proposals and start implementation
b) Enterprise promotion
Prepare schemes for supporting various types of enterprise
Seek applications and provide business development service
Conduct meetings with banks and initial due diligence
Bank loan approval and enterprise establishment
c) Matching grant reduction strategies
Engage an agency /Consultant to develop a strategy for reducing
matching grant.
Conduct a consultation to discuss the strategies and work out
modalities for developing a pilot
Take approval and implement a pilot
2 Market promotion support
a) Multi-stakeholder platforms
Constitute an inter-Directorate focal group separately for
Agriculture and Horticulture to conduct MSPs
Identify market players and producers interested in market
linkage
Conduct MSPs
Workout market linkage agreements
b) Trade fair participation
Prepare a calendar of events
Publicize the criteria for selection of participants
Seek proposals from interested entrepreneurs
Select and provide support
c) Buyer seller meet
Plan and budget preparations
Identify buyers and sellers and seek their participation
Organize buyer-seller meets
d) Product development
Conduct a workshop
Engage reputed institutions to develop products
Provide technology to entrepreneurs
e) Brand development and promotion
Engage an agency to develop brand strategy and promotion
Implement the strategy
f) Export/Logistic Hub
Establish quality control labs
Engage an agency to assess the feasibility of establishing export
hub/logistic hub
Make plans for establishment of export hub/logistic park

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S. 2023- Project
No. Activity 24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 Closing
3 Incubation and start-up
Organize visit of Incubations centre staff to IIM-Jammu and IIT-
Jammu
Engage IIM-Jammu and IIT-Jammu as mentors for the
Incubation Centres.
Establish Incubation Centre Spokes in the KVK of each district.
Conduct bootcamps/Ideathons in each district.
Provide mentoring support to select ideas/concepts.
Conduct challenges for providing seed capital to select start-ups.
Continue providing mentoring support.
Link the start-ups to other sources of finance.
C Support to vulnerable communities
1 Support to pastoralists
a) Wool sector support
A wools market survey
Engage an agency to conduct a wool sector study
Review the recommendations of the wool sector study
Take steps to implement activities agreed
b) Goat breed improvement
Identification and Selection of beneficiaries
Prepare a structured breeding plan
Strengthening of existing Govt Goat farms as breed multiplication
and quarantine station
Purchase of improved Bucks from neighbouring states and their
quarantine
Distribution and replacement of Bucks
Monitoring and Evaluation of performances and improvement in
breed
c) Equine breed improvement
Formation of Study Team
Conduct the equine breed improvement study
Review the recommendations of the study
Take steps to implement activities agreed
2 Support to other vulnerable groups
a) Milk supply chain
Milk surplus and market assessment study & DPR preparation
Identification of places for 12 Milk Collection Units(BMCs) and
establishment
Identification of places for 08 Milk Processing Units (MPUs) and
establishment
Training and Capacity Building of SHGs and members of
vulnerable communities in milk handling and processing
Branding, Marketing and milk value chain development
b) Sheep and goat scheme
Identification and selection of eligible beneficiaries
Prepare a scheme for support of SCs/STs
Capacity Building and Training
Procurement and distribution of Sheep/Goat Units
Establishment of market linkages

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S. 2023- Project
No. Activity 24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 Closing
c) Iceboxes to fisherfolk
Identification and selection of eligible beneficiaries
Capacity Building and Training
Procurement and distribution of Ice Boxes
Establishment of market linkages
d) Enterprise support- Income diversification
Preparation of a scheme for supporting enterprise development
Identification and selection of eligible beneficiaries
Selection of Enterprises as per choice of beneficiaries
Preparation of enterprise proposals and due diligence
Capacity Building and Training
Support for establishing enterprises
Establishment of market linkages
3 Integration of youth
Prepare guideline/scheme for supporting youth clubs
Identification and selection of Youth clubs
Training of youth club members
Preparation of proposals for support
Approval of the proposal
Implementation of the proposal
D Knowledge Generation and Dissemination
Conducting studies to generate knowledge
Preparation of success stories
Knowledge sharing through social media
E Planning, MIS and M&E
Development of MIS software
Baseline survey
AWPB and Procurement Plan submission
Mid-line survey
Submission of ORMS
Midterm review
Endline survey
Project Completion Report

119
Chapter 3 : Project Organization and Management

A. Introduction
1. Project Management structures are built to ensure the efficient delivery of project
services including fund flow. IFAD projects in India use three models of project
management: (i) project management structure built into the existing corporations; (ii) a
separate PMU built into the implementing Department’s structure; and (iii) a separate
society is established, or an existing society used as the Lead Project Agency for
implementation. The advantages of working with the corporations and societies include
the ability to retain unspent funds at the end of the fiscal year enabling these institutions
to start project activities without waiting for budget release. However, the current
regulations allow declaring the implementing Department as a Nodal Agency with a budget
that is non-lapsable at the end of the financial year.
2. GoJ&K uses the non-lapsable fund model for implementing the central sector projects
by nominating the implementing Department as the Nodal Agency by allowing this agency
to open separate bank accounts outside the regular Treasury system to manage fund flow
with non-lapsable funding from the government budget. It also uses the society model of
implementation to implement specific programmes/missions by the Rural Development,
Health, Education and e-governance departments.
3. APD would be the Lead Project Agency and would be nominated as J&KNodal Agency
to operate a non-lapsable bank account and to receive funds from budgetary allocation. A
PMU will be established within the APD to implement JKCIP. Field level implementation will
be undertaken by the by the project implementation parties comprising Directorates of
Agriculture, Horticulture, Agriculture Marketing and Animal Husbandry, Sher e Kashmir
Universities of Agriculture Science and Technology, APEDA and other relevant
Directorates/Agencies of GoJ&K and GoI both in Jammu and Kashmir regions.

B. Project Management
4. At the central level, DEA would be the nodal agency for the project and the APD,
GoJ&K would be the Lead Project Agency. The following agencies will be the major project
parties for the implementation of the JKCIP:
a. Directorates of Agriculture - Jammu and Kashmir
b. Directorates of Horticulture - Jammu and Kashmir
c. Sher e Kashmiri Universities of Agricultural Science and Technology –
Jammu and Kashmir
5. The other project parties with limited roles include: (i) Directorates of Sheep
Husbandry; (ii) Directorates of Animal Husbandry; (iii) Directorates of Floriculture; (iv)
Indian Institute of Management, Jammu; (v) Indian Institute of Technology- Jammu; and
(iv) any other agency under the overall supervision of APD.
6. Two broad principles would govern the management structure for this project. They
include: (i) alignment to the existing government structure; and (ii) flexibility to make
changes based on the requirements that may arise during the implementation phase. The
project would be aligned with the existing government structure. A schematic presentation
of the project management structure is provided in Appendix C3A1.
7. J&K level Project Management: The project intends to build the capacity of the
existing structures comprising Directorates and Universities in both Jammu and Kashmir
regions. The proposed management structure is built around the core competencies of the
existing Directorates which will enable integration of the project activities into the regular
government programme and structures. A PMU of JKCIP will be established within the PMU
of HADP. The JKCIP-PMU will be responsible for overall technical, coordination, financial
management and other compliance requirements of the project comprising consolidated
AWPB and procurement plan preparation, consolidated M&E and MIS, preparation of
withdrawal application, audit and procurement guidance and support. JKCIP-PMU will
report to the Secretary of APD who will be nominated as the Mission Director reporting to
the Principal Secretary, APD.
8. The JKCIP-PMU will be supported with staffing related to overall technical domains,
financial management, Planning and M&E, Procurement and Knowledge management and
other mainstreaming priorities. The staffing support to JKCIP-PMU will includes: (i)
Agriculture Specialist; (ii) Horticulture Specialist; (iii) Rural Finance Specialist; (iv)
Procurement Specialist; (iii) Managers - Finance, Institutions, Planning and M&E, MIS,
Gender and Youth and Knowledge Management. These professionals will report to the
Mission Director.
9. Overall, JKCIP-PMU would be responsible for compliance to the stipulation of
Financing Agreement signed between GoI and IFAD. More specifically the JKCIP-PMU will
be responsible for (i) consolidation of project plans of the project implementation parties
leading to preparation of consolidated AWPBs and PPs; (ii) budget-related functions with
GoJ&K including seeking fund allocation and release; (iii) JKCIP-PMU level financial
management and procurement; (iv) management and administration; and (v) co-
ordination with GoI and IFAD as detailed below:
a. Project planning, implementation and monitoring/ reporting: organizing Central
Apex Committee, Empowered Committee and Executive Committee meetings,
supporting project implementation parties in activity planning, technical
backstopping and supervision of the activities being implemented by the project
implementation parties, preparing and submitting consolidated AWPB after
consolidating AWPBs of project implementation parties and JKCIP-PMU, preparing a
procurement plan for review by IFAD; establishing an effective JKCIP-PMU level MIS
and M&E system to track project progress and undertaking knowledge management
activities.
b. Financial management and procurement: incorporating the budget requirements of
the project as per the AWPB submitted by the project implementation parties into
the overall budget of the GoJ&K and ensuring flow of funds; ensuring release of
funds to the PIUs for implementing project activities; operating Project Accounts for
timely release of funds to the PIUs; receiving statement of expenditure related to
fund release and keeping an account of fund release and utilization; preparing
overall project financial statements; and assisting the PIUs in evaluating bids, and
finalizing and executing contracts with service providers and suppliers of goods and
services for implementing various project activities.
c. Management and administration: liaising with the other line departments to ensure
coordination and convergence to facilitate PIUs in project implementation; preparing
and submitting progress reports semi-annually and annually to IFAD by
consolidating the reports received from PIUs; and establishing an effective MIS and
M&E system to track project progress.
d. Reporting and co-ordinating with GoI and IFAD: preparing and submitting
withdrawal applications to GoI/CAAA for onward transmission to IFAD; ensuring
preparation and submission of annual audit reports and financial statements to IFAD
and ensuring compliance to the audit observations; and preparing and submission
results data as per the logframe and physical progress data requirements of IFAD.
10. APD will mainstream project implementation within the management of the project
parties implementing the project. The project will provide incremental staff related to
compliance to the major project parties. The project parties will be responsible for
planning, managing and supervising the implementation of project activities by
harmonising them with their existing district and block-level structures. The Director/Head
of the Directorate will be responsible for project implementation. The staffing for the
major project parties include: (i) Planning and M&E Officer, (ii) Gender and Youth Officer;
(iii) Procurement Officer’ and (iv) Finance Officer.
11. All contractual staff recruitments will be on a competitive basis in compliance with
IFAD guidelines. The contractual staff engaged in this project will be either sourced using
a service provider or directly by the Department/Directorate concerned. The Terms of
reference are provided in Appendix C3A2.
12. The main function of the project parties will be as follows:
a. Programme planning, implementation and monitoring/ reporting: Preparing project
implementation plans for the activities allocated to the Directorate; conceptualizing,
planning, supervising, and monitoring project activities and their progress towards
achieving physical, financial and outcome-related targets and organizing project
review meetings; preparing and submitting AWPB after consolidating AWPBs of the
District Offices and a procurement plan for review by JKCIP-PMU; establishing an
effective MIS and M&E system to track project progress; and supporting JKCIP-PMU
in undertaking knowledge management activities.
b. Financial management and procurement: preparing the project AWPB and
submitting budget requirements to the JKCIP-PMU; seeking fund release from the
JKCIP-PMU and ensuring release of funds to the District Offices for implementing
project activities; operating project accounts for timely release of funds to the
Districts and other partners; receiving statement of expenditure and supporting
documents related to fund release and keeping an account of fund release and
utilization; preparing overall project financial statements related to the respective
sector and submitting to JKCIP-PMU; procurement related functions related to the
respective sector including evaluating bids, and finalizing and executing contracts
with service providers and suppliers of goods and services for implementing various
project activities.
c. Management and administration: liaising with the JKCIP-PMU and other line
agencies to ensure coordination and convergence to facilitate project
implementation; preparing and submitting progress reports semi-annually and
annually to JKCIP-PMU; and establishing an effective MIS and M&E system to track
project progress.
d. Activity Implementation: Implement the activities planned in the AWPB and report
to the JKCIP-PMU on the progress.
13. The project would fund the capacity building of the staff of the project implementation
parties, the development of a computerised accounting system and an MIS. The project
would also fund the contracting of specialist agencies for conducting a baseline survey, a
mid-line survey and an end-line survey and preparation of a Project Completion Report at
the end of the project.

C. Project Coordination Mechanisms

14. GoJ&K has established a four-tier governance structure for managing the
implementation of HADP vide Government Order No: 144-JK(GAD) of 2023 dated:
31.01.2023 comprising: (i) a Central Apex Committee; (ii) an Empowered Committee; (ii)
an Executive Committee; and (iv) a District level Committee. JKCIP’s coordination and
governance structures will be nested within these structures. A schematic presentation of
the project coordination structure is provided in Appendix C3A3.
15. The Central Apex Committee would function as the Apex Governing Body chaired
by the Hon’ble Lieutenant Governor of GoJ&K. The members will include the Chief
Secretary, Administrative Secretary, Finance Department, Administrative Secretary,
APD&FW, Administrative Secretary, Industries and Commerce Department, Administrative
Secretary, Forest, Ecology and Environment Department, Administrative Secretary, Rural
Development & Panchayati Raj Department, Administrative Secretary, Revenue
Department, Administrative Secretary, Cooperatives Department, Administrative
Secretary, Planning, Development and Monitoring Department, Vice Chancellors SKUAST,
Jammu and Kashmir with the Mission Director, HADP as the Member Secretary.
16. The main functions of this committee include: (i) Mentorship, extension of Vision,
Directions and setting Priorities; (ii) Extension of strategic support for program
implementation; (iii) Overall monitoring of the progress of the HADP; (iv) Approve the
projects along with operational guidelines based on sectoral needs; (v) Approve necessary
changes if any (such as deletion, addition and modification of any project) with regard to
the plan, without altering the total funding and allocation; and (vi) Policy guidance &
direction.
17. The Empowered Committee (EC) would be the main inter-departmental
coordination mechanism with the Chief Secretary, GoJ&K as the Chairperson. The
members will include, the Administrative Secretary, Finance Department, Administrative
Secretary, Agriculture Production Department, Administrative Secretary, Industries &
Commerce Department, Administrative Secretary, Forest, Ecology and Environment
Department, Administrative Secretary, Rural Development & Panchayati Raj Department,
Administrative Secretary, Revenue Department, Administrative Secretary, Cooperatives
Department, Administrative Secretary, Planning, Development and Monitoring
Department, Vice Chancellors SKUAST, Jammu and Kashmir, Chief General Manager,
NABARD, Managing Director, J&K level Bankers Committee with Mission Director, HADP
as the Member Secretary. Provision exists for the inclusion of progressive farmers of the
various districts as members to be nominated by the Administrative Secretary, APD&FW.
The Chairperson may co-opt domain expert(s) as members of the Empowered Commit-
tee.
18. The main functions of this committee include: (i) approve re-appropriation of funds
and necessary revisions to sub-components/activities during the course of implementation
of HADP based on field situations, requirements and feedback from implementing agencies
so as to remove difficulties in the implementation of HADP; (ii) Approve revision of physical
targets and financial allocations of the sub- components/activities including revision of the
year-wise physical targets of individual sub-components/activities within the overall
financial allocations based on the sectoral demands, local priorities and pace of fund off-
take; (ii) approve need-based changes to the sub-components/activities within the broad
framework of the scheme based on the sectoral priorities, requirements and feedbacks
from the implementing agencies, fund off-take, local needs, etc. so as to remove difficulties
in implementation and for optimal outcomes; (iv) Approve Annual Action Plan indicating
physical and financial targets including anticipated outcomes of the year under the “Holistic
Agriculture Development Plan” based on the progress of preceding year(s), pipeline
proposals (in hand), annual budgetary allocation, financial liability of previous years,
demands and needs of the sector, inputs/preparedness of project parties, etc.; (v)
approve inclusion of activities/components/effective technologies, and exclude unviable
activities/ components/ technologies taking into consideration the sectoral needs and
demands; (v) earmark the extent of funds under administrative expenses that would be
released to the Implementing Agencies based on the recommendations of the Executive
Committee; and (vi) update the cost norms of different activities as required from time to
time due to variation of the price index of different commodities related to a particular
activity.
19. The Empowered Committee would meet on an annual basis and its function would be
to secure interdepartmental coordination and linkages for JKCIP. It would: (i) review the
progress of the project based on the reports submitted by the JKCIP-PMU; (ii) resolve any
issues related to interdepartmental coordination and convergence; and (iii) resolve any
policy bottlenecks that impact project implementation. The Chairperson, on the advice of
the Administrative Secretary, APD may convene special meetings of the Empowered
Committee.
20. The Executive Committee under the chair of the Administrative Secretary, APD&FW
will be responsible for the overall implementation of HADP with the Mission Director as its
convenor. The members include the Project Head, Agriculture, Project Head, Horticulture,
Project Head, Livestock, Project Head, Marketing & Value Addition, Project Head, R&D. VC,
SKUAST-J, VC, SKUAST-K along with representatives from concerned faculties, Director
Agriculture, Jammu/Kashmir, Director Horticulture, Jammu/Kashmir, Director Animal
Husbandry, Jammu/Kashmir, Director Sheep Husbandry, Jammu/Kashmir. Director
Sericulture, J&K, Director, Horticulture Planning & Marketing, J&K, Director Fisheries, J&K,
Chief General Manager, NABARD, Managing Director, J&K level Bankers Committee,
representative of Jammu and Kashmir Horticulture Produce Marketing Board. 21. The
main functions of the Executive Committee include: (i) implementing and monitoring
the projects and furnishing their progress on a quarterly basis; (ii) monitoring the im-
plementation of project(s) at the ground level; (iii) making changes in guidelines as ap-
proved by the Empowered Committee; (iv) handholding in implementing and execut-
ing the projects on the ground; (v) making recommendations to the EC from time to
time for continuous improvement of implementation of the HADP; (vi) handholding
beneficiaries to facilitate them to submit the proposal; (vii) undertaking outreach of the
scheme; and maintaining liaison with the respective banks for monitoring the fund flow
to the beneficiary.
22. Under JKCIP, the Executive Committee of HADP will convene a meeting on a quarterly
basis and if necessary, by region/province. This committee will be vested with the
responsibilities to provide strategic and policy guidance, approve the Project
Implementation manual and amendments, approve project staff selection, approve Annual
Work Plan and Budget, procurement plan, fund allocation and obtaining budgetary
allocation, review project progress, approval of manuals of procedures, coordination and
communication with DEA and IFAD for on project related matters including requesting
changes loan allocation within the initially approved categories, oversee the external and
internal audit process and take action on findings, ensure coordination among all
stakeholders, and provide guidance to project management. In the interest of fast-tracking
implementation, the PMU may obtain approval from the Chairperson and thereafter seek
ratification from the Executive Committee. The Chairperson, on the advice of the Member
Secretary, may convene special meetings of the Executive Committee.
23. The District Level Committee is responsible for overall field-level coordination and
implementation review. The District Magistrate is the Chairperson of this committee. The
members include the District Heads of Line Departments such as Agriculture, Horticulture,
Animal Husbandry, Sheep Husbandry, Sericulture, Fisheries, Forest, KVK-SKUAST,
Horticulture Planning and Marketing and Horticulture Produce Marketing Board, District
Lead Bank Manager, District Manager, NABARD, General manager, District Industries
Center, District level representative from the Cooperative Department, Rural Development
& Panchayati Raj Department Revenue Department and progressive farmers nominated by
the District Magistrate.
24. The functions of the District Level Committee include: (i) implementation of the HADP
at the District Level including its supervision and monitoring; (ii) approval of beneficiaries
for Beneficiaries oriented individual/group activities of HADP’ (iii) convergence of activities
under HADP with activities/interventions of other Schemes and programs at the district
level; and (iv) facilitate fostering linkages with Banks/Financial Institutions to the
beneficiaries.
25. The DPCC would meet quarterly to discuss the project implementation progress,
constraints and remedies. The most important function of this committee is to ensure flow
of convergence funds to the project communities for implementing agriculture and
horticulture-related activities.
D. Implementation Plans
Preparatory Phase Implementation Steps for project readiness
Pre-loan negotiation
1. The following agreements have been reached:
a. Submission of final detailed project design report by IFAD to APD by 1, December
2023 and the AP&FWD to seek GoJ&K approval for the project by 15 December
2023.
b. Prepare a list of activities and approximate cost allocation for allocation under
retroactive financing from out of the activities indicated in the detailed cost tables
by 30 November 2023.
c. Approval of APD as the State Level Nodal Agency for implementing JKCIP with
authorization to open Bank Accounts at the APD level and also the level of Project
Party.
d. Issuance of a notification nominating a Secretary level officer as the Mission
Director of JKCIP.
e. Block Selection:
• APD to conduct a state-level consultation with the officials concerned from the
Directorates of Agriculture, Horticulture and Animal Husbandry to identify about 90
project blocks within the project area taking into account the exclusions and value
chain prospects as detailed in the PDR.
• APD to provide a list of blocks to be covered under JKCIP as per the format provided
below to IFAD.
District Block Total number No. of No. of SC/ST
of HHs BPLHHs HHs
 Total

f. Finalize terms of reference, procurement modality and initiate the process for
engaging contractual staff for the project.
g. Finalizing terms of reference and Request for Proposals for baseline survey.
h. Preparation and approval of implementation plan and project readiness checklist
and submission to DEA by 15 February 2024.
i. Constitution of a state delegation authorised by the Lt Governor/Chief Secretary to
negotiate and initial the negotiated text of the financing agreement on behalf of
GoJK by 4 March 2024.
Post Loan Negotiation and before effectiveness
a. Overall steps
• Issue a notification to use the committee established under HADP to concurrently
function as project governance structure of JKCIP
• Review and finalization of PIM and get the same approved by the Executive
Committee.
• Establish the JKCIP-PMU and engage contract staff where necessary.
• Undertake procurement of all office equipment, technical team and service
providers required for implementation.
• APD to sign project agreements with the project parties..
b. Financial Management
• CAAA to open a designated account for IFAD loan
• Open non-lapsable project bank accounts for JKCIP-PMU and other project parties.
• Appoint a Manager - Finance for the JKCIP-PMU and Finance Officers project parties
on a contract basis.
• Establish an accounting system using Tally.
• Release funds to project parties as per AWP&B.
Post Loan Effectiveness
a. Start up
• Conduct a start-up workshop at J&K level to launch the project.
• Prepare AWPB for the first financial year and share the draft with IFAD for review
before obtaining approval from the Executive Committee.
b. Project Management
c. Supervision
JKCIP-PMU/Designated Officials of project parties to undertake supervision of the
field-level activities and ensure implementation of project activities as planned.
• Designated Officials of project parties to submit regular reports to JKCIP-PMU and
JKCIP-PMU in turn to the Executive Committee.
• Action taken report to be submitted on the recommendations of IFAD’s Supervision
Mission reports within 30 days from the date of receipt of management letter.
d. Preparation of AWP&B
 • JKCIP-PMU to provide an indicative budget for each project party.
• Based on the yearly plans of the project and indicative budget, AWPB for each
project party is to be prepared and submitted to JKCIP-PMU.
• JKCIP-PMU to consolidate these AWPBs and send the same to IFAD for comments
and no-objection by 30 January every year.
• Based on comments of IFAD, JKCIP-PMU along JKCIP-PMU/Project parties to rework
AWPB and present it to the Executive Committee for approval.
• Based on this, include the fund requirement of the AWPB into the budget of APD.
e. Fund flow
• As per the AWPB, JKCIP-PMU to seek the release of funds from GOJK and thereafter
transfer them to Project parties.
• Fund to flow from the Directorates to their respective district offices.
• The fund recipients to submit a statement of expenditure every month certified by
their authorised signatory.
f. Monitoring and Evaluation
• JKCIP-PMU to engage an agency specialized in M&E for conducting Baseline, midline
and end-line surveys. A baseline survey to be undertaken during the first year of
the project.
• JKCIP-PMU to engage an agency to develop a computerised management
information system and integrate the system with the ongoing efforts of APD.
• JKCIP-PMU to develop a system for web-based uploading of photographs/videos
related to demonstrations and field days with geo-tagging.
g. Knowledge Management
• Identify emerging best practices and contribute to knowledge management-related
activities of the project.
• Prepare documentation of best practices and lessons for knowledge sharing and
also place it on the website of the project.
• Undertake thematic studies covering various innovations and also effectiveness of
government programmes that have been converged with the project.
• Develop knowledge-sharing platforms for knowledge dissemination amongst
project parties, entrepreneurs and community cadre.
• Document replications resulting from such knowledge dissemination exercise.
h. Reporting
• Submit half-yearly and annual progress reports to IFAD within 45 days of the end
of the reporting period.
• Submit half-yearly financial statements to IFAD within 45 days of the end of the
reporting period.
• Submit ORMS report to IFAD by the end of March every year.
• Conduct a midterm survey to track the progress towards achieving outcome targets
prior to midterm review.
• Submit an audited annual report with financial statements and management letter
along with comments on the audit observations to IFAD by 30 September every
year.
i. Project Closing
• Conduct a project completion end-line survey prior to the project completion date.
• Prepare a Project Completion Report and submit it to IFAD within two months from
the date of project completion.
• Make only committed expenditure during the period between project completion
date and loan closing date.
• Reconcile and submit all withdrawal applications.
Appendix C3A1: Project Management Structure
Appendix C3A2: Terms of Reference – Project Management

Mission Director
The Secretary, APD&FW shall be the Mission Director. Functions of Mission Director
include:
● Implementing all the policies laid down by the Executive Committee.
● Ensuring that all project activities are being implemented in a timely manner.
● Exercising powers related to financial approvals, procurement and staff
engagement as approved by the Executive Committee.
● Maintaining close coordination with the project parties comprising Directorates,
Universities, and other partners.
● Ensuring compliance with the terms and conditions set out in the project financing
agreement, project agreement, procurement arrangement letter and general
condition of IFAD.
● Taking necessary actions to implement recommendations for resolving issues
reported in the internal audit report and external auditor's management letter.
● Undertaking day-to-day management of the Project Management Unit.
● Planning and executing project activities in collaboration with the project parties.
● Supervising AWPB and procurement plan preparation at the level of project parties
and also preparation and submission of the J&K-level AWPB.
● Supervising all project activities and ensuring that all project activities are being
implemented in a timely manner.
● Undertaking regular PMU and project party staff meetings to review the progress
and mitigate implementation challenges.
● Establishing an internal committee for receiving complaints of sexual harassment
of women and completing inquiries in a sensitive and time-bound manner in
accordance with the Sexual Harassment of Women at Workplace (Prevention,
Prohibition & Redressal) Act, 2013.
● Incorporate gender-sensitive approaches to recruitment of staff and create a
gender-sensitive working environment.
● Reviewing complaints related to fraud and Corruption, and taking necessary steps
in consultation with the appropriate authorities of GoJ&K
● Functioning as the member secretary of the committees established for governing
JKCIP.
● Performing such functions as may be delegated by the Principal Secretary, APD&FW
from time to time.

Head of the Departments /Vice Chancellors – Project Parties

(Directorates and Universities)
The Heads of the Departments/Vice Chancellors of the project parties will be responsible
for field-level implementation of the project. Their functions related to JKCIP include:
● Supervising preparation and submission of consolidated AWPB and procurement
plan for their activities.
● Exercising powers related to the financial approvals, procurement and staff
engagement as approved by the Mission Director.
 ● Incorporating their project budget into the budget of APD, receiving budget
allocations and releasing funds for implementation.
● Supervising the implementation of project activities as planned in the AWPB
including allocation of tasks and supervising implementation of project activities by
the district and block-level staff.
● Timely submission of proper progress reports, and financial reports as required by
the PMU.
● Assist the Mission Director in complying with statutes enshrined in the Sexual
Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act,
2013 and in gender-sensitive recruitment and in the creation of a gender-sensitive
work environment.
● Maintaining close coordination with the J&K-level partners.
● Incorporate gender-sensitive approaches to recruitment of staff and create a
gender-sensitive working environment.
● Reviewing complaints related to fraud and Corruption, and taking necessary steps
in consultation with the appropriate authorities of GoJ&K
● Performing such functions as may be delegated by the Mission Director.

Agriculture Specialist
Qualifications:
● Bachelor’s degree in Agriculture with a postgraduate degree in Agriculture or
postgraduation in Management/Rural Management
Experience:
● Minimum 20-25 years of experience working in a senior position at the level of
Director/Additional Director/Special Secretary.
● Should possess strong knowledge of the agricultural sector covering production,
marketing and value addition with experience in working with Government
Departments, Cooperatives and FPOs.
● Excellent communication and interpersonal skills, with the ability to work effectively
with diverse stakeholders.
Job description
● Analyse technical and policy issues, strategies and programmes to support the
development, competitiveness and inclusiveness of the agriculture sector.
● Conduct sector and supply chain analysis of major agricultural sub-sectors/niche
markets that have potential in the region.
● Analyse the climate impacts in production and processing sectors and assess and
implement suitable climate adaptation and/or mitigation measures. Conduct
climate risk assessments where required.
● Capacitate FPOs, and staffs on climate change, its impact, and adaption and/or
mitigation measures. Facilitate FPOs to access new and improved climate smart
practices, tools, and technologies.
● Carry out comparative advantage assessment/other appropriate market-based
analyses.
● Prepare guidelines for the implementation of activities related to FPO support,
niche crop expansion, research and development requirements of the agricultural
sector and value addition and marketing requirements of JKCIP.
 ● Supervise the implementation of agriculture and niche crop-related activities of
the project through the Directorates of Agriculture and Universities of Agricultural
Sciences and Technology.
● Support the Directorates in conducting value chain studies covering niche crops
and organize multi-stakeholder workshops to identify value chain facilitators and
market players.
● Prepare strategies for value addition including processing and assist the project in
expanding the agri-processing businesses.
● Prepare guidelines for sub-project preparation by FIGs/FPOs to undertake
agriculture/ Niche crop-related activities and implement the sub-project modality
to converge with the existing schemes of the GOJK.
● Coordinate activities of the project related to vulnerable groups including SC and
ST and youth.
● Provide the FIGs/FPOs with technical and financial advice related to production
and productivity enhancement and in establishment of agriculture enterprises.
● Provide technical advice to project management on agribusiness-related topics.
● Any other task assigned by the Mission Director.

Horticulture Specialist
Qualifications:
● Bachelor’s degree in Agriculture/Horticulture Sciences with a postgraduate degree
in Agriculture/Horticulture or postgraduation in Management/Rural Management.
Experience:
● Minimum 10-15 years of experience working in a senior management position
either in the private sector or public sector.
● Should possess strong knowledge of the horticultural sector covering production,
marketing and value addition with experience in working with Government
Departments, Cooperatives and FPOs.
● Excellent communication and interpersonal skills, with the ability to work effectively
with diverse stakeholders.
Job description
● Analyse technical and policy issues, strategies and programmes to support the
development, competitiveness and inclusiveness of the horticultural sector.
● Conduct sector and supply chain analysis of major horticultural crops that have
potential in the region.
● Carry out comparative advantage assessment/other appropriate market-based
analyses.
● Analyse the climate impacts in production and processing sectors and assess and
implement suitable climate adaptation and/or mitigation measures. Conduct
climate risk assessments where required.
● Capacitate FPOs, and staffs on climate change, its impact, and adaption and/or
mitigation measures. Facilitate FPOs to access new and improved climate smart
practices, tools, and technologies.

● Prepare guidelines for the implementation of activities related to FPO support,

horticultural crop expansion, research and development requirements of the
horticultural sector and value addition and marketing requirements of JKCIP.
 ● Supervise the implementation of horticultural crop-related activities of the project
through the Directorates of Horticulture and Universities of Agricultural Sciences
and Technology.
● Support the Directorates in conducting value chain studies covering horticultural
crops and organize multi-stakeholder workshops to identify value chain
facilitators and market players.
● Prepare strategies for value addition including processing and assist the project in
expanding the horti-processing businesses.
● Prepare guidelines for sub-project preparation by FIGs/FPOs to undertake
horticultural crop related activities and implement the sub-project modality to
converge with the existing schemes of the GOJK.
● Provide the FIGs/FPOs with technical and financial advice related to production
and productivity enhancement and in establishment of horticultural enterprises.
● Provide technical advice to project management on horticulture topics.
● Any other task assigned by the Mission Director.

Sr. Procurement Specialist

Qualification:
Graduate in commerce, business, finance, engineering or management
Desirable Qualification:
● Certification in Purchasing management and procurement systems:
● Post Graduate Diploma in Material/Supply Management Thorough knowledge of
procurement procedures of International Financial Institution financed projects.
● Completion of Procurement training from a national-level institute
● MBA from any recognised university or institute
Experience:
● Post qualification, minimum ten (10) years of demonstrated managerial experience
in managing procurement in the organization with complete understanding and
experience on national procurement procedure, especially preparation of
Expression of Interest, Notice Inviting Tender, Terms of Reference, Request for
Proposal and bidding document for procurement of consultant services, goods and
works.
● Preference will be given for experience in handling procurement funded by external
agencies like World Bank, ADB, IFAD etc.
● Excellent communication and interpersonal skills, with the ability to work effectively
with diverse stakeholders.
Job description:
The responsibilities of the Senior Procurement Specialist will be as follows:
● With reference to the project design document, IFAD procurement guidelines and
Procurement Handbook, draw up draft project procurement manual for the project
for approval by PMC and IFAD.
● Prepare and include relevant Community Procurement Guidelines and formats, if
required and include in the PIM.
● Update the initial 18-month Procurement Plan prepared during design and ensure
that the subsequent annual Procurement Plans are continuously updated in
accordance with the procedure and procurement plan agreed with IFAD.
● Liaise with IFAD procurement staff.
 ● Co-ordinate with concerned subject matter specialist on procurement matters,
especially preparation of TOR, technical specification etc.
● Lead preparation of bidding documents, evaluation, letters of awards, draft
contracts etc. in the procurement of good/works and services including
consultancies, in compliance with IFAD Procurement Guidelines and Procurement
Handbook.
● Submit necessary documents as per the Project Procurement Arrangements Letter,
to IFAD for those items subject to prior review.
● Facilitate/assist in getting NOC from IFAD wherever required.
● Co-ordinate with project team, organize and support evaluation committees for
prompt evaluation.
● Make necessary arrangement for contract signatures.
● Supervise update of Contract Management details in IFAD ICP-CMT and prepare
amendment letters to the contracts. As part of the contract management, in
coordination with the concerned officials monitor the contractual provisions for
compliance.
● Lead on providing capacity building and mentoring support to other PMU
Procurement Staff and Implementing Parties Procurement staff.
● Monitor and provide technical guidance to Implementing Parties’ procurement staff.
● Keep progress of procurement activities against procurement timetables, highlight
variations in progress, record reasons and identify remedial actions, if any.
● Assist the Mission Director for placement of various documents/papers before
Project Management Committee for review and approval, all types of audits of
procurement activities, post review of IFAD, contracts exception reporting, etc.
● Ensure SECAP compliances are fully addressed.
● Liaise with any other appropriate authority for any dispute among the parties
relating to procurement.
● Provide documentations and data to IFAD fielded Supervision Mission and
Implementation Support Missions.
● Perform any other relevant work related to the project procurement assigned by
the Mission Director.

Climate, Social, and Environmental Safeguards Specialist

Qualifications:
● A master's degree or higher in environmental science, social sciences, climate
change, sustainable development, or a related field.

Experience:
● At least 5 years of professional experience in supporting safeguards
implementation, with a focus on climate change adaptation and mitigation, in rural
development projects
● Strong understanding and implementation capacity of climate resilience,
environmental and impact assessment (ESIA) and climate vulnerability
assessments.
● Familiarity with Government of India’s safeguards policies; and IFAD and other
international environmental and social safeguard standards and their practical
application in development projects.
 ● Demonstrated ability to develop and implement social and environmental
management plans and monitoring frameworks.
● Experience in mentoring, providing on-the-job training, and professional support.
● Excellent communication and interpersonal skills, with the ability to work effectively
with diverse stakeholders.

Job Description:
● Provide technical support to the PMU and lead in all aspects of social, climate, and
environmental Safeguards and risk management, including guidance to PMU team
on Safeguards issues, documentation and quality assurance.
● Overall lead on timely and quality implementation and monitoring of ESCMP and all
SECAP requirements.
● Assess Environmental, Social, and Climate Management Plan (ESCMP) implantation
effectiveness, and recommend improvements where necessary to regularly update
the ESCMP.
● Lead to implement Free, Prior, and Informed Consent (FPIC) where necessary
following FPIC implementation plan, and ensure all the necessary documentation.
● Update and simplify FPIC implementation Plan as necessary.
● Support M&E specialist to include ESCMP related indicators to M&E framework;
technically support to design data collection tool and methods; and analyse and
interpret data to include in periodic reports.
● Conduct thorough assessments and screenings of project proposals to identify
potential social and environmental risks and opportunities for climate resilience
enhancement.
● Engage with project teams, partner organizations, and local communities to ensure
their meaningful participation in the assessment process.
● Facilitate knowledge-sharing and capacity-building activities to enhance the
understanding of social, environmental, and climate assessment procedures among
project teams and partners.
● Ensure alignment with international best practices and standards related to climate
resilience, environmental and Social impact assessment (ESIA), and climate
vulnerability assessments.
● Ensure meaningful stakeholder engagement and support PMU to document the
process.
● Lead to ensure grievance redress mechanism. Ensure documentation and reporting
of all the complaints.
● Monitor the implementation of Safeguards Related Technical Assistance and studies
including social baselines, application of simple and practical implementation tools
such as checklists, standard operating procedures, codes of practice; and others.
● Support the preparation and implementation of the Social and Environmental
Safeguard Training Program for the Project as needed.
● Be responsible for the social and environmental safeguards aspects of the reports
and provide inputs to the Environmental and Social Monitoring reports, including
timely information on the implementation of relevant social and environmental
safeguard instruments, and status of analytical work; Coordinate with the M&E staff
and consultants in the respective member on monitoring the specific gender
commitments under the Project;
● Ensure that considerations must be given to compliance with local and national
labor laws and relevant core labor standards where different populations are
inducted into the workforce by civil works contractors, and subcontractors.
● Support IFAD missions in related themes and ensure that the mission suggestions
are well implemented.
 ● Prepare high-quality reports, documentation, and knowledge products on climate
adaptation and social, environmental safeguards implementation for internal and
external stakeholders

Rural Finance Specialist

Qualifications:
• Post graduate degree in economics, business administration, finance, accounting,
and agribusiness.
Experience:
• Work experience in banking for 15 years out of which at least 7 years in rural
banking, agri banking and small farmer and agribusiness credit, and MSME
financing.
• Experience in the implementation of internationally financed projects would be an
added advantage.
• Good knowledge of the different national banking and financial institutions in the
area, insurance companies, concerned with rural/agriculture finance and
insurance, strong communicator, capacitate and work with them.
• Experience in agribusiness or in agriculture is a plus.
• Experience in creative and/or innovative finance is a major plus.
• This role is the key link between financial service providers and the project
clients/beneficiaries.
Job Description:
• Development of a rural finance strategy for the project, including assessment of
the market needs, the supply of finance, barriers to access finance and a strategy
for engagement of financial institutions with the outreach and interest in serving
the high value horticulture, agriculture, etc market.
• Conduct climate risk assessment for the production or enterprises/business
support.
• Plan, implement and monitor Rural Financial Services related activities by taking
overall responsibility and leadership for the strategy, relationships with financial
institutions and oversee the creation of linkages between the finance sector and
project beneficiaries/clients.
• Establish linkages (not necessarily under pilots) with financial institutions, carry out
due diligence (as necessary), prepare the ToRs and develop partnerships with
banking and financial institutions and insurance companies. Throughout the project
manage these relationships.
• In conjunction with project implementers and service providers, develop modalities
for enabling the FPOs, individual farmers, and entrepreneurs to access loans for
agri-horti enterprise development. In particular work with project staff and service
providers to improve the bank readiness of the potential borrowers, by a) assisting
in the financial literacy curriculum development b) provision of inputs in the
business literacy elements of the project c) provision of inputs in the preparation
of the formats for business plans and financial proposals d) provision of inputs into
the development of cash flows (cash flow tool) for smallholders, FPOs,
entrepreneurs and SME beneficiaries of the project.
• Design the structure for the envisaged pilots for rural finance by working with
financial institutions, project implementers and service providers to develop
concept notes for the pilots which include the criteria for the pilot, the roles and
responsibilities, the budget and the product concept for approval to enhance access
to commercial or quasi commercial finance.
• As part of the pilots, work to modify or develop new products, including design and
delivery, modify policies and procedures as required/agreed, set up pilot monitoring
 and evaluation targets and indicators, monitor loan application sanction,
disbursement and repayments and suggest modifications for pilot scaling up.
• As part of the pilots, utilise any tools or facilities available in the project or under
the control of the financial institution which might be created or combined to drive
sustainable investment/finance to project clients.
• Contribute to the planning and overall supervision of the training on business and
advanced financial literacy, proposal development technical assistance, where
required.
• Develop ToR, and selection criteria for contracting national and international
consultants and providing them support as required.
• Ensure an assessment of annual credit requirement plans for the FPOs, individual
beneficiaries/clients and private sector and facilitate integration of plans in financial
institutions /bankers’ credit plans and monitor flow of credit.
• Maintain close coordination with implementation partners (banking and financial
institutions, insurance companies, private service providers, and other
stakeholders) and ensure satisfactory reporting and results.
• Preparation and monitoring of Annual Work Plans and Budgets (AWPB), progress
reports and analytical reports.
• Manage the rural finance activities in accordance with the approved annual work
plans, relevant budget lines and coordinate and ensure complementarities with
Value Chain Development activities of production, marketing and value addition.
• Study financial innovations such as peer to peer lending, fintech solutions and forge
appropriate partnerships where feasible and where possible integrate into the
potential pilots.
• Ensure policy studies and policy workshops are conducted and develop action plans
for policy changes.
• Provide support and guidance for the gathering of data and information needed to
undertake an effective monitoring and evaluation of the rural finance activities,
inclusive of reporting by the project, the financial institutions on loans, and where
needed, database management.
• Oversee the design and establishment of channels for regular information
dissemination, sharing, and networking among stakeholders.

Manager - Finance (PMU)

Qualification:
● Chartered Accountant (Member of the ICAI)/Post-graduate Degree in Commerce and
accountancy

Experience:
● About 10-15 years of experience in the financial accounting of a project/ company
for candidates with post-graduation in commerce and accountancy. A minimum of
3 years experience for qualified Chartered Accountants.
● Computer literacy and proficiency in Tally or other accounting software and use of
spreadsheets.
● Good knowledge of accounting.
Job description:
● Undertake budgeting and accounting of the project.
● Expedite the release of funds for the timely implementation of different activities
by the project parties.
● Consolidate accounts of the project parties.
 ● Monitor fund utilization at the PMU and project parties.
● Maintain records of all financial matters related to the project.
● Prepare periodical financial statements and submission of quarterly, half-yearly and
annual financial statements to IFAD.
● Prepare requests for release of funds from GoJ&K and preparation and submission
of withdrawal application to CAAA for submission to IFAD.
● Review, supervise and inspect the finance section of the project parties and
providing the required guidance to them.
● Ensure that the expenditure is within approved budgets and seeking amendments
to the AWPB and preparing supplementary budgets, if needed.
● Ensure internal and statutory audit and preparation of financial statements for the
purpose.
● Provide response on the internal audit report and external auditor's management
letter.
● Ensure timely settlement of advances.
● Ensure compliance with legal and statutory requirements such as filing of TDS and
income tax returns and filing of annual audited accounts, etc.
● Provide training to the project finance and accounts staff on the accounting and
reporting requirements of the project.
● Provide financial data required by the IFAD fielded Missions.
● Any other task assigned by the Director-Finance of APD and the Mission Director.

Manager - Planning and M&E - PMU

Qualification:
● Postgraduate degree in Agriculture Economics/Statistics/Economics
Experience:
● About 10-15 years of experience in rural development projects specifically in
developing M&E frameworks, data analysis and report preparation.
● Experience in establishing systems for the preparation of AWPB.
● Experience in undertaking research/studies related to impact assessment to
evaluate project performance.
● Prior experience working in and/or familiarity with development issues in Jammu
and Kashmir will be an advantage.
Job Description:
● Guide the project parties in preparation of AWPBs.
● Consolidate and finalize the AWPB for all project parties.
● Support the Manager-MIS in establishing a computerised management information
system with GIS links including developing formats and procedures for data
collection taking into account the disaggregation of data by gender, youth and
SC/ST.
● Collate and analyse data from the project parties, providing inputs to the Mission
Director on project performance and preparing semi-annual and annual progress
reports for submission to IFAD.
● Consolidate Environmental, Social, and Environmental Management Plan (ESCMPs)
into the M&E framework. Collect data for the ESCMP indicators and regularly assess
and report the progress,
 ● Prepare and submit quantitative and qualitative monthly reports to the Mission
Director on the project progress against AWPBN targets.
● Prepare terms of reference for engagement of agencies and supervising the work
of agencies engaged in conducting baseline survey, mid-line survey and endline
survey to assess the impact of the project and supporting the agencies engaged in
conducting these surveys.
● Collate data and analyse data for submission of information related to ORMS (RIMS)
reporting of IFAD.
● Collate data required for preparation of a Project Completion Report.
● Ensure mainstreaming of gender in M&E work.
● Coordinate with the Manager – Institutions. Manager - Gender and Youth to ensure
all activities follow the principles of the Gender Strategy.
● Ensure capture of knowledge related to M&E in coordination with the Manager -
Knowledge Management.
● Any other task assigned by the Mission Director.

Manager – MIS
Qualification:
● Bachelor’s degree in computer engineering, Electronics and Communication
Engineering or a related field from a recognized University/College.
Experience:
● 2-3 years experience in software development.
● Should have a sound knowledge of RDBMS and software development life cycle.
● Knowledge of ASP.Net, Windows applications, CSS, HTML, C+, .net, Database
(Oracle), restful web service for developing service layer.
● Designing skills of CSS3, HTML 5.0 and knowledge of other design frameworks will
add advantage.
● Strong inter-personal and communication skills.
● Experience in working with team and team building spirit.
● Knowledge of Test-driven development and unit testing.
● Ability to learn business processes quickly and provides technical solutions.
● At least 3 years of professional work experience in computer programming using
ASP.Net, ASP.Net MVC, C#.net, Oracle database.
● Must have working experience in working with Government web-based software.

Job Description:
● Design, build, and maintain efficient, reusable, and reliable code in MVC, ASP.NET
with C# and Oracle.
● Review existing system, optimize code, update MIS, and make user interface
more user friendly.
● Design oracle database tables, packages, procedures, and triggers.
● Laise with M&E and SECAP specialist to ensure all ESMPC indicators are included
in MIS systems. Prepare data collection tools and record them.
● Develop tools for data sharing between government organizations.
 ● Develop MIS technical documentation (such as system design document,
configuration manual etc.) and maintain version control of such documents to
make it most up to-date technical documents for future reference.
● Implement appropriate security measures and standards during MIS development
and enhancement.
● Maintain and modify programs; make approved changes by amending flow
charts, develop detailed programming logic, and coding changes.
● Test and troubleshoot programs utilizing the appropriate hardware, database, and
programming technology.
● Recommend technical changes for implementing system developed during
project.
● Train, develop and support local level staffs, service unit staff to operate the
online MIS, GPS handheld devices, mobile applications, etc.
● Ensure Timely fixation of errors/bugs encountered in the MIS by PMU, MPA staff.
● Ensure the effective delivery and performance of MIS System according to the
agreed work plan.
● Develop documentation throughout the software development life cycle (SDLC)
and provide report to MIS Team Leader monthly basis.
● Assist in other IT related activities as assigned by the Mission Director.
● Work with development teams and product managers to ideate software
solutions.
● Design client-side and server-side architecture
● Build the front-end of applications through appealing visual design.
● Develop and manage well-functioning databases and applications.
● Write effective APIs.
● Test software to ensure responsiveness and efficiency.
● Troubleshoot, debug and upgrade software.
● Create security and data protection settings.
● Build features and applications with a mobile responsive design.
● Any other task assigned by the Mission Director.

Manager - Institutions
Qualification:
● Postgraduate degree in social work
Experience
● 10 years of relevant experience in the promotion of community institutions and at
least 5 years of experience in promoting FPOs.
● Hands-on experience in designing & implementing capacity-building and
livelihood-based interventions with community-based institutions.
● Extensive experience in targeting the poor and vulnerable and working on gender
equality, youth and women empowerment and social inclusion.
● Experience in community mobilization process, empowerment tools, and working
knowledge of national, J&Kand local level policies and policies of ministries,
implementing institutions and financing agencies, including IFAD will be highly
desirable.
 ● Excellent understanding and demonstrated experience of working on gender,
youth, rural poverty reduction and inclusion of marginalized groups Preferred
Skills.
● Ability to plan capacity-building interventions for community institutions and
monitor their progress periodically.
● Excellent written and verbal communication skills.
● Ability to C\coordinate with SRLM and to build strong business-oriented FPOs.
Job Description:
● Prepare guidelines for mobilization of FPOs and training the district and block staff
of KVs and Directorates to mobilize and support these community institutions.
● Develop curriculum for conducting training programmes for capacity building of
FPO Development Officers by SKUASTs.
● Coordinate all capacity-building training for FPO staff and members in
collaboration with the Universities and KVKs that will be working as FPO-
promoting organisations.
● Coordinate to enhance FPOs understanding on climate change and capacity to
identify and implement climate adaptation and mitigation measures.
● Develop guidelines for providing management support, and matching equity
support to FPOs and operationalize the same.
● Ensure the development of business plans of the FPOs and their implementation
in collaboration with the Universities.
● Ensure sound governance systems and legal compliances by FPOs.
● Coordinate with the financial institutions to ensure financial linkages for FPOs.
● Establish grading and rating guidelines and ensuring that FPOs are graded/rated
on a regular basis and take follow-up actions for improving the quality.
● Undertake field visits and preparing a Fact Sheet on project implementation
performance and submitting the same to the Mission Director for corrective
action.
● Undertake specific studies/surveys/case studies related to community institutions.
● Any other task assigned by the Mission Director.

Manager – Business Development

Qualification
Postgraduate degree in Business Administration/ Rural Management/Agricultural
Management
Experience
● 10 years of total experience covering business development, enterprise creation,
operations, and supply chain in agriculture or allied areas.
● Ability to conduct Market Analysis.
● Experience in policy and regulatory matters related to agriculture, industry,
banking and different Govt. schemes.
● Hands-on experience in designing & implementing enterprise and market
promotion in the agriculture and horticulture sectors.
● Excellent understanding and demonstrated experience of working on gender,
youth, rural poverty reduction and inclusion of marginalized groups
● Excellent written and verbal communication skills.
Job Description
● Anchor the activities related to Agri-business ecosystem development component
of the project.
Develop an agribusiness and enterprise promotion strategy in collaboration with
line departments, private sector and partner agencies.
● Develop an enterprise support modality/scheme for the project with the Sector
and Rural Finance Specialists.
● Work with the Rural Finance Specialist in developing pilots to improve access to
finance by entrepreneurs and products to reduce reliance on matching grants.
● Identify the market players and organize Multi-stakeholder platforms and Buyer
seller meets.
● Develop a market development and promotion strategy for key products of
Jammu and Kashmir with product development, brand development and brand
promotion.
● Assess the climate change risk in business planning and development. Capacitate
enterprises to understand and assess climate risk in their business and implement
adequate adaptation and/or mitigation measures.

● Coordinate the activities related to developing strategies for setting up and

operationalization of Incubation centres.
● Interact with industry to understand the current trends and engage with farmers
and educated youth to showcase opportunities and possible support through
incubation/enterprise support scheme.
● Explore scope of partnerships and collaborations with larger players and find ways
to connect FPOs with them for business purposes.
● Coordination with the different Government Departments within J&Kand outside
to facilitate and steer the entrepreneurs /start-ups towards success by facilitating
regulatory matters, dovetailing with different schemes and facilitating
collaboration with market players.

Manager - Gender and youth

Qualification:
● Postgraduate degree in social science/ social work, gender studies, development
management, NRM or relevant field.
Experience
● 10 years of relevant experience in implementing gender and youth-related
interventions.
● Experience in community mobilisation process, empowerment tools, and working
knowledge of national, J&K and local level policies and policies of ministries,
implementing institutions and financing agencies, including IFAD will be highly
desirable.
● Excellent understanding and demonstrated experience of working on gender,
youth, rural poverty reduction and inclusion of marginalized groups
Job Description:
● Design a gender and youth strategy and action plan for the project within the
overall ambit of project activities in consultation with the relevant stakeholders.
● Ensure gender, youth, nutrition, targeting and inclusion objectives are met and
the target groups benefit from project activities.
 ● Undertake specific studies/surveys/case studies related to gender and youth.
● Ensure gender and youth mainstreaming in all relevant project activities in close
collaboration with the Manager-institutions.
● Regularly monitor and analyse the status of targeting, gender equality and
women empowerment, youth in coordination with M&E Manager, and address
gaps in a coordinated way.
● Ensure gender and youth responsiveness in the capacity-building programmes
organized by the projects.
● Ensure the development of a gender and youth-responsive M&E and MIS.
● Ensure that targeted youth are identified, their skills/competencies mapped and
are provided adequate training and mentorship to establish enterprises.
● Ensure that activities targeted to women and youth are incorporated in AWPB,
adequately budgeted, implemented properly and captured in the annual progress
report and M&E reports.
● Ensure that all the project and partner staff are sensitized on targeting, gender
and youth inclusion performance targets and achievements.
● Ensure gender and youth mainstreaming and social inclusion are integrated into
all relevant project activities in close collaboration with other technical
professional staff.
● Prepare appropriate guidelines and ToRs for any surveys and studies to ensure
that gender, youth and social inclusion requirements are incorporated properly.
● Work with each technical manager in the PMU to critically review project design to
establish how each component or sub-component addresses gender and youth
issues, and identify opportunities for strengthening implementation from GESI
perspective.
● Work with M&E manager to develop the age, sex, poverty status and other
categories defined in the targeting strategy and ensure that these data are
collected properly and maintained in the MIS system and measured through the
project logframe.
● Build capacities of the PMU staff and ensure effective implementation
arrangements to ensure tracking and reporting on results on gender, targeting
youth and social inclusion.
● Serve as a channel of communication between the project and others working on
gender issues in government, implementing agencies, other development projects
and IFAD.
● Contribute in knowledge management in coordination with the Manager -KM on
gender, youth and social inclusion themes.
● Any other task assigned by the Mission Director.

Manager - Knowledge Management

Qualification:
● Degree in Agriculture/ Horticulture with post-graduation in Agriculture/
Horticulture/ Rural Development/Journalism/Business Management
Experience:
● 7-10 years of experience in implementing rural development projects with
relevant experience in knowledge management.
● Proficiency in written English is essential and knowledge of a local language
is desirable.
 ● Proven experience in documenting and publishing case studies and/or
research papers.
Job Description:
● Develop and operationalize a project-level Knowledge Management
strategy tailored to the needs of the project in line with IFAD’s corporate
Knowledge Management Policy.
● Establish sustainable KM systems at different Project levels to generate,
analyse, document, share and disseminate Project field experiences for
improved learning.
● Provide technical support on KM to the project parties and project staff and
prepare the KM component of the annual work plan and budget for the
project.
● Capture and document learning, innovations and changes as these occur in
the project life cycle during the Annual Reviews as well as from studies
commissioned by the project.
● Preparing case studies containing best practices emerging in the
implementation of project activities and undertaking dissemination of the
best practices for replication within the project area.
● Prepare stories and newsletters for sharing and disseminating lessons learnt
and good practices and share information on innovations across Jammu and
Kashmir in agriculture horticulture and allied sectors.
● Set up a project website with IT support and publishing regular news and
updates as well as case studies and articles on the website.
● Prepare project brochures and supporting the M&E team in preparing six
monthly and annual progress reports with inputs from concerned
professional staff.
● Provide support to professional staff in identifying areas requiring
preparation of implementation manual, training manual, training material
preparation and preparation of required guidelines, manuals and materials.
● Identify and documenting learning sites from the project.
● Organise learning events, exchange visits and exposure programmes for
the communities.
● Liaise with the project parties to generate and disseminate knowledge from
project implementation experience.
● Prepare policy studies and advocacy for policy reform within the agriculture,
horticulture and allied sectors.
● Organize learning exchange programs on climate change, environmental
sustainability, and SECAP.
● Act as a focal point for all knowledge management activities with inputs
from other professional staff related to knowledge generation, knowledge
dissemination and tracking uptake of relevant knowledge.
● Any other task assigned by the Mission Director.
Incubation Manager

Qualification

● MTech/ MBA/ PGDM/Equivalent Master degree in Agri-Business/Finance/

Marketing/ Agri Marketing/ Agri Economics/ Economics/ Technology
Commercialization/Entrepreneurship from recognised institute
Experience
● 5 years in technology commercialization, incubation, or any other relevant
experience in the startup ecosystem.

Job Description:

● The candidate will be required to work as a multi-disciplinary resource,

including but not limited to - preparing policy documents, making training
calendar, interacting with start-ups, faculty and staff; searching appropriate
resource-persons, making start-up advertisements, organizing events,
digital marketing, and content design.
● The candidate will be required to take complete charge of the operations of
incubation processes, and work towards crafting a long-term strategy for
the incubation centre.
● This is a multi-disciplinary role demanding the candidate to look after the
strategic, operational, sustenance, and growth-related aspects of
incubation.
● Ensure climate change adaptation and/or mitigation, and environmental
sustainability are well assessed and incorporated.
● The candidate will be responsible for relationship management and
collaboration with other colleges or corporates.
● The candidate should have good communication skills, excellent writing and
proofreading skills.

Procurement Officer (PMU)

Qualification
● Graduate in commerce, business, finance or management
Relevant Training: Purchasing management and procurement systems.
Desirable Qualification:
● Post Graduate Diploma in Material/Supply Management
● Completion of Procurement training from a national-level institute or
completion of procurement training conducted by an IFI.
Experience
● Post qualification, minimum 5 years of demonstrated managerial
experience in procurement in the organization with complete understanding
and experience on national procurement procedure.
● Minimum of one year of experience in handling project procurement in an
externally aided project.
Job description
● Coordinate with concerned subject matter specialists on procurement
 matters, especially preparation of TOR, technical specification etc.
● Assist in preparation of bidding documents, and other documentation.
● Manage the receipt and safe storage of quotations/bids/proposals.
● Coordinate with project team, organize and support evaluation committees
for prompt evaluation.
● Update of Contract Management details in IFAD ICP-CMT and prepare
amendment letters to the contracts. As part of the contract management,
in coordination with the concerned officials monitor the contractual
provisions for compliance.
● Monitor the MPA Procurement progress and inform Senior Procurement
Specialist on the challenges and delays.
● Review the compliance of the community institutions to the Community
Participation Procurement Guidelines and ensure all required documents are
correctly maintained.
● Keep progress of procurement activities against procurement timetables,
highlight variations in progress, record reasons and identify remedial
actions, if any.
● Ensure correct maintenance of procurement correspondence and
documentation required in hard copy files or electronic copy.
● Provide documentations and data to IFAD fielded Supervision Mission and
Implementation Support Missions.
● Perform any other relevant work related to the project procurement
assigned by the Procurement Specialist or the Mission Director.

Procurement Officer (Directorates and Universities)

Qualifications
● Graduate in commerce, business, finance or management
Desirable qualification/Training:
● Purchasing management and procurement systems
● Post Graduate Diploma in Material/Supply Management
● Completion of Procurement training from a national-level institute or
completion of procurement training conducted by an IFI.
Experience
● Post qualification, minimum 5 years of demonstrated managerial
experience in procurement in the organization with complete understanding
and experience on national procurement procedure.
● Minimum of one year of experience in handling project procurement in an
externally aided project.
Job description
● Coordinate with concerned subject matter specialists on procurement
matters, especially preparation of TOR, technical specification etc.
● Assist in preparation of bidding documents, and other documentation.
● Manage the receipt and safe storage of quotations/bids/proposals.
● Coordinate with project team, organize and support evaluation committees
 for prompt evaluation.
● Update of Contract Management details in IFAD ICP-CMT and prepare
amendment letters to the contracts. As part of the contract management,
in coordination with the concerned officials monitor the contractual
provisions for compliance.
● Monitor the MPA Procurement progress and inform Senior Procurement
Specialist on the challenges and delays.
● Review the compliance of the community institutions to the Community
Participation Procurement Guidelines and ensure all required documents are
correctly maintained.
● Keep progress of procurement activities against procurement timetables,
highlight variations in progress, record reasons and identify remedial
actions, if any.
● Ensure correct maintenance of procurement correspondence and
documentation required in hard copy files or electronic copy.
● Provide documentation and data to IFAD fielded Supervision Mission and
Implementation Support Missions.
● Perform any other relevant work related to the project procurement
assigned by the Procurement Specialist or the Head of the Department of
the project party.

Finance Officer
Qualification:
● Post-graduate Degree in Commerce and Accounting/Bachelor's degree in
Commerce and Accounting.

Experience:
● 3-5 years of experience in financial accounting of projects/ company for candidates
with post-graduation in commerce and accounting and 5-7 years experience for
candidates with graduation in commerce and accounting.
● Computer literacy and proficiency in Tally or other accounting software and use of
spreadsheets
● Good knowledge of accounting
● Working knowledge of audit requirements for financial compliance.
Job Description:
● Maintain the project accounts of the project party.
● Prepare Bank Reconciliation Statements of the project party every month.
● Prepare monthly progress reports with the actual and budgeted figures for each
activity and the variance thereof.
● Facilitate timely disbursal of project funds for project activities.
● Follow up with the implementation partners and project staff to ensure that they
submit their monthly statements within the stipulated time.
● Prepare the financial statements and the withdrawal application for submission to
PMU.
● Provide accounts, statements and other documents as may be required by the
Statutory/ Internal Auditor to ensure the timely completion of their assignment.
 ● Provide response on the internal audit report and external auditor's management
letter.
● Perform such functions as may be delegated to Head of the Department.

Gender and Youth Officer

Qualification:
● Postgraduate degree in social work/Gender
Experience
● 3-5 years of relevant experience in implementing gender and youth-related
interventions.
● Experience in community mobilization process, empowerment tools, and working
knowledge of J&K-level policies.
● Good understanding and experience of working on gender, youth, rural poverty
reduction and inclusion of marginalized groups.
Job Description:
● Ensure gender, youth, nutrition, targeting and inclusion objectives in line with the
gender and youth strategies of the project.
● Provide support for conducting specific studies/surveys/case studies related to
gender and youth.
● Ensure gender mainstreaming in all relevant project activities in close
collaboration with the Manager-Gender and Youth.
● Regularly monitor and analyse the status of targeting, gender equality and
women empowerment, youth in coordination with M&E and MIS Officer and flag
the gaps to the Manager-Gender and Youth.
● Ensure gender and youth responsiveness in the capacity-building programmes
organized by the project.
● Identify activities targeted to women and youth in the AWPB of the project
partner.
● Ensure implementation of the planned activities and capture the results in the
annual progress report and M&E reports.
● Ensure gender mainstreaming and social inclusion are integrated into all relevant
project activities in close collaboration with other technical professional staff.
● Any other task assigned by the HoD/Manager-Gender and Youth.

Planning and M&E Officer

Qualification:
● Post Graduate degree/Bachelor’s in Agriculture Economics/Statistics/Economics.
Experience:
● About 3-5 years of experience in rural development undertaking research/studies
related to impact assessment, evaluating project performance and establishing
systems for preparation of AWPB and monitoring results. 5-7 years experience for
the Bachelor’s degree holder.
Job Description:
● Consolidate and finalize the AWPB of the project party.
● Collate and analyse data, entering into computerised MIS and submission data
analysis reports to the Head of the Department.
 ● Prepare monthly reports on achievement against targets in the AWPB for
submission to the HoD.
● Provide input to prepare semi-annual and annual progress reports of the project
party for submission to the PMU.
● Support the agencies engaged for conducting baseline survey, mid-line survey end-
line survey to assess the impact of the project.
● Assist the Manager-KM to identify success stories and facilitate dissemination of
best practices from field level implementation.
● Any other task assigned by the Director/HoD.

Procurement Assistant (PMU)

Qualifications
● Graduate in any discipline
Experience
● Post qualification, at least 3 years of handling administrative issues in an
organization.
Job description
● Assist in preparation of bidding documents, and other documentation.
● Manage the receipt and safe storage of quotations/bids/proposals.
● Update of Contract Management details in IFAD ICP-CMT.
● Maintain and update list of registered vendors for different procurement categories.
● Maintain the procurement documentation in appropriate filing procedures.
● Maintain all the reference documents related to Procurement.
● Ensure the advertisements/notices are published in newspapers/project website
and Government of JK e-procurement portal.
● Update project website on award of contracts
● Perform any other relevant work related to the project procurement assigned by
the Procurement Specialist or the Mission Director.

PMU Finance Manager

(to be assumed by the Director of Finance Department of the APD)
General Description of task(s) and objectives to be achieved

I. Background

II. Overall objective

The Finance Manager, under the direct supervision of the Mission Director, and within the
framework of projects appraisal reports and loan/grant agreements, is responsible for the
financial and administrative management of the PMU, including supervision of FM
consultants, Accounting, Budgeting, financial reporting, internal controls, auditing
arrangement, flow of funds and the efficient management of projects resources.
III. Roles and responsibilities

● Prepare together with the Mission Director the Annual work plan and budget and
the budget and financing plan.
● Oversee the process of recruitment of FM consultants required for the JKCIP.
 ● Master IFAD key documents such as, the disbursement handbook, procurement
guidelines and handbook, IFAD guidelines for project audits, the Financing
Agreement (FA) and the FMFCL.
● Develop and maintain an efficient accounting system and reliable internal control
procedures and guidelines for financial reporting and recordkeeping.
● Ensure adequate maintenance of accounting software for the project accounting
record-keeping and financial reporting.
● Ensure bank accounts and accounts with implementing partners are reconciled
monthly.
● Ensure all supporting documents are adequately maintained for all project financial
transactions.
● Ensure external and internal audit reports are sent on time.
● Ensure external and internal audit report recommendations are timely
implemented.
● Ensure IFRs are timely prepared and sent to CAAA and IFAD
● Ensure IFAD Supervision report recommendations are timely implemented.
● Responsible for the preparation, review and monitoring of projects budgets
including financing plan, procurement plan (together with the Procurement Officer),
and staff development plan (together with the training focal point)
● Prepare/verify all withdrawal applications for submission to CAAA/IFAD and ensure
the availability of funds for all planned activities. Manage the projects bank
accounts, approve and co-signs all payments.
● Prepare and provide financial reports including the sources and uses of funds
statement, incurred expenditures by component, expenditure category and
financier, designated account reconciliation statement, fixed asset list and cash
flow forecast etc. for submission to the Project steering committee, LPA and IFAD
on a quarterly basis, and maintain all records in a form appropriate for audit.
● Lead the process of assigning an external audit ( CAG) to conduct an independent
audit of the annual project accounts, ensuring that annual audits are carried out
within the specified timeframe.
● Develop and maintain a system of financial control over all expenditure incurred by
implementing partners.
● Responsible for developing and managing an effective and performance based
human resources management system.
● Supervise and coordinate the work of staff placed under his/her direct authority.
● Review and regularly update the Financial and Administrative Manual of the PMU.
● Responsible for the organization and supervision of the PMU office, assets, logistics,
and all administrative matters.
● Undertake any other activities assigned by the Mission Director.
IV. Required qualifications and experience
- Accounting or Finance, undergraduate degree
- At least 5 years of experience in a similar position
- Charted Accountant of India
- Excellent knowledge of Indian Accounting and Audit standards

FM Consultant ( two positions)

GENERAL DESCRIPTION OF TASK(S) AND OBJECTIVES TO BE ACHIEVED
I. Background

FM consultant is part of JKCIP PMU FM team and primarily responsible for maintaining Tally
accounting software for JKCIP.

II. Overall objective

FM consultant will be responsible for maintaining accounting records in the accounting

software for JKCIP PMU, reconciliation of accounts and consolidation of financial reports
for all implementing partners.

III. Roles and responsibilities

Under the direct supervision of the Finance Manager (PMU); specific duties include:
● Assist the Finance Manager (PMU) in the implementation of a sound financial
management system.
● Prepare financial reports, including monthly funds reconciliation, and monthly,
quarterly, semi-annual and annual expenditure statements;
● Prepare transaction vouchers, and input all transactions into the PMU accounting
system before submission to the Finance Manager (PMU) for approval;
● Process all payments, ensuring that PMU procedures are strictly adhered to;
● Process monthly payroll, payment of salaries to staff and project contributions;
● Assist the Finance Manager (PMU) in the preparation of withdrawal applications
and IFRs;
● Prepare cash flow forecasts as required;
● Monitor financial reports and supporting documents from Implementing Partners,
including periodic visits to their offices;
● Assist in the preparation and monitoring of annual operational budgets.
● Functional supervision and training of Accounts of Implementing partners.
● Maintenance of a well-organized and up-to-date filing system for accounting and
financial records as well as a fixed asset tagging system;
● Perform physical inventory of project assets each year;
● Assist the Finance Manager (PMU) in the preparation of internal financial
instructions and guidelines.
● Provide assistance to the external auditors as required;
● Undertake any other activities assigned by PMU management and Finance
Manager.

IV. Required qualifications and experience

- Accounting or Finance, undergraduate degree

- At least 2 years of experience in a similar position
- Good understanding of Indian Accounting and Audit standards
Appendix C3A3: Project Coordination Structure
Chapter 4: Monitoring and Evaluation and Knowledge Management

A. Monitoring and Evaluation

1) Purpose of an M&E System
1. The main purpose of setting up an M&E system in any IFAD-funded project is to
provide comprehensive, frequent, periodic and reliable data and information for sound
result-based management and decision-making by the project management. The M&E
system is designed to inform project management of whether implementation is going as
planned and what corrective actions are needed in planning, target setting, budget
allocation, etc. M&E system will generate relevant knowledge based on analysis and
disseminate lessons learned in a targeted and strategic manner to comprehend
achievements in the development objectives of the project. The M&E system is expected
to perform and achieve four essential objectives: (i) to monitor and manage project
progress; (ii) assess project outcomes and impact; (iii) capture and disseminate lessons
learned and good practices; and (iv) build local/community capacities for participatory
M&E.

2) M&E in IFAD funded projects

2. M&E systems are crucial components of IFAD projects, as they help ensure that
projects are implemented effectively and achieve their intended outcomes. An overview of
the M&E system in IFAD projects is provided below:
3. Project Design Phase: M&E begins during the project design phase. During this
stage, project planners and stakeholders define the project's objectives, outcomes and
output indicators that will be used to measure progress and success. During the first year
of project implementation, a baseline is established to compare against the results during
project implementation.
4. Data Collection and Reporting: Once the project is underway, data collection and
reporting mechanisms are put in place. This involves collecting data on various project
activities, outputs, and outcomes. Data can be collected through surveys, interviews, focus
group discussions, and other methods.
5. Indicators: IFAD projects typically use a set of performance indicators to assess
progress and impact. These indicators can be categorized into inputs, outputs, outcomes,
and impact indicators. Examples include the number of households reached, crop yields,
income levels, and changes in poverty rates.
6. Frequency of Data Collection: The frequency of data collection varies depending
on the indicator and project timeline. Some indicators may be monitored on a monthly or
quarterly basis, while others are assessed annually or at specific project milestones.
7. Data Quality: Ensuring data quality is essential. Data should be accurate, reliable,
and consistent over time. Quality control mechanisms are often put in place to validate
data collected from the field.
8. Data Analysis: Collected data is analysed to track progress and assess the
effectiveness of project interventions. Data analysis may involve statistical methods, trend
analysis, and comparisons against baseline data.
9. Reporting: Regular reporting is a key element of the M&E system. Project Managers
and teams prepare reports that summarize project progress, challenges, and
achievements and submit to the project management. These reports are often shared with
IFAD, project partners, and other stakeholders.
10. Feedback and Learning: The M&E system allows for continuous feedback and
learning. If issues or challenges arise during project implementation, adjustments can be
made to address them. Lessons learned from M&E activities are used to improve future
project designs and implementations.

1
11. Evaluation: In addition to ongoing monitoring, IFAD projects typically undergo
periodic evaluations. These evaluations are conducted by independent experts and assess
the project's overall performance, impact, and sustainability. Evaluation findings inform
IFAD's decision-making processes, including the allocation of resources to different
projects.
12. Knowledge Management: IFAD emphasizes the importance of knowledge
management in its projects. Lessons learned, best practices, and successful strategies are
documented and shared across projects to improve overall effectiveness.
13. Capacity Building: IFAD invests in building the capacity of project staff and partners
in M&E techniques and tools to ensure that M&E activities are carried out effectively.
14. In summary, the M&E system in IFAD projects is a comprehensive framework that
involves planning, data collection, analysis, reporting, and learning to ensure the
successful implementation and impact of rural development and poverty reduction projects
in developing countries. It helps IFAD and its partners make informed decisions and
continually improve their interventions.

3) Objectives of M&E
15. The M&E and KM system of this project will be developed with three main objectives:
a. Steer project implementation: To provide project stakeholders with information and
analysis required to measure programme outputs and outcomes to support decision-
making to improve project performance that include: (i) assessment of project effects on
the livelihoods of participating farmers; (ii) assessment of the relevance of the project
strategy, methodologies and implementation processes; and (iii) detection challenges and
successes.
b. Support economic decisions and policy-making: To provide grassroots level
stakeholders, and, in particular producer groups and organisations, with the information
and analysis they need to assess the results to scale up profitable activities and to adapt
their strategies accordingly, by monitoring both quantitative (production, productivity,
costs and benefits) and qualitative results (members’/clients’ satisfaction). Furthermore,
it should provide stakeholders and government with the information needed to make policy
decisions that can positively benefit economic activities within the value chains.
c. Share knowledge: to develop lessons learnt, capture good practices and successful
innovation, and share knowledge under appropriate formats to support project
performance and policy dialogue. Specific areas of interest in this respect comprise
inclusive business models, export linkages, business incubation, public-private
partnerships.

4) Strategic Principles
16. The system will be: (i) open and easily accessible, i.e. its use will not be restricted
to project or government agencies’ staff, but also provide information and learning for
value chain stakeholders; (ii) participatory, i.e. associate project stakeholders, and
specifically, producer groups and organisations in the definition of indicators, data
collection, analysis and dissemination of results; (iii) growing, thus small initially and
develop progressively as needs and capacities develop; (iv) focused on analysis and
learning in support of decision-making and policy dialogue, and not merely on data
production; (v) inclusive so that women, youth and marginalised groups participate in the
system; and (vii) support accountability towards project stakeholders.
17. The M&E and MIS systems established at the PMU/project party level will provide a
venue for discussing project achievements and innovations, identifying successes and
problems as well as good practices, discussing possible solutions including non-project
based solutions and identify policy issues. They will also contribute to the preparation of
AWPBs.

2
5) M&E System
18. Framework and implementation plans. The M&E system will be setup and
managed by the PMU and efforts would be made to link with all ongoing systems that are
being used by the government. These systems should capture both monitoring inputs and
outputs and will have to be developed to meet IFAD’s requirements. These will include
reporting forms starting output indicators disaggregated by gender, SC/ST and youth.
19. Indicators: Output and outcome indicators will be developed with the help of
stakeholders. These will be coherent and SMART (specific, measurable, achievable,
relevant, time-bound), easy to collect and gender, SC/ST and youth disaggregated. They
will include relevant Core Outcome Indicators, required by IFAD at corporate level.
20. Baseline, midline and endline surveys: A baseline study measuring the status of
the main indicators including the Core Outcome Indicators and Stakeholder Feedback
Indicators will be carried out by the government by engaging a service provider
immediately after the project gets in principle agreement. Terms of reference for the
baseline study are provided in Appendix C4A1. A midterm survey and an end-line survey
– which are the repetitions of the baseline survey – will be carried out at midterm and at
the end of the project in order to measure the results of the project.
21. Project planning: The M&E/KM cycle will start with the preparation of the project
AWPB, which will be a key instrument for implementation and operational control. It will
cover detailed annual planning of activities and implementation responsibilities, physical
results targeted, outputs expected, budget and procurement plan. Such plans are prepared
at each district level aggregated separately at the PIU of each project party. These will be
consolidated at J&K level by the PMU into a project AWPB. The project AWPB will be collated
at the PMU by the Manager- M&E and Manager-MIS and the Manager-Finance under the
supervision of the Project Director, The AWPB will be submitted to IFAD for obtaining no-
objection and thereafter the AWPB will be submitted to PMC for approval. Once it is
approved by the PMC, it will be incorporated into the budget of the DAP. A model AWPB is
provided as Appendix C4A2 and this could be used as a model template.
22. Data collection: Data will be collected using adequately designed forms designed
by the PME&MIS Specialist and organised along three levels:
a. at village level, information will relate to number of high value agriculture,
horticulture and livestock farmers and their organisations, productivity, production
and income, mortality of animals and herd size increase, and it will be provided by farmers’
and their producer groups and channelled to the M&E system by the Producer
Organizations supported by the project party’s district teams – to avoid multiple counting
of beneficiaries, activities will be recorded by household with unique identification number.
b. at the value chain level, information will be provided on the incomes, increase in farm
gate price of value chain commodities, return on investment and this will be collected by
the Producer Organizations and managed project party’s district level offices.
c. at project level, information will encompass overall project performance and it will
be the responsibility of the PME&MIS Specialist. All stakeholders will have an active and
important role in identifying and reporting data, either formally or informally. The
PME&MIS Specialist will make sure that women are adequately represented in this
process.
23. Analysis: Data from different sources will be consolidated and analysed to provide
information on the performance of the various components, identify problems, identify
possible solutions and track good practices to share through the knowledge management
system. Information will also be shared with and discussed by the project stakeholders
with a view to assessing the overall progress in implementation and discussing measures
to improve performance.
24. MIS: A computerised MIS system will be set up to facilitate the flow of data. The MIS
will track financial and technical data on project outputs and outcomes, lessons learnt,

3
good practices, and other sectoral information to analyse the performance of the project
including information regarding price and export statistics. The MIS will process
information and present it in visual formats such as dashboards and charts linked to GIS
for location identification with latitude and longitude coordinates where project
investments will be made to avoid duplication. Where possible, the project will also link
the MIS system with the Aadhar numbers of the households to ensure verifiable service
delivery. The MIS will be set up by a service provider or technically qualified persons will
be engaged by the project to develop a MIS software.
25. Reporting: Brief quarterly reports will be prepared by the project parties, mainly
consisting of the record of activities, outputs and financial transactions. They will be
channelled to PMU where these will be consolidated prior to submitting them to the project
management and to PMC and PSC. Consolidated biannual and annual reports will be more
comprehensive, cover both technical and financial information, and include an analysis of
the project achievements and challenges. Annual reports will cover outputs and
outcomes), lessons learnt, innovations and good practices, and knowledge gaps identified.
26. M&E capacity development: Capacity building for the M&E staff at all levels is
required. The short-term M&E/KM consultants will design a capacity-building plan as part
of the services to support the staff of PMU and project parties. Training programmes will
be delivered to the management staff on the strategic issues of M&E, especially on how
M&E data could be used for result-based management. With regard to the M&E staff,
training courses will focus on both concepts and practical skills to manage the M&E system,
especially data collection, data analysis and reporting.
6) M&E matrix
27. Often referred to as an M&E framework, is a tool used to systematically plan,
organize, and manage the monitoring and evaluation activities of a project. It provides a
structured framework for tracking progress, assessing performance, and measuring
outcomes and impacts. The steps involved in developing and using a M&E matrix is
provided below:
a. Define Objectives and Outcomes: Begin by clearly defining the objectives and
intended outcomes of the project. These should be specific, measurable,
achievable, relevant, and time-bound.
b. Identify Indicators: For each objective and outcome, identify the key performance
indicators (KPIs) that will be used to measure progress and success. These
indicators should be quantifiable and directly related to the objectives.
c. Determine Data Sources: Specify where the data for each indicator will come from.
This could include surveys, reports, interviews, observations, or existing databases.
It's essential to identify who will be responsible for collecting this data.
d. Set Baselines: Establish baseline values for each indicator. Baselines represent the
starting point against which progress will be measured. They provide a reference
for assessing changes over time.
e. Define Targets: Set specific targets or goals for each indicator. These targets
represent the desired level of achievement for each indicator by the end of the
project.
f. Develop a Monitoring and Evaluation Plan: Based on the indicators, data sources,
baselines, and targets, create a detailed plan for how monitoring and evaluation
activities will be conducted. This plan should specify the frequency of data
collection, responsible parties, and data collection methods.
g. Create the M&E Matrix: The M&E matrix is a tabular representation of the
information gathered in the previous steps. It typically includes columns for
objectives, indicators, data sources, baselines, targets, responsible parties, and the
frequency of data collection.

4
 h. Use the M&E Matrix: The M&E matrix serves as a reference and guide throughout
the life of the project. It is used in the following ways:
i. Monitoring: Regularly track progress by collecting data on the specified
indicators. Compare the collected data to the baseline and targets to assess
whether the project is on track to meet its objectives.
ii. Evaluation: When conducting periodic evaluations, use the M&E matrix as a
basis for assessing the project's performance and outcome. Evaluate whether
the project has achieved its intended outcomes and objectives.
iii. Decision-Making: The M&E matrix provides valuable information for decision-
making. It helps project managers and stakeholders make informed decisions
about resource allocation, adjustments to project activities, and the overall
direction of the project.
iv. Accountability and Learning: The matrix helps ensure accountability by
providing a clear record of progress and performance. It also supports
organizational learning by highlighting what is working well and where
improvements are needed.
v. Adapt and Revise: As the project progresses, or as new information becomes
available, the M&E matrix should be periodically reviewed and updated. This
allows for adjustments to indicators, targets, and data sources to reflect
changing circumstances and learning from the M&E process.
28. In summary, an M&E matrix is a structured tool that plays a central role in the
monitoring and evaluation of projects. It helps ensure that objectives are met, progress is
tracked, and data-driven decisions are made to improve outcomes and impacts. It is a
dynamic document that evolves over time to reflect the changing needs and priorities of
the entity being monitored and evaluated.
7) Results monitoring
29. Output monitoring will measure the progress of activities and achievement of
outputs against annual targets in the AWPB for each project component. AWPB outlines
the inputs and activities to be undertaken and data on outputs would be collected or
measured for each indicator at the end of each month/quarter/year. This can be linked to
the financial expenditure on the concerned activities, and data will be stored and reported
via a computerised MIS. The type of output data to be collected and monitored will be
carefully dovetailed with the project logical framework indicators. The computerised MIS
will also record village profiles for each village where the project is working, which will be
drawn up before work starts to collect basic human, economic and natural resource
information against which progress can be measured. The project will also implement a
GIS based identification of support for value chains and infrastructure investments and
also aadhar based identification for beneficiaries. Physical and financial progress data and
reports for each component/sub-component in each village will be recorded in the
computerised MIS. The output monitoring indicators are provided in Appendix C4A3.
30. Although output monitoring would appear to be a straightforward process, the
experience of a number of IFAD projects in India and elsewhere have highlighted the need
to pay adequate attention to the details of how data is collected (formats used, frequency
of data collection, etc.) and reported. Overlapping components can mean households
participate in more than one activity with the risk of double counting when calculating the
number of households reached by project services. These problems can be overcome by
training of staff responsible for progress reporting to use a common reporting format and
carefully defining how participating households will be counted. The PMU will take the lead
in harmonizing the different formats for data collection and reporting, and if at all possible,
a list of all households in each village with be maintained in the MIS - referenced by village
geocode numbers and the head of household's Aadhar card number.

5
31. Outcome monitoring measures the immediate changes coming about because of
project interventions. A few core outcome indicators required for IFAD’s corporate
reporting and other project specific outcome indicators are shown in the project logical
framework, but others will need to be added to create a results chain of evidence of change
linking project outputs to the objective and goal. However, it is difficult to collect
information from all households on indicators such as productivity, fodder development,
nutrition security, etc., the project will conduct baseline, mid-term and end-line surveys
as per IFAD’s guidelines. The outcome monitoring indicators are provided in the logframe
in Annex 1 of the Project Design Report.
32. Related to outcome monitoring is process monitoring, which involves monitoring the
processes leading to outputs and outcomes. Examples of specific areas where progress
monitoring will be useful in JKCIP may include effectiveness in service delivery and their
sustainability, effectiveness of producer organizations and their sustainability,
effectiveness of business incubation and others. The project may undertake specific
process monitoring studies related to major activities of the project.
B Knowledge Management System
33. In the first year the project will prepare a project level KM strategy in line with the
IFAD policy on KM. The KM strategy will set out a plan to build a robust KM system for
the project. This system will enable the project to generate, capture, share and
disseminate relevant information and knowledge to various stakeholders in a timely
manner. The project website will be used as a knowledge sharing tool and will be linked
to the IFAD Asia website. The KM team will extensively document and share knowledge
generated in the project. The quarterly review meetings will be used as potential
knowledge sharing venues for capturing lessons learned and best practices leading to
development of related knowledge products. Key information from M&E studies, reviews
and exposure visits, lessons and best practices will be disseminated through knowledge
products such as newsletters, project briefs, technical manuals, working papers and case
studies.
a. The project will nurture a culture of learning and sharing across project parties and
across other project stakeholders.
b. Reporting lines and channels of communication need to be established for each
level of staff.
c. The TORs of all professional staff will have KM as a cross cutting deliverable.

1) KM Strategy
34. The KM Specialist will develop a KM strategy based on the IFAD’s KM strategy in
consultation with the project parties. The strategy will also include a needs assessment of
the main stakeholders of the project namely the different project functionaries (field,
district level, state level etc), the community people (producer groups producer
organisations), the government stakeholders, IFAD and other donors.
35. The KM Needs Assessment Matrix (below) used in all IFAD projects, outlines the
knowledge need and the possible ways to capture and disseminate it.
information/knowledg

knowledge be shared
Who will provide this

What knowledge is

Possible Solutions
Training needs at
Knowledge Area

knowledge get

knowledge get
Who need this

different level
How will this

How will this

How will this

documented
information

Constraints
generated
needed
e

6
36. The Needs Assessment will be done in collaboration with the other subject matter
specialists of the project. It will look at each component and subcomponent of the project
to make a comprehensive plan.
37. The project will also develop a plan of action as part of the strategy in order to plan
for the entire period of the project looking at the different knowledge need stages of each
stakeholder. The plan should have simple deliverables spread out over the period.
38. The strategy and plan should also include simple incentives for those who pursue KM
as part of their work as KM is very individual oriented. These incentives will build a culture
of knowledge sharing among the staff. It can be recognition and awards given to these
individuals and can be given on an annual basis at the annual review meeting of the
project.
2) Linking KM to M&E Systems
39. Relevant information should be extracted from the M&E database and validated and
synthesized. Actual results should be then compared with previously defined objectives.
Lessons should be drawn from successes and failures, and best practices and innovations.
These should result in success stories, case studies, thematic technical papers and policy
briefs.
3) Studies, documentation and knowledge products
40. Special studies will be undertaken within the project cycle to understand the impact
of project interventions on women, climate change, environment and the poor. Learning
notes on project implementation (good practices and lessons) in all sectors will be
developed for use by the communities.
41. The project will publish a bi-annual newsletter based on good practices and human-
interest stories that will be disseminated to all important stakeholders. The project will
develop contextual specific IEC materials that are required by the non/semi-literate
communities on good practices of value chains, health and nutrition as per the
interventions. It must be taken into consideration that the IEC materials must be gender
sensitive and must promote gender justice messages alongside.
42. Besides this, the project will also produce pamphlets, brochures, calendars, CDs,
manuals, posters, videos which are effective ways/ methods of communications, especially
at the community level.
43. Documenting of indigenous knowledge systems on high value agricultural crops,
small livestock management, nutrition, and climate change will be an important part of
the knowledge products that the project will take out. This will be systematically carried
out every year of the project as one of its main publications.
4) Policy dialogue
44. The project will conduct conferences and workshops based on the knowledge gained
by implementation of the project. Important studies carried out under the project will
have a dissemination workshop and invite prominent decision makers to influence policy.
The project will also promote networks of groups involving project parties through
knowledge sharing events.
5) Website development
45. A website will be developed which will have facilities for online uploading of
monitoring data from the districts. It will also contain GIS linked maps of the villages and
infrastructure supported by the project. A section on reports and good practices and
lessons learned will be included on the website.
46. Webpage on IFAD Asia: The M&E system will provide information on outputs,
outcomes, impacts, lessons learnt, good practices, and other key sector information to
analyse performance of the programme, including information regarding price and export
statistics. In addition, this information will also be hosted on IFAD Asia webpage, which

7
makes available to the public key information about the project, its achievements, good
practices, policy studies and other key documents. The webpage will be maintained by
Manager-Knowledge Management. All KM focal points with the project parties will be linked
to this website so that they can post their updates on a regular basis.
6) Special thematic/diagnostic studies
47. The project may carry out, or commission, a number of relevant thematic special
studies. The project will allocate budget in its AWPB and some of the thematic studies
could include, for example, Feasibility of cage culture, co-management of ox-bow lakes,
etc.
7) Training and workshops
48. The KM Manager will carry out at least one training each year for the project staff on
(orientation, documentation, knowledge sharing) and organise thematic workshops to
build the capacity of the project staff and enhance knowledge sharing in the project. The
topics for the training can include – good practices in production, processing/value addition
and marketing of value chain commodities, how to monitor work effectively, how to plan
work, how to conduct meetings, how to do gender analysis, etc. Involving producer
groups/organizations in thematic workshops will be a way to ensure cross learning of good
practices.
8) Transfer of knowledge
49. To ensure dissemination of the knowledge gained through external workshops and
exposure visits, it will be made compulsory for every staff to write a report of the workshop
and disseminate the same. In order to systematise the transfer of knowledge to the new
staff, the project will ensure that the out-going staff record the history of all activities and
list all pending actions to be done.
C. Inception and Reviews
50. Inception: An inception/start-up workshop will be organised with project
stakeholders and implementing partners to: (i) ensure that all partners understand and
agree on the scope and implementing modalities of the project; (ii) introduce key
processes, tools, strategies and reporting needs; and (iii) act as a networking event to
build relationships for future knowledge sharing.
51. Quarterly Review meetings: The implementation progress will be assessed by the
senior management and the project team through centrally held quarterly reviews of
project parties. These reviews will function as knowledge sharing events within the project.
It will be documented and disseminated across all the districts and archived for further
use. These events will not only assess physical and financial progress but also cross
cutting issues like gender, M&E and KM. Reports will be generated of these meetings and
disseminated and archived.
52. Internal Reviews: Internal reviews will be held by the project parties once in a
quarter. The project party will submit minutes of the quarterly review meetings to the
PMU. Review teams will be established by the PMU comprising officials from the project
parties and consultants where required to identify the challenges and workout solutions in
respect of poor performing districts in each project party. A report will be published on the
findings of these teams and will be disseminated to all project parties and shared with the
IFAD supervision missions.
53. Supervision: The project will be supervised directly by IFAD. Annual supervision
missions, followed initially by short follow-up missions as required, will be organised jointly
with the government and the project parties. Supervisions will be conducted not as a
general inspection or evaluation, but rather as an opportunity to assess achievements and
lessons jointly, to review innovations, and to reflect on improvement measures. These
supervision missions will therefore be an integral part of the KM cycle, with mission
members playing a supportive role. To ensure continuity in this process, missions will be

8
carried out by a core team of resource persons returning regularly, joined by specialists
to address specific needs of a given year.
54. Mid-Term Review (MTR): A joint mid-term review will be organised by government
and IFAD at the end of the third year of the project. The MTR will: (i) assess project
achievements and results, the efficiency and effectiveness of the project management,
and the continued validity of JKCIP design; (ii) identify key lessons learnt and good
practices; and (iii) provide recommendations for the remainder period of the project.
However, specific TOR for the mission will be mutually discussed and agreed to between
IFAD, GoI and the GoJ&K.
55. Project Completion Review and Report. At the end of the project, the PMU will
draw up a Project Completion Report (PCR) based on IFAD’s guidelines 1 for project
completion. IFAD will provide support to the project in this work. IFAD will carry out a
PCR Validation based on the project PCR at least 3 months before the loan closing.
56. Project results evaluation. This is a process which will assess the contribution of
project activities in achieving the overall goal of the project. The main tool for this
evaluation will be baseline, midline and end-of-project surveys of project households.
These surveys will be undertaken by engaging an external agency, with specific expertise
in such assessments. The indicators on which data to be collected by these surveys include
those shown at objective and goal levels in the project logframe and also in the monitoring
indicators provide in Appendix C4A3 in order to show evidence of a results chain from
project activities, through outputs and outcomes to objectives and goals.
D. Implementation Responsibilities of M&E
57. M&E Staff: The project will recruit staff experienced in M&E for the PMU and partners
agencies. In the first year of the project, the M&E staff will focus on establishing a
functional M&E system for the project. This would include reviewing the results framework
and indictors with the project management and IFAD to ensure that they are relevant,
refining the M&E plan and M&E matrix, assessing staff training needs on M&E, organising
M&E training, coordinating and conducting the baseline survey, designing the various
reporting formats, developing databases, and setting up a computerised MIS.
58. The PME&MIS Specialist will be responsible for coordinating project planning - such
as consolidation of the AWPB. This person will also oversee the preparation and submission
of project reports (such as Annual/Half Yearly Progress Report and ORMS) - with support
from the KM Specialist. M&E staff in PMU and project parties will also provide support
during IFAD supervision, implementation support, MTR and PCR missions, and will organise
all data and information relating to the project for reference by the IFAD missions.
59. Key M&E tasks and implementation arrangements during project
implementation cycle. The overall key M&E tasks and implementation steps during
various cycles of project implementation are summarised in Table 1 below:
Table 1: Summary of key M&E tasks
Key stages of Key M&E tasks2
project cycle
Project • Recruitment of all M&E staff
initiation (loan • Review the project design/detail project report in relation to M&E with key
effectiveness) stakeholders.
to project • Review the PIM in relation to the section on M&E and KM in particular.
start-up • Develop a detailed M&E plan and system including appreciation of project
workshop M&E culture and practices that would be emerging taking into consideration the
(usually PY 1) various project results chain.
• Review / develop various M&E formats (data collection and reporting
formats).

1
Guidelines for Project Completion, IFAD, January 2023.
2
Should be read along with the overall KM tasks to have link between M&E and KM

9
 Key stages of Key M&E tasks2
project cycle
• Undertake and complete the baseline surveys (outsource/procure an
agency).
• Develop project MIS (outsource the task / procure an agency).
• Prepare the KM strategy and action plan; integrate M&E and KM.
• Prepare the knowledge management strategy and link it up with
• Put in place necessary conditions and capacities for M&E to be
implemented.
Main • Ensure all data and information needs for management and key
implementation stakeholders are regularly met.
period • Coordinate information gathering and analysis, as also data storage and
data management.
• Facilitate and support regular review meetings and processes with all
implementers and stakeholders.
• Prepare for and facilitate the project reviews/ review meetings (monthly/
quarterly/ half-yearly/yearly or annual).
• Coordinate/prepare for supervision missions; implementation support
missions, etc.; prepare the action taken report on recommendations of IFAD’s
missions.
• Organise meeting of IFAD mission and government during supervision
missions, etc.
• Conduct focused studies on emerging questions including documentation of
good practices and missed opportunities (those not working well; suggest
alternatives).
• Disseminate / communicate project results with various stakeholders.
• Prepare/undertake and ensure timely submissions of various reports as per
IFAD’s norms and requirements including documentation of success case
studies, half-yearly/annual progress report, Annual Outcome Survey, Annual
ORMS/RIMS Report, etc.
• Consolidate the various types of supervision mission and implementation
support mission feedback.
Mid-term • Collate information for the mid-term review (MTR).
• Coordinate for conduct of the MTR.
• Facilitate internal review processes to prepare the external review
processes.
• Adjust the M&E system as required.
• Revise the draft exit strategy and post-project sustainability.
• Organise project workshop to review, share and disseminate changes
proposed at MTR with all project staffs and partners.
Phasing-out • Assess what the implementers and communities can do to sustain project
and completion interventions, impacts and M&E/KM activities could be sustained after closing
down; implement these specific ideas; revise and update the project exit
strategy and post-project sustainability strategy or action plan.
• Undertake end-line surveys / impact studies (outsource/procure an agency)
• Organise workshops to review the key elements of project exit and post-
project sustainability strategy.
• Organise workshops and field studies with key stakeholders to assess
project impacts; identify lessons learned for next phase of the project and/or
other projects to be designed in future.
• Prepare the Project Completion Report (PCR) as per IFAD’s guidelines.
• Facilitate and coordinate IFAD’s PCR validation mission.
• Organise closure workshop to share and disseminate lessons learned with
all key stakeholders.

60. Annual M&E Activities Calendar. The key M&E activities and reporting
requirements to be performed by the project by date/month are illustrated below. This
does not include the higher-level project coordination meeting such as Project Steering
Committee (PSC) meeting.
J
M Ju u Au Se Oc No De Ja Fe M
Key activities Apr ay n l g p t v c n b ar
Annual Progress Performance Review

10
 J
M Ju u Au Se Oc No De Ja Fe M
Key activities Apr ay n l g p t v c n b ar
AWPB preparation and submission
Annual Progress Report
Half-yearly Progress Report
Annual ORMS Report submission
Annual Audit Report submission
Quarterly Results Report Preparation (Outputs)
Quarterly Review Meetings at PMU
Monthly physical & financial data collection/ MIS entry

61. Management Information System (MIS). The project will establish a

computerised MIS system in the first year of project implementation. The MIS system will
have separate modules for each project party and will be linked to GIS. The MIS would
generate, monthly, quarterly and annual progress reports on physical and financial
progress and on project outputs and outcomes - and will have a GIS interface so that key
data can be shown on maps.
62. The staff of project parties at the district level will work with the Planning and MIS
Officer at the respective project party who will in turn report to the PME&MIS Specialist at
the PMU. The project will engage suitable software/computing company or technical
experts to develop the MIS software (or adapt an existing package) and then train staff
and provide continuing support. It is likely that the system will need to be modified in the
light of practical experience and emerging needs.
J. Reporting and Communicating Project Results
63. As part of the MIS, the PMU will develop common reporting formats to be used by
the project parties. All data would be gender disaggregated and the analytical reports are
to be used for taking timely corrective actions and to learn from implementation
experiences to further improve project management effectiveness and efficiency. As
required, monthly, quarterly and annual reports may be produced at different levels within
the project. For IFAD corporate reporting the following are needed: Half-yearly progress
Report (only against the AWPB), Annual Progress Report, ORMS Annual Reports and COI
mid-line survey results.
64. Monthly Progress Reports (MPR) will be prepared from the project MIS developed to
generate information at the block levels for reporting to the DLIT and FIT and onward to
the LIT and FIT and PMU. Information in the report will contain component/sub-component
wise physical and financial progress against annual targets. This report will form the basis
for monthly progress reviews at all levels and subsequently feed to the quarterly progress
report.
65. Quarterly Progress Reports (QPR) will have physical and financial progress with
information on challenges encountered in implementation and corrective actions and
solutions to address constraints as well as communities' response to project initiated
activities. QPR would also be useful for consolidating ORMS/RIMS Annual Report each year.
66. Half yearly and Annual Progress Reports (HR/APR) will be prepared from information
compiled by the PMU on component/sub-component wise physical and financial progress,
and loan category wise financial progress. The information will be generated via the project
MIS and could contain summarised information and data from blocks and findings from
PME and annual outcome surveys, showing progress towards development objectives,
usefulness of training, benefits from component/sub-component interventions, gender
issues and knowledge management. The reports could be dovetailed with case studies of
successful interventions. The PMU will prepare the half-yearly progress report by the end
of October (primarily progress against the AWPB) and a more detailed annual progress
report by April end to mid-May every year and send to IFAD India Country Office and other
stakeholders.
67. ORMS/RIMS Annual Report. The key ORMS/RIMS indicators corresponding to the
project outputs and outcomes by components are included in the project’s Logical

11
Framework and will be reported annually by the end of January every year. In the first
year the project information on RIMS first level indicators (list of indicators included in
RIMS Handbook) associated with outputs would be reported. After mid-term review the
report will include 2nd level indicators.
68. Mid-Term Review Report (MTR): IFAD in cooperation with the GoJ&K would undertake
a mid-term review by the third year of the project lifecycle (or as would be specified in
financing agreement).
69. Project Completion Report (PCR): As the project reaches completion point, the PMU
would prepare a draft Project Completion Report based on IFAD’s Guidelines for Project
Completion. IFAD and the Government will then carry out a Project Completion Review
and validation based on the information in the Project Completion Report and other data.
This review is usually done during the intervening period of project completion date and
loan closing date.
70. Case studies on project innovations and success stories 3: The project will undertake
case studies of project innovations and success stories on regular basis and report them
through Annual Progress Report and in the India Country Newsletters. The project will also
report them and communicate through its IFAD Asia webpage managed by IFAD and on
the project’s own webpage.
K. Learning and Knowledge Management (KM)
71. KM Staffing: In line with IFAD’s policy, learning and knowledge management would
be key element in JKCIP with integrated approach in which M&E will feed to generating
learning for the project and from the project. While the KM functions in the project would
be cross-cutting and would be responsibility of every sector head or manager, the project
will have KM Manager in PMU. Knowledge services would be important element in JKCIP
management systems. The M&E and KM units of the project at PMU will function in tandem
as M&E will provide the building blocks for KM in the project.
72. Knowledge Management in JKCIP. The project will prepare a Knowledge
Management Strategy building on IFAD’s Knowledge Management Strategy in the first
year of project implementation. This will be the responsibility of the KM Manager and
Training, Institutions and Gender Managers. Staff responsible for KM activities at the
district level would undergo training on KM.
73. The project learning system would comprise of various activities relating to M&E
and KM functions. Some of these would include monthly, quarterly and annual review
meetings; capturing information on progress, lessons and finding solutions for
implementation constraints. KM and lesson learning would be used as a tool for internal
learning by project stakeholders such as staff of various implementing agencies,
participating villagers and farmers, both women and men. This will involve a series of
regular meetings at village/cluster, block (where useful), district and state levels. At these
meetings, progress of project activities will be reviewed and learning from success and
reasons for failure identified. Participatory tools such as “most significant change”, “story
telling” and “participatory monitoring and evaluation” (PME) may be used at these
meetings.
74. Knowledge Products, Dissemination and Communication. JKCIP will generate
various knowledge products such as publications, documented case stories, photo
documentation, videos, charts, manuals, posters, etc. However, for meaningful learning
and knowledge sharing, knowledge products should be of quality with clearly identified
audience and purpose. The characteristics of good knowledge products 4 have the following
elements:

3
IFAD’s Communication Division has brought out a guideline for preparing case studies in the field. This will be
provided at the time of start-up workshop.
4
Adopted from the “Handbook on Planning, Monitoring and Evaluating for Development Results”, UNDP, 2009

12
 a. Based on an assessment of needs and demand for the product among targeted
users to ensure relevance, effectiveness, usefulness and value of the knowledge
product.
b. Designed for a specific audience, taking into consideration functional needs and
technical levels.
c. Relevant for decision-making needs.
d. Knowledge products brought out timely.
e. Written in clear and easily understandable language.
f. Data is presented in a clear and coherent manner; all data and information being
from project M&E without any bias, both successful and failure cases.
g. Knowledge products developed through participatory process and validated through
quality assurance processes with relevant stakeholders or peer reviewed
appropriately.
h. The knowledge products should be easily accessible to the target audience through
most effective and efficient means, and timely.
i. Consistency in presentation of products to enhance visibility and learning.
75. Practical tips for developing knowledge products from project M&E and dissemination
of the products could include the following steps:
a. Identify the target audiences and their information needs.
b. Collect and keep at hand the contact information of all key stakeholders.
c. Identify and determine the types of knowledge products to be developed (keep in
mind the availability of project resources for this purpose as also the capacity of
the project to develop the knowledge products, directly or through outsourced).
d. Select and determine types of knowledge products that meet the target audience’s
information needs.
e. Identify language requirements per product and audience.
f. Determine most likely efficient forms and dissemination methods for each
knowledge product.
g. Monitor feedback and measure results of dissemination efforts as also quality of
knowledge products.
76. Knowledge Sharing and Learning Culture. The project will endeavour to capture
and disseminate lessons learned, successful case studies and document good practices.
The project will adopt various knowledge sharing methods and tools including designing
and facilitating knowledge events such as meetings and workshops. JKCIP will adopt some
of the best practices in knowledge sharing and learning culture of IFAD funded projects in
India around the followings:
a. Building strong network by conducting periodic workshops/seminars/conferences
on key thematic issues relevant to the project.
b. Conduct monthly/quarterly/half-yearly/yearly review meetings of key stakeholders.
c. Developing skills and competencies of project staffs to improve human resources
in the areas of knowledge management.
d. Tailoring knowledge management activities closely to the needs of project staff and
stakeholders.
e. Developing and actively using project website, newsletter, etc. and contributing in
the IFAD Asia website. Adoption of specific knowledge sharing methodologies and

13
 tools5 with capacity building components, such as: Tools treasure hunt, Video
storytelling, Speed sharing, Chat show, Jumpstart storytelling, World Café, Peer
Assist, etc.
Attachments
Appendix C4AI: Terms of reference of the baseline study
Appendix C4A2: Model outline of AWPB
Appendix C4A3: Monitoring Indicators

Details are available at “Introducing Knowledge Sharing Methods and Tools: A Facilitator’s Guide” by Allison
5

Hewlitt and Lucie Lamoureux. IDRC-IFAD, 2010

14
Attachment ME 1: Baseline survey ToR

Term of Reference (TOR) for Engagement of agency for Baseline survey

under Competitiveness Improvement Project of Jammu and Kashmir
(JKCIP) funded by IFAD

Objective of the Consultancy

APD plans to engage a Service Provider to conduct a baseline survey for

Competitiveness Improvement Project of Jammu and Kashmir (JKCIP)using a rigorous
quantitative method including sample design, data analysis and report writing etc and
a qualitative method will be used wherever required to supplement data collected
through quantitative methods by gathering insights from partners and beneficiaries.
Baseline data will be collected from the households expected to benefit from the
project residing in the project villages. Considering the limitation of identifying a pure
counterfactual and the possibility of contamination in the future, it is proposed to use
one of the three designs: (i) a panel design; (ii) quasi-experimental design with support
for ensuring low/no contamination in sampled comparison block; and (iii) quasi-
experimental design with key assumptions for sample loss/contamination. Final
selection of the design will be finalized in consultation with APD and IFAD. The baseline
survey will take place before project investments are being rolled out in the field.
The selection of the Service Providers will be based on the Quality and Cost Based
Selection procurement method.
Scope of Services
The scope of the services required under this Terms of Reference include sample size
calculation on final consultation with the JKCIP PMU, the collection of data for the
baseline survey (at the appropriate level of analysis, namely, the household and CBOs
level) and conduct rigorous data analysis that evaluate the outcome and impact of
JKCIP, measured through measurable outcomes of success. The impact and outcomes
measured will be consistent with the project’s theory of change and logical
framework.
The required services include the following parts:
a. Develop the survey methodology. The Service Provider will define sample size in
consultation with the PMU and provide feedback on the sample size, and develop
the sample frame, the questionnaires for the household and the CBOs.
Specifically, the Service Provider is expected to assist devising tailored, context-
specific questions that must reflect the logic of the project and provide context-
specific inputs on developing survey tools.
b. Based on the sampling frame, prepare a list of primary and secondary sampling
units (such as households, CBOs) for both project and control areas identified.
Specifically, the Service Provider must prepare a household and village/CBO
enumeration plan.
c. Organize and deliver the training of the supervisors and enumerators on the
survey methodology and survey questionnaire. Carry out the pre-testing of the
questionnaire in project areas that are not selected for sampling.
d. Administer the household and CBO level surveys including appropriate geo-
coordinates for the households and communities surveyed. The survey must be
implemented using a Computer Adaptive Personal Interviewing (CAPI) technique.
e. Deliver cleaned datasets in SPSS or Stata format with a detailed variable library.
f. Conduct the statistical analysis and prepare the descriptive statistics of the
relevant indicators following the project's theory of change and logical framework.

15
 g. Prepare a baseline report using collected dataset to report on the data collection
strategy, the sample distribution, and the summary statistics of the relevant
indicators.
Specifically, the services required include:

a. Prepare survey questionnaire and the sampling design and incorporate the specific
comments/recommendations of JKCIP and finalise accordingly.
b. Translate the questionnaire initially developed in English into local language
(Hindi).
c. Organize the training of the field staff (supervisors and enumerators) on the
survey methodology and the data collection requirements; the training will include
a module on using the Survey Solutions software and tablets for data collection.
d. Administer and analyse pre-tested and piloted surveys of the adapted
questionnaire in the field.
e. Develop interview manuals and instructions for field staff (supervisors and
enumerators). The interview manual should include a section on unit conversion
factors, including but not limited to conversion factors for local units for weights,
volumes, area etc.
f. Develop an appropriate data management system with adequate quality controls.
The data management system should be finalized before the data collection team
moves to the field.
g. Organize and conduct the field activities including all logistic arrangements.
h. Deliver partial datasets on a regular basis to JKCIP according to the agreed quality
standards and adhere to the agreed format. As per the Survey Solutions structure,
the Service Provider and JKCIP will have access to the real time collected data
from the field as soon as they are uploaded to the system by the enumerators.
i. Implement the survey supervision program.
j. Produce consolidated datasets according to the agreed quality standards and
adhering to the agreed format.
k. Develop a variable library with appropriate labels to all the variables generated in
the data collection.
l. Conduct the statistical analysis to construct indicators relevant to the project's
theory of change and logframe using the statistical software Stata and prepare all
the necessary processing "do files".
m. Prepare a baseline report on data collection strategy, sampling distribution,
summary statistics of relevant indicators.
Baseline survey Approach and methodology

The approach of the study will be to carry out household sample survey baseline of
the project. The survey will be supported by the collection of qualitative information
on project impact for households joining the project.

The sample will be designed in such a way as to produce estimates for indicators of
JKCIP households. The sample design should allow for before and after project, and
with and without project comparisons. The survey is not designed to cover households
who participated in ULIPH and who will continue to be supported by ILSP via the
Federations formed under ULIPH.

The sample should be both stratified and clustered. Stratification would ensure that the
selected sample is spread over the project area and represents JKCIP’s key target
groups (i.e. 60% of women, 30% of youth, ultra-poor, landless, etc.) as well as different

16
agro-ecological zones. Clustering would reduce logistical and data collection costs by
first selecting a sample of project groups or villages and then selecting a sample of
households in the selected groups/villages.

The total size of the sample, allowing for the effect of clustering (the "design effect"),
should be of sufficient size so as to produce reliable (at least 90% confidence interval)
and precise (no more than +/- 10%) measurements of indicators for each domain of
Investigation.

Impact domains: The baseline survey will collect baseline information on five impact
assessment domains which are detailed below.

Household income and net assets: Household income provides a means of assessing
the flow of economic benefits accruing to an individual or group, whereas assets
relate to a stock of accumulated items of economic value. The analysis must include
an assessment of trends over time. The assessment should also estimate the income
level of households compared to the official poverty line in J&K.

Enterprise development: Given the JKCIP focus on expansion of existing farm and
non/off nano, Small and micro- enterprises, the survey will also cover areas related to
the enterprise financial viability, and sustainability, employment effect, adoption of
environmental and climate resilient practices, access to business development
services, finance and marketing, as well as level of satisfaction support provided in
this regard by the CBOs (SHGs/PGs/VO/LC/CLFs/FPOs) to the women and young
entrepreneurs. The survey will also collect relevant information to assess targeted
enterprises’ resilience to changing climate conditions and to measure improvement at
project completion.

Human and social capital and empowerment: Human and social capital and
empowerment includes an assessment of the changes that have occurred in the
empowerment of individuals with particular reference to women and youth, the quality
of grass-roots organizations and institutions, the poor’s individual and collective
capacity, and in particular, the extent to which specific groups such as youth and
women are included or excluded from the development process using both quantitative
and qualitative indicators.

Financial Linkage, Institutions and policies: The criterion relating to financial

linkage, institutions and policies is designed to assess changes in the quality and
performance of institutions, their creditability, access to finance, policies and the
regulatory framework and enterprise ecosystem that influence the lives of the poor.

In addition, the Service Provider will need to ensure that all goal/objective/ outcome
level indicators listed in the project’s log frame are adequately covered in the baseline
survey.

Methods: The baseline survey will use a mix of both quantitative and qualitative
methods. A table outlining the choice of method to assess the four impact domains is
provided in Table 1.

Table 1: Choice of methods for analysis of selected variables under the

impact domains
Impact Type of Method
Domain
Quantitative Qualitative
Household No. of Family Members Gender, age, education. literacy,
demography Children of school age attending occupation of household members,
school Socio-economic status
Income Source Land ownership and land tenure
Livestock numbers Land use (area cultivated, homestead etc)

17
 Land Area of irrigated land, area actually irrigated, type
of irrigation system, source of water
Ownership of farm equipment
Household Household incomes/ Effects of shocks and disasters
income and net expenditures. Resilience Diversification of income sources
assets (diversified sources of income).
Coping strategies post disasters/ extreme climate
Household assets, productivity events
and others.
Use of income. Access to
savings
and credit
Environmental Adoption of Number of beneficiaries gaining increased secure
Sustainability and Environmentally/Climate access to land
Climate resilient technologies or Number of groups supported to sustainably
Resilience practices manage natural resources and climate-related risk
Reduction of time spent for Number of persons provided with climate
water/fuel collection. information services
Number of hectares of land brought under climate
resilient management
(Number) Percentage of persons/households
reporting adoption of environmentally sustainable
and climate-resilient technologies and practices
(Number) Percentage of persons/households
reporting a significant reduction in the time spent
for collecting water or fuel
Youth No. of youth in the project area Gender, age (15-29 as per PIM), education,
(age-wise segregation) Literacy.
Returnee migrants Status of employment
Youth engaged in enterprises Nature/Type of employment
No. of youth earning Income Type of skill training if received earlier
No of youth engaged in value Type of enterprises
chain based activity Type of value chain
No. of youth have Knowledge of Source of microfinance linkage
CSA practices/precision
Type of Knowledge of CSA practices/precision
farming/innovative technology
farming/innovative technology-
Use of income. elementary/expertise
Access to savings and credit Familiarization with digital/social media platforms.
Rural Enterprise Sales/business Turnover of the Type of enterprise (Value Chain based etc.)
development enterprise On Farm Enterprise
No of people employed (from Off Farm Enterprise
family members and non-family
Adoption of environmental safeguards (safety of
members)
workspace, hygiene, food safety, waste disposal,
Average Wages per month integrated pest control etc.)
Selling Price Adoption of climate resilient practices (renewable
Profitability i.e. Rate of Return
energy, irrigation, drought, earthquake, land slide,
Amount of finance mobilized for tolerant varieties, etc.)
the enterprise on CBOs Source, and type of finance (loan, savings,
(SHGs/PGs/VO/LC/CLFs/FPOs) insurance)

and source of this finance Type and source of business development services

Loan repayment Marketing channels

Level of satisfaction with services provided by the
enterprise
Human and Women’s control over resources Gender relations (decision making: intra- and inter
social capital and and participation in household household and workload distribution), Community
empowerment level decision. relations, acquisition of new skills and knowledge
and violence against women.

18
 Social capital (e.g. relations with SHGs, Village
Organizations, Federations, service providers,
etc.)
Access to social security schemes.
Institutions and List major policies that affect the sector and
policies assess women’ knowledge of these and their
perception of the impact of policies on the viability
of the enterprise
Influence on policies/practices of the
government
Producer Job created CBO’s engaged in partnership/agreement/contract
Organization/ No. CBO’s engaged in New improved Services from POs/CBOs
Community partnership/agreement/contract POs/CBos with increased sales
Based No. of POs/CBos with increased
Organization sales
(CBOs)

The assignment will include data collection and submission using tablets. The Service
Provider should include in the financial proposal, the cost of using tablets, the provision
of tablets (including spare tables) and charging devices.
Computer Assisted Personal Interviewing (CAPI)
The Service Provider is required to use the CAPI software. If the Service Provider
chooses to use other CAPI platforms, this should be clearly specified in the technical
proposal.
Surveys must be administered using tablets suitable for collecting proper geo-reference
of household dwelling and of CBOs office and social enterprises. If tablets are not
suitable for geo-referencing it is the Service Provider 's responsibility to ensure proper
GPS devices are used.
It is the Service Provider’s responsibility to make arrangements for appropriate tablet
devices compatible with the latest version of the Survey Solutions software. The
recommended specification of the tablets is provided below6:
Survey Solutions software works with Android tablets with the following specifications:
Version of Android: OS Android 10 or better is required; Android 8.0+ is strongly
recommended.
RAM Minimum 1.5GB
Memory : 8GB of flash memory storage. At least 1GB of available space must be
available for Survey Solutions’ use. The Survey Solutions software installation package
(.apk) is close to 30MB, but more space will be required during the operation of the
software. The ultimate requirements for space depend on the kind of survey
(questionnaire) and the mode of use of the tablet (number of assignments,
simultaneously started assignments, rejections, etc.
WiFi module, which can be used for software setup, upgrades, and synchronization
while in the office.
3G/4G connectivity module is required for synchronization from the field.
Please note that better technical characteristics will improve responsiveness of the
program
Staffing

6
Compatible tablet models are listed on this webpage. should-i-buy-
http://support.mysurvey.solutions/customer/en/portal/articles/2505822-what- tablets-should-i-buy-

19
The Service Provider will hire the following core staff for the Consultancy services as
follows:
One Team Leader: The Team Leader will be in charge of coordinating the planning,
implementation of the JKCIP baseline survey and ensuring that the work is conducted
following the highest professional standards. The individual will be in charge of ensuring
that the quality control and supervision mechanism in place for the survey is effective,
manage the Consultancy team and ensure that each member performs their specific
scope of work. The individual must hold at least a Master’s degree in Agriculture,
Agronomy, Natural Resource Management (NRM), Sociology, Economics, Agricultural
Economics or related field, and must have at least ten years of relevant experience in
carrying out quantitative and qualitative surveys in rural areas and on livelihoods
enterprises, and at least five years as team leader/ coordinator for such surveys using
Survey Solutions software and CAPI.
One Programmer/ IT specialist The Programmer will be in charge of adapting the
questionnaire to the CAPI using Survey solutions or other CAPI platforms. The
Programmer will develop appropriate data management system with adequate quality
controls, and finalize the data management system before the data collection team
moves to the field. The data management system would also be organized in such a
way as to deliver partial datasets on a regular basis to JKCIP and provide real time
access to Service Provider and JKCIP. S/He will hold a Bachelor degree in computer
sciences or equivalent. Should have at least 7 years of experience of relevant experience
in programming surveys and undertook at least 5 surveys requiring programming and
data management of CAPI administered surveys. Programmer who is a full time
employee of the service provider will be preferred.
One Consultant- Statistics /Data Analyst for sample design and questionnaire
design : The Consultant will be in charge of adapting the designing of sample for the
survey and questionnaire S/He must hold advanced degree in Statistics, Economics or
related field. Strong background in statistics and econometrics is required. At least five
years experience in the design of samples for household surveys required.
One Socio economic researcher with advanced degree in Economics, Agricultural
Economics or related field, at least five years experience in analyzing survey data using
STATA or equivalent software. Strong background and experience in statistics and
econometrics is required.
Five (5) Junior Consultant/ Supervisors: Supervisors will work under the
supervision of the Field Coordinator and will participate in the pre-testing, enumerator
training, and pilot of the survey questionnaire. They will be in charge of the supervision
of the enumerators, quality control of the data collected, and submission of the data on
a daily basis. They must hold at least a Bachelor’s or Master’s degree in Agriculture,
Agronomy, and Natural Resource Management (NRM), Sociology, Economics,
Agricultural Economics or related field. They must have at least five years of relevant
experience in carrying out quantitative and qualitative survey implementation in rural
areas, quality control of data collected. They must have experience in the use of tab-
lets in at least three quantitative and qualitative agricultural surveys. Fluency in the
local language spoken is required.
Enumerators: The numbers would depend upon strategy and methodology developed
and finalized. For evaluation purpose 4 resumes would be evaluated. The enumerators
will be Hindi reading and speaking and this is a mandatory criteria. Enumerators will
work under the supervision of Supervisors and will be in charge of conducting
quantitative and qualitative interviews to collect data. Bachelor’s degree would be
preferred for enumerators. Preference given to degree in Agriculture, Agronomy,
Natural Resource Management (NRM), Sociology, Economics, Agricultural Economics or

20
related field. They must have at least three years of relevant experience in carrying out
quantitative and qualitative agricultural surveys. Prior experience for data collection
using tablets in at least one agricultural survey is preferred.
Two Data Checkers: Data checkers will be stationed in the Service Provider’s office
and periodically check the quality of the data uploaded to the CAPI platform from the
field. Data checkers are responsible for checking the data potential errors and re-
sending the survey back to enumerators if further justification is needed. Surveys
uploaded by the enumerators but not checked by the data checkers are deemed
incomplete. Data checkers will have a Bachelor’s degree in computer science of IT and
previous experience in survey data management. Data checkers are required to sit in
the in-class training of questionnaire and CAPI software.
Two Data analysts: Data analysts are responsible for conducting the statistical
analysis to construct the relevant indicators that are specific to the project's theory of
change and logframe. They are responsible for providing tables of summary statistics of
the relevant indicators as per the survey methodology developed by the Service
Provider. They must hold at least a Master's degree in Statistics, Economics, Agricultural
Economics or related field, and must have previous experience using the statistical
software Stata to analyze household surveys related to livelihoods and enterprise
development.
Pre-testing, enumerator training, and pilot
The Service Provider is responsible for arranging the pre-testing, the enumerator
training as well the pilot phase of the survey tools. The pre-testing has the function
of: (i) verifying the accuracy of translation; (ii) identifying questions that are difficult to
understand for respondents; and (iii) identifying where improvements can be made in
the general questionnaire design and flow.7 The pre-testing team should include all the
supervisors and a few local experts (i.e. business development experts for example).
During the pre-testing, JKCIP will work in conjunction with the pre-testing team to
refine and finalize the survey tools prior to the enumerator training and the pilot phase
and make sure it is very well-tailored to the country and project context as well as a
cultural point of view. The pre-testing should take 2-3 days in total. It is required that
the pre-testing is conducted in the field with respondents from households that
resemble but are not part of the final sample area. Each supervisor should conduct
at least two complete surveys in the field.
Once the pre-testing is completed and the survey tools are finalized and translated, the
Service Provider is responsible for arranging the equipment for the enumerator training
as well as the pre-testing of the survey tools, including testing the survey in the field.
This implies organizing the pre-testing and pilot location, accommodation, and
equipment required.
The Service Provider is also fully responsible for arranging the pilot, during which each
enumerator must complete at least three questionnaires and upload at least the third
interview to the server. Note that during the pilot phase, it is expected that each
questionnaire will take around double the time that it will take during the live data
collection.8
The enumerator training and the pilot should be conducted concurrently. The Service
Provider is responsible for devising the training schedule given the specific needs of the
project (i.e. sample size, logistics, type and level of complexity of the intervention, etc.)
and the training schedule should be as rigorous as the following proposed example, but
cannot be less than 9 full days (including pre-testing, training and pilot), as follows:

7
Pre-testing of the survey tool might entail major changes to the questionnaire
8
Minor changes to the survey tool are expected during training and pilot

21
Days 1 – 3: Pre-testing of questionnaire in Survey Solutions
Days 4 – 5: Revision and finalization of the questionnaire in Survey Solutions
including translation into local language(s)
Days 6 – 8: Classroom training on Survey Solutions questionnaire
Day 9: Mock interviews of Survey Solutions questionnaire including addressing
minor translation and/or wording issues
Day 10: First pilot of Survey Solutions questionnaire
Day 11: Debriefing on first pilot and addressing issues that arose Day 12
(morning): Second pilot of Survey Solutions questionnaire

Day 12 (afternoon): Final debriefing and final recommendations for data collection

It is required that the enumerator training is undertaken in the same location for the
entire team, and that all enumerators, supervisors and managers are present. The
Service Provider is required to ensure enumerator's capability to collect high quality
data within the average amount of time indicated for household survey. To this purpose
the Service Provider must elaborate a plan to verify and test the quality and
capability of enumerators and must be prepared to substitute enumerators as needed.
This may require higher number of enumerators attending the enumerator training and
pilot, after which, the Service Provider will screen out enumerators based on their
performance during training and pilot.

Data analysis

Data analysts will be responsible for conducting the statistical analysis to provide
summary statistics on the relevant indicators as inputs to the baseline report. Specific
activities for the data analysis include the following tasks:
a. Finalize the final data quality checks on the clean and finalized dataset delivered
by the Service Provider;
b. Construct the relevant outcome and impact indicators to be reported in the
baseline report using the processing "do files" in the statistical software Stata;
c. Prepare the tables of summary statistics for relevant outcome and impact
indicators as inputs to the baseline report of JKCIP
d. Prepare the draft baseline report of JKCIP; and
e. Revise the draft ex-post impact assessment report of JKCIP based on the feedback
and comments received from the project team, and other stakeholders.
Timeframe of services

The total duration of the assignment is approximate 4 months including the review and
feedback on the survey methodology, the training of the field staff, the pre-testing of the
questionnaire, the data collection and submission, data codebook, and the submission of
the final report with a variable library, the sample distribution, and the summary statistics.

Reporting

Institutional and organization arrangements

Review Committee: The Project Director of JKCIP and sector specific managers backed up
by the Manager-M&E and Manager KM of Client will constitute the review committee, which
is responsible for overseeing the work of the Consultant and ensuring effective
implementation of the baseline survey.

22
The Consultant shall interact with the review committee during the implementation of the
survey, by providing regular feedback, and submitting the critical reports.

Key deliverables and Deadlines

Contractually, the Consultant will report directly to the Manager-M&E, PMU-JKCIP, who is
coordinating the baseline survey of behalf of the Client.

Proposal for specific meeting to discuss any issue related to the Baseline survey will
remain at the discretion of the Review Committee of the Study that is described above.

The Service Provider will be required to submit the following:

a. The survey methodology is submitted along with the questionnaire for households
and CBOs, the sample frame and the sample size within 14 days from receiving
the work order.
b. The report on the training of the field staff and pre-testing of the questionnaire
within four weeks of the work order.
c. Finalized data sets and codebook after quality verification and responses to
queries within 8-10 weeks of the work order.
d. A final report with sample distribution, variable library, and summary statistics of
major indicators within 12-14 weeks of work order.
e. List and details of HHs surveyed under baseline survey along with the final report.
f. Household/FGDs Raw data sheets.
Services provided by the Client

JKCIP will provide the following assistance to the Service Provider:

a. Official documents required for conducting the survey and authorization from
State authorities.
b. Documents related to project components and sub components.
c. Documents related to the CBOs, the household members, villages/GP/blocks
where they are located and list of social enterprises and turnover of all CBOs, as
well as the classification of household members based on consideration of poverty
and entrepreneurship.
d. District Management Units would assist the survey team with information on
project working areas and project activities. They would also provide lists of
project groups and names of group members, and would help in locating sample
households. However, all logistical arrangements (except local transport within
the project districts) would be the responsibility of the survey agency.
Intellectual Property Rights.

All information gathered under the contract is the property of JKCIP. The selected
Service Provider must deliver all data, documents, background information and other
relevant information gathered during the course of the activities carried out while under
contract to JKCIP in their entirety. No data or other information from this survey will be
released to third parties without the written approval of the Client.

Location

The assignment will be carried out at all blocks of with project beneficiary meeting pro-
ject mandates and previous project covered population and to the offices of the Consor-
tium whenever required or as per the baseline survey’s implementation plan.

23
Appendix C4A2: Model outline of AWPB

Part A: Narrative Template

COUNTRY: India
NAME OF PROJECT: JKCIP
ANNUAL WORK PLAN AND BUDGET: PART-A
PERIOD from April 2020 to March 2021
Font sizes
Text 10 Verdana; Tables within Text, Verdana 9
Spacing 1
Table of Contents (Modify, if required)
Fiscal Year
Currency Exchange Rates, historical trends
Weights and measures
Abbreviations and acronyms
Project Area Map
Executive Summary
I. CONCEPT OF AWPB
II. CONTEXT
III. ACHIEVEMENTS
IV. SUMMARY PRESENTATION AWPB
V. DESCRIPTION OF AWPB BY COMPONENTS
VI. AWPB COSTS AND FINANCING PLAN
VII. STRATEGIC FRAMEWORK
VIII. PROJECT MANAGEMENT
IX. ANNEXURES: AWPB TABLES
I. CONCEPTS (Maximum 2 paragraphs)
Previous period: In this Section, some of the basic planning parameters should be
defined and explained. Preparation of AWPB begins, usually between October and
November9. To put the proposed AWPB in perspective, results obtained in the previous
year should be highlighted.
Currency: The AWPB should use INR as the unit for costs and values. The current
exchange rate at the time of writing the AWPB should be indicated and compared with the
rate(s) used in Costab tables. Its evolution since the previous AWPB has to be analysed
and the effect of devaluations or appreciations on required external financing should be
stated.
Prices: The current 12-months inflation or deflation rate for goods and services similar
to project inputs should be stated and compared to the rate used in Costab tables for local
inflation and the impact on project cost and financing analysed.
II. CONTEXT (Maximum 2 paragraphs)
This Section provides briefly the most important developments in the previous period in
the project implementation environment and the expected evolution for the planning
period. The following elements may be discussed.
a. Government policies: Indicate any change or new policies and their effect on
project implementation;

9
In countries where the fiscal year runs from March to April such as in India

24
 b. Institutional framework: Discuss any constraints, changes in the organization
and/or staffing in the Implementing Agencies and the project management units.
Evaluate the impact on implementation capacities.
c. Any other major determining factor of the implementation environment
III. ACHIEVEMENTS (Maximum 2 pages)
The Section presents the main achievements, issues and constraints of the previous
period, including the main recommendations of supervision missions, as well as an
appreciation of the impact of the project on the poverty and gender situation. Discussions
should include:
a. Physical results: Highlight the implementation strategy and describe the main
physical results obtained so far, indicate positive results as well as implementation
problems and the reasons for them, and the latter's impact on next year's plan
and implementation. Refer to detailed and summary AWPB tables.
b. Financial results: Analyse the level of expenditures of the year to date for the
main components, compare with the previous budget and indicate any reasons
for higher or lower expenditures than expected. Indicate whether these issues
will have an impact on the plan for the next year; refer to the detailed and
summary AWPB tables.
c. Supervision issues: Highlight the main recommendations of the previous
supervision mission and the manner they are being implemented, discuss any
other supervision issue.
d. Poverty situation Provide a qualitative appreciation of the implementation to date
on the poverty situation in the project villages and households. Use some
information from the Baseline survey and any other available indicators to
underline the statements. Also review any new Government and/or donor
initiatives.
e. Gender Discuss the role of women in project planning and implementation and
the project impact on their situation, results and constraints. Analyse both the
economic and the social aspects (income generation, agriculture, credit, literacy,
education, health, etc…)
IV. SUMMARY PRESENTATION AWPB (maximum one page)
This section, presents the main characteristics of the Annual Work Plan and Budget, in
terms of programming and implementation strategy, physical and financial objectives and
expected outputs and impact. Indicate if there are any major changes compared to last
year's AWPB.
V. DETAILED PRESENTATION OF AWPB (maximum 4 pages)
In this Section, a detailed discussion of the programming and implementation strategy of
each component of the JKCIP is presented as well as a discussion of the expected results
and how the implementation modalities eventually differ from the previous year(s)'
practices. For each component, present the following:
a. Objectives and targets. Indicate the component objective and physical targets for
the AWPB period and compare with the whole project duration, discuss any
trends;
b. Implementation strategy: Indicate how the activities of the component will be
programmed and implemented, discuss participatory approaches and any
institutional problems and their required solutions;
c. Results: Indicate the expected results in terms of quantitative indicators and in
terms of qualitative aspects. Indicate the expected number of beneficiaries
(women, men) and households. Compare with the overall target of the project
and with last year's results;

25
 d. Changes: Discuss and justify any changes compared to the initial design and
previous experiences, in targets, implementation strategy or expected results.
Indicate reasons.
VI. COSTS AND FINANCING (maximum one page)
In this Section discuss issues relating to costs and financing of AWPB.
a. Unit Costs: Any major changes in unit costs due to inflation/deflation and to
changes in design compared to previous years and to the Appraisal Report should
be discussed and the manner how these changes will be tacked and by whom
should be indicated.
b. Financing: Issues relating to the flow of funds, the timeliness of funds availability,
of approval and disbursement procedures for all financiers will be highlighted, and
ways to improve or overcome constraints indicated.
VII. STRATEGIC FRAMEWORK (maximum 2 or 3 paragraphs)
This Section deals with how the AWPB objectives and expected results and impact
correspond to Government and IFAD objectives. It will be based on concrete experiences
and examples and avoid non-committal broad statements. Issues to be included are:
a. Government objectives: State which project activities contribute to Government's
rural development and/or poverty alleviation objectives and indicate the project's
incidence in the project area.
b. IFAD Strategic framework: Discuss if and how AWPB results and impact
contribute to:
c. empowerment and strengthening of beneficiary organisations, including gender
and participation aspects;
d. access to productive natural resources and technology;
e. Access to financial services and markets.
f. Co-financier: If the project is co-financed, indicate the expected impact of the
AWPB on the Co-financier's objectives and strategy.
VIII. PROJECT MANAGEMENT (maximum 3 or 4 paragraphs)
This Section deals with the PMU status, staff positions, staff vacancies, key issues in staff
deployment and ways to handle them. Highlight staff training and orientation and exposure
visits. Provide a list of current staff as against original plan.
IX. ANNEXURES (AWPB TABLES)
The outline of AWPB Tables consists of two parts: a) the annual budget and b) indicators
for achievements so far and cumulative achievements. The latter are required to put the
annual budget in perspective and to help justify it.
Summary table: This table aggregates all financial values by component from the
individual AWPB tables. The outline has been so designed that the individual rows in the
summary table is linked to the different "Total" bottom lines of in each individual AWPB
table. In this manner, corrections and adjustments in the data in the individual tables are
automatically re-calculated in the summary table.

26
Appendix C4A3: Monitoring Indicators

Component 1: Climate smart and market led production

Sub-component 1.1: Upscaling collectivization
1) No. of existing FPOs supported.
2) No. of new FPOs promoted.
3) No. of FPO Development Officers recruited.
4) No. of Directorate/University/KVK staff trained in FPO mobilization.
5) No. of FPO staff trained in FPO mobilization.
6) No. of FPO leaders trained.
7) No. of FPOs with business plans.
8) No. of FPOs with at least one business activity.
9) No. of FPOs with at least two business activities.
Sub-component 1.2: Niche Agricultural Crop Support
1) No. of Directorate/University/KVK staff trained in Climate smart Agriculture
and Good Agriculture Practices of niche agricultural crops.
2) No. of farmers trained in Climate smart Agriculture and Good Agriculture
Practices of niche agricultural crops.
3) No. of seed villages developed.
4) No. of vegetable seed businesses established.
5) No. of water management systems established.
6) No. of protected cultivation systema established.
7) Area expansion of saffron in kanals.
8) Area expansion in Black Jeera in kanals.
9) Area expansion in Off-season vegetables in kanals.
10) Area expansion in other crops in Kanals
11) Amount of Bank loan facilitated.
12) On-time repayment rate of bank loans provided to entrepreneurs.
Sub-component 1.3: Horticultural Crop Support
1) No. of Directorate/University/KVK staff trained in Climate smart Agriculture
and Good Agriculture Practices of horticultural crops.
2) No. of farmers trained in Climate smart Agriculture and Good Agriculture
Practices of horticultural crops.
3) No. of nurseries supported.
4) No. of water management systems established.
5) Area covered under solar fencing.
6) Area expansion under apple in kanals.
7) Area expansion in cherry in kanals.
8) Area expansion in walnut kanals.
9) Area expansion in Almond in kanals.
10) Area expansion in other horticultural crops in Kanals.
11) Amount of Bank loan facilitated.
12) On-time repayment rate of bank loans provided to entrepreneurs.
Component 2: Agribusiness ecosystem development
Sub-component 2.1: Enterprise support
1) No. of business led enterprises supported.
2) No. of enterprises supported.
3) Amount of Bank loan facilitated.
4) On-time repayment rate of bank loans provided to entrepreneurs.
Sub-component 2.2: Enterprise support
1) No. of MSP conducted.

27
 2) No. of buyer and seller meets conducted.
3) No. of market linkages established.
4) No. of marketing outlets established.
5) No. of brand campaigns conducted.
Sub-component 2.3: Incubation and start-up
1) No. of Incubation hubs established.
2) No. of bootcamps conducted.
3) No. of challenges conducted.
4) No. of start-ups provided with seed funds.
5) No. of start-ups with scaling up support.

Component 3: Support to vulnerable communities

Sub-component 3.1: Support to pastoralists
1) No. of consultations held for the wool sector study.
2) Amount invested in wool sector support.
3) Amount invested in equine breed improvement.
4) No. of good quality goat breeds provided to pastoralists.
Sub-component 3.2: Support to other vulnerable groups
1) No. of goat/sheep units provided.
2) No. of milk collection centres established.
3) No. of ice boxes supplied.
4) No. of enterprises established.
Sub-component 3.3: Integration of youth
1) No. of youth clubs supported.

28
Chapter 5: Financial management
Financial Management Manual (FMM) in Appendix C5A1 has detailed financial management
policies and procedures. The following are key financial management arrangements that
the project will follow during the implementation:
IFAD’s FM policies and procedures and Government regulations for accounting and
budgeting will be mandatory to follow during the implementation of the project.
The project will be pre-financed by the state government and will use a reimbursement
disbursement method to reimburse IDAD’s share of project expenditures.
The project team and CAAA will use ICP to request funds from IFAD. The latest IFRs will
be linked to each WA and submitted via the Finance Execution Model of ICP. The IFAD
Client Portal (ICP) with a new module, called the Financial Execution module (FE module),
is used to direct upload of certain project financial reports into the IFAD Client Portal (ICP).
The APD PMU (Role of ‘Financial Data Uploader’ in ICP) will upload the IFR into the system.
CAAA will link the WA to the IFR before submitting it to the Borrower/Recipient for approval
in ICP and final submission to IFAD.
IFAD’s anti-corruption guidelines will be mandatory during the project implementation.
FM staff will include APD Finance Directorate management and two consultants at the PMU
level. Two consultants will maintain Tally accounting records for all implementing partners.
The responsibilities of the finance staff of implementing partners will be limited to collecting
supporting documents, their submission to HODs, and the release of final payments to
project contractors and beneficiaries. Roles and responsibilities for key FM staff are
included in the FMM.
Budgeting will follow internal government budgeting regulations, and a draft AWPB will be
submitted to IFAD 60 days before the start of the relevant FY. Detailed budgeting
guidelines are provided in FMM.
Internal controls: The project will employ necessary FM resources to carry out monthly
reconciliation of bank accounts. The online banking system of a commercial bank will help
to allocate timely and necessary funds to implementing partners. Consultants will be hired
to prepare internal audit reports each semester.
Indian National Accounting Standards will be applied to prepare project financial
statements. Tally accounting software will be used for accounting record-keeping and
financial reporting. The software will automatically generate quarterly IFRs.
All payments will be processed using the online banking system of a commercial bank
where PA will be maintained.
The project will submit quarterly IFRs within 30 days of the end of each quarter. Sample
IFRs formats are attached to FMM.
The Comptroller and Auditor General (CAG) office will audit project annual financial state-
ments to expand the use of country systems. CAG office will issue audit reports within
six months of the end of the financial year.
Records and Fixed Asset management policies are included in the FMM. Refer to Financial
Management Manual for more detailed Financial Management arrangements.
 Appendix C5A1: FINANCIAL MANUAL SECTION OF JKCIP PIM

Competitiveness Improvement of Agriculture and Allied Sectors Project in Jammu

and Kashmir (JKCIP), India,
Financial Management section of PIM

November 2023

Contents
Glossary of terms ............................................................................................................................. 3
1.Introduction.................................................................................................................................... 4
2.Project cycle and financial management activities ......................................................... 5
3.Pre-implementation activities.................................................................................................. 6
4.IFAD Anticorruption policy ........................................................................................................ 7
5.FM organisational structure, roles and responsibilities ................................................. 8
6. Planning and budgeting............................................................................................................ 9
7. Internal controls ........................................................................................................................ 10
8. Flow of funds .............................................................................................................................. 14
9. Accounting ................................................................................................................................... 15
10. Cash flow forecasting............................................................................................................ 18
11. Disbursements......................................................................................................................... 18
12. Processing of payments ....................................................................................................... 23
13. Financial Reporting ................................................................................................................ 32
14. Audit matters ........................................................................................................................... 37
15. Records Management ........................................................................................................... 39
16. Fixed Asset Management .................................................................................................... 40
17. IFAD financial management support .............................................................................. 42
18. Project completion and closure......................................................................................... 43
19. IFAD Financing agreements – amendments and budget reallocations ............. 45
20. Useful links................................................................................................................................ 45
21. Annexures ................................................................................................................................. 47
21.1 AWPB Structure and preparation checklist ............................................................ 47
21.2 Information checklist – preparing for IFAD missions ........................................ 50
21.3 Terms of reference: Finance Manager................................................................... 51
21.4 Terms of reference: Financial Management Consultant .................................... 53

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 21.5 Terms of reference: Internal Audit Services ......................................................... 54
21.6 Supporting documentation upon request from IFAD ......................................... 57
21.7 Terms of reference: External Auditor.................................................................... 58
21.8 Travel advance report ................................................................................................. 63
21.9 Illustrative financial statements .............................................................................. 64
21.10 Appendix 1 ....................................................................................................................... 79
21.11 Vehicle and fuel documents ...................................................................................... 81
21.12 Implementing partners – MOU terms...................................................... 83
21.13 Monthly reporting template – Implementing partners ...................... 84
21.14 IFRs Package................................................................................................................. 85

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Glossary of terms

Term Description
JKCIP Competitiveness Improvement of Agriculture and Allied Sectors Project in Jammu
and Kashmir
APD JK Department Agriculture Production and Farmers Welfare of Jammu and Kashmir

J&K Jammu and Kashmir

Borrower Government of the Republic of India

DSA Daily Subsistence Allowance
FM Financial Management

FC Finance Consultant

FMFCH Financial Management and Financial Control Handbook

GoI Government of India
IPs Implementing partners
ICP IFAD Client Portal
INR

INR Indian Rupee

IFAD International Fund for Agricultural Development

INASs Indian National Accounting Standards

JK CAG Jammu and Kashmir Comptroller and Auditor General

MoF Ministry of Finance

APD PMU APD JK Project Management Unit

PIM Project Implementation Manual

IFRs Interim Financial Reports
SOE Statement of Expenditure
TOR Terms of reference
WA Withdrawal Application

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 FINANCIAL MANUAL SECTION OF JKCIP PIM

1.Introduction

The Project is implemented by Agriculture Production Department of Jammu and Kashmir

Project Management Unit (APD PMU or PMU) under the terms and conditions of the financing
agreement signed between the Republic of India and IFAD. APD PMU will have the
responsibility to implement sound financial management practices. This financial manual
outlines the financial management processes and procedures to be implemented by
PMU and implementing partners during the duration of the Project.

PMU will use Jammu and Kashmir district level municipalities and APD directorates to
implement the project. PMU will enter into MOUs with these Implementing partners which
will outline the financial management roles and responsibilities of each party. Refer to
21.12 for proposed MOU terms.

Reference material

This document should be read together with the:

✓ Project financing agreement entered into between the Borrower and IFAD
✓ Financial Management and Financial Control Arrangements Letter
✓ IFAD General Conditions for Agricultural Development Financing
✓ IFAD FMFCH
✓ IFAD Handbook on Financial Reporting and Auditing of IFAD-funded projects

Click here for links to documents.

Updates and changes to financial management arrangements

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 FINANCIAL MANUAL SECTION OF JKCIP PIM

JKCIP is an IFAD-funded Project, therefore, in line with IFAD’s efforts to capacitate and
support projects, this section was developed during the project design process. It is
envisaged that ongoing improvements and updates to financial management
arrangements be updated in this section of the PIM under supervision of the Financial
Manager and subject to IFAD no objection.

Project summary
Project name Competitiveness Improvement of Agriculture and Allied Sectors
Project in Jammu and Kashmir (JKCIP)

Financiers
• IFAD – PBAS - US$ 100.2 million
• Gov Counterpart – US$ 26.4 million
• Beneficiaries – US$ 45.8 million
• Convergence funds and private sector ( GoJ&K and GoI) – US$ 45.0
million
• Total financing – US$ 217.4 million

Implementation 7 years
period

2.Project cycle and financial management activities

The Financial Manager of the APD PMU will have final responsibility for the execution of the
activities at each stage of the Project cycle as outlined below:

Project closure
Start-up Implementation
and completion

FM activities at each stage of the Project cycle

Start-up Implementation Project closure and

completion

▪ Fill staff vacancies ▪ Ongoing ▪ IFAD Specific

▪ Implement project improvements to the completion and
module in Tally Financial Manual closure procedures
accounting software ▪ Budgeting ▪ Final audit
▪ Accounting

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 FINANCIAL MANUAL SECTION OF JKCIP PIM

▪ Identify possible Tally ▪ Disbursements and ▪ Asset and inventory

customizations and withdrawals handover
implement (related to ▪ Record keeping ▪ Budget wrap up
financial reporting) ▪ Internal controls ▪ Submit final WA for
▪ Preparation of first ▪ Cashflow forecasting justification
annual work plan and ▪ Auditing ▪ Refund of unspent
budget ▪ On-going training balance
▪ Opening of bank ▪ Implement
accounts performance
▪ Start-up training evaluation 1

▪ Attend anticorruption
workshop hosted by ▪ Financial reporting to
IFAD. IFAD
▪ PMU: conclude MOUs
with implementing
partners

IFAD ongoing support

NB: The APD PMU Financial Manager will have the final responsibility to prepare
consolidated financial reports for submission to IFAD. Refer to 13. for more detail.

3.Pre-implementation activities
During the start-up of the Project it is recommended that Project staff undertake the
following activities. These activities are recommended to ensure that Project staff are well
informed and knowledgeable with regards to the financial management aspects of the
Project once implementation commences:
Activity Overview
Financial • Fill vacancies within APD PMU to ensure that PMU
management is capacitated to manage the Project(1). Refer to 4. for the
staff proposed organogram.
appointment

Accounting ▪ PMU to procure and customize Tally accounting software and

software ensure that new staff are trained how to use Tally software.
▪ Incorporate correct chart of accounts (categories and
components) in line with the detail in Annexure 2 of the
Financing agreement with IFAD.
▪ Upload the Cost Table to the accounting software for the
purposes of budgeting / monitoring.

▪ 1Develop (in consultation with the Project Coordinator) a performance

evaluation process for FM staff within 1 year of project commencement and
document process in the PIM. This process should identify skills gaps and
assist with identifying appropriate training interventions.

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 FINANCIAL MANUAL SECTION OF JKCIP PIM

Open bank ▪ The Financial Manager, with the assistance from the MoF, will
accounts be responsible for the opening of the Project bank accounts.
Refer 8.1 for overview of required bank accounts.

Preparation of ▪ PMU Financial Manager will be responsible for the compilation of

first annual work the first Annual Workplan and Budget, as directed by the
plan and budget Project Director, subject to IFAD no-objection. This budget will
be a consolidation of the budgets obtained from PMU and other
Implementing partners, following the process as outlined in 6.
Staff training and ▪ Newly appointed PMU financial Management staff will be
capacity building required to complete the IFAD FM e-learning and submit
completion certificates to IFAD within 1 month of date of
appointment. Refer 20. for link to training.
▪ Existing PMU financial management staff will be required to
complete the IFAD FM e-learning within 1 month of project
start-up (if not yet completed) and submit the completion
certificate to IFAD.
▪ All staff are required to study the project related documents at
project start-up.

4.IFAD Anticorruption policy

The management of Project funds shall be sufficiently rigorous to safeguard against Fraud
and Corruption. Fraud and corruption include, but are not limited to (as defined in the
IFAD anticorruption policy):

▪ Corrupt practice - offering, giving, receiving, or soliciting, directly or indirectly,

anything of value to influence improperly the actions of another party.
▪ Fraudulent practice - any act or omission, including a misrepresentation, that
knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial
or other benefit or to avoid an obligation.
▪ Collusive practice - an arrangement between two or more parties designed to achieve
an improper purpose, including influencing improperly the actions of another party.
▪ Coercive practice - impairing or harming, or threatening to impair or harm, directly or
indirectly, any party or the property of the party to influence improperly the actions
of a party.

IFAD applies a zero-tolerance policy towards fraudulent, corrupt, collusive or coercive

actions in Projects financed through its loans and grants. ‘Zero tolerance’ means that
IFAD will pursue all allegations falling under the scope of this policy and that appropriate
sanctions will be applied to parties or entities involved where the allegations are
substantiated. IFAD takes all possible actions to protect individuals who submit
allegations of fraudulent or corrupt practices in its activities from reprisal. The primary
responsibility for enforcing the Anticorruption Policy lies with the JKCIP, and the first
defense for controls shall be exercised by Project staff and counterparts Pursuant to this,
the JKCIP shall have the responsibility to incorporate pertinent provisions of the
Anticorruption Policy in its contracts with Project staff, cooperating/implementing
partners, and suppliers/consultants.

It is the Project Director and the Project Financial Manager’s responsibility to make sure
that all Project staff are aware of IFAD's and the National’s anticorruption policies and
whistle blowing procedures.
JKCIP can contact the IFAD Officer of Audit and Oversight to report events.

How to contact the IFAD Office of Audit and Oversight

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 FINANCIAL MANUAL SECTION OF JKCIP PIM

All communications are treated with the utmost CONFIDENTIALITY.

By phone: +39 06 54592888

By fax: +39 06 54597888

By e-mail: anticorruption@ifad.org
Through the online complaint form:

www.ifad.org/governance/anticorruption/how.htm

In person or by mail to:

IFAD Office of Audit and Oversight, Investigation Section

Via Paolo di Dono, 44

00142 Rome, Italy

(Mark all mail “Personal and confidential”)

Refer to annexure 20 for useful links.

5.FM organizational structure, roles and responsibilities

5.1 Overview of FM organizational structure

APD PMU finance department is headed by a Financial Manager which reports to the
Project Director. Within the Finance Department, two FM consultants are responsible for
managing IFAD project.

Project Director

Dotted reporting
line for JKCIP
PMU Finance Manager related
payments.

Finance staff of implementing

Two FM consultants partners
 FINANCIAL MANUAL SECTION OF JKCIP PIM

5.2 FM staff - key roles and responsibilities

Detailed job descriptions for the Financial Manager, two consultants and finance staff of
implementing partners are outlined in annex 21.3 & 21.4

6. Planning and budgeting

Project financing has been approved in line with the following expenditure components
and categories which will be an important reference for preparation and monitoring of the
AWPB and progress in line with the approved financing agreements:

Components Expenditure categories

Component 1: Climate-smart and market- - Training and Workshops
led production - Consultancies
- Goods, Services and Inputs
- Equipment and Materials
- Grants and Subsidies

Component 2: Agri-business ecosystem - Training and Workshops

development - Consultancies
- Goods, Services and Inputs
- Equipment and Materials
- Grants and Subsidies

Component 3: Support to vulnerable - Training and Workshops

communities - Consultancies
- Goods, Services and Inputs
- Equipment and Materials
- Grants and Subsidies

Component 4: Project Management - Operating expenses, including Salaries

and Allowances

The APD PMU Financial Manager, with the support of FM consultants, will be responsible for
preparing a consolidated AWPB with input from the PMU technical team and by obtaining the
individual budgets from both PMU and other implementing partners. PMU and the other
implementing partners and partners are required to prepare a budget for the components/sub
components for which they are responsible. The budget is prepared in Excel using the required
format as outlined in 21.1. A bottom up approach is required, whereby budgets are compiled
from the community level upwards. The Financial Manager shall start with the AWPB process with
sufficient time to seek IFAD no objection as required as per the financing agreement.

Once the AWPB has been developed and approved, it must be inserted in the budget
module of the accounting system of the APD PMU for the purposes of monitoring actual
implementation in line with the budget. Each implementing partner should monitor budget
to actual expenditure for their individual components/subcomponents at least once a month.
APD PMU should monitor the consolidated budget to actual performance on a quarterly basis
with input from PMU and the implementing partners.

The Financial Manager needs to ensure that consolidated expenditure per category is in line
with the approved totals in the Financing Agreement. If the budget monitoring process
indicates and expected over-expenditure on one or more of the cost categories, the Project
will have to obtain a no objection from IFAD, allowing a reallocation amongst categories.

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 FINANCIAL MANUAL SECTION OF JKCIP PIM

For information on how to prepare the AWBP (including the roles and responsibilities of
various stakeholders and approval processes) refer to the PIM.

7. Internal controls
7.1 Overview of internal controls
It is recommended that the Financial Manager of PMU consider the guidance outlined in
Guidelines for internal controls for Public Sector Entities (INTOSAI GOV 9100) when
developing/improving the system of internal control (also see COSO Integrated
Framework – Internal Control).

In terms of the Guidelines for Internal Control Standards for the Public Sector (INTOSAI
GOV 9199):

Internal control is an integral process that is effected by an entity’s management and

personnel and is designed to address risks and to provide reasonable assurance that in
pursuit of the entity’s mission, the following general objectives are being achieved:
✓ executing orderly, ethical, economical, efficient and effective operations;
✓ fulfilling accountability obligations;
✓ complying with applicable laws and regulations;
✓ safeguarding resources against loss, misuse and damage.

Internal control is a dynamic integral process that is continuously adapting to the

changes an organisation is facing. Management and personnel at all levels have to be
involved in this process to address risks and to provide reasonable assurance of the
achievement of the entity’s mission and general objectives.

At project start-up it is recommended that the Financial Manager of PMU use

the general framework for considering the internal control environment with
the intention of improving the existing control environment. In terms of the
general framework:

1) Perform a risk assessment

2) Develop control activities which address identified risks (or improve existing control
activities)
3) Implement control activities (by documenting controls, updating the information
systems, communicating to relevant parties)
4) Develop a system for monitoring the effectiveness of controls implemented

Control activities should be developed with consideration of the following categories:

Control activities Description
Authorisation and Authorisation controls require certification that a transaction
approval procedures or event is acceptable for further processing. The delegated
authority of staff should ensure efficient implementation
while mitigating related risks. Authorisation levels of Project
staff should be in line with their underlying roles. For
example, only the Project director may be authorised to
approve payments.

Segregation of duties An important element in any control system is the separation

of duties
For example, an FC might prepare a document, but it
would then be reviewed and cleared by the Financial
Manager, and then approved by the Project Director.
the Financial Manager’s responsibility to ensure that certain

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 FINANCIAL MANUAL SECTION OF JKCIP PIM

Control activities Description

duties are segregated, including authorising, processing,

recording and reviewing.

Access to resources All data, records and assets should be kept in a physically
and records secure environment. Petty cash should be kept secure.
Financial data and other records should also be protected by
back up procedures and copy records should be stored
securely off site.

Verifications Transactions and significant events are verified before and

after processing, e.g. when goods are delivered, the number

of goods supplied is verified with the number of goods

ordered. Afterwards, the number of goods invoiced is verified
with the number of goods received.

Reconciliations Reconciliations between independent, corresponding sources

of data are a key control for identifying errors and
discrepancies in balances. The reconciliations should be done
on a monthly basis. Any reconciling or balancing amounts
should be promptly cleared. Unusually long outstanding
reconciling items should be investigated. Physical checks
should also be performed on assets and petty cash.

Reviews of operating Operating performance is reviewed against a set of standards

performance on a regular basis, assessing effectiveness and efficiency. If
performance reviews determine that actual accomplishments
do not meet established objectives or standards, the
processes and activities established to achieve the objectives
should be reviewed to determine if improvements are
needed.

Reviews of operations, Operations, processes and activities should be periodically

processes and reviewed to ensure that they are in compliance with current
activities; regulations, policies, procedures, or other requirements.
Supervision Competent supervision helps to ensure that internal control
objectives are achieved. This includes assigning, reviewing,

and approving an employee's work.

Information and Information and technology controls can be both general and
technology related related to applications. The major categories of general
controls controls are (1) entity-wide security program planning and
management, (2) access controls, (3) controls on the
development, maintenance and change of the application
software, (4) system software controls, (5) segregation of
duties, and (6) service continuity. Application controls are the
structure, policies, and procedures that apply to separate,
individual application systems, and are directly related to
individual computerized applications. These controls are
generally designed to prevent, detect, and correct errors and
irregularities as information flows through information
systems.

Entities should reach an adequate balance between detective and preventive control
activities. Corrective actions are a necessary complement to control activities in order to
achieve the objectives.

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The Financial Manual incorporates practical guidance on recommended control activities

in the sections that follow which can be considered by the Financial Managers of PMU
when developing/improving internal controls. New/improved controls should be
documented in detail in the Financial Manual. Controls should be considered at
the central offices as applicable.

7.2 Authorisation and approval

✓ Each payment to be uploaded to Tally based on an approved payment request
✓ Payments released on on-line banking platform by 2 authorised signatories (by using
authorized log-in credentials)

7.3 Segregation of duties

✓ Payment requests prepared by FM consultants
✓ Payments reviewed/approved by Financial Manager / Project Director
✓ Payments recorded in Tally by FC
✓ Payments released by authorised signatories (Financial Manager/Project Director)

7.4 Access to resources and assets

✓ Financial Management Office to be locked after hours and key retained by the
Financial Manager
✓ Other project offices locked after hours are when not in use

7.5 Verifications
✓ Semi-annual fixed asset verifications (register to floor and floor to register)
✓ Fixed assets are tagged with unique number or barcode

7.6 Reconciliations, reviews, supervision

The following reconciliations, checks, monitoring and review activities should be

prepared on a monthly basis (PMU central office level):
Type Description Preparer Reviewer
(signed by)

Designated
Reconciliation of the bank balance FM consultants Financial
account bank
of the designated accounts to the Manager
reconciliation
cash book balance. (IFAD format
outlined in Appendix 21.9)
Transit accounts
Reconciliation of the bank balance FM Consultants Financial
/ interest
of the transit accounts to the cash Manager
accounts / tender
book balance.
accounts
reconciliations
(local currency)

Advance Clear all outstanding advances FM Consultants Financial

justifications within 2 days of each quarter Manager

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Type Description Preparer Reviewer

(signed by)

(received and record approved

expenditure) and follow up on long
overdue items for which
invoices/supporting documentation
has not been received.

Review of Obtain monthly reports from Implement FM consultants

monthly reports implementing partners and ting Agency
From Imp. Prt confirm: FC

as ✓ Report was approved by

per 21.13) Authorized official of IP.
✓ Bank balances agree to bank
statement / bank reconciliation
✓ Listed expenses are supported
by valid invoices and other
supporting documentation
(review original
documentation)
✓ All advances from PMU are
recorded in line with advances
recorded in Tally
✓ Expenses have been incurred in
line with the approved AWPB

Quarterly and Prepare internal reports for the Finance team Project
Monthly internal purposes of monitoring project Director
report progress and identifying issues.
Refer section 13.7.

In all instances, issues identified during the review/reconciliation process should be

followed up and resolved in a timely manner.

7.6 Information and technology related controls

✓ Password is required to log into Tally

✓ Tally to require password change on a regular basis
✓ User rights are defined and documented and linked to log-in credentials
✓ Daily back-up of Tally data on server
✓ Sensitive information (e.g. payroll files) are password protected
✓ Regular software updates are undertaken to ensure that Tally version is supported by
technical team at Tally vendor
✓ Offsite backup of data on a weekly basis
✓ Financial Management staff are not allowed to share Tally passwords or use login
credentials of another
✓ Desktop access requires login with a password
✓ Operating system software updates are performed regularly

✓ Use authorised signatory to have log-in credentials for on-line banking

7.7 Internal control environment – implementing partners

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The Financial Managers of PMU will be responsible for the assessment of the internal
control environment of implementing partners which report to it. In terms of the MOUs,
it will be required that implementing partners perform an annual self- assessment of their
financial management arrangements are outlined in
6. It is recommended that the Financial Managers use the information contained in this
section to consider the soundness of the internal control environments and provide
guidance on improving controls if weaknesses are identified.

8. Flow of funds
8.1 General flow of funds arrangements:

✓ J&K will pre-finance project expenditures and reimburse IFAD’s share quarterly.
✓ APD PMU will have the ability to request funds from IFAD via DEA/CAAA to reimburse

✓ IFAD funds will be disbursed in USD to designated accounts maintained by DEA/CAAA

✓ A dedicated tender account will be opened in INR for the purposes of receiving
tender related payments (purchase of bids documents)
✓ Implementing partners reporting to PMU to submit written requests for funds.
Funds advanced to implementing agency bank accounts and recorded as advances
until justified.
✓ Each Implementing Partner (IP) will have a sub-account opened by APD PMU (PMU).
The sub-account will belong to the Project Account maintained by PMU. PMU will release
funds to the sub-account of a relevant implementing partner once all supporting
documents have been sent to and cleared by the respective HOD. PMU will not release
advance funds to Implementing partners. Therefore, sub-accounts of implementing
partners will usually have zero balance. IPs will appoint two signatories (usually the
head of the IP and the Chief Accountant/Finance Director) to authorize payments from
their respective sub-accounts. Payments will be made to only project contractors and
beneficiaries based on approved relevant AWPB.
The flow of funds for APD PMU is depicted below:

Budget allocation + IFAD

funds from DA
Federal Government- MOF
State Government INR

Pre-
financing
via local
Treasury IFAD
INR funds
US$
quarterly

via CAAA
attached
WA with

– US$
IFRs

Project – APD PMU IFAD

Fund
allocation
via online
banking of
commercial Supporting
bank documents
INR , bank
reconcil.
contracto

beneficia
project
rs and

Implementing Partners
ries
INR
To

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8.3 Authorised bank signatories

All bank accounts will have 3 authorised signatories. All bank transfers will be required to
be released by 2 authorised signatories.

9. Accounting
9.1 Accounting system
Most of the Project activities result in the receipt, commitment or expenditure of funds.
The accounting system records, processes and organizes this data in order to produce
useful financial information in the form of AWPB, Financial Reports, Withdrawal
Applications, Financial Statements etc. needed by the financier and project management.
The accounting system should reflect the Project’s needs and be designed to provide the
financial information required by all interested parties. It should also fulfil all the legal
and regulatory requirements of JKCIP. In addition, the accounting system should
incorporate the reporting requirement of the chosen accounting standard for JKCIP
which is Indian National Accounting Standards issued by the Institute of Chartered FCs of India
(ICAI).

9.2 Centralised accounting at PMU

The accounting function will be centralised at APD PMU and maintained under the supervision
of the Financial Manager.

APD PMU will consolidate the accounting transactions from the various Implementing
partners on a monthly basis by receiving each agency’s transactions (in monthly report
format) as outlined in 21.13. PMU will record the transactions on a manual basis in the Tally
accounting software and clear related advances.

(NB: In case of Advances to Implementing partners, they must be recorded in Tally

(indicating the relevant implementing agency only). Only once advances are cleared,
expenses are recorded at the historical exchange rate / within the correct component and
expenses category).

APD PMU will centrally manage the accounting of transactions.

9.3 Accounting software

Tally accounting software will be used for JKCIP. APD PMU will procure and customize it for
the needs of JKCIP. At project start-up the Financial Manager should identify required
customization to ensure that Tally can generate forms/reports in
the formats required by IFAD and/or other financiers.

9.4 Chart of accounts

The accounting software should include the appropriate Chart of Accounts. The Chart of
Accounts should be developed to cater for:

▪ All components and sub-components are incorporated in the AWPB (outlined in the
financing in agreement).
▪ All categories as outlined in the financing agreements.
▪ Sources of finance (Government, IFAD, Beneficiaries, Convergence etc.)

The Chart of Accounts should mirror the cost tables (as presented in the Project design
report) to enable comparison of actual Project costs during implementation with those
estimated during the Project preparation.

9.5 Recording and processing of transactions

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Whenever a transaction takes place under the Project, it should be recorded and processed
using the accounting software. Transactions must be recorded in accordance with the INASs.
Each transaction should be recorded in the accounting software based on the following:

▪ Use double entry accounting (debit and credit).

▪ Capture the transaction using the correct account code (as determined by the chart of
accounts) – for all transaction, to be confirmed the Financial Manager.
▪ Capture transactions which has the required supporting documentation.
▪ Capture information accurately and completely.

For detailed instructions on how to record the expenditures in the accounting

software, please refer to the accounting user manual.

9.7 Accounting for in-kind contributions

In terms of the IFAD Handbook for Financial Reporting and Auditing for IFAD-financed
Projects, JKCIP is required to account for and disclose in-kind contributions. In order to
meet this requirement, the Project is required to measure contributions as outlined below
and record in the accounting system.
It is expected that the following in-kind contributions will be received by JKCIP as outlined
in the PIM.

From Beneficiaries:

▪ PMU to provide more details on the nature of the contribution

The following process is followed to account for in-kind contributions received from
Community Groups/beneficiaries: (to be identified by PMU based on nature of the in-kind
contribution provided)
Measure XXXX
Review XXXX

Approve XXXX

Record XXXX

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Type Measurement calculation Supporting documentation to be

retained

Labour hours Value = total hours worked X Copies of acts of work completed.
applicable wage rate (in most

cases the applicable minimum

wage rate for uneducated
labour in the country)

Maintenance Value = actual cost of Copies of invoices.

costs materials purchased
Construction Value = cubic meters of gravel Bill of lading prepared by the
material – consulting engineer which indicated
gravel the estimation of gravel volume. The
sheet should be duly signed by the
community representative and
Project technical/M&E staff

Construction Value = actual cost of Copies of invoices.

material – materials purchased
other
When recording the in-kind contributions, it is important that the in-kind contributions
are classified according to the same principles as regular Project expenditures; that is,
every contribution must be by linked to an activity/component, by category and by
financing source (government and/or beneficiaries) to ensure that consolidated financial
reports can be produced without any extra effort.

In-kind contributions should be disclosed separately in the financial statements. The

notes of the financial statements should also briefly explain the methodology of how it
was calculated. On the other hand, when in-kind contributions cannot be reliably
measured, for example the use of office space, then these should also be discussed in
the notes to the Project financial statements.

NB: Government will pay for project related taxes. This is not considered in-kind unless
Government provides and exemption instead of transferring the tax portion to the
JKCIP.

9.9 Accounting for exchange rate matters

Expenditures should be recorded on the First in First Out basis when applicable.

9.10 Accounting for advances

The Project may make advances (travel related, advances to implementing partners etc.)
in the form of bank transfer.

In terms of accounting for advances:

▪ Advances are recorded in the accounting system at the date that the advance is
made, subject to the required approval process.
▪ The transaction is not recorded as an expenditure (in terms of categories,
components) on this date.
▪ All advances should be cleared in a timely manner by the submission of original
invoices.
▪ All outstanding advances should be cleared by no later than 10 days after the end of
the fiscal year-end.

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10. Cash flow forecasting

The APD PMU will prepare cash flow forecasts when needed. However, under
reimbursement method, cash flow forecasts are not prepared.

11. Disbursements

11.1 Eligibility of expenditures

In accordance with the IFAD disbursement procedures, between the date of entry into
force of the Financing Agreement and the Financing Closing Date, JKCIP may request
withdrawals from the IFAD Loan for eligible expenditures.
Eligible expenditures are defined in the IFAD General Conditions Section 4.08 as follows:
The Financing shall be used exclusively to finance expenditures meeting each of the
following eligibility requirements:

o The expenditure shall meet the reasonable cost of goods, works and services
required for the Project and covered by the relevant AWPB and procured in
conformity with the Fund’s Procurement Guidelines.
o The expenditure shall be incurred during the Project Implementation Period, except
that expenditures to meet the costs of winding up the Project may be incurred after
the Project Completion Date and before the Financing Closing Date.
o The expenditure shall be incurred by a Project Party.
o If the Agreement allocates the amount of the Financing to categories of Eligible
Expenditures and specifies the percentages of such Eligible Expenditures to be
financed by the Financing, the expenditure must relate to a category whose
allocation has not been depleted and shall be eligible only up to the percentage
applicable to such category.
o The expenditure shall be otherwise eligible in accordance with the terms of the
Financing Agreement.
o The Fund may from time to time exclude certain types of expenditure from
eligibility.

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o Any payment prohibited by a decision of the United Nations Security Council taken
under Chapter VII of the Charter of the United Nations, shall not be eligible for
financing by the Financing.
o Any payments to a person or an entity, or for any goods, works or services, if
making or receiving such payment constitutes a coercive, collusive, corrupt or
fraudulent practice by any representative of the Borrower/Recipient or any Project
Party, shall not be eligible for financing by the Financing.
o All expenditures must be supported by sufficient supporting documentation as
stated in the FMFCL and the IFAD disbursement handbook (please see section below
on supporting documentation).
o The proceeds of the financing shall not be used to pay taxes. However, taxes paid
by the ultimate recipient of an expenditure (e.g. withholding tax, income taxes paid
by a Project employee or taxes on the profits of a contractor) are not considered to
be taxes paid by the Project.

The IFAD disbursement procedures as outlined below are governed by the FMFCL and the
IFAD FMFCH. The handbook is also available on the IFAD website and JKCIP should
ensure that they refer to the most recent version as published at the website.

11.2 Disbursement procedures

The following disbursement procedures may be used for withdrawal from the IFAD Loan:
Type Description

Advance The advance withdrawal modality for JKCIP is based on revolving fund
withdrawal modality for which:

▪ The first advance withdrawal cannot exceed the period of six

months’ forecast amount of IFAD financed expenditure approved
in the Annual Work Plan and Budget (AWPB) for the six months
planned activities.
▪ Further advances to the Designated Account will be made for the
next reporting period based on the AWPB and other supporting
documents.

Reimbursement Reimbursement is applicable when eligible Project expenditures are

pre-financed by the Borrower.

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Request for disbursement from Government should be submitted on a quarterly basis, in

the format required by DEA/CAAA.

11.3 Evidence of Authority to sign Withdrawal Applications

IFAD requires JKCIP representative, as designated in the financing agreement, to furnish
satisfactory evidence of the authority and authenticated specimen signatures of the
individuals who will sign WAs on behalf of JKCIP. This evidence must reach IFAD before the
first WA is presented by JKCIP and should be the original (photocopies, facsimiles or other
means of transmission are not acceptable). A sample template is provided in FMFCL. Each
WA should be signed by such duly authorized individuals, and the Fund must be notified
of any change in the signatories authorized to withdraw funds from the loan account.

IFAD must also be notified of the designated signatories for operating any designated
and/or Project or other accounts, including changes thereto, whether or not these
authorized signatories are included in the financing agreement. Such changes, as effected
during the life of the Project, must be communicated promptly to the IFAD. JKCIP, guided by
FMFCL, should provide the names and specimen signatures of the newly appointed
signatories and include the date when such change is to take effect. The original of such
changed documentary evidence is to be provided to IFAD.

11.4 The Designated Account

The flow of funds for JKCIP starts with the opening of the Project Designated Accounts (DAs)
in India, in accordance with IFAD’s requirements identified in the Financing Agreement
and FMFCL. The CAAA is responsible for opening and managing the Designated Account.

11.5 Withdrawal of Financing Proceeds using withdrawal applications

The Financial Manager is required to ensure that WAs are prepared and submitted to IFAD via
CAAA with consideration of the following requirements:

Requirement Guidance

Timeliness Under the reimbursement method, withdrawal applications should be

prepared and submitted after each quarter end.
. WA must be sent within 30 days from the end of each quarter.

Completeness Prepare and submit the required Interim Financial Reports (IFRs)
and accuracy of package as requested in the FMFCL/R, refer to 21.14. Prepare
supporting and submit to IFAD expenditures supporting documents upon
documentation request. Ensure that information is complete and accurate.

Account JKCIP should submit Funds reconciliation statement as per IFRs

reconciliation formats.

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Requirement Guidance
for all these accounts correspond to the balances at the end of the
same reporting period as indicated in the WA period.

Duly authorised Ensure that WAs are duly authorised in terms of JKCIP authorisation
procedures and signed by the duly authorised representatives.

Document Submit copies of supporting documentation upon request. Retain

retention original documentation for inspection by IFAD upon request.

11.6 Initial advance

Ensure the disbursement conditions as per the financing agreement and the FMFCL have
been met which includes provision of the following:

▪ Evidence that a designated account has been opened and the names/titles of the
persons authorised to operate this account.
▪ A letter from the Borrower, designating the name(s) of official(s) authorised to sign
withdrawal applications including their specimen signature(s).

Complete and submit to IFAD:

• The duly filled forms constituting the project’s IFRs, as outlined in the FMFC(refer
to 21.14); the main reports to be included in the package:
1. Sources and Uses of Funds
2. Summary of Expenditures by Project Categories and by Financiers (to
include budget versus actual figures and variances)
3. Summary of Expenditures by Project Components and by Financiers
4. F u n d s R e c o n c i l i a t i o n S t a t e m e n t

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11.11 ICP

The IFAD client portal (ICP) enables PMU to:

• access real-time financing information on country portfolios as well as operational

and financial information related to Projects
• submit Withdrawal Applications directly and obtain electronic approvals required
both from concerned ministries and IFAD
• manage banking instructions electronically
• create and download relevant reports
• Contract Monitoring Tool (CMT) Module

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The Project may submit electronic copies of its withdrawal applications and maintain
hardcopies for audit purposes.

11.12 Refund of withdrawals

If the IFAD determines that any amount withdrawn from the Loan Account was not used
for the purposes indicated or will not be needed thereafter to finance
Eligible Expenditures, the Borrower shall promptly refund such amount to the IFAD upon
instruction by the Fund.

12. Processing of payments

IFAD funds may not be used for payment of taxes, customs or duties unless
otherwise agreed.

Procedures for payments is outlined as follows:

1. General payments (12.2)

2. International travel (12.4.1)
3. Local travel (12.4.2)
4. Civil works, equipment (12.5)
5. Consulting services (12.6)
6. Funds transfers to Implementing partners (12.7)
7. Other

12.1 Supporting documentation

The processing of all payments are subject to JKCIP retaining the following original
supporting documentation after processing:
Expenditure
type

All ▪ Signed contract or confirmed purchase order – showing the specific amount
that is due to be paid
▪ The bank guarantee for:
o advance payment, as specified in the contract documents;
o performance, as specified in the contract documents;
▪ Copies of communications sent by the IFAD country Project manager to the
JKCIP providing the ‘no objection’ to the contract
award; and
▪ Evidence of payment made by JKCIP.

Goods ▪ Items listed above under “all”

▪ Supplier’s invoice, duly certified for payment by the Project

Director– specifying the goods, their quantities, and prices;
▪ Bills of lading or similar documents; and
▪ As appropriate, the certificate of delivery (to include condition of
goods on delivery).

Civils works ▪ Items listed above under “all”

▪ The claim of the contractor, including a financial progress

report, stating the work performed and the amount due;
▪ A certificate – signed by the Project consultants or owner’s
representative, if any, or by the borrower’s chief engineering
officer or resident supervising engineer assigned to the Project, to the effect
that the work performed is satisfactory and the payment claimed is due in
accordance with the terms of the contract; and

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Expenditure Supporting documentation

type

▪ A copy of the contract payment monitoring form signed in original

by the certifying officer.

Services ▪ Items listed above under “all”

▪ The supplier’s or consultant’s claim duly certified for payment by
(including
the Project director and showing sufficient detail.
consultants)
▪ As appropriate, a certificate of delivery of satisfactory services.

For payment ▪ Items listed above under “all”

▪ Supplier invoices;
of Trips, fuel,
▪ Evidence of payment;
stationary
▪ Back to office report;
and other
▪ Training certificate,
expenses
▪ Travel authorization; and/or
▪ Expense reports by the traveller (including invoices) ▪
Boarding passes

Pro forma invoices are not acceptable replacements for invoices. In all instances,
supporting documentation need to include final invoices.

12.2 General guidelines for processing of payments

For invoice related payments, the following general process is applicable:
Activity Procedures

Request and Generally, ensure that expenses are in line with the
approve AWPB/Procurement Plan and that IFAD no objection has been
activity in line obtained if required.
with AWPB

Service Obtain evidence that the goods were delivered / services received to
the satisfaction of the Project. Evidence to be retained for the
delivered, or
purposes of providing supporting evidence for processing of invoice.
goods
(delivery notes, completion reports etc.)
received

Prepare ▪ Once invoices are received, Finance Consultant prepares

a payment request which includes supporting documentation and
payment
indicates accounting codes, category of payment, component of
request
payment and source of finance.
▪ The Financial Manager reviews the payment request for accuracy
and validity.
▪ The Financial Manager adds the correct account codes for the
purposes of recording the transaction in the accounting software.
▪ The Finance Consultant (FC) forwards the payment request with
supporting documentation to the relevant Technical Officer
/Component Head for review and sign off.

Review of The Project Director shall review and sign the payment request,
checking/confirming:
payment
request ▪ The expenditure is included in the approved AWPB
▪ IFAD no objection was obtained (if applicable).

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Activity Procedures
▪ All expenditures are eligible in line with the financing agreement
and has been incurred before/completed before Project
completion date.
▪ Payment was cleared by the relevant component technical
officer/head.
▪ All supporting documentation is attached (refer 12.1)

Approve The Project director shall review and sign payment request,
checking/confirming:
payment
request ▪ The expenditure is included in the approved AWPB
▪ All expenditures are eligible in line with the financing agreement
and has been incurred before/completed before Project
completion date
▪ Payment was cleared by the relevant component technical
officer/head.
▪ All supporting documentation is attached (refer 12.1)
▪ The payment request was reviewed and approved by the
Financial Manager.

Process ▪ The approved payment request with related documents shall be

sent to the FC for processing and uploading on the online
payment
banking platform.
▪ The FC shall confirm that the bank details provided by
the supplier corresponds to the signed legal agreement / original
bank letter provided.
▪ Once loaded on the banking platform, the payment to be released

by 2 authorised signatories (using unique digital signatures)

(NB: Cheques are not used for general payments)

Record ▪ FC records the transaction in the accounting software, using
the correct codes as captured on the payment request.
payment
▪ File supporting documentation, include proof of payment (bank
statement/bank confirmation of payment)

12.4 Travel related payments

The following type of travel may take place by Project staff or Project beneficiaries:

▪ International travel – 12.4.1

▪ Local travel – 12.4.2

All types of travel payments follow the general process:

Approval of
Request for Approval of Advances Travel Justification Recording of
provided (if travel travel
travel travel undertaken of travel
applicable) expense expense
request expenses
payment

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The processes for each type of travel is outlined

below: 12.4.1 International travel

International travel
Type of ▪ Training which is conducted for Project staff or beneficiaries at an
travel international location.
▪ Business trips
Overview of ▪ Individuals are entitled to DSA, paid based on the number of days
entitlement of travel for training purposes.
▪ The per diem should be used to pay for the cost of
accommodation, meals and travel as per government regulations.
▪ Taxi trips to/from airport and visa is paid for separately based on
actual cost estimates.
▪ Unused per diem is not returned to the Project.
▪ The per diem amount is determined in line Government decree.
▪ The per diem is reduced in the event that meals or
accommodations is provided to the individual.
▪ 100% of the DSA is advanced before commencement of the travel.
▪ The number of travel days are calculated from date of departure
from home until last day of the training.
▪ Air travel is booked by the project and paid for by the Project
directly.

Request for The relevant department will prepare a request for travel which
includes:
travel
▪ List of individuals to attend external training
▪ Dates of training
▪ Invitation to training / training registration confirmation
▪ Overview of training (agenda, location noted) – brochure / email
correspondence or other suitable evidence
▪ Related AWPB classification (category, component)
▪ Calculation of total per diem due (100%)
▪ Estimated cost of air travel
▪ Estimated cost of visas

(Air travel is paid directly by the Project)

Approval of ▪ The travel request is reviewed by the FC for:

o Accuracy and compliance with the Government decree in
travel
terms of the per diem rate applied.
request
o Alignment with the approved ABPB
▪ The travel request is submitted to the Project Director for
approval.
▪ IFAD and MoF no-objection should be obtained for travel request
after approval by the Project Director.

Advance ▪ Upon approval of the travel request by the Project Director, the
Project FC will advance 100% of the total per diem to
provide
individuals or the team leader as appropriate. (prepare cheque for
signing by the Project Director)
▪ The Project FC will record the advance in the accounting system,
indicating the amount, date of advance, to who advanced
and related budget line item. (advance is not recorded as an
expense at this stage)

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International travel
▪ Within 10 business days after the travel, the team leader /
Justification
individual is required to prepare a travel expense report which
of travel
includes:
expenses
o Advance report (refer 21.8)
o Boarding passes for air travel
o Attendance register completed at the training event
o Back to the office report
o Confirmation of IFAD/Ministry no objection (email
correspondence)
▪ The travel expense claim is submitted to the FC who
confirms the accuracy and validity of the travel expense claim.
▪ The Financial Manager reviews the travel expense claim for
accuracy and validity and captures the correct account codes on the
request (in line with AWPB line items). (sign as evidence of review)

Approval of ▪ The travel expense is approved by the Project Director by way of

signing the travel expense report.
travel
payment

Recording of ▪ The total travel expense is recorded as training

expenditure/business trip, by clearing the travel advance, in terms
expense
of the correct category and component, in line with the account
codes which are captured on the travel expense report.

In all instances, unjustified travel advances will need to be reimbursed to the

Project by the traveller within three months after the travel date or the amount
will be deducted from the payroll.

12.4.2 Local travel

Local travel

Type Training / field visits

Overview ▪ The number of travel days used for the calculation of per diem is
of calculated from date of departure from home until last day of the
entitlement training.
▪ If Project vehicles are used, the driver is responsible for ensuring
the vehicle is refueled in terms of the process outlined in 12.9
▪ If private vehicles are used, staff are reimbursed in line with the
allowable rate per kilometre as specified in the staff by laws, based
on actual distance travelled.

Request for The relevant department will prepare a request for travel which
includes:
travel
Training:

▪ List of individuals to attend training

▪ Dates of training
▪ Overview of training (agenda, location noted) – brochure / email
correspondence or other suitable evidence
▪ Related AWPB classification (category, component)

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Local travel
▪ Confirmation from the Officer Manager that a Project vehicle(s) is
available for the travel dates should this be the mode of
transportation

▪ Calculation of per diem in line with Government decree.

Field visits:
▪ Request for field trip from technical department

Approval of ▪ The travel request is reviewed by the FC for:

o Accuracy and compliance with the staff bylaws in terms of
travel
the pocket money allowance / estimation for fuel costs
request
o Alignment with the approved ABPB
▪ The travel request is submitted to the Project Director for approval.
▪ Once approved, the team leader or individual should submit a
request for vehicle use.

Advance ▪ No fuel advances are provided in cash (driver will use fuel card to
refuel)
provide
▪ Applicable per diem is advanced in cash.

Justification ▪ Within 5 business days after the travel, the team leader / individual
is required to prepare a travel expense report which includes:
of travel
o Attendance register completed at the training event
expenses /
o If a private vehicle was used, indication of total distance
return of
travelled in kilometres with payment due to vehicle owner,
unused fuel
based on the approved rate in the bylaws.
advance
o If a Project vehicle was used, invoiced for fuel which was
paid from fuel advance.
o Back to the office report (in case of field visits)
▪ The travel expense claim is submitted to the FC with the
fuel advance which was not used.
▪ The FC confirms the accuracy and validity of the travel
expense claim and determines the per diem which is due.
▪ The Project FC reviews the travel expense claim for
accuracy and validity and captures the correct account codes on the
request (in line with AWPB line items). (sign as evidence of review)

Approval of ▪ The travel expense is approved by the Project Director by way of

signing the travel expense report.
travel
payment

Recording ▪ The total travel expense is recorded as expenditure in terms of the

correct category and component, in line with the account codes
of expense
which are captured on the travel expense report. (advance cleared
at this stage)
▪ Only fuel expenses may be charged to the training budget code. If
other vehicle maintenance was incurred, this expense is recorded as
maintenance.

12.5 Civil works, equipment and tools

Activity Procedures

Request and ▪ Civils works, equipment and tools are defined and outlined in both
approve the AWPB and the Procurement Plan.

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Activity Procedures

activity in ▪ Civil works, equipment and tools is contracted via a procurement

line with process as outlined in the Project Operations Manual.
AWPB ▪ IFAD no objection is required on the bidding document,
recommendation of award and contract outline before the final bid
award is made. (refer to Letter to the Borrower)

Prepare ▪ The procurement officer will request payment of invoices, subject

to providing the following supporting documentation:
payment
- Copy of civils contract with award letter (for civils only)
request
- Contract amendment letter (if applicable)
- Bid analysis and evaluation report
- Evidence of IFAD no objection related to the contract award
- Purchase order / Invoice
- Progress report prepared by consulting engineer
▪ The FC prepares a payment request which includes the
supporting documentation.
▪ The FC reviews the payment request for
accuracy and validity.
▪ The Financial Manager adds the correct account codes for the
purposes of recording the transaction in the accounting software.
▪ The FC forwards the payment request with supporting
documentation to the relevant Technical Officer /Component Head
for review and sign off.

Review and The Financial Manager reviews and signs the payment request before
submission to the Project Director. The Project Director shall review
approval of
and sign the payment request, checking/confirming:
payment
request ▪ The expenditure is included in the approved AWPB
▪ IFAD no objection was obtained related to procurement as
applicable
▪ All expenditures are eligible in line with the financing agreement
and has been incurred before/completed before Project completion
date.
▪ Payment was cleared by the relevant component technical
officer/head.
▪ All supporting documentation is attached (refer 12.1).
▪ Where stipulated in the contract, the required bank
guarantees are valid and is retained in the project’s safe.

Process ▪ The approved payment request with related documents shall be

sent to the FC for processing and uploading on the online
payment
banking platform.
▪ The FC shall confirm that the bank details provided by the
supplier corresponds to the signed legal agreement / original bank
letter provided.
▪ Once loaded on the banking platform, the payment to be released

by 2 authorised signatories (using unique digital signatures)

(NB: Cheques are not used for these payments)

Record ▪ FC records the transaction in the accounting software, using
the correct codes as captured on the payment request.
payment
▪ File supporting documentation, include proof of payment (bank
statement/bank confirmation of payment)

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12.6 Payments for consultant services

Activity Procedures

Request and ▪ The process for requesting and approving consultants is outlined in
approve the procurement section of the PIM and is dependent
activity in on whether the service is recruited internationally, nationally,
line with locally or on a single source basis.
▪ In all instances the procurement of consulting services is subject
AWPB
to IFAD’s no objection.

Prepare ▪ The procurement officer will request payment of consulting

services subject to providing the following supporting
payment
documentation:
request
- Copy of consulting contract and invoice requesting payment
(invoice to specify bank details in line with contract)
- Copy of output (report / study etc)
- Copy of timesheets (if time-based payment is required)
- Written recommendation for payment from the relevant
technical department which confirms that the consultant(s)
have delivered the key outputs as specified in the consulting
contract.
- Confirmation of IFAD no objection.
▪ The FC prepares a payment request which includes the
supporting documentation.
▪ The FC reviews the payment request for
accuracy and validity.
▪ The Financial Manager adds the correct account codes for the
purposes of recording the transaction in the accounting software.
▪ The FC forwards the payment request with supporting
documentation to the relevant Technical Officer /Component Head
for review and sign off.

Review and The Financial Manager reviews and signs the payment request before
submission to the Project Director. The Project Director shall review
approval of
and sign the payment request, checking/confirming:
payment
request ▪ The expenditure is included in the approved AWPB
▪ IFAD no objection was obtained related to procurement as
applicable
▪ All expenditures are eligible in line with the financing agreement
and has been incurred before/completed before Project completion
date.
▪ Payment was cleared by the relevant component technical
officer/head.
▪ All supporting documentation is attached (refer 12.1).
The Financial Manager reviews and signs the payment request before
submission to the Project Director. The Project Director shall review
and sign the payment request, checking/confirming:

▪ The expenditure is included in the approved AWPB

▪ IFAD no objection was obtained related to procurement as
applicable
▪ All expenditures are eligible in line with the financing agreement
and has been incurred before/completed before Project completion
date.
▪ Payment was cleared by the relevant component technical
officer/head.

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Activity Procedures
▪ All supporting documentation is attached (refer 12.1).

Process ▪ The approved payment request with related documents shall be

sent to the FC for processing and uploading on the online
payment
banking platform.
▪ The FC shall confirm that the bank details provided by the
supplier corresponds to the signed legal agreement / original bank
letter provided.
▪ Once loaded on the banking platform, the payment to be released
by 2 authorised signatories (using unique digital signatures)
▪ (NB: Cheques are not used for these payments)

Record ▪ FC records the transaction in the accounting software, using

the correct codes as captured on the payment request.
payment
▪ File supporting documentation, include proof of payment (bank
statement/bank confirmation of payment)

12.7 Advances to Implementing partners

Implementing partners will request funds from PMU for the purposes of implementing
activities. However, advances will need PD approval before processing.

12.8 Petty cash payments and replenishments

No cash is planned to be used in the project implementation.

12.9 Payments for fuel

Vehicles may be refueled at the local preferred fuel station, based on approved purchase
orders issued to drivers by the Project FC. Drivers use payment cards to pay for fuel.

Each month drivers submit fuel usage report and it is approved by Office Manager.

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13. Financial Reporting

The section on financial reporting deals with:

▪ Financial reports for submission to IFAD and other financiers

▪ IAs reporting to PMU
▪ Internal reporting within each IA

13.1 Financial reports for submission to IFAD and other financiers

APD PMU is responsible for submitting consolidated financial reports to IFAD. The
applicable financial reporting requirements applicable to IFAD-financed Projects are
outlined in the IFAD Handbook for Financial Reporting and Auditing for IFAD-financed
Projects which may be updated from time to time. The Financial Manager should ensure
adherence to the latest version of the Handbook.

APD PMU is required to prepare financial reports and submit to IFAD as outlined in the
table below:
Type Period / Frequency of submission

Annual ▪ Unaudited: Prepare annual reports and submit to IFAD within 4

Financial months of the end of the financial year-end.
Statements ▪ Audited: Submit audited financial statements within 6 months of the
end of the financial reporting period.

The reports should be prepared in line with requirements outlined

in 13.4. The annual financial statement should be signed by the
Project Director for authorisation before submission to the
auditor/IFAD.

Interim Prepare quarterly reports and submit to IFAD within 30 days of the end
financial reports of the quarter. The reports should be prepared in line with requirements
as outlined in the FMFCL

13.2 Financial reporting requirements

PMU is required to prepare financial reports in line with INASs. Should JKCIP propose
to use a different accounting standard, this should be agreed with IFAD. In all
instances, IFAD requires Projects to use internationally accepted accounting standard.

13.3 General principles for the preparation of financial reports

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JKCIP shall prepare financial reports with consideration of the following specific
principles:
Principal Guidance

Completeness ▪ The financial reports shall be complete and include the activities
of both PMU and other Implementing partners and present the
results of a single entity.
▪ The sources and uses of all categories/components shall be included
(including sources received in-kind).
▪ In the sources and uses form, all financiers shall be included, including:
o IFAD Loan
o Government Contributions
o Convergence funds
o Beneficiary Contributions
o In-kind contribution from

Accuracy ▪ Ensure that the various disclosures as outlined in 13.4 are

reconcilable as appropriate

Accountability ▪ The financial reports should promote the concept of accountability.

13.4 Minimum prescribed content for interim and annual financial reports
APD PMU is required to prepare financial reports (annual and interim) which includes the
following minimum prescribed content (an illustrative interim financial reports is outlined
in FMFCL.)

The IFRs package and documents mainly include, refer to 21.14:

• The duly filled forms constituting the project’s IFRs, as outlined in the FMFCL;
The main reports to be included in the package:
A. S o ur c es an d Us es of F un ds S t at em ent
B. Summary of Expenditures by Project Categories and by Financiers (to
include budget versus actual figures and variances)
C. Summary of Expenditures by Project Components and by Financiers
D. Funds Reconciliation Statement
E. Necessary Treasury Statements of transfers of funds to the Project Account.

For the annual financial statements, the project is required to prepare the following
statements:

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Content Source of Guidance on preparation of content

requirement

Statement of INASs
Cash Receipts ▪ Disclose cash receipts using an appropriate
and Payments classification system (Contributions from
external financiers, Contributions from
Government, Contributions from Beneficiaries,
Cash generated from Project activities)
▪ Disclose cash payments in line with the
categories outlined in Schedule 2 of the IFAD
financing agreement

Budget to Actual INASs ▪ Ensure that the Budget period corresponds to

Comparison the Financial Reporting Period
▪ Derive the budget disclosure from the
approved AWPB. Disclose both the original and
final approved AWPB.
▪ Calculate the variance between budgeted and
actual results for both receipts (sources) and
uses (payments)
▪ Provide narrative on the reason for the
variances observed.

Accounting INASs ▪ Develop accounting policies with reference to

policies and the guidance provided in INASs
explanatory ▪ Disclose the authorisation date
notes ▪ Disclose the basis of presentation
▪ Disclose the presentation currency as INR

Sources and Prescribed by the ▪ Include both cash and in-kind contributions in
Uses of Funds IFAD Handbook the Sources of Funds
Statement for Financial ▪ Provide disclosure on uses of funds by
Reporting and financier/by category and financier/component
Auditing for
IFAD-financed
Projects

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Content Source of Guidance on preparation of content

requirement

Funds Prescribed by the ▪ Prepare reconciliation which provides spent

account IFAD Handbook amount and reimbursed by IFAD, the difference
reconciliation for Financial being to be reimbursed.
Reporting and
Auditing for ▪ Explain variances.
IFAD-financed ▪ The IFAD FMFCH
Projects provides detailed guidance on the preparation
of the reconciliation.

Summary of Prescribed by the ▪ Provide a summary for JKCIP

Withdrawal IFAD Handbook .
Applications for Financial ▪ Ensure that summary information is
Reporting and reconcilable with the IFAD historical transaction
Auditing for statement (to be requested from the IFAD
IFAD-financed Finance Officer) with regards to the value date
Projects of the transaction amount of withdrawal in loan
denomination currency.
▪ Cross reference amounts included here per WA to
amounts included in the Funds Reconciliation.

Fixed asset Prescribed by the ▪ Include a fixed asset register which lists all
register IFAD Handbook Project assets (including those purchased on
for Financial behalf of the Community Groups if the Project
Reporting and retains the title and the assets will be returned
Auditing for to the Project at Project closure).
IFAD-financed ▪ Indicate the implementing agency which
Projects procured the asset and related component.
▪ Ensure that all fields are included – refer
illustration included in 21.9.

In addition to the above disclosures, the Project is required to maintain and Action
Tracker log which is a log of agreed actions. This document should be maintained on an
ongoing basis provide together with the financial report (interim or annual). The Action
Tracker format is outlined in 21.9. It is required that the Action Tracker include actions
which have been agreed on with IFAD during missions or the Auditor during the audit
(derived from the management letter). The purpose of the Action Tracker is to keep
track of progress regarding agreed on actions.

13.5 Other considerations

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The following specific issues should be considered in the preparation of the financial
reports:

▪ Accrual related information should be disclosure in the notes of the financial

statements. This includes outstanding advances, which, in terms of the cash basis of
accounting, should be expensed when provided. This entails that the advance will be
recorded in the relevant categories /components at year-end. (NB: Best practice is
that zero advances are outstanding at the end of the fiscal year).
▪ In-kind contributions from Beneficiaries should be reported in the financial
statements in line with the process as outlined in section 9.7. Also refer
to 21.9 to see the illustrative accounting policy and explanatory notes.
▪ Where applicable, disclose information for PMU separately and on a consolidated
manner. In all instances the user of the financial statements should be able to
identify if the information relates to activities of PMU.

13.6 IPs reporting to PMU

All Implementing partners which report to PMU are required to submit quarterly reports
to the PMU. The PMU will review the reports and verify bank
balances/expenses with reference to supporting documentation attached to the report.
PMU will proceed to record individual transactions in Tally and clear related advances.
The IPs are required to submit quarterly reports using the report format as outlined in
21.13.

IPs is responsible for the accuracy and completeness of reports submitted to PMU and
will be required to respond to queries on report content in a timely manner.
13.7 Internal reporting

The following internal reports will be prepared by PMU for the purposes of internal
monitoring of project finances and progress:

Type Period / Frequency of submission

Quarterly The PMU Financial Managers to prepare a quarterly project report

project reports which includes (but not limited to):

▪ Consolidated budget to actual expenditure comparison with

variance explanation.
▪ Individual budget to actual expenditure report per implementing
agency with variance explanation.

This report to assist the PMU project director to monitor overall and
implementing agency level performance for the purposes of taking
corrective action if needed.

Quarterly It is required that each implementing partner prepare quarterly

management accounts for the purposes of monitoring allocated
management
components/sub-components. The content may include (but not
accounts
limited to):

▪ A financial progress report (sources and uses)

▪ Monthly bank reconciliations
▪ Cashflow forecast
▪ Summary of contract commitments
▪ Overview of budget to actual expenditure analysis with variance
explanations

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Type Period / Frequency of submission

The quarterly management accounts should be prepared within 10
days of the end of the quarter and submitted to the Project Director for
review and discussion during management meetings. The purpose of
the quarterly management accounts is to provide a monitoring tool for
management with the purposes of identifying
issues and taking corrective action.

14. Audit matters

14.1 Internal Audit
APD PMU will procure the services of an internal audit firm on an annual basis and report its
findings to the project steering committee to ensure independence. The internal audit work
will focus on the activities of PMU and other Implementing partners which report to PMU.
Recommended TOR is included in 21.5.

The final report will be submitted to the P r o j e c t S t e e r i n g C o m m i t t e e to ensure

independence. The internal audit work will cover activities at both the central office, district
offices as well as a sample of Community Groups.

14.2 External Audit

14.2.1 Auditing standards
IFAD promotes the use of internationally accepted auditing standards and requires that JK
CAG office audits JKCIP financial statements in accordance with audit standards that
are acceptable to IFAD. Audit Standards issued by the CAG based on INTOSAI ISSAI
standards are deemed acceptable to IFAD.

14.2.2 Appointment of the auditor

IFAD prefers the audit of JKCIP financial statements are audited by JKUT CAG. However, JK
CAG must ensure that:
✓ The auditor must be independent of the project, its staff and activities, in accordance
with international best practices.
✓ The project auditor may not provide consultancy services to the project or prepare the
project financial statements or have done so in the previous two years.
✓ The auditor must be suitably qualified and be a member of a professional body affiliated
with the International Federation of Accountants.
✓ The auditor’s work must conform to international auditing standards
✓ The audit firm must be able to assign an audit team to the audit possessing the
necessary competence and skills.
✓ The audit firm must have a proven track record in conducting audits of a similar nature
and complexity.
✓ The auditors must have sufficient staff to deploy to both the main offices of PMU
& IPs.

Auditors should normally be appointed in advance of the start of the period to be audited,
to allow the auditor sufficient time to plan and carry out a comprehensive examination of
the borrower’s/recipient’s financial records and accounts.

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14.2.3 Auditor terms of reference

A sample proposed TOR for JKCIP is included in 21.7 in case JKCIP decides to appoint a
private sector auditor. The Financial Manager should use and refine this TOR as
required.

14.2.4 Audit opinion and audit package

The audit report will outline the audit opinion on the audited financial statements. J K
C A G is required to issue an audit opinion in accordance with CAG Audit Standards.

The auditor is expected to submit an audit package that at a minimum includes the audited
financial statements, the audit report and the management letter. The management letter
is an integral part of the audit package, which documents internal control issues identified
by the auditor. The management letter should:
▪ Outline the auditor’s recommendations to address identified internal control issues,
and the responses to them on the part of the Project’s management.
▪ Where applicable, provide follow-up commentary on the issues identified in the
previous year’s management letter.
▪ Include any ineligible expenditures identified during the audit be outlined in the
management letter.

14.2.5 Audit reporting period

IFAD generally requires an annual audit of Project financial statements. However, the
frequency of the audit may be changed by IFAD as a function of the Project’s risk profile.
In all instances, IFAD will confirm the frequency with which JKCIP’s financial statements are
to be audited.
The audit reporting period may be amended for the first and/or final audits, in line with
the following guidance:

▪ For the first audit, in cases in which the Project commences during the financial year,
the following procedures will generally apply:

2 ISA 700 (Forming an Opinion and Reporting on Financial Statements) provides illustrative audit reports.

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o When the period between the first disbursement and the end of the financial year is
less than six months, IFAD may allow the results for the first financial period to be
included in the following financial year’s audit subject to agreement with IFAD
Finance Officer; or
o When the period between the date of the first disbursement and the financial year-
end is greater than six months, audited financial statements for the period are
always required subject to agreement with IFAD Finance Officer.
▪ For the final audit, IFAD may recommend an audit reporting period that is longer or
shorter than 12 months, but that in no case may exceed 18 months. This is to ensure
that the final audit can be concluded and the audit report submitted to IFAD by the
Project Closing Date subject to agreement with IFAD Finance Officer..

In such instances, IFAD will discuss and agree on its requirements with the borrower well
in advance of commencement of the final audit.

14.2.6 IFAD Audit reviews

IFAD will conduct reviews of JKCIP audit reports. The main purpose of the reviews is to
determine whether the auditor conducted a quality audit resulting in an audit opinion
acceptable to IFAD, and to assess the quality of the financial reporting of JKCIP.

IFAD will communicate the results of the audit report review process within sixty days
following receipt of the audit package. If required, JKCIP will be requested to take
corrective actions within a specified time frame. These actions should be included and
monitored in the Action Tracker (illustrated in 21.9).

14.2.7 Public disclosure of audit reports

IFAD will publicly disclose JKCIP Project financial statements and audit reports, subject
to processes applicable to their publication. In line with the standards of the International
Aid Transparency Initiative, JKCIP is encouraged to publish financial information on it’s own
website, for increased accountability. JKCIP must ensure that the audit TORs explicitly
mention the right of the JKCIP and of IFAD to publish the audit report, with no limitation-
of-use clause.

15. Records Management

15.1 Maintenance of separate accounts and records

In terms of IFAD’s General Conditions for Agricultural Finance:

“The Project Parties shall maintain separate accounts and records in accordance with
consistently maintained appropriate accounting practices adequate to reflect the
operations, resources and expenditures related to the Project until the Financing Closing
Date…”

In order to comply with the above requirement, APD PMU and other
Implementing partners are required to maintain accounts. Such accounts and records
may include:
Type Example

Electronic • Data and information maintained within the Tallya ccounting

information software
• Other documents and files maintained electronically, either
on desktops, laptops or removable storage devices

Correspondence • Emails
• Hard copy correspondence (letters)

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Documents received • Bank statements

from external • Supplier documentation
sources

Internally generated • Employee files

information • Withdrawal applications
• Forms

All documents and information are the property of JKCIP and may not be removed.

15.2 Filing and storage of the financial records

APD PMU and other Implementing partners are responsible for filing records. To fulfil this
responsibility:

▪ Project parties should maintain files in a chronological order, assigning appropriate

codes/sequential numbers;
▪ Project parties should perform filing activities on a regular basis to prevent the
accumulation of papers and to ensure that the financial records are always maintained
in an up-to-date manner.
▪ Project parties should allocate an appropriate storage area for the financial records in
paper format and maintain them in locked cabinets, safe from water and fire, to which
access is controlled and limited.
▪ Project parties should also classify the financial records as "Confidential", or "General".

15.3 Off-site archiving of financial records

The Financial Manager should ensure that the financial records are archived at an off-site
location on a regularly basis. Once a year, the Financial Managers should make sure that
the completed or inactive files are archived in a manner that will allow for easy retrieval of
the files in case they are required at some future date.
15.4 Electronic back-up procedures
Back-up of electronic information is an important function to be undertaken under
instruction from the Financial Manager. It is required that:

▪ Daily: Electronic information at each Project office is backed up on the local

server
▪ Weekly: Electronic information is saved on an external storage device and kept in a
locked cabinet

Project staff access to backup files are subject to authorisation by the Project director or
Financial Manager. The access of external persons is prohibited except for the auditors and
IFAD staff.

15.5 Retention period

Project parties are required to retain accounts and records for at least ten (10) years
after Financial Close. The Financial Manager should ensure that all documents and
records (electronic and paper) are handed over to GoI at financial closure to ensure that
records can be maintained for the 10-year period.

16. Fixed Asset Management

Fixed asset management is an important process that seeks to track fixed assets for the
purposes of financial accounting and to ensure preventive maintenance, and theft
deterrence. Adequate Fixed asset maintenance also increases the sustainability of the
Project. There are three elements in fixed asset management that require the attention
of the Financial Managers:

▪ Purchase of equipment

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▪ Setting up and maintaining an asset register including verification

▪ Setting up a plan for disposal and/or handover of the asset once the Project is
completed
16.1 Purchase of Equipment
The FCs should follow the following process for each fixed asset purchased:
▪ Assign a unique, sequential asset number (excluding minor items such as stationary).
▪ Tag each item with its unique asset number.
▪ Record the item of equipment in fixed asset register

16.2 Fixed asset register

The FCs must maintain a fixed asset register in the asset management module
of the accounting software. The asset register should record the following information for
each individual piece of equipment (refer 21.9 for illustration):
▪ Asset description
▪ Asset number
▪ Individual responsible for asset
▪ Implementing agency responsible for purchase
▪ Source of funding of asset (IFAD, government etc),
▪ Location of the asset
▪ Date of purchase
▪ Cost of purchase and invoice number
▪ Remarks regarding the condition of the asset

The Finance Managers shall ensure that the consolidated fixed asset register is
maintained and updated regularly.

Assets purchased for beneficiary use should be included in the fixed asset register if the
assets remain under the ownership of the Project (therefore beneficiaries to return to
Project at Project closure).

16.3 Asset Verification Review

Under the management of the Financial Manager, JKCIP must conduct an annual asset
verification process whereby the following checks are performed:
▪ Verify that all fixed assets are still held in the location recorded on the register;
▪ Confirm the completeness and accuracy of the information recorded on the fixed
asset register;
▪ Check that equipment and vehicles are still in a reasonable state of repair and that
remarks regarding the condition of the assets are correct as recorded in the fixed
asset register;

The verification review must be performed by different staff from those who use the
equipment, to ensure adequate segregation of duty. Discrepancies between the
verification exercise and the fixed asset register should be investigated. Where assets
are missing or seriously damaged, they should be removed from the asset register. The
removal should be formally documented and approved by Financial Manager and Project
Director. Moreover, the Financial Managers will undertake random verification of fixed
assets during field visit.

16.4 Vehicle Maintenance and Fuel

Drivers are required to maintain waybills/itinerary lists and vehicle history records
(21.11).

No cash shall be advanced to drivers for the purposes of refueling.

▪ Each vehicle/driver to have dedicated fuel card which indicate the vehicle registration
number.

▪ Each fuel card to have a set daily / monthly limit based on average consumption.

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▪ Changes to the monthly limit is subject to approval by the Financial Managers (which
will be approved base on approved trips).
▪ The waybill shall indicate the reading of odometer at the beginning and end of the
period, i.e. the mileage of the car, as well as fuel consumption. This process shall be
checked by an FC.
▪ Drivers shall provide a monthly summary report on fueling and usage. Differences to be
followed up/resolved.
▪ Provision of fuel and lubricants shall be strictly limited per each vehicle per month in
accordance with the order signed by the Management.

Vehicle insurance
The Financial Managers should ensure that all Project vehicles are comprehensively
covered and that all drivers are noted on the insurance policy. Under no circumstances,
may uninsured drivers drive the vehicles. The insurance policies should be renewed
annually or as stipulated in the policy. The safety of cars is the responsibility of the
drivers assigned to the vehicles. Consequently, they must ensure that the vehicles are
parked in a secure area when not in use or outside working hours.

Maintenance

The drivers are required to monitor the maintenance of their assigned vehicles. The
drivers must notify the Office Manager of maintenance needs so that the cars can be
serviced on a timely basis. The Office Manager is required to request the car
maintenance, subject to approval by the Project Director.
The assigned cars must always be taken to the selected garage for repairs and
maintenance.

17. IFAD financial management support

17.1 Overview of IFAD support

IFAD’s Financial Management Division (FMD) will remain involved with JKCIP from Project
inception (starting at Project design) to Financial Closure to ensure that JKCIP fiduciary
requirements are met.

FMD’s Finance Officer will establish ongoing contact with the Project, by liaising with the
Financial Manager of PMU and will be available to provide remote support on financial
management matters. In addition, FMD will visit JKCIP during missions to the Project
(represented by either the Finance Officer or an appointed consultant). Mission types
include supervision missions, mid-term reviews and implementation support missions.
During missions, FMD will assess and monitor the adequacy of JKCIP financial
management arrangements such as accounting, budgeting, internal controls, flow of
funds, financial reporting and the auditing practices.

If financial management arrangements of JKCIP are deemed acceptable, IFAD will rely
on them to provide assurance that the financing proceeds are being used for the
intended purposes. In the case that IFAD identifies weaknesses in the financial
arrangements, it will require JKCIP to take the appropriate measures to mitigate those
risks.

The key findings and recommendations of missions will be captured in the Aid Memoire
which is a document which is shared with APD and includes an overview of issues
identified and proposed actions to be undertaken by the project/IFAD to address issues
identified.

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17.2 Roles and responsibilities related to IFAD support

JKCIP will be required to participate in IFAD missions as follow:

Stage Project roles and responsibilities

Before IFAD missions • Prepare Appendix 1 (21.10) and submit to the FO/Consultant
in electronic format (Excel Workbook, including formulae)
before commencement of the mission – the FO/Consultant
will specify the date range to be covered within Appendix 1.
• Each project party (PMU and other Implementing partners) to
complete the Financial Management Assessment
Questionnaire (FMAQ) and submit to the FO/Consultant in
electronic format (FO to provide most recent template).
• Prepare all other information as requested by FO/Consultant
before commencement of the mission (refer 21.2).

During IFAD missions • Provide the FO/Consultant with all information which was
requested before the mission.
• Arrange meeting with the auditors (internal and external)
and any other selected party requested by the mission.
• Ensure that all FM staff are available to assist the
FO/Consultant in performing their duties which may
include:
o Review of financial reports, reconciliations
o Physical verification of fixed assets and inventory
o Meeting with the auditor
o Reviewing and completing the FMAQ
• Discuss identified FM weaknesses and risks and assist the
FO/Consultant with developing appropriate actions for
inclusion in the aide memoire.

After IFAD missions • Respond to any wrap-queries from the FO/Consultant

• Commence with implementing all actions which are included
in the Aide Memoire
• Update the Action Tracker (see illustration in 21.9) with all
actions raised during the missions.

Ongoing • Monitor and update the Action Tracker to ensure all actions
are implemented in a timely manner. Liaise with the Financial
Manager if required.
• Respond to ad-hoc queries received from the Financial
Manager or other IFAD staff as it related to FM matters.

18. Project completion and closure

The Project completion date is defined in the financing agreement and the Project
closure date is 6 months thereafter. The following is relevant to period before Project
completion up to Project closure:

STEP 1 STEP 2 STEP 3

Prior to the Project Between Project
completion date completion and closure Subsequent to Project
closure date

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STAGE 1 STAGE 2 STEP 3

Up to the Project Between Project completion Project closure date
completion date and closure
▪ Justification of ▪ Commencement of the ▪ Submit final audit
advances for all final audit report on or before the
expenditures spent by ▪ Auditor performs the Project closure date
completion date final audit in line with ▪ Submit Project
▪ Agree on the audit scope of work approved completion report on or
scope of work and by IFAD before the Financial
submit to IFAD for no ▪ Incur winding up Closure Date (as
objection expenditure only (cost required in the
▪ Incur eligible of audit, staff salaries, financing agreement)
expenditure up to the operating costs, Project ▪ Confirm the final
Project completion date completion report) withdrawal application
▪ Submit final withdrawal with IFAD
application for ▪ Return outstanding
justification advance if applicable
▪ Develop an asset (all unjustified
handover and disposal balances)
plan (include up to date ▪ Closure of the loan
fixed asset register, with IFAD
indicate condition of all
assets and to which
entity the assets will be
transferred.

A notice is sent to the Borrower at least six months prior to the PCD to advise that all
applications must be submitted before the closing date, and to remind the Borrower that
expenditures incurred and commitments made after the PCD will not be honoured,
except for authorised expenditures during the “Winding Up Period” (from PCD to
Financing Closing Date). This means that goods are delivered, civil works are completed
and services are rendered on or before such date.

After the financing closing date, IFAD informs the Borrower of the formal closure of the
loan/grant account, provides a history of disbursement transactions and cancels the
unused loan/grant balance. A re-amortisation plan should be sent where relevant.

Asset handover plan

The plan should develop report outlining the following for the purposes of handing over Project
assets to the identified beneficiaries:

• The value of all the assets bought under the Project

• Summary of the current condition of the assets,
• To which entity will the assets be transferred to and on which date and for what purpose.
• List the assets that will be disposed and the reason for being disposed.

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19. IFAD Financing agreements – amendments and budget reallocations

If amendments are required to the financing agreement:

• a formal written request should be submitted to IFAD
• outlining the required amendment and motivation thereof.

Amendments to the agreement may be required for (but not limited to):

• Changes to the project completion date and grant closing date,

• Changes to the project budget/budget reallocation (noting that the budget may not be increased
above the original total amount)

Budget reallocations

• In some cases, the expenses category amounts as outlined in the financing agreement requires
a revision if the project notes that actual expenditure is deviating from the original budget.
• In such instances a reallocation is required, depending on the size of the reallocation per
category (expressed as %)
• Reallocation of equal to or less than 10% (of each category) between the various categories if
such a reallocation does not change the basic purpose of the project.
• For reallocation greater than 10% of any expense category, the Borrower is required to formally

request a reallocation from IFAD (supported by a detailed motivation).

20. Useful links

Document Link
IFAD financial management e- https://www.ifad.org/elearning_cfs_a/index.html
learning

Revised IFAD policy on

preventing fraud and https://www.ifad.org/en/document-
corruption in its activities and detail/asset/40189695
operations (December 2018)

Guidelines for internal controls

for Public Sector Entities
(INTOSAI GOV 9100) Guidelines for internal controls for Public Sector Entities (INTOSAI GOV 9100).pdf

IFAD General Conditions for

Agricultural Development https://www.ifad.org/documents/38711624/39421024/ge
Financing neral_e.pdf/47c5f14b-2903-4285-b0b0-62c67cd650b8

IFAD Handbook for Financial

Reporting and Auditing of IFAD
-financed projects (English) https://www.ifad.org/en/-/document/ifad-handbook-for-financial-
reporting-and-auditing-of-ifad-financed-
IFAD Loan Disbursement https://www.ifad.org/web/guest/document-
projects?p_l_back_url=%2Fen%2Fsearch%3Fq%3DIFAD%2BHan
Handbook detail/asset/39635782
dbook%2B

ICP page https://icp.ifad.org/

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ICP support email icpsupport@ifad.org

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21. Annexures
21.1 AWPB Structure and preparation checklist
APD PMU is responsible for the development of the Annual Work Plan and Budget (AWPB),
generally covering a period of 12 months, which should include the following mandatory
sections:
Section Description

Introduction ▪ Provide a brief background

▪ Include narrative covering the strategic focus, target group,

geographical focus (Project sites), outreach (with gender

disaggregation), Project components, specific activities to be
undertaken and the planned output for each activity.

Risks and ▪ Outline of major risks that could affect adversely the Project
mitigation outcomes and mitigating actions taken.

Budget and ▪ Describe the necessary inputs and outputs for each activity,
financing plan including the expenditures, financing source and expected
completion date.
▪ The expenditures should be classified per activity and should also
be linked to a component, expenditure category as per the financing
agreement and a financing source.
▪ Each activity should be coupled with tangible outputs or physical
targets to facilitate the measurement of Project progress.

Procurement ▪ Outline detailed plan outlining procurement activities, include

plan expected cost for each item, procurement method and timeline.
▪ The first Procurement plan should cover the first 18 months of the
Project lifecycle while the subsequent procurement plans should
cover 12 months of the Project lifecycle.

Progress and Outline the following with:

past
performance ▪ Summary of the key achievements
(include in 2nd ▪ Problems encountered and how these were resolved
AWPB onwards) ▪ Budget execution, comparing actual expenditure per
category/component to prior AWPB with an indication of category
overspend

Other ▪ Training and technical assistance schedule

▪ PCU staff development plan

▪ Project staff payroll (including the names, titles, salaries and

incentives)

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AWPB Check: The checks listed below are designed to Yes No

improve the quality of the AWPB during the final
preparation stage.
Is the AWPB complete and clearly presented? Does it disclose
sufficient information?
Is the AWPB in line with the Project description and rational
(schedule 1) as per the financing agreement and the Project log-
frame? Are all the activities relevant to the Project?
Does it contain the necessary summary tables by component and
financier and by expenditure category and financier as well as the
detailed tables by component?
Does the implementation schedule seem realistic and does it
show appropriate targets and milestones? Are the targets and
execution level realistic compared to past years progress?
Does it contain a separate annex disclosing the details of the
Project payroll?
Does it contain a separate annex containing outlining the planned
trainings?
In the detailed tables are the expenditures structured by activity
and linked to a component, expenditure category and financing
source?
Are the cost categories of the AWPB in line with the Schedule 2 of
the IFAD financing agreements and are expenditures within the
agreed allocations?
Is any expenditure category going to be overdrawn during the
year? Is a reallocation of IFAD funds needed?
Does the total (and subtotal) costs add up? Are the inputs (unit
cost) and outputs (physical targets) adequately quantified? Is
there coherence between the inputs and outputs? And does these
represent value for money (i.e. what is the unit cots for per
output, e.g. cost per trained farmer)?
Are the unit cost are realistic and do they reflect market prices?
Is the AWPB accompanied by a procurement plan? Is the
procurement plan consistent with the AWPB?
Is the format of the AWPB compatible with other financial reports
and the accounting software to allow input in the budget module
and generation of actual vs budget reports and
If last audit, does it take into account completion date of the
Project as well as winding up activities such as Project completion
report, final audit as handover/disposal of Project assets
(computers, vehicles etc.),

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21.2 Information checklist – preparing for IFAD missions

It is required that JKCIP prepare the following in anticipation of IFAD missions:
Information Guidance

1. Appendix 1 • Prepare Appendix 1 in Excel Workbook and include

formulae as appropriate.

2. FMAQ • Include comments in the Financial Management

Assessment Questionnaire (with exception of the
summary section).

3. Withdrawal • Make hardcopy files of all recent withdrawal

applications/ SOEs applications/statement of expenditures available (at least
covering 12 months prior to the missions). Upon request,
provide supporting documentation for a selection of
expenditures.
• Provide a summary of pending withdrawal
applications/IFRs for review.

4. • Make hardcopy files of most recent bank reconciliations

Bank reconciliations available. Include copies of relevant bank statements.
Ensure that IFAD designated account
reconciliations are prepared in the correct format as
outlined in the IFAD FMFCH

5. Financial reports • Provide most recent financial reports (as at end of most
recent completed month), which include summary
information (including all sources and uses of funds).
• Provide most recent interim financial report (format
illustrated in 22.9)
• Provide copy of most recent audited financial statement.

6. Fixed asset register • Provide updated fixed asset register in Excel Workbook
format (export from accounting software).

7. Manuals and • Provide an electronic of the most recent version of the

procedures Financial Manual (to which IFAD provide a no objection).
• Provide a copy of the accounting software manual.

8. Contract register • Make available the update Contract Register and

and monitoring Contract Monitoring Forms (export from Accounting
forms software).

9. Action tracker • Update the action tracker with progress to date.

10. AWPB/Procurement • Make available electronic copies of the AWPB and

Plan Procurement Plan (provide in Excel Workbook format).

11. Advances • Make available a summary of outstanding advances with

supporting documentation.

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21.3 Terms of reference: Financial Manager

Post title: Financial Manager of (APD PMU)

Organisation: (APD PMU)
Location: Jammu and Kashmir
Name of Project: JKCIP
Duration: One-year renewable
Type of contract: Fixed term
Closing date: XXX

1 I. Background

II. Overall objective

The Finance Manager, under the direct supervision of the Project director , and within the framework of projects appraisal
reports and loan/grant agreements, is responsible for the financial and administrative management of the PMU , including
supervision of FM consultants, Accounting, Budgeting , financial reporting, internal controls, auditing arrangement, flow of
funds and the efficient management of projects resources. It is expected that the APD Finance Department Director will
assume this role.

III. Roles and responsibilities

▪ Prepare together with the Project director the Annual work plan and budget and the budget and financing plan.
▪ Oversee the process of recruitment of FM consultants required for the JKCIP.
▪ Master IFAD key documents such as, the disbursement handbook, procurement guidelines and handbook, IFAD
guidelines for project audits, the Financing Agreement (FA) and the FMFCL.
▪ Develop and maintain an efficient accounting system and reliable internal control procedures and guidelines for
financial reporting and recordkeeping.
▪ Ensure adequate maintenance of accounting software for the project accounting record-keeping and financial
reporting.
▪ Ensure bank accounts and accounts with implementing partners are reconciled monthly.
▪ Ensure all supporting documents are adequately maintained for all project financial transactions.
▪ Ensure external and internal audit reports are sent on time.
▪ Ensure external and internal audit report recommendations are timely implemented.
▪ Ensure IFRs are timely prepared and sent to CAAA and IFAD
▪ Ensure IFAD Supervision report recommendations are timely implemented.
▪ Responsible for the preparation, review and monitoring of projects budgets including financing plan, procurement plan
(together with the Procurement Officer), and staff development plan (together with the training focal point)
▪ Prepare/verify all withdrawal applications for submission to CAAA/IFAD and ensure the availability of funds for all
planned activities. Manage the projects bank accounts, approve and co-signs all payments.
▪ Prepare and provide financial reports including the sources and uses of funds statement, incurred expenditures by
component, expenditure category and financier, designated account reconciliation statement, fixed asset list and cash
flow forecast etc. for submission to the Project steering committee, LPA and IFAD on a quarterly basis, and maintain all
records in a form appropriate for audit.
▪ Lead the process of assigning an external audit ( CAG) to conduct an independent audit of the annual project accounts,
ensuring that annual audits are carried out within the specified timeframe.
▪ Develop and maintain a system of financial control over all expenditure incurred by implementing partners.
▪ Responsible for developing and managing an effective and performance based human resources management system.
▪ Supervise and coordinate the work of staff placed under his/her direct authority.
▪ Review and regularly update the Financial and Administrative Manual of the PMU.
▪ Responsible for the organization and supervision of the PMU office, assets, logistics, and all administrative matters.
▪ Undertake any other activities assigned by the Project Director.
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IV. Required qualifications and experience
- Accounting or Finance, undergraduate degree
- At least 5 years of experience in a similar position
- Charted Accountant of India
- Excellent knowledge of Indian Accounting and Audit standards

V. Duration of Appointment

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21.4 Terms of reference: Finance Consultant ( two positions)

Post title: Financial Consultant (APD PMU)

Organisation: (APD PMU)
Location: Jammu Kashmir
Name of Project: JKCIP
Duration: One-year renewable
Type of contract: Fixed term
Closing date: XXX

I. Background

FM consultant is part of JKCIP PMU FM team and primarily responsible for maintaining Tally accounting software for JKCIP.

II. Overall objective

FM consultant will be responsible for maintaining accounting records in the accounting software for JKCIP PMU,
reconciliation of accounts and consolidation of financial reports for all implementing partners.

III. Roles and responsibilities

Under the direct supervision of the Finance Manager (PMU); specific duties include:

▪ Assist the Finance Manager (PMU) in the implementation of a sound financial management system.
▪ Prepare financial reports, including monthly funds reconciliation, and monthly, quarterly, semi-annual and annual
expenditure statements;
▪ Prepare transaction vouchers, and input all transactions into the PMU accounting system before submission to the
Finance Manager (PMU) for approval;
▪ Process all payments, ensuring that PMU procedures are strictly adhered to;
▪ Process monthly payroll, payment of salaries to staff and project contributions;
▪ Assist the Finance Manager (PMU) in the preparation of withdrawal applications and IFRs;
▪ Prepare cash flow forecasts as required;
▪ Monitor financial reports and supporting documents from Implementing Partners, including periodic visits to their
offices;
▪ Assist in the preparation and monitoring of annual operational budgets.
▪ Functional supervision and training of Accounts of Implementing partners.
▪ Maintenance of a well-organized and up-to-date filing system for accounting and financial records as well as a fixed
asset tagging system;
▪ Perform physical inventory of project assets each year;
▪ Assist the Finance Manager (PMU) in the preparation of internal financial instructions and guidelines.
▪ Provide assistance to the external auditors as required;
▪ Undertake any other activities assigned by PMU management and Finance Manager

IV. Required qualifications and experience

- Accounting or Finance, undergraduate degree
- At least 2 years of experience in a similar position
- Good understanding of Indian Accounting and Audit standards

V. Duration and timeline

The period of assignment in the position will be initially 12 months and may be extended
by mutual agreement, with probation period of three months.

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21.5 Terms of reference: Internal Audit Services

Contract Internal audit services
Project JKCIP

Location India, Jammu and Kashmir

Duration XX month per annum
Starting Date [insert]
Languages required English

1. Background:
[INSERT]

2. Reporting System:
The objective of the Internal Auditor firm is to add value and improve the Project’s
operations and assist Project’s Board of Directors and management by independently
reviewing all activities, processes and systems with particular regard to risk and control
aspects and bringing a systematic and disciplined approach to the effectiveness of risk
management, control, and governance processes.
The successful firm will possess a thorough knowledge of internal auditing procedures,
accounting procedures and have sound judgment on risk identification and management.
The firm will produce a monthly internal audit report presented to the Project Steering
Committee.
Internal Audit firm shall monitor the appropriate follow-up on audit findings and
recommendations. All significant findings will remain in an open issues file until cleared.
3. Independence:
The internal audit firm reports to the Project Steering Committee, who appoints and
terminates the firm upon recommendation of the Donors. The firm will work under the
overall supervision of the Project’s Steering Committee.
All internal audit activities shall remain free of influence by any element in the
organisation, including matters of audit selection, scope, procedures, frequency, timing, or
report content to permit maintenance of an independent and objective mental attitude
necessary in performing the function.
Internal Audit shall have no direct operational responsibility or authority over any of the
activities it reviews. Accordingly, it shall not develop nor install systems or procedures,
prepare records, or engage in any other activity which would normally be considered
management or staff's responsibility.
4. Authority and confidentiality:
Authority is granted for full and unrestricted access to all THE PROJECT records, physical
properties, and staff relevant to any area under review. All employees are requested to
assist the internal audit in fulfilling its function.
Documents and information obtained by the internal audit firm will be handled in the same
prudent and confidential manner as by those employees normally accountable for them.
5. Duties and Responsibilities:
Within the framework, as described above, the internal audit firm will carry out the
following tasks:

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• Conduct a post-audit procedures on the APD PMU and Implementing partners which
report to it, with respect to their functions and activities within the project. Make
recommendations on possible improvements of the procedures to enhance control
mechanisms, financial performance and produce quality reports for senior
management and Board of Directors, to enhance decision making, on monthly basis.
• Audit all contracts signed between PMU and Implementing partners with service
providers, suppliers, and contractors to verify that (i) compliance with terms and
conditions of grant / loan agreements and procurement regulations and donor
guidelines; and (ii) the contract is in line with best practice with respect to compliance
with terms of reference, request for proposal, tender documents etc.
• Develop professional and constructive working relationships with key managers and be
able to challenge when necessary.
• Lead development of specific innovative ways of working and new ideas for reviewing
risk and control issues.
• Assess risk and control related policies and procedures, provide input to updates in
existing procedural documents with respect to controls as necessary
• Apply internal audit procedures to audit the financial statements, accounting records
and other financial and non-financial registries applying accepted internal audit
standards.
• Undertake special assignments and investigations and in particular undertake more
complex and high-level audit investigations under advisement of the Project Steering
Committee.
• Reviewing the means of safeguarding assets and, as appropriate, verifying their
existence.
• Reviewing and appraising the economy and efficiency with which resources are
employed.
• Reviewing operations or programs to ascertain whether results are consistent with
established objectives and goals and whether the operations or programs are being
carried out as planned, including verify the adherence of APD PMU/Implementing
partners staff to AWPBs, policies, plans, procedures, laws, and fund regulations that are
influential on Fund works as well as donors accounting procedures.
• Asses the efficiency, effectiveness and economy of the usage of resources and reports
of any deviations in case they are existed.
• Reviewing the adequacy, implementation and operation of donors’ transparency and
accountability policies and of other anti-corruption, fraud and related misuse policies
and procedures.
• Confirming adherence to the Financial Manual (as approved by IFAD).
6. Audit Planning:
• Internal Audit firm shall regularly submit to the Project Steering Committee an up-to-
date summary of the audit work schedule.
• The audit work schedule is developed based on a prioritisation of the audit universe
using a risk-based methodology. Any significant deviation from the formally approved
work schedule shall be communicated to the Project Steering Committee through
periodic activity reports.
• The audit planning shall pay specific attention to the activities of the implementing
Implementing partners which report to APD JK.
7. Qualification criteria:
• Internal audit firm should be member of recognized professional international
Accountancy/ Audit body

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• The firm shall govern themselves by adherence to The Institute of Senior Internal
Auditors' Code of Ethics. The Institute's International Standards for the Professional
Practice of Internal Auditing shall be adhered to by the firm. The Institute of Senior
Internal Auditors' Practice Advisories will be adhered to as applicable.
• Assigned employees to have:
➢ Proven relevant working experience in Internal Audit.
➢ Proven experience of risk management frameworks and approaches.
➢ Experience of operational auditing & risk based approach to review.
➢ Excellent negotiating and high level influencing skills and the ability to challenge
at a senior level when necessary.
➢ Ability to work in challenging environments.
➢ Ability to work and deliver to tight deadlines.
➢ Logical and systematic in analytical thinking. ➢
Facilitation and presentational skills.
➢ Full Working knowledge of English, including excellent drafting and presentation
skills.
➢ Excellent computer skills, including full working knowledge of standard word
processing, spreadsheets and presentation packages.

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21.6 Supporting documentation upon request from IFAD

As specified in chapter 3 of the IFAD Loan disbursement handbook, the following
supporting documentation should be submitted upon request by IFAD:

Type of payment Supporting documentation

▪ The signed contract or confirmed purchase order

All types of payments (Showing the specified amount that is due paid.)

▪ The bank guarantee for advance payment, as specified

in the contract documents
▪ The bank guarantee for performance, as specified in the
contract documents
▪ Copies of communications sent by the IFAD country
Project manager to the lead Project agency (LPA)
providing the IFAD’s no objection (post or Prior) to the
contract award, and
▪ Evidence of payment.

▪ Supplier’s invoice duly certified for payment by the

Payment of goods Project director – specifying the goods, their quantities
and prices
▪ Bills of lading or similar documents; and
▪ As appropriate, the certificate of delivery (to include
condition of goods to delivery.

Payments for services ▪ The supplier or consultant claim, duly certified for
payment by the Project director and showing sufficient
(including consultants)
detail. If such Services relate to the importation of goods
(for example, freight and insurance payments),
adequate reference should be given to enable IFAD to
relate each of these items to specific goods whose cost
has been or is to be financed by the financing closing
date; and
▪ As appropriate, a certificate of delivery of satisfactory
services

Progress and retention the claim if the contractor, including a financial progress
▪
report, stating the work performed and the amount due;
payments of civil
▪ A certificate-signed by the Project consultants or owner’s
works
representative, if any, or by the borrower’s chief
engineering officer or resident supervising engineer
assigned to the Project, to the effect that the work
performed is satisfactory and the payment claimed is
due in accordance with the terms of the contract, and
▪ A copy of the contract payment monitoring form signed
in original by the certifying officer.

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21.7 Terms of reference: External Auditor

Borrower: Government of Republic of India

Project: JKCIP

Financing Agreements: XXXXXX

IFAD: Loan xxx; (IFAD)

1. Background

• The International Fund for Agricultural Development (IFAD) is aiding the borrower/recipient in the form of
loan(s) [and/or grant(s)].
• A financing [and/or grant] agreement(s) has/have been signed between IFAD and the [borrower/recipient]; see
appendix 1.
• [Insert for private auditor]: IFAD requires the borrower/recipient to appoint an independent auditor to audit the
accounts related to the project, in accordance with the IFAD Handbook on Financial Reporting and Auditing.
• The reporting entity is [xxx].
• The entity prepares its financial statements in accordance with [applicable accounting standards].
• The auditor conducts its audit in terms of [applicable auditing standards].
• [Insert any other information that may be relevant to the auditor]

2. Objective

The objective of this audit is to enable the auditor to express an opinion on whether the financial statements
(including additional disclosures as outlined in section 5) fairly present, in all material respects, the financial
position of the reporting entity as at [insert year-end date], and/or the results of its operations and cash flows for
the years then ended, in conformity with the [applicable accounting standards].

3. Responsibilities of the [borrower/recipient]

I. General
• Provide financial statements for the activities financed by the loan/[grant] that are reconcilable with its records
and accounts.
• Provide the auditor with access to all legal documents and correspondence with consultants, contractors and
other persons or firms engaged by the project and any other information associated with the project that the
auditor deems necessary.
• Ensure that accounting policies are consistently applied and disclosed.
• Ensure that appropriate internal controls are implemented to prevent misstatements and susceptibility to fraud.
• Ensure compliance with all relevant laws and regulations that pertain to the entity, as well as with the financing
agreement between the [borrower/recipient] and IFAD.
• Provide the financial statements to the auditor within a reasonable time and be available for any queries that the
auditor may have.

II. Financial Statements

The [borrower/recipient] shall:

• Prepare financial statements covering the reporting period [date] to [date], in accordance with acceptable
accounting standards that will be identified in the Notes to the Financial Statements.
In addition, the following specific disclosures will be included in the financial statements:
• Withdrawal application statement – appendix 1 to the IFAD Handbook on Financial Reporting and Auditing of

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IFAD-financed Projects.
• Sources and uses of funds statement – appendix 2 to the IFAD Handbook on Financial Reporting and Auditing
of IFAD-financed Projects.
• Designated account statement and reconciliation – appendix 3(a) and 3(b) to the IFAD Handbook on Financial
Reporting and Auditing of IFAD-financed Projects.
• [Statements of expenditures – appendix 4 to the IFAD Handbook on Financial Reporting and Auditing of
IFAD-financed Projects] – applicable to grants.
• Expenditure transaction list – online, provided in IFAD Grant Forms repository; see document C.2 “Transaction
List”] – applicable to grants.
• Where the amount transferred to the Implementing Partners (IPs) is substantial, the IPs should transmit a copy
of the audited financial statement to the PMU/PCU.

4. Responsibilities of the auditor

I. Auditing standards

• The auditor is responsible for issuing an opinion on the financial statements in accordance with
[ISA/ISSAI/national auditing standards].

II. General Principles

By agreeing to these terms, the auditor confirms that:

• The firm is independent of the project, its staff and its activities, consistent with international best practices.
• The firm is not currently providing consulting services to the project or preparing its project financial
statements (nor has it done so in the previous two years).
• The auditor is suitably qualified and a member of a professional body affiliated with the International
Federation of Accountants.
• [The office of [public auditors] is a member of the International Organization of Supreme Audit Institutions
(INTOSAI)].
• The auditor is able to conduct the audit in accordance with auditing standards acceptable to IFAD, pursuant to
paragraph 4 (I).
• The firm can assign an audit team with the necessary competence and skills to the audit.
• The firm has a proven track record in conducting audits of a similar nature and complexity.

III. Reporting

The auditor is required to deliver an audit package in compliance with ISA 700 and include:
• The audited financial statements, including additional disclosures as outlined in paragraph 3 (II).
• A report on factual findings, within the scope of agreed-upon procedures, as outlined in paragraph 6. Any
ineligible expenditure identified should be clearly mentioned.
• A Management Letter, including the information outlined in paragraph 4 (IV).

IV. Management Letter

The Management Letter is an integral part of the audit package that documents accounting and internal control
issues identified by the auditors. The format of the management letter should classify the findings by risk
priority. The management letter should:
• Provide comments and observations on the accounting records, systems and internal controls examined during
the course of the audit, identify specific deficiencies and areas of weakness in systems and controls and make
recommendations for their improvement;
• Include project management’s responses to the identified control issues and its proposal to address the issues
identified within a specific time.
• Where applicable, follow up on the issues identified in the previous year’s management letter.
• Provide comments on economy, efficiency, and effectiveness in project management’s use of resources.
• Report on the degree of compliance with each financial covenant in the financing agreement and provide
comments, if any, on internal and external matters affecting such compliance.

59 | P a g e
• Communicate matters that have come to the auditor’s attention during the audit that might have a significant
impact on the implementation of the project.
• Review results and findings on IFR reliability for the reporting period.
• Any other matters that the auditors deem pertinent.
• List additional procedures, if applicable.
The audit report should provide sufficient detail as to the nature and extent of the procedures performed by the
auditor. The auditor is required to provide the audit package by no later than [insert date]. Reports are to be
delivered in the official language of the financing agreement.

5. Scope of the financial audit

In performing the audit, the auditor shall, at a minimum:

• Confirm whether the financial statements have been prepared following international (IPSAS, GAAP, IFRS),
regional or national accounting standards; in the latter case, identify elements of difference with the international
standards.
• Confirm the auditing standards used for the audit.
• Obtain audit evidence that the financial statements are fairly presented and free of material misstatements, in
accordance with the applicable accounting framework.
• Assess internal controls related to the financial reporting process, and identify any weakness that might result in
misstatements, whether due to fraud or error.
• Verify the reliability of the SOEs or IFRs, as the case may be, used to support withdrawal applications and
ensure that they are reliable and accurately reflect expenditures incurred and activities carried out during the
reporting period.
• Verify whether expenditure incurred in the name of the project is consistent with the terms of the financing
agreement(s) (appendix xx) and incurred for the purposes intended in this agreement. Both IFAD and third-party
funding should be considered.
• Verify whether counterpart funds provided by the Government of [Country] have been provided and used in
accordance with the relevant financing agreement; verify that the amount of in-kind contribution is reported
according to the agreed accounting principles and that the reported fair-market value for all in-kind contribution
items is reasonable and fully and accurately disclosed in the financial statements.
• Verify that the inventory and fixed assets held by the entity exist, are complete, are properly accounted and are
used for project purposes; at project closure, confirm that the project assets are transferred to the
borrower/recipient or the entity identified in the financing agreement.
• Verify the project’s recurrent costs (salaries and operating costs) claimed under WAs and ensure they are
reasonable, congruent with the implementation needs of the project and within the acceptable threshold (FA
schedule II and its revisions).
• The audit should cover selected project regional/provincial implementing units as per the audit plan agreed with
the PMU/PCU.
• [List others]

6. Scope of the agreed-upon procedures

The auditor is required to perform the following specific procedures and report on factual findings, as required in
paragraph 4.3.
I. Withdrawal application statement
The auditor is requested to obtain the individual withdrawal applications (WAs) submitted to IFAD, as
summarized in the withdrawal application statement, and develop test procedures to:
• Confirm that the withdrawal application statement is reconciled with the amounts disbursed by the Fund and
deposited to the designated account (DA).

60 | P a g e
• Confirm that the withdrawal application statement is reconciled with the IFRs submitted to the Fund.
• Ascertain whether the designated account currency equivalent was determined using the historical exchange
rate of transfers to the operating account or the accounting rules used.
• [List additional procedures, if applicable]

II. Designated account statement

The auditor is requested to review the activities of the designated account(s) associated with the project,
including the initial advance, replenishments, interest that may accrue on the outstanding and year-end balances.
The auditor is requested to develop test procedures to:
• Check the accuracy of the DA reconciliation(s).
• Confirm that the DA(s) has/have been maintained in accordance with the provisions of the financing agreement
and that transactions from the DA(s) are accurately and correctly recorded in the financial accounts and
statements of the project.
• Check that expenditures as reported in the project’s financial statements are reconciled with the amounts
withdrawn from the DA and that the amounts deposited to the DA are reconciled with the amounts disbursed by
the Fund.
• Reconciliation should also be made with the amounts paid from the prefinancing account and direct payments
(if any).
• [List additional procedures, if applicable]

III. Interim Financial Reports (IFRs) and Certified Statements of Expenditure

(SOEs)
The auditor is requested to obtain the certified SOEs or IFRs as submitted to IFAD and apply such tests and
control as the auditor deems necessary under the circumstances, to:
• Ascertain that the financial management system is reliable to produce the IFRs and has met Fund requirement
during the year.
• Determine whether the expenditures incurred are related to activities outlined in the AWPB and consistent with
the grant agreement.
• Determine whether the funds have been utilized for the intended purposes, with due regard to economy,
efficiency and social equity.
• Determine whether the SOE threshold was set for the financing instrument and the IFRs prepared accordingly.
• Determine whether the expenditures claimed through IFRs or SOEs were properly and appropriately
authorized, classified59 and supported by adequate documentation.
• Identify any ineligible expenditures, including the nature of the ineligible expenditures, the date incurred, and
the IFR period.
• [List additional procedures, if applicable]

IV Agreed-upon procedures for donor-funded projects

• In the case of projects financed by the Green Climate Fund (GCF), the auditors will assess the compliance of
the project accounting records and the GCF Annual Progress Report (APR) with the applicable GCF
requirements (e.g. expenditure eligibility, categorization vis-à-vis the GCF budget categories; etc.).
• Include specific requirements for other donors, as needed.
• [List additional procedures, if applicable]

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V Other

• [List additional procedures, if applicable]

7. Public disclosure

IFAD promotes public disclosure of project financial information to enhance the level of transparency and
accountability. IFAD will disclose project audit reports, as appropriate, in line with the Fund’s disclosure policy.
Management letters issued by auditors are not subject to public disclosure by IFAD. In agreeing to the terms of
reference, the auditor explicitly acknowledges IFAD’s right to publicly disclose audit reports (audited financial
statements and audit opinion) and will issue reports without a limitation-of-use clause.
To facilitate the public disclosure process, the auditor is requested to submit two separate files as follows:
• Audited financial statements, audit opinion and report on factual findings (the latter where applicable).
• Management Letter.

8. Appendices
[list as applicable]
Appendix: Financing/grant agreement(s) Appendix: Letter to the Borrower
Appendix: IFAD Handbook on Financial Reporting and Auditing of IFAD-financed Projects

Signed by:
Date:

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 FINANCIAL MANUAL SECTION OF JKCIP PIM

21.8 Travel advance report

TO BE INSERTED BY APD PMU

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 FINANCIAL MANUAL SECTION OF JKCIP PIM

21.9 Illustrative financial statements

[PROJECT NAME]

ANNUAL FINANCIAL STATEMENTS

FOR THE 12 MONTH PERIOD ENDING xxx

[THIS ILLUSTRATION IS BASED ON A NEW PROJECT. FOR EXISTING PROJECT,

DISCLOSE PRIOR PERIOD COMPARATIVE INFORMATION AND CUMULATIVE
INFORMATION ON S&U STATEMENT]

Table of content:
1. Background
2. Management Statement
3. Audit report
4. Statement of Cash Receipts and Payments
5. Budget to Actual Comparison
6. Accounting policies
7. Notes to the financial statements
8. Designated account statement
9. Designated account reconciliation
10. Withdrawal application summary
11. Fixed asset register
12. Action tracker (supplementary)
Background

Insert Project background information

▪ Indicate Project start date

▪ Indicate reporting lines
▪ Provide overview of categories and components and indicate responsible IAs
▪ Provide description of Project activities
▪ Status update
▪ Indicate the relevant legislation governing the Project activities
▪ Overview of financing facilities – see table below:
Source of funds IFAD Grant IFAD Loan GCF Loan GCF Grant
Facility/agreement number
Amount approved (indicate
currency)
Undrawn balance at period
end
If applicable, interest rates
and repayment periods
Restrictions on use of funds
(e.g. designated account
workings, authorised
allocation)

Management Statement

Insert management responsibility statement

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 FINANCIAL MANUAL SECTION OF JKCIP PIM

Audit report (illustrative only)

Independent Auditor’s report (Provided on Auditor letterhead)

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of the Community Based Agricultural Support
Project Plus funded by the International Fund for Agricultural Development (loans xxx
and grants xxx). The financial statements comprise of the Statement of Cash Receipts
and Payments, Budget to Actual Comparison, accounting policies and explanatory notes.

In our opinion, the accompanying financial statements of JKCIP give a true and fair
view of the Financial performance and cash flows for the year then ended in accordance
with IPSAS Financial Reporting Under the Cash Basis of Accounting.

Basis for Opinion (refer to ISA705 for modifications)

We conducted our audit in accordance with International Standards on Auditing (ISAs).

Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report. We are
independent of the Company in accordance with the International Ethics Standards
Board for FCs’ Code of Ethics for Professional FCs (IESBA code)
together with the ethical requirements that are relevant to our audit of the financial
statements in Republic of India, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the IESBA Code. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.

Key audit matter

Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon. We do not provide a separate opinion on these matters.
[insert matters if applicable]

Other information

The Board of Directors is responsible for the other information. The other information
comprises the xxxx. Our opinion on the financial statements does not cover the other
information and we do not express any form of assurance conclusion thereon. In
connection with our audit of the financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated. If, based on the work we have performed,
we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the

Financial Statements

Management is responsible for the preparation and fair presentation of the financial
statements in accordance with IPSAS and for such internal control as management
determines is necessary to enable the preparation of financial statements that are free

65 | P a g e
 FINANCIAL MANUAL SECTION OF JKCIP PIM

from material misstatement, whether due to fraud or error. Those charged with
governance are responsible for overseeing the project's financial reporting process.

Auditors' Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or
error, and to issue an auditors' report that includes our opinion. Reasonable assurance is
a high level of assurance but is not a guarantee that an audit conducted in accordance
with lSAs will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and arc considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and

maintain professional scepticism throughout the audit. We also:
▪ ldentify and assess the risks of material misstatement of the financial statements.
Whether due to fraud or error, design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions. misrepresentations, or the override of internal control.
▪ Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the project's internal control.
▪ Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
▪ Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence and communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine
those matters that were or most significance in the audit or the financial statements of
the current period and are therefore the key audit matters. We describe these matters in
our auditors' report unless law or regulation precludes public disclosure about the matter
or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.

Public disclosure

This report has been prepared on request of the project, the International Fund for
Agricultural Development, however, the report is a matter of public record and its
distribution is not limited.

The engagement partner on the audit resulting in this independent auditors' report is xxx
from xxxx audit firm.

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Independent Assurance Report prepared for IFAD (provided on auditor
letterhead)

This report represents the results and conclusions of the independent assurance
engagement undertaken on behalf of IFAD.

Background

[Summarise details of financiers, facilities and amounts of funding provided for the
period under review and committed in total to the project]

Audit Objectives and Scope

An assurance engagement was undertaken in line ISAE 3000 Assurance Engagements

other than audits or reviews of historical financial formation in order to provide a report
to the International Fund of Agricultural Development on the following:

1. Whether the expenditures, reported by the project are in eligible in terms of the
financing agreement with the International Fund of Agricultural Development.
2. Whether the project has adhered to other terms and conditions of the IFAD
Financing agreement / Letter to the Borrower/Recipient and other financial
management related requirements related to maintenance of the designated
account records.
3. Whether the IFAD specific disclosures are accurate and complete and agree to
IFAD financial records (statements etc).

The financial information outlined in pages xxx to xxx was the subject of this assurance
engagement.

Summary of work performed

The following specific work was performed in order to address the scope of work:

Preparatory

▪ Review financing agreements and related amendments to determine key financing

terms and conditions application to the project.
▪ Review the Letter to the Borrower and related amendments to determine key
financing terms and conditions applicable to the project.
▪ Obtain IFAD financial information related to the project from the IFAD finance officer,

as may be appropriate and required.

Designated account statement(s) (page xxx)

• Confirm/agree that opening and closing bank balances (in USD and INR) disclosed on
the designated account statement(s) agree to the bank account statement and that
such balances reconcile with disclosures in the notes the financial statements.
• Recalculate the closing balance of the designated account statement (in USD and INR). •
Confirm/agree that the dollar denominated amounts disclosed have been accounted
for in USD at the historical exchange rate, in line with the procedure as outlined in the
IFAD Financial Administration Manual (available on IFAD website).
• Recalculate the foreign exchange gain / loss as included in the designated account
statement and agree to the amount disclosed in the Statement of Cash Receipts and
Payments.
• Agree replenishments / transfers and direct payments to the bank account statement
and IFAD historical transaction information.
• Confirm amounts disclosed for withdrawal applications agree to the information
disclosed on the withdrawal application summary.

67 | P a g e
Designated account reconciliation(s) (page xxx)
• Confirm the accuracy of the reconciliation.
• Confirm that the designated account has been managed in line with the provisions of
the financing agreement / Letter to the Borrower.
• If applicable, review and determine the reasonability of the explanation for variance as
disclosed on the designated account reconciliation.
• Agree disclosed amounts to supporting documentation (bank statements / IFAD
historical financial information).
Withdrawal application summary
• Determine whether goods and services have been purchased through the SOE
mechanism in line with the stipulated SOE threshold.
• Determine whether the expenditures claimed through SOE procedures were properly
and appropriately authorized, classified and supported by audit documentation.
• Select a sample of withdrawal applications and confirm the accuracy of the disclosures
to the underlying documentation submitted to IFAD.
▪ Test a sample of project expenditure transactions from the withdrawal applications
and confirming eligibility of expenditure / adequacy of supporting documentation.
Summarise all ineligible expenditures identified in the conclusions section.

Fixed asset register (page xxx)

▪ Select a sample of fixed assets from the fixed asset register and confirm the accuracy
and completeness of the information included in the fixed asset register.
▪ Select a sample of project assets from the floor and confirm that the asset is accurately
recorded in the fixed asset register.

Community Group expenditure (Investment Projects)

▪ Select a sample of competitive grants made to Community Groups in line with
investment projects.
▪ Design and perform procedures to confirm whether community group expenditure is
made in line with approved investment projects and for eligible expenditure as defined
in the financing agreement. (expenditure also included in the approved AWPB).
▪ Confirm beneficiary contributions (both in cash and in-kind)

Other
▪ Confirm the degree of compliance with the recipient’s procurement policy and identify
non-compliance.

Conclusions on procedures performed

[Summarise findings of procedures]

Management letter

Other issues related to internal control weaknesses are included in the management
letter issued on xxx.

[Signed by engagement partner]

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Statement of Cash Receipts and Payments

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Budget to Actual Comparison

(Note: This disclosure is not mandatory in terms of IPSAS Cash given that the JKCIP
budget is not publicly disclosed, however, IFAD requires this disclosure in terms of the
IFAD Handbook on Financial Reporting and Auditing of IFAD-Financed Projects)

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Accounting policies

1. Definitions
▪ Designated account – Ring-fenced, foreign denominated bank account which is
maintained on behalf of the entity. The entity may receive replenishments from
the direct account in line with the working as outlined in the IFAD Disbursement
Handbook.
▪ IFAD – International Fund for Agricultural Development
▪ Revolving account – An account which maintains a record of all cash advances
made for staff or Project expenses which are either returned to the Project or
justified by valid expenditure documentation.
▪ Borrower – The Borrower is the Government of Republic of India

2. Reporting entity
The financial statements are for JKCIP. The Project is managed centrally by PMU
and has operations in various states which are reported on as a single entity.

3. Reporting period
These financial statements include a 12-month reporting period for the current and
prior year with additional cumulative disclosure (from Project inception) provided in
the notes where appropriate.

4. Basis of preparation
The financial statements have been prepared in accordance with the Standard. The
entity complies with all the requirements as outlined in Part 1 of the Standard and as
described in the accounting policies. In addition, the entity has elected to adopt the
following recommended disclosures in line with Part 2 of the Standard:
▪ Payments of Third Parties on behalf of the entity (refer 16. Voluntary Disclosure)

5. Authorisation date
These financial statements have been authorised for issue by the Project Director on
[xxx]. No events after this date are included in the financial statements.

6. Presentation currency and level of precision

The presentation currency is the local currency, USD Where appropriate, the
designated account balances are reported in USD. The amounts are displayed in
million (INR) unless otherwise specified in the notes. Additional note disclosures may
quote US Dollar amounts if loans or grants from financiers are denominated in US
Dollar.

8. Comparative information
It must be noted that, due to the first-time adoption of the Standard, comparative
results presented for the period ending xxx (and cumulative results where applicable)
was not prepared in line with the Standard. Where practical and material,
adjustments have been made to align prior period (and cumulative results) with the
IPSAS Financial Reporting under the Cash Basis of Accounting

9. Composition of the annual financial statement

The financial statements comprise the Statement of Cash Receipts and Payments, the
Budget to Actual Comparison and the notes. The notes include various other
disclosures which are required by external financiers, including IFAD, which may

71 | P a g e
 enhance fair presentation and accountability. Additional, supplementary information
is indicated as such.

11. Control of cash

In line with the Standard, cash balances reported at the end of the reporting period
include all cash which the entity can use or otherwise benefit from at the exclusion of
other. Therefore, cash will include all IFAD designated account balances which are
maintained in foreign currency (USD) to which access is restricted in line with the
financing agreement entered into between the Recipient and IFAD.

12. Materiality and disclosure

The Project discloses material information separately on the face of the financial
statements or in the notes. The materiality is assessed in line with the nature and
amount of the item. In all instances, payments of third parties on behalf of the
Project is considered material and disclosed separately. This will include payments
made on behalf of the Project to third parties or received "in-kind". – refer "16.
Voluntary disclosure"

13. Classification of transactions

Uses of cash receipts are disclosed in line with categories as defined in the Project
financing agreements. Additional useful disclosures in terms of components are
provided in the notes to the financial statements. Receipts of funds are disclosure
based on the source of finance.

14. Foreign currency

Cash receipts and payments arising from transactions in foreign currency are
incorporated in the financial statements Statement of Cash Receipts and Payments in
INR by applying to the foreign currency amount the spot exchange rate between the
reporting currency and foreign currency at the date of the receipts/payments. The
spot rate is defined as the rate of exchange for immediate delivery.

Closing cash balances held in foreign currency are translated to INR the spot rate on
the last day of the reporting period. Resulting foreign gains / losses are reported as
a reconciling item on the Statement of Cash Receipts and payments. Further
information with regard to the gains/losses per financier is disclosed in the notes.

[COMMENT ON USE OF FIFO]

15. Additional note disclosures – accrual basis

The notes to the financial statements provide additional information about liabilities
and assets which are not presented on the Statement of Cash Receipts and Payments
or Budget to Actual Comparison. These may include contingent liabilities related to
suppliers, advance payments from contractors, staff loan receivable and any other
material items which will enhance the fair representation of the financial statements.

16. Voluntary adoption of Part 2 of the Standard – Payments made to 3 parties on

rd

behalf of the Project

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In line with Part 2 of the Standard, the Project shall disclose payments made on its
behalf to 3 parties. For the Project, this disclosure deals specifically with payments
rd

made by the Recipient/beneficiaries for items such as salaries and xxx. Additional
note disclosure is provided which outlines the total of such amounts for the period,
the nature of activities paid for and the manner in which management has arrived at
a value for such payments. In the event that management is of the opinion that the
estimation or value may not be fully reflective of the total value received, this will be
indicated in the notes.

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Sources and uses of funds statement

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Designated account statements

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Designated account reconciliations

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Withdrawal application summary

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Fixed asset register

Notes to the financial statements

To clarify on the Notes reference numbers included in the financial statements and other
Notes

Action tracker (supplementary)

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21.10 Appendix 1

Financial: actual financial performance by financier; by component and disbursements by category

Table 1: Financial performance by financier (USD ‘000)

Appraisal Disbursements Percent
Financier disbursed

IFAD Grant
IFAD Loan
GCF Grant
GCF Loan
FAO
Government
Beneficiaries
Total

Table 2: Financial performance by financier by component (USD ‘000)

IFAD Loan IFAD Grant GCF Loan GCF Grant Government Beneficiaries

Component Appraisal Actual % Appraisal Actual % Appraisal Actual % Appraisal Actual % Appraisal Actual % Appraisal Actual %

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 FAO Total

Appraisal Actual % Appraisal Actual %

Table 3: IFAD Loan disbursements (USD, as at [Insert date: dd-m-yy])

Per cent
Original Revised Disbursement W/A pending Balance disbursed
Category Category description
Allocation Allocation
I
II
III
IV
Initial deposit
Total

Present separate table for each IFAD managed finance

facility (IFAD Loan, IFAD Grant) and for each GCF financing
(Loan, Grant)

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21.11 Vehicle and fuel documents

Waybill

PMU to add copy of the used/standard waybills

Itinerary list

Itinerary list for the period:

Driver:

Vehicle type:

Starting Speedometer reading _______________as at ______________________

Date Time Name Trip purpose Mileage, km Signature

from to post prior Passenger Driver

Starting Speedometer reading _______________as at ______________________

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Vehicle History Record

Vehicle registration number ______________________ Assigned driver ____________________

Date Repairs Service & maintenance Insurance Fitness tests
Description of Garage Cost Description Garage Cost Type Period Cost Check Cost
repair of service covered ed by

Report accidents in the space below, providing all relevant details for each occurrence:

Date:
Place:
Name of driver:
Circumstances:
Damage to project vehicle:
Damage to other vehicles:
Injuries (indicate name of victims and describe injuries):
Insurance settlement:

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21.12 Implementing partners – MOU terms

To be used/amended as applicable.

APD PMU will enter into MOUs with other Implementing partners. The following recommended financial management roles and responsibilities
are proposed for inclusion:
PMU shall:
✓ Provide financial management support to the implementing agency;
✓ Ensure that implementing agency performs its duties and enjoys rights indicated in the Memorandum.
✓ Provide financial management training at project start-up and annually thereafter in order to strengthen the financial management
capacity of the implementing agency.

The implementing agency shall:

✓ Implement sound financial management practices and procedures to the satisfaction of the PMU.
✓ Ensure that all financial management staff responsible for dealing with the JKCIP attend financial management training (hosted by
PMU) at project start-up and annually thereafter.
✓ Ensure that a qualified and experienced FC is responsible for dealing with the financial management aspects of the JKCIP for
the duration of the MOU.
✓ Inform the PMU Financial Manager of any finance staff vacancies.
✓ Perform an annual financial management self-assessment (questionnaire template to be provided) and submit the results to the PMU
Financial Manager. Cooperate with the PMU Financial Manager to address identified shortcomings within a specified timeframe.
✓ Assist the PMU with the annual budgeting process by preparing a budget for the component/sub-component which it is required to
implement. For this purpose, the PMU Financial Manager will provide a budget template which should be used. In addition, strictly
adhere to deadlines for submission of inputs.
✓ Retain all project related document (invoices, bank statements, supporting documentation) for inspection. Documents should be
retained in line with the terms and conditions as outlined in the IFAD General Conditions for Agricultural Development Financing.
✓ When required, submit written request for funds in line with the template included in the FMFCL & 21.14. Written requests should be
signed by the duly authorized representatives. Request letters should clearly indicate the related budget activity as included in the PMU
approved AWPB (and related procurement plan).
✓ Prepare and submit a monthly report for IFAD in line with the template included in 21.13. Attach original bank statements and original
supporting invoices/documents to the monthly report (documents to be returned after review by PMU).
✓ Use the monthly report to IFAD for the purposes of internal monitoring of budget to actual performance. Take corrective action as
required.
✓ Respond to queries / resubmit information as requested by the PMU Disbursement Officer or Financial Manager in a timely manner.

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21.13 Monthly reporting template – Implementing partners

Submit the report together with copies of bank statements, petty cash reconciliation, invoices, supporting documentation. Cross-reference supporting
documentation to report.

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 21.14 IFRs Package

Report I: Summary of Uses of Funds

Name of the Project:Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir (JKCIP)
IFAD Instrument number:
List other instruments if applicable
Starting
For the Period: TO
Date End Date

IFAD Loan
Actual Since
Actual for Period Actual For Year Inception
\ REF
To-Date To-Date
A B C
Currency

Uses of Funds by Category:

- - -

Civil Works - - -

Goods, Services and inputs - - -

Training and workshops - - -

Grants and Subsidies - - -

Salary and Operating costs - - -

- - -

- - -
Total Funds Used by Categories II
- - -
85 | P a g e
Uses of Funds by Component:
 - - -
1. Component 1: Climate-smart and market-led
production - - -

Component 2: Agri-business ecosystem development

- - -

Component 2: Agri-business ecosystem development

- - -

Component 4: Project Management

- - -

- - -
Total Funds Used by Component (must be equal to II) III
- - -

86 | P a g e
Report II: Funds Reconciliation Statement
Name of the Project: Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir (JKCIP)
IFAD Instrument number:
List other instruments if applicable
For the Period: Starting Date

PART I

IFAD Loan

Currency

PART I (Funds Status)

1. Cumulative project expenditure since inception to date -

2. Cumulative funds received from IFAD till the end of reporting period -

3. Funds receivable from IFAD (Line 1 minus Line 2) -

PART II (Receivable from IFAD)

4. Total of Withdrawal Applications submitted but not yet cleared by IFAD (if not
-
zero, give details below)

5. Add/Substract - Adjustments (if any) -

6. Expenditure claimed as Reimbursement for the current reporting period -

7. Funds required as Withdrawal from IFAD (Line 4 Plus Line 5 Plus Line
-
6)
8. Difference, if any (Line 3 minus Line 7). (If not zero, please provide
-
explanation)

Details for Line 4: WAs submitted but not yet cleared by IFAD WA Ref No.

TOTAL

Explanation for Line 5 (if not zero): IFR & WA Ref.

Explanation for Line 8 (if not zero): IFR & WA Ref.

88 | P a g e

Report III: Variance Analysis of Use of Funds - FY

Name of the Project:Competitiveness Improvement of the Agriculture and Allied Sectors Project in Jammu and Kashmir (JKCIP)
IFAD Instrument number:
List other instruments if applicable
For the Period: FY Start Date To End Date

IFAD Loan
Planned Actual Balance
A B C=A-B D=B/A

Ref: AWP/ Actual Cumulative AWPB Available Actual Progress

Forecast year todate Balance against AWPB

Currency %age

Expenditure by Categories:

- - -

Civil Works - - -

Goods, Services and inputs - - -

Training and workshops - - -

Grants and Subsidies - - -

Salary and Operating costs - - -

- - -

- - -
I
TOTAL - - -

Expenditure by Components:

- - -
1. Component 1: Climate-smart and market-led
production - - -
Component 2: Agri-business ecosystem development
- - -
Component 2: Agri-business ecosystem development
- - -

- -
 Component 4: Project Management
- - -

- - -
II (must be equal to I)
TOTAL - - -

* Note: Provide reasons if the Cash Forecast is over and above AWPB Balance (i.e. the Forecast includes the Quarter 1 of the Subsequent AWPB)
90 | P a g e
Chapter 6: Procurement
The draft PIM is prepared during the design process for the project. This needs to be
confirmed by the LPA and the final PIM to be submitted to IFAD for review and approval.
Any revisions to the PIM, requires IFAD review and no objection.
Applicability of Procurement Guidelines
Procurement of goods, works and services under the project financed from resources
provided or administered by IFAD will be undertaken in accordance with IFAD’s
Procurement Guidelines and Handbook (dated December 2020) and as amended from time
to time. (The IFAD Procurement Guidelines can be accessed from
https://www.ifad.org/documents/38711624/39421027/procure_e.pdf/e1a99511-d57d-
4695-a05b-3d9b597d0149 and the IFAD Procurement Handbook can be accessed from
https://www.ifad.org/documents/38711624/39421018/proc_handbook_e.pdf/2febc53a-
4244-4447-a788-d06a632fd3b5). In the absence of national law which safeguards the
interests of transparency, fairness, and grievance redressal of the participating
bidders/suppliers, IFAD Procurement Guidelines shall be followed both at the central level
(PMU) and at the decentralised level by all implementing parties.
IFAD recommended Project Procurement related documents could be accessed at
https://www.ifad.org/en/project-procurement
Overarching guidelines for Project Procurement
Transparency, Competition, Fairness and Elimination of Arbitrarines
Public buying should be conducted in a transparent manner to bring competition, fairness
and elimination of arbitrariness in the system. This will enable the prospective bidders to
formulate competitive bids with confidence. The following are some important measures
to achieve the same and, thus, secure best value for money:
(a) The text of the bid document/Request for Proposals (RFP) should be user-friendly, self-
contained, comprehensive, unambiguous, and relevant to the objective of the
procurement. The use of terminology used in common parlance in the industry should be
preferred.
(b) The specifications of the required goods should be framed giving sufficient details in
such a manner that it is neither too elaborately restrictive as to deter potential bidders or
increase the cost of purchase nor too sketchy to leave scope for sub-standard supply. The
specifications must meet the essential requirements of the project. Efforts should also be
made to use standard specifications, which are widely known to the industry.
(c) The bid document/Request for Proposals should clearly mention the eligibility criteria
to be met by the bidders such as minimum level of experience, past performance, technical
capability, manufacturing facilities, financial position, ownership or any legal restriction
etc.
(d) Restrictions on who is qualified to bid should conform to extant Government policies
and be judiciously chosen so as not to stifle competition amongst potential bidders.
(e) The procedure for preparing and submitting the bids/RFP; deadline for submission of
bids/proposals; date, time & place of public opening of bids/proposals; requirement of
earnest money and performance security; parameters for determining responsiveness of
bids; evaluating and ranking of bids and criteria for full or partial acceptance of bid and
conclusion of contract should be incorporated in the bid enquiry in clear terms.
(f) Bids should be evaluated in terms of the criteria already incorporated in the bid
document, based on which bids have been received. Any new condition, which was not
incorporated in the bid document, should not be brought into consideration while
evaluating the bids.
(g) Sufficient time should be allowed to the bidders to prepare and submit their bids.
(h) Suitable provisions should be kept in the bid document allowing the bidders reasonable
opportunity to question the bid conditions, bidding process, and/or rejection of its bid and
the settlement of disputes, if any, emanating from the resultant contract.
(i) It should be made clear in the bid document that bidders are not permitted to alter or
modify their bids after expiry of the deadline for receipt of bid till the date of validity of
bids.
(j) Negotiations with the bidders for procurement of goods and works must be avoided. In
case of consultancy services negotiations should be conducted with the highest combined
ranked consultant, to clarify certain aspects of reporting, agreement on the Accountability
Matrix and to confirm the team of experts proposed. For negotiations with the consultants,
please refer to the Guidelines for negotiations.
(k) The name of the successful bidder to whom the contract is awarded should be
appropriately notified by the PMU for the information of general public, including display
at notice board, periodical bulletins, website etc.
Efficiency, Economy and Accountability:
Public procurement procedures must conform to exemplary norms of best practices to
ensure efficiency, economy and accountability in the system. To achieve this objective,
the following key areas should be taken care of:
(i) To reduce delays, PMU should prescribe appropriate time frame for each stage of
procurement; delineate the responsibility of different officials and agencies involved in the
purchase process and delegate, wherever necessary, appropriate purchase powers to the
lower functionaries with due approval of the competent authority.
(ii) PMU should ensure conclusion of contract within the original validity of the bids.
Extension of bid validity must be discouraged and resorted to only in absolutely
unavoidable, exceptional circumstances with the approval of the competent authority after
duly recording the reasons for such extension.
Eligibility
Firms/entities/individuals from any country are eligible to participate in this Project,
except: (i) as a matter of law or official regulation, India prohibits commercial relations
with that country, or (ii) by an act of compliance with a decision of the United Nations
Security Council taken under Chapter VII of the Charter of the United Nations, India
prohibits any import of goods from, or payments to, a particular country, person, or entity.
Where India prohibits payments to a particular firm or for particular goods by such an act
of compliance, that firm may be excluded; and (iii) those who are included in the IFAD’s
debarred list or common debarment list agreed with other IFIs.
Institutional Setup
Organogram of Procurement Unit

Mission
Director

Senior
Procurement
Specialist

PMU Implementing
Procurement party
Officer Procurement
Assistant Procurement
Officer

The Terms of Reference of the Procurement Staff are indicated in Annexure-3.

Procurement powers of Principal Secretary and Mission Director
Description Principal Mission Director
Secretary – APD
Approval of the Procurement Plan Full powers
and revisions/upgrade
Office consumables
Procurement of goods and related
services (Direct contracting)
Procurement of works and related
services (Direct contracting) for
PMU and MPAs
Procurement of Individual
consultants for short term (not
exceeding 6 months) on single
source selection
Procurement of individual
consultants on competitive
selection
Procurement of goods under
shopping
Procurement of works under
shopping
Procurement of goods under
competitive bidding
 Procurement of works under
competitive bidding
Procurement of consultancy
services under competitive
bidding
Amendment to contracts
Approval of Implementation
Grants to Community Institutions
Non-financial Memorandum of
Understanding
MoA with Government
agencies/Departments

Procurement Powers of Directors of Implementing Parties

Description Director/HoD of
implementing parties
Office consumables Upto
Procurement of goods and related services
(Direct contracting)
Procurement of works and related services
(Direct contracting) for MPAs
Procurement of goods under shopping
Procurement of works under shopping
Amendment to contracts

Engagement of Key Staff

The Financing Agreement will designate the staff considered as “Key Staff” for project
implementation. Typically, staff responsible for financial management, procurement, M&E
and SECAP related compliance, besides the Mission Director are considered as ‘Key Staff’.
Key PMU staff can be recruited using a consulting contract which is subject to IFAD No
objection. The recruitment must follow an open, competitive and transparent process. The
terms of reference, engagement process (advertisement, evaluation of CVs, shortlisting
and final selection) will require IFAD no objection.
Secondment of Government officials to project
The government official is seconded to a temporary assignment in an IFAD funded project.
The terms of this assignment depend on the government’s internal regulations and policy.
S/he needs to fulfil the technical and managerial requirements as stipulated in the terms
of references of the approved project implementation manual. In addition, the Government
should confirm that the seconded official is having vigilance clearance from the respective
department. While the seconded official positions are indicated in the Cost Tables and the
salary and allowances for the position are borne by the Government share. The seconded
official could receive travel and DSA for the travels on account of project implementation
and any other additional allowance, the Government may agree for the project staff. If a
Government official is seconded for the PMU Key staff, IFAD prior review and no objection
is required.
Any contract signed for PMU staff shall be compliant with national labour regulations/rules
and the ILO Core Labour standards (whichever is more stringent) in order to satisfy the
conditions of IFAD’s updated SECAP. Repeated short-term contracts must be avoided
unless appropriately justified under the project’s circumstances.
Procurement implementation
The Procurement Unit is the primary responsible unit for preparing and implementing the
procurement activities under the project. The Unit should have physical and/or electronic
copy of the following:
1. IFAD Procurement Guidelines, 2020
2. IFAD Procurement Handbook, 2020
3. Initial and all updates of the Project Procurement Arrangements Letter issued by
the IFAD.
4. Financing Agreement and its amendments
5. Project Agreement
6. Project Implementation Manual approved by IFAD
7. IFAD Standard Bidding Documents and templates

Immediately after signing of the Financing Agreement and Project Agreement, the
Procurement Unit should prepare and issue General Procurement Notice (GPN). Template
for GPN is included in IFAD templates. GPN could be advertised in leading newspapers and
the website of the project.
Responses from interested suppliers/bidders should be organised under each of the
Procurement Groups and when the procurement activity is implemented, ensure that the
interested suppliers are notified to participate in the bidding process, if still interested.
Procurement Methods
The following are the procurement methods are applicable for each category of the project
procurement during implementation:
Goods and goods related non-consultancy services:
1. International Competitive Bidding
2. Limited International Bidding
3. National Competitive Bidding
4. National Shopping or Local Shopping
5. Single Source Selection
6. Procurement from UN agencies
Works and works related non-consultancy services
There are no works under the project which requires International Competitive Bidding or
Limited International Bidding. Hence all procurement methods for works are within the
country.
1. National Competitive Bidding
2. National shopping or Local Shopping
3. Single Source Selection
Consultancy Services
1. Quality and Cost Based Selection (QCBS)
2. Quality Based Selection (QBS) with proper justification
3. Fixed Budget Selection
4. Least Cost Selection
5. Consultants Qualification Selection (CQS)
6. Individual Consultants
7. Direct Contracting (Individuals & Firms)
The procedure for undertaking each of the procurement/selection methods are indicated
in IFAD Procurement Handbook.
Procurement thresholds
The thresholds for each of the procurement/selection methods will be updated as per the
Project Procurement Arrangements (PPA) Letter issued by IFAD. The thresholds could also
be seen in IFAD OPEN portal.
Procurement Planning
Planning is a critical part of the procurement process that enables objectives and priorities
to be properly set, workloads to be estimated and resources allocated. The procuring entity
needs to plan, organize, project and schedule its procurement activities and to identify
potential areas for the pooling of needs.
Planning also provides the Lead Project Agency/Government/IFAD with an important tool
for monitoring project implementation. Insofar as possible, procurement planning should
be integrated with financial planning so that budgets and procurement needs are
synchronized insofar as practical.
Any item/activity, which is not included in the relevant AWPB or Procurement Plan will not
be eligible for IFAD financing. Therefore, updates/upgrades of the Procurement Plan is
essential.
The Procurement Plan will be prepared, upgraded, updated in IFAD End-to-End
Procurement System (OPEN) (https://open.ifad.org).
As soon as the Project is declared effective and procurement staff at PMU are engaged, a
communication with the following details to be sent to IFAD for obtaining user credentials
for nominated staff:
First name Surname Job Title Role Email Mobile No.
Mission
Director
Sr.
Procurement
Specialist
Procurement
Officer
Procurement
Assistant
Other
Project Staff

Only Mission Director and Procurement Staff will have access to create, modify, update
and undertake implementation of procurement activities. Nominated project staff will only
be able to view. The nomination of Procurement and Project Staff will be done by the
Mission Director and the nomination of Mission Director will be done by the Principal
secretary, APD.
The Quick cards to assist the Procurement Staff to manage the activities/documents are
available at https://icp.ifad.org/wps/wcm/myconnect/icp/icp-help-
en/help/Project+Procurement+-+Online+Procurement+End-to-End+-+OPEN
The following details are required for creating a Procurement Plan:
1. Procurement Category
2. Activity title
3. Estimated budget
4. Activity description
5. Procurement method
6. Contracting arrangement
7. AWPB Reference No.
8. Sources of financing for the activity
9. Pre-qualification or post-qualification
10. Single or dual envelope
 11. Implementation dates

Prior review by IFAD

In accordance with paragraphs 49, 66 and 67 of the IFAD Project Procurement Guidelines
and IFAD’s Procurement Handbook, the following will be subject to prior review by IFAD
and requires IFAD’s No Objection:
1 Procurement Plans submitted as part of Annual Work Plans and Budget and any
subsequent amendment of these plans;
2 General Procurement Notices
3 The TOR (Job Description), Advertisement and selection proceedings for the hiring
of any staff responsible for carrying out or administering procurement processes
as part of the project
4 Award of any Memorandum of Agreement irrespective of its value
5 Award of any contract for goods and goods-related non-consulting services
estimated to cost US$ 100 000 or more;
6 Award of any contract for works and works-related non-consulting services
estimated to cost US$ 100 000 or more;
7 Award of any contract for consulting services provided by firms estimated to cost
US$ 50 000 or more;
8 Award of any contract for individual consulting services estimated to cost US$ 10
000 or more;
9 Other considerations elaborated in the Project Procurement Arrangements Letter.
In addition, the following steps of the procurement process for Goods/Works/Services also
require IFAD’s No Objection (NO) for contracts designated for “prior review” in the
project’s procurement plan.

Activity / Step of the Procurement Process IFAD “NO” is required

for Prior Review Contracts
1 Call/Request for Prequalification document and Yes
related advertisement
2 REOI (Request for Expression of Interest) Yes
document for consultancy services and related
advertisement
3 Terms of Reference for consultancy services and Yes, usually as part of
related non-consulting services NO request for issue of
the RFP (step 9 below)
4 Technical Specifications for Goods/Works/NCS Yes, usually as part of
NO request for issue of
the bid docs (step 9
below)
5 Composition of evaluation committees Yes, usually as part of
steps 9, 13, or 15
6 Prequalification report for Goods/Works/NCS Yes
7 Shortlisting report for consultants’ selection Yes
8 The use of “prior lists” for shortlisting Yes
consultants
9 Complete Bidding Documents and RFPs and CfPs Yes
and related advertisement if applicable
10 Use of a Performance Guarantee template if Yes
other than unconditional, irrevocable and on-
demand guarantee
 11 Amendments to the Bidding Documents and Yes
RFPs, CfPs
12 Opening bids/quotes/proposals that are less Yes
than 3 (excluding DC/SSS)
13 Technical evaluation report (in two envelope Yes
procedures)
14 The combined evaluation report (in two Yes
envelope procedures)
15 The single evaluation report (in one envelope Yes
procedures) for Goods/Works/NCS/Consulting
Services (SSS)
16 Decisions concerning abnormally low bids Yes
17 Draft contract Yes
18 Minutes of negotiation at award for consultancy Yes
services (where applicable) or when using DC for
Goods/Works/NCS
19 Rejection of all bids/proposals and cancellation Yes
of the procurement procedure
20 Failure of negotiations and proceeding to next Yes
ranked consultant
21 Proceeding to next ranked bidder if top ranked Yes
fails to sign the contract in Goods/Works/NCS
22 Determination to reject a bid/proposal because Yes, usually as part of
of cross-debarment steps 13, 14 or 15
23 Amendments to contracts exceeding 10% in Yes
value (increase/decrease in quantities as a
result of evolutionary changes). Additional
unforeseen new items exceeding 10% of the
contract value is a new procurement subject to
Single Source/DC conditions.
24 Extension of time to contracts exceeding 25% of Yes
the original contractual duration in
Goods/Works/NC Services/Consulting Services
25 Termination of a contract in Goods/Works/NC Yes
Services/Consulting Services

Constitution of Procurement Committees

For undertaking procurement actions during the preparatory phase (pre-project) and
during implementation phase, the following Procurement Committees should be
established. The Project has the option of establishing Standing Procurement Committee
or ad-hoc Procurement Committee for each type of Procurement.
1. Bid/Proposal Opening Committee: This should have a maximum of 3 members and
one member being Procurement Officer. Alternate members in case of non-
availability of the initial members should also be indicated.
2. Bid/Proposal Evaluation Committee: There should be a minimum of 3 and a
maximum of 5 members. Senior Procurement Specialist at PMU level and
Procurement Officer at Implementing Party level will be the Member Secretary of
this Committee to advise and guide the members on the procedures and prepare
documentation. Members exceeding five are normally not recommended, but for
complex procurement involving inter-disciplinary themes, justification with the
approval of the Mission Director could be considered. All members of the Evaluation
Committee shall comply to the ethical standards and sign a declaration of
impartiality and confidentiality for each procurement action any perceived conflict
of interest to be declared prior to start of evaluation of bids/proposals.
Preventing Fraud and Corruption in the project
The IFAD Procurement Guidelines and Anti-Corruption Policy, which are adapted to this
Project through the Financing Agreement and IFAD General Conditions for Agricultural
Development Financing, require zero tolerance to prohibited practices. Therefore, the
procurement process also requires a strict adherence to these Guidelines and Policy.
Prohibited Practices
The Borrower and LPA, as well as bidders, potential bidders, suppliers, grant recipients,
contractors and consultants financed through the proceeds of this Project, shall observe
the highest standard of ethics during the selection and execution of such contracts/grants.
Pursuant to this policy, the following provisions shall be applied throughout the
project implementation:
(a) For the purpose of this provision, the terms set forth below are defined:
(i) “Corrupt Practices” mean the offering, giving, receiving, or soliciting
directly or indirectly of anything of value to influence improperly the
actions of another party.
(ii) “Fraudulent Practices” is any act or omission including a
misrepresentation that knowingly or recklessly misleads, or attempts to
mislead, a party to obtain financial or other benefit or to avoid an
obligation. ;
(iii) “Collusive Practices” is an arrangement between two or more parties,
designed to achieve an improper purpose, including to influence
improperly the actions of another party;
(iv) “Coercive Practices” is impairing or harming, or threatening to impair or
harm, directly or indirectly, any party, or the property of the party to
influence improperly the actions of a party.
(v) “Obstructive Practices” mean: deliberately destroying, falsifying, altering,
or concealing of evidence material to the investigation or making false
statements to investigators in order to materially impede an IFAD
investigation into allegations of a corrupt, fraudulent, coercive, or
collusive practice; and/or threatening, harassing, or intimidating any
party to prevent it from disclosing its knowledge of matters relevant to
the investigation or from pursuing the investigation; or acts intended to
materially impede the exercise of the IFAD’s inspection and audit rights
provided for under sub-clause (e) below.
(b) The Borrower and IFAD will reject a proposal for award if it determines that
the bidder or consultant recommended for award, or any of its personnel. Or
its agents, or its sub-consultants, subcontractors, service providers, suppliers
and/or their employees has directly or indirectly engaged in corrupt,
fraudulent, collusive, coercive or obstructive practices in competing for the
contract in question;
(c) IFAD will declare mis-procurement and cancel the portion of the loan allocated
to the contract if it determines at any time that representatives of the
borrower or of a recipient of any part of the proceeds of the loan engaged in
corrupt, fraudulent, coercive, collusive or obstructive practices during the
procurement or implementation of the contract in question without the
borrower having taken timely and appropriate action satisfactory to the DP to
address such practices when they occur, including failing to inform the DP in
a timely manner at the time they knew of the practices.
(d) IFAD will declare a consultant or firm ineligible, either indefinitely or for a
stated period of time, to be awarded a future IFAD financed contract if it at
any time determines that the bidder, supplier, contractor, service provider or
 consultant has engaged in corrupt, fraudulent, coercive, collusive or
obstructive practices in competing for, or in executing, an IFAD-financed
contract; and
(e) All contracts financed out of the proceeds of Project has a provision requiring
supplier, contractor or consultants to permit both the Borrower and IFAD to
jointly or separately inspect their accounts and records relating to the
performance of the contract and to have them audited by auditors appointed
by the Borrower and/or IFAD.
All staff involved in the procurement process has a duty to report to the Mission Director
and IFAD (i.e. through its Country Representative) for any suspected instances of
prohibitive practices when identified.
In the case of collusive behaviour, if the evidence suggests that all or some of the bidders
or consultants are involved, the evidence should be reviewed by the Mission Director, and
if necessary the procurement process is cancelled and all of the involved firms or
individuals are sanctioned which could be up to the debarment. If the procurement is still
in process, then the procurement must be cancelled and reinitiated only after the matters
have been addressed properly.
Complaint Handling Mechanisms (CHM)
There are three distinct types of complaints that are typically found in a Project; i.e., (a)
complaints concerning bid protest from aggrieved contractors, suppliers, service providers
and consultants, which are addressed during or immediately after the bid process, (b)
performance disputes, which are governed by the General Conditions of Contract (GCC)
and Special Conditions of Contract (SCC), and, (c) non procurement related complaints
from any parties, which are addressed in the PIM.
A complaint is any notification regarding an alleged illegal or improper procurement action
and/or conduct of procurement officials, consultants, and/or sub-contractors directly or
indirectly supporting a project or associated with its implementation, which the
complainant believes is wrong, either under the law or on the grounds of unacceptable
behaviour.
The Lead Project Agency shall ensure the confidentiality of any complainant and shall hold
harmless any person reporting a complaint, oftentimes referred to as a “whistle blower”,
with provisions to shield complainant(s) or public official(s) from retaliation when they
provide information that they reasonably believe to be a violation of the provisions of the
agreed procedures.
All procurement related complaints shall be addressed to the Mission Director, to which
the LPA shall respond within 7 business days. If LPA needs more time due to complex
investigation related to the complaints, then it shall state so in writing to the complainants,
but in any case, a complaint shall be put into closure within 30 business days.
The complainant need not be personally aggrieved or impacted and may be acting merely
in accordance with a sense of civic duty, such as an NGO or private citizen, in bringing an
occurrence to the attention of project authorities.
All complaints, whether notified by persons who feel personally aggrieved or acting out of
a sense of civic duty, will be acknowledged, and acted upon by responsible authorities in
accordance with the procedures specified in this section.
Concerning bid protests, from time to time, with and without justification bidders,
suppliers, contractors, service providers and consultants may choose to lodge a complaint
concerning some aspect of the contract award process. In the event the contract has been
awarded and a contractual relationship exists between the parties, there are established
dispute mechanisms in the GCC that shall be followed, up to and including judicial review.
A formal mechanism to satisfactorily respond to bid protest complaints must be followed,
consistent with this Manual and the steps to be followed by aggrieved bidders, suppliers,
contractors and consultants in the complaints’ procedure will be specified in the
Bid/Request for Proposal documents.
Complaints may also be addressed directly to IFAD, to which IFAD will resolve the
complaints within its service standard.
Conflicts of Interest
A firm/entity/individual participating in a procurement process under this Project shall not
have a conflict of interest. Any firm/entity/individuals found to have a conflict of interest
shall be ineligible for award of a contract.
A conflict of interest is a situation in which a party has interests that could improperly
influence that party’s performance of official duties or responsibilities, contractual
obligations, or compliance with applicable laws and regulations, and that such conflict of
interest is not acceptable under the Project. The Borrower will take appropriate actions to
manage such conflicts of interest which may include rejecting a proposal for award if it
determines that a conflict of interest has flawed the integrity of any procurement process.
A firm shall be considered to have a conflict of interest in a procurement process if:
(a) such firm is providing goods, works, or non-consulting services resulting from
or directly related to consulting services for the preparation or implementation
of a project that it provided or were provided by any affiliate that directly or
indirectly controls, is controlled by, or is under common control with that
firm.; or
(b) such firm submits more than one bid, either individually or as a joint venture
partner in another bid, except for permitted alternative bids. This will result
in the disqualification of all bids in which the Bidder is involved; or
(c) such firm (including its personnel) has a close business or family relationship
with a professional staff of the Borrower (or of the project implementing
agency, or of a recipient of a part of the loan) who: (i) are directly or indirectly
involved in the preparation of the bidding documents or specifications of the
contract, and/or the bid evaluation process of such contract; or (ii) would be
involved in the implementation or supervision of such contract unless the
conflict stemming from such relationship has been resolved acceptable to
IFAD throughout the procurement process and execution of the contract; or
(d) such firm does not comply with any other conflict of interest situation as
specified in the Bidding Documents relevant to the specific procurement
process.
It is the duty of all project staff and any other public employee directly or indirectly
involved with the procurement process and particularly the preparation of bid documents,
bid evaluation, contract negotiations, contract management and payments to avoid any
potential conflicts of interest. A conflict of interest arises when the individual has a direct
or indirect relationship with a bidder, consultant, contractor, service provider or supplier.
In the event that a project staff or a member of the PC or an employee who is directly
involved with the procurement process feels that there is the potential for a conflict of
interest they shall declare it to the PC and remove themselves from the procurement
process.
Standard of Business Ethics
All Borrower staff and consultants involved in procurement activities shall observe the
Code of Business Ethics as outlined below.
No individual shall use his/her authority or office for personal gain. Personal gain includes
accepting or requesting anything of material value from bidders, prospective bidders or
suppliers for the individual, his or her spouse, parents, children or other close relatives, or
for other persons from whom the individual might gain direct or indirect benefit of the gift.
An individual shall seek to maintain and enhance the reputation of the Government by:
(a) Maintaining the highest standards of honesty and integrity in all relationships
both inside and outside the Entity in which he works;
(b) Developing the highest standards of professional competence; and
(c) Using funds and other resources for which he/she is responsible to provide
the maximum benefit to the Government
Conflict of interest - An individual shall declare any personal interest that may affect or
might reasonably be deemed by others to affect impartiality in any matter relevant to their
duties.
Disclosure of personal relationships – an individual shall declare any relationship with a
bidder, supplier, contractor, service provider or consultant and shall take no part in either
the decision making process or the implementation of any contract where such a
relationship exists. A personal relationship is defined as consanguinity or affinity up to the
third civil degree.
Confidentiality and accuracy of information - An individual shall respect the confidentiality
of information gained in the course of duty and shall not use such information for personal
gain or for the unfair benefit of any bidder, supplier, contractor or consultant.
Information given by an individual in the course of their duty shall be true, fair and not
designed to mislead.
Competition - All bidders, suppliers, contractors and consultants shall be treated with
fairness and impartiality, and avoid any business arrangement that might prevent the
effective operation of fair competition.
Business gifts - No business gifts will be accepted from current or potential Government
suppliers unless such gifts are of very small intrinsic value (normally below US$ 50
equivalent).
Hospitality - An individual shall avoid any business hospitality would be viewed by others
as having an influence in making a government business decision as a result of accepting
that hospitality.
Reporting - All individuals have a moral and ethical responsibility to report any unethical
conduct by a colleague, a bidder or a supplier to their superiors, oversight agencies, IFAD
or to the auditors.
Examples of Unethical Conduct - The following are examples of the type of conduct
prohibited by this Code of Ethics:
(a) Revealing confidential or “inside information” either directly or indirectly to
any bidder or prospective bidder;
(b) Discussing a procurement with any bidder or prospective bidder outside the
official rules and procedures for conducting procurements;
(c) Favouring or discriminating against any bidder, prospective bidder or
consultant in the Preparing of technical specifications, terms of reference or
standards or the evaluation of bids and proposals;
(d) Destroying, damaging, hiding, removing, or improperly changing any formal
procurement document;
(e) Accepting or requesting money, travel, meals, entertainment, gifts, favours,
discounts or anything of material value from bidders or prospective bidders,
suppliers, contractors or consultants;
(f) Discussing or accepting future employment with a bidder or prospective
bidder, suppliers, contractors or consultants;
 (g) Requesting any other person to violate the public procurement rules or
procedures;
(h) Ignoring evidence that the Code of Ethics has been violated; and
(i) Ignoring illegal or unethical activity by bidders or prospective bidders,
suppliers, contractors, service providers or consultants, including any offer of
personal inducements or rewards or otherwise.
Preventing Sexual Harassment and Exploitation
The Fund requires that all beneficiaries of IFAD Funding, including the client and any
consultants, implementing partners, service providers, suppliers, sub-suppliers,
contractors, sub-contractors, sub-consultants, and any of their agents (whether declared
or not) and personnel comply with IFAD's Policy to Preventing and Responding to Sexual
Harassment, Sexual Exploitation and Abuse. PMU and MPAs, suppliers and consultants
shall take all appropriate measures to prevent and prohibit sexual harassment and sexual
exploitation and abuse on the part of their personnel and subcontractors or anyone else
directly or indirectly employed by them or any of subcontractors in the performance of the
contract. Client and consultants shall immediately report to the client or IFAD any incidents
of sexual harassment and sexual exploitation and abuse arising out of or in connection
with the performance of the contract or prior to its execution, including convictions,
disciplinary measures, sanctions or investigations. The client may take measures,
including immediate termination of the contract, against the consultant, its personnel or
any subcontractors, if at any time the client becomes aware of proven acts of sexual
harassment, sexual exploitation and abuse by the consultant and/or its personnel, directly
or through an agent, in competing for, or in performance of, this contract.
PMU shall establish a Committee (with adequate representation of women) to review and
recommend further steps of disciplinary measures or investigations. All complaints
(anonymous or identified) should be recorded and action taken within the time limit
prescribed in the national law/State law. In addition all such complaints and the action
taken thereof should be reported to IFAD. The responsibility of reporting for these is with
the Mission Director.
Contract Management
It is to be understood that procurement actions do not end when the contract or purchase
order is signed. The contractual obligations to be followed up systematically till the
intended results are achieved as a result of procurement and cessation of all legal
obligations as per the provisions of the contract with the parties.
During the course of contract administration, the receipt of goods/works as per the
technical specifications agreed to be monitored and any shortfall/shortcomings to be
informed to the supplier and made good. For Consultancy services, the contract
management acquires importance as any delay in achievement of deliverables as per the
timeline agreed, impact the project implementation. As per the Responsibility Matrix
(Annex 1) the contracts to be closely monitored for satisfactory performance and
occurrence of any force majeure conditions. Each payment to the consultancy services
should be properly validated against the contract provisions and deviations should be
communicated to the party, in writing. If unsatisfactory performance continues,
appropriate actions to be initiated with strict adherence to the contract. Frequent change
of staff without justification should be viewed as non-performance and action to be
initiated for suspension/termination.
All disputes related to the contract should be resolved through mutual consultation and if
unresolved disputes persist, arbitration process, as per the national law, should be
initiated. All contractors should sign an undertaking that without exhausting the arbitration
procedures, no judicial intervention should be proceeded. The results of arbitration will be
subject to judicial review.
The end date of the contracts should be closely monitored and if any
amendment/extension is warranted, these should be taken up sufficiently in advance.
Amendment or extension of contracts, which lapsed, should be strongly discouraged.
IFAD Client Portal-Contract Monitoring Tool (ICP-CMT)
All contracts irrespective of value should be entered into IFAD Client Portal-Contract
Monitoring Tool. ICP-CMT is an online tool, which is dynamic and enables good data
harvesting and analysis.
For access credentials, the Project should request IFAD by nominating users.
The Senior Procurement Specialist and the Procurement Officer should monitor and update
the contract details till completion and closing of contracts. Exceptions and Cost over-run
items should be reported to the Mission Director.
Appendix: C6A1: Responsibility Assignment Matrix
Task Component Procurement Senior Mission
heads Officer Procurement Director
Specialist
Preparation of AWPB R A
Preparation of Procurement Plan and C R A
upload in OPEN
Update/upgrade of PP R R
Monitoring achievement/delays in PP R A
Initiation of implementation C R
Finalisation of ToR, technical R I I A
specifications
Preparation of RFQ/RFP/Bid R R A
documents
Organise pre-bid meetings C R R
Issuing C R R A
addendum/corrigendum/clarifications
to the prospective bidders
Safe custody of bids/proposals R
received
Organise bid opening meetings and R I
preparation of minutes
Preliminary/administrative eligibility R C
evaluation
Constitute Technical Evaluation C C R/A
Committees
Briefing TEC and assist in the R
evaluation
Preparation of TEC Evaluation and R A
Combined Evaluation Reports
Conduct negotiations (in case of C R R I
services procurement)
Preparation of Draft R C
contract/Purchase Order
Handling debriefing/protests R A
Contract Signature R A
Safe custody of Securities R
Receipt/delivery of goods R
Monitoring Contract deliverables R I C
Update contract details in ICP-CMT R
Contract administration R I I
Maintenance of all documentation R
related to Procurement
Coordination with IFAD on R
procurement matters
Capacity building of junior R
procurement staff
Lead Procurement performance audit C R
Resolution of audit observations on R R A
procurement
Coordination with IFAD SM/ISM R R
R stands for Responsibility to undertake the task
A stands for Accountability/Approval
C – Consultation required
I – To be informed for further steps
Appendix: C6A2: Procurement Correspondence and Record Management
1. Keeping accurate records and evidence is key to a transparent and auditable
procurement process. It is therefore mandatory to keep accurate records of all
procurement process communications and use a procurement reference numbering
system to ensure a transparent and auditable procurement process.
2. Record-keeping of correspondence and communications are critical for effective
management of relations with bidders, suppliers, contractors and consultants since
these may commit or bind originators and recipients to a course of action which
can have legal, contractual or financial implications.
3. Documentary records in hard copy or electronic format are therefore essential for
efficient and effective management, as they provide the necessary evidence to
support decision-making and action. Moreover, they provide an audit trail that
permits the verification of transparency, accountability and effectiveness.
4. The IFAD require that the Lead Project Agency and/or the Government Department
retain documents and records for IFAD review at any time within 10 years of bid
or contract completion.
Document Preferred format
1. A copy of the published REOI advertisement Hard copy
or shortlist (if applicable)
2. A copy of the published pre-qualification and Hard copy
bidding documents and any amendments,
extensions or clarifications requested and
issued
3. A record of the tender opening, signed by all Hard copy
TEC members and the bidders present
4. A full copy of each bid received and evaluated, Hard copy
plus clarifications requested and responses
received
5. A copy of the signed evaluation report Hard copy
6. Signed minutes of all meetings related to the Hard or electronic
procurement, including pre-bid and copy
negotiation meetings, when held
7. A contract award notice Hard copy
8 Any letter of tender acceptance to the Hard copy
supplier, contractor or consultant
9 The signed contract document and contract Hard copy
acceptance
10. Any contract amendments Hard copy
11. All contractual correspondence between the Hard copy or
procuring entity and a supplier, contractor or electronic copy
consultant
12. Post-contract documents related to the Hard copy
fulfilment of contract obligations, especially
photocopies of bank guarantees or payment
guarantees
13. Signed minutes of any meetings related to Hard copy
contract management, including contract
progress or review meetings
14. Signed delivery documents evidencing Hard copy
delivery of supplies, or signed completion
certificates related to a contract for services
or works under the contract, including any
contract delivery records
15. A copy of all invoices for works, services or Hard copy
supplies, including working papers verifying
the accuracy of payments claimed and details
of the actual payment authorized
16. A copy of cumulative payment Soft copy
worksheets/records evidencing management
of all payments made
17. All decisions of the Government’s approval Hard copy
authority related to the procurement,
including the approval of the bidding
documents, the approval of the evaluation
report(s), the contract award, the approval of
contract documents and contract
amendments and any decision to suspend or
cancel procurement proceedings
18. A copy of any claims made by the procuring Hard or electronic
entity with respect to any warranty, non- copy
warranty, short supply, damage and other
claims against the contracted vendor or the
procuring entity
19. In the case of IFAD prior review, a copy of the Electronic copy
respective IFAD NO letter
20. any other communications related to the Hard copy or
procurement in question, including internal electronic copy
entity correspondence
 Appendix: C6A3: Terms of reference
Terms of Reference

Type: Senior Procurement Specialist

General Description of task(s) and objectives to be achieved

I. Background
Project Management Unit is the Lead Project Agency for implementing JKCIP in Jammu and Kashmir.
Project procurement is the responsibility of the LPA. The position of the Senior Procurement Specialist is
to lead on all procurement related matters with the oversight and administrative control of the Mission
Director.
II. Overall objective
The Senior Procurement Specialist will coordinate and support on all procurement actions of the project.
III. Roles and responsibilities
The responsibilities of the Senior Procurement Specialist will be as follows:
i. With reference to the project design document, IFAD procurement guidelines and
Procurement Handbook, draw up draft project procurement manual for the project for
approval by PMC and IFAD. Prepare and include relevant Community Procurement Guidelines
and formats, if required and include in the PIM.
ii. To update the initial 18-month Procurement Plan prepared during design and ensure that the
subsequent annual Procurement Plans are continuously updated in accordance with the
procedure and procurement plan agreed with IFAD.
iii. To liaise with IFAD procurement staff.
iv. To co-ordinate with concerned subject matter specialist on procurement matters, especially
preparation of TOR, technical specification etc.
v. To lead preparation of bidding documents, evaluation, letters of awards, draft contracts etc.
in the procurement of good/works and services including consultancies, in compliance with
IFAD Procurement Guidelines and Procurement Handbook.
vi. To submit necessary documents as per the Project Procurement Arrangements Letter, to IFAD
for those items subject to prior review.
vii. To facilitate/assist in getting NOC from IFAD wherever required.
viii. To co-ordinate with project team, organize and support evaluation committees for prompt
evaluation.
ix. To make necessary arrangement for contract signatures.
x. To supervise update of Contract Management details in IFAD ICP-CMT and prepare
amendment letters to the contracts. As part of the contract management, in coordination with
the concerned officials monitor the contractual provisions for compliance.
xi. To lead on providing capacity building and mentoring support to other PMU Procurement Staff
and Implementing Parties Procurement staff.
xii. To monitor and provide technical guidance to Implementing Parties’ procurement staff.
xiii. To keep progress of procurement activities against procurement timetables, highlight
variations in progress, record reasons and identify remedial actions, if any.
xiv. Assist Mission Director for placement of various documents/papers before Project
Management Committee for review and approval, all types of audits of procurement activities,
post review of IFAD, contracts exception reporting, etc.
xv. To liaison with any other appropriate authority for any dispute among the parties relating to
procurement.
xvi. To provide documentations and data to IFAD fielded Supervision Mission and Implementation
Support Missions.
xvii. To perform any other relevant work related to the project procurement assigned by the
Mission Director.
QUALIFICATIONS AND TIMELINE
IV. Required qualifications and experience
Qualifications & Experience:
a. Formal Academic from recognized University or equivalent:
a. Graduate in commerce, business, finance, engineering or management
b. Relevant Training:
• Purchasing management and procurement systems
c. Work Experience
Post qualification, minimum ten (10) years of demonstrated managerial experience in managing
procurement in the organization with complete understanding and experience on national procurement
procedure, especially preparation of Expression of Interest, Notice Inviting Tender, Terms of Reference,
Request for Proposal and bidding document for procurement of consultant services, goods and works.
Preference will be given for experience in handling procurement funded by external agencies like World
Bank, ADB, IFAD etc.
Desirable Qualification:
(a) Post Graduate Diploma in Material/Supply Management
(b) Thorough knowledge of procurement procedures of International Financial Institution financed
projects.
(c) Completion of Procurement training from a national level institute
(d) MBA from any recognised university or institute.
Preferred Skills:
▪ Good written and verbal communication skills
▪ Computer literacy general MS package
▪ Proficient in computer based spread sheets for data analysis
▪ Proactive, work with minimum supervision, and as a team builder

V. Duration and timeline

The position is for the duration of the project. Incumbent will be hired initially for one year, with annual
extension based on performance.

Terms of Reference

Type: Procurement Officer (PMU)

General Description of task(s) and objectives to be achieved

I. Background
Project Management Unit is the Lead Project Agency for implementing JKCIP in J&K. Project procurement
is the responsibility of the LPA. The position of the Procurement Officer is to assist the Senior
Procurement Specialist on all procurement related matters.
II. Overall objective
The Procurement Officer will report to the Senior Procurement Specialist on all project procurement
matters and will be under the administrative control of the Mission Director.
III. Roles and responsibilities
The responsibilities of the Procurement Officer will be as follows:
 i. To co-ordinate with concerned subject matter specialists on procurement matters, especially
preparation of TOR, technical specification etc.
ii. To assist in preparation of bidding documents, and other documentation
iii. To manage the receipt and safe storage of quotations/bids/proposals
iv. To co-ordinate with project team, organize and support evaluation committees for prompt
evaluation.
v. To update of Contract Management details in IFAD ICP-CMT and prepare amendment letters
to the contracts. As part of the contract management, in coordination with the concerned
officials monitor the contractual provisions for compliance.
vi. To monitor the MPA Procurement progress and inform Senior Procurement Specialist on the
challenges and delays
vii. To review the compliance of the community institutions to the Community Participation
Procurement Guidelines and ensure all required documents are correctly maintained
viii. To keep progress of procurement activities against procurement timetables, highlight
variations in progress, record reasons and identify remedial actions, if any.
ix. To ensure correct maintenance of procurement correspondence and documentation required
in hard copy files or electronic copy.
x. To provide documentations and data to IFAD fielded Supervision Mission and Implementation
Support Missions.
xi. To perform any other relevant work related to the project procurement assigned by the Senior
Procurement Specialist or the Mission Director.

QUALIFICATIONS AND TIMELINE

IV. Required qualifications and experience
Qualifications & Experience:
a. Formal Academic from recognized University or equivalent:
Graduate in commerce, business, finance or management
b. Relevant Training:
• Purchasing management and procurement systems
c. Work Experience
Post qualification, minimum 5 years of demonstrated managerial experience in procurement in the
organization with complete understanding and experience on national procurement procedure.
Minimum of one year of experience in handling project procurement in an externally aided project.
Desirable Qualification:
(a) Post Graduate Diploma in Material/Supply Management
(b) Completion of Procurement training from a national-level institute or completion of procurement
training conducted by an IFI.

Preferred Skills:
▪ Good written and verbal communication skills
▪ Computer literacy general MS package
▪ Proactive, work with minimum supervision, and as a team player

V. Duration and timeline

The position is for the duration of the project. The incumbent will be hired initially for one year, with
annual extension based on performance.
Terms of Reference

Type: Procurement Officer (Put name of Implementing Parties )

General Description of task(s) and objectives to be achieved

I. Background
Project Management Unit is the Lead Project Agency for implementing JKCIP in JK. Project procurement
is the responsibility of the LPA. The position of the Procurement Officer is to assist the Senior
Procurement Specialist on all procurement related matters.
II. Overall objective
The Procurement Officer will report to the Senior Procurement Specialist on all project procurement
matters and will be under the administrative control of the Director of implementing party.
III. Roles and responsibilities
The responsibilities of the Procurement Officer will be as follows:
i. To co-ordinate with concerned subject matter specialists on procurement matters, especially
preparation of TOR, technical specification etc.
ii. To assist in preparation of bidding documents, and other documentation
iii. To manage the receipt and safe storage of quotations/bids/proposals
iv. To co-ordinate with project team, organize and support evaluation committees for prompt
evaluation.
v. To update of Contract Management details in IFAD ICP-CMT and prepare amendment letters
to the contracts. As part of the contract management, in coordination with the concerned
officials monitor the contractual provisions for compliance.
vi. To monitor the MPA Procurement progress and inform Senior Procurement Specialist on the
challenges and delays
vii. To review the compliance of the community institutions to the Community Participation
Procurement Guidelines and ensure all required documents are correctly maintained.
viii. To keep progress of procurement activities against procurement timetables, highlight
variations in progress, record reasons and identify remedial actions, if any.
ix. To ensure correct maintenance of procurement correspondence and documentation required
in hard copy files or electronic copy.
x. To provide documentations and data to IFAD fielded Supervision Mission and Implementation
Support Missions.
xi. To perform any other relevant work related to the project procurement assigned by the Senior
Procurement Specialist or the Implementing Party Director.

QUALIFICATIONS AND TIMELINE

IV. Required qualifications and experience
Qualifications & Experience:
c. Formal Academic from recognized University or equivalent:
Graduate in commerce, business, finance or management
d. Relevant Training:
• Purchasing management and procurement systems
d. Work Experience
Post qualification, minimum 5 years of demonstrated managerial experience in procurement in the
organization with complete understanding and experience on national procurement procedure.
Minimum of one year of experience in handling project procurement in an externally aided project.
Desirable Qualification:
(a) Post Graduate Diploma in Material/Supply Management
(b) Completion of Procurement training from a national level institute or completion of procurement
training conducted by an IFI.

Preferred Skills:
▪ Good written and verbal communication skills
▪ Computer literacy general MS package
▪ Proactive, work with minimum supervision, and as a team player

V. Duration and timeline

The position is for the duration of the project. The incumbent will be hired initially for one year, with
annual extension based on performance.
Terms of Reference

Type: Procurement Assistant (PMU)

General Description of task(s) and objectives to be achieved

I. Background
Project Management Unit is the Lead Project Agency for implementing JKCIP, JK. Project procurement is
the responsibility of the LPA. The position of the Procurement Assistant is to assist the Senior
Procurement Specialist and Procurement Officer on all procurement related matters.
II. Overall objective
The Procurement Assistant will report to the Senior Procurement Specialist on all project procurement
matters and will be under the administrative control of the Mission Director.
III. Roles and responsibilities
The responsibilities of the Procurement Assistant will be as follows:
i. To assist in preparation of bidding documents, and other documentation
ii. To manage the receipt and safe storage of quotations/bids/proposals
iii. To update of Contract Management details in IFAD ICP-CMT.
iv. To maintain and update list of registered vendors for different procurement categories
v. To maintain the procurement documentation in appropriate filing procedures
vi. To maintain all the reference documents related to Procurement
vii. To ensure the advertisements/notices are published in newspapers/project website and
Government of JK e-procurement portal.
viii. To update project website on award of contracts
ix. To perform any other relevant work related to the project procurement assigned by the Senior
Procurement Specialist or the Mission Director.

QUALIFICATIOSN AND TIMELINE

IV. Required qualifications and experience
Qualifications & Experience:
a. Formal Academic from recognized University or equivalent:
Graduate in any discipline
b. Work Experience
Post qualification, at least 3 years of handling administrative issues in an organization
Preferred Skills:
▪ Good written and verbal communication skills
▪ Computer literacy general MS package
▪ Proactive, willing to learn

V. Duration and timeline

The position is for the duration of the project. The incumbent will be hired initially for one year, with
annual extension based on performance. Within 6 months of appointment, s/he has to undergo Project
Procurement training organized by IFAD.
 Annex 4

Appendix C6A4 : Project Procurement Strategy Document

JKCIP Project Procurement Strategy (PPS)

Project Overview

Country India
State of Jammu and Kashmir (JK)
Programme Area (as per design) 90 blocks over 20 districts of the K
Full Project Name Competitiveness Improvement of the Agriculture
and Allied Sectors Project in Jammu and Kashmir
(JKCIP)
Project ID 2000003933
IFAD Loan amount (tentative) US $ 100 200 000
Loan Number TBC

Potential contracts in the first 18 months

High value and urgently needed contracts which have an impact on the implementation

Consulting Services

• Hiring of 23 individual consultants as experts

• Baseline survey
• Trainings for beneficiaries – Trainers, farmers, entrepreneurs, and staff
• Studies
• Establishment of COEs
• FPO business plan preparation etc.

Goods

• Procurement of equipment for quality control labs - 2 labs (US$ 250,000)

• Procurement of 2000 Ice Boxes for fish (US$ 122,000)
• Procurement of office equipment

Works

Nil

The cost table identifies and budgeted other procurement activities throughout the
implementation period. During the implementation, the PMU is required to plan the
procurement activities in line with the annual budget planning.

Overview of Country, Borrower and Marketplace

Operational Context

Governance aspects: India is a sovereign, socialist, secular, democratic republic with a

parliamentary system of government based on the principle of universal adult franchise.
The federal structure of India comprises the central (federal) level, 28 states, and nine
union territories (UTs). The size of the expenditure budget of states has increased over
the years owing to revenue augmentation by the states as well as increased devolution
from the Central Government. The state Governments are assuming greater responsibility
in governmental spending in the country. States primarily rely on three sources for
financing this expenditure: (a)own resources (approximately 44 percent), (b) transfers
from the central government (approximately 35 percent), and (c) borrowings
(approximately 21 percent).

The Constitution of India lays down the framework demarcating fundamental political code,
structure, procedures, powers, and duties of government institutions and sets out
fundamental rights, directive principles, and the duties of citizens. Article 53 of
Constitution of India vests the executive powers of the Union of India with the President
of India. The two articles directly related to procurement are 298 and 299. Article 298 of
the Constitution stipulates that executive power of the union and each state shall extend
to any trade or business activities and to the acquisition, holding, and disposal of property
as well as the conclusion of contracts for any given purpose, and Article 299 stipulates
entering of contracts. Article 299 authorizes the central and the state governments to
contract for works, goods, and services and requires the executive to protect the
fundamental rights enshrined in the Constitution which have implications for public
procurement. The Constitution allocates some subjects to the Union government, some to
the states, and some concurrently to both. Procurement falls under the concurrent list.

Procurement Policy Division prepared model tender documents for goods, works and ser-
vices. However, these are for the use of the Central Ministries and Central Public Sector
Enterprises. As procurement is decentralized, most State Governments use their own
bidding documents with varying standards. However, there are no standard/model bid-
ding documents for goods, works, services, and consultancy at the at the J&K level. In
the foreword to the manual by MoF, the finance Secretary has mentioned as –“Manuals
issued by this Department are to be taken as generic guidelines, which have to be neces-
sarily broad in nature. Ministries/Departments are advised to supplement this manual to
suit their local/specialized needs, by issuing their own detailed manuals (including cus-
tomized formats); Standard Bidding Documents and Schedule of Procurement Powers to
serve
In lineas detailed
with instructions risk
the procurement for their own procuring
assessment, officers.”
procurement under JKCIP will follow IFAD
Procurement Guidelines and IFAD Procurement Handbook. Both Government of India and
the State Governments recognises precedence of international obligations like IFIs
Financing Agreements to use IFI procurement guidelines and document templates.
Government of JK has implemented few externally aided projects in different sectors but
this will be first ever externally aided project to be implemented by Agriculture Production
Department.

The federal procurement framework incorporates two broad types of procurement

purchase preferences. First is the ‘Make in India’ policy, which is a purchase preference
for local suppliers who can demonstrate at least 50 percent local content (eligible supplier).
The second type of preference is a purchase preference relating to micro, small, and
medium enterprises (MSMEs), disadvantaged groups, and start-ups. MSMEs are also
exempted from paying certain tender-related fees.

Economic aspects: Government JK is committed to provide counterpart funds and also

proactively endeavour to link the convergence of Union and J&K Government schemes
funds to the project communities, through coordination at high levels of Government.
Funds utilisation at sub-units and at community level to be monitored with adequate
treasury management practices. As the implementation is spread over large geographical
area and the national capacity and availability of locally manufactured products and civil
contractors, no international bidding requirements are there in the project procurement
approach.

Sustainability aspects: Use of renewable energy sources will be promoted, wherever

feasible and positive lifecycle costs. The proposed environmental and social category for
JKCIP project is moderate, based on the SECAP screening tool. The SECAP climate risk
rating stands as moderate. The project will solicit and adopt cost-effective, structurally
sound structures to address natural disasters situations. Revenue streams for maintenance
and upkeep of public good structures will be implemented with community participation.

Technological aspects: General Financial Rules (GFR) mandates that beyond a threshold
value of INR 25 Lakhs, all public procurement to be open tender and use e-procurement
portal for receiving bids/proposals. All such advertisements are to be published on CPPP
(Central Public Procurement Portal). Manual for goods issued by MoF, GoI also prescribes
publishing of these opportunities on GeM. PMU, JKCIP will obtain credentials for GoJK e-
Procurement System. This system allows online payment. The project will also introduce
e-office suites for PMU. Directorates have already been using e-office. This would
streamline the approvals and enable archiving of documents electronically. In addition,
mobile apps will be used to enter and validate M&E data with links to project and
government monitoring portals.

Implementing Agency Capability Assessment

The IFAD-financed project will be implemented through a dedicated Project Management

Unit within the Department of Agriculture Production and Farmers Welfare, Government
of JK and six implementing parties including Directorate of Agriculture (Jammu, Kashmir),
Directorate of Horticulture (Jammu, Kashmir) and Shere Kashmir University for Agriculture
Science and Technology (Jammu, Kashmir). Implementing parties are government
departments.

Procurement at JK exhibits some weaknesses in advance planning, bids evaluation quality

and contract management issues. The Directorates do not have dedicated Procurement
Unit staffed by experienced procurement professionals. Generally 1-2 staff have been
engaged for procurement without sufficient exposure to public procurement and IFI
procurement guidelines. This project also envisages some small works procurement
through community participation. Community procurement exposes the project to
significant weaknesses in maintenance of procurement documents and financial execution.
Monitoring of community procurement will have to be undertaken at Directorates’ and PMU
level.

Recognising the lessons learnt on the unsatisfactory performance of procurement functions

in other projects, several mitigation measures as below are proposed to be implemented
to strengthen project procurement functions.

i) A dedicated Procurement Unit will be established with a Senior Procurement

Specialist as head assisted by a Procurement Officer and Procurement Assistant
at PMU. In each of the six implementing parties, one procurement officer will
be engaged.
ii) A comprehensive training on procurement aspects will be organised.
iii) Though the initial 18-month PP, big ticket items are planned which will speed
up the implementation. Many of the critical consultancy service engagement to
be completed before entry into force.
iv) Performance evaluation and achievement of identified deliverables is a
compulsory provision and any shortfall to be followed up for resolution.
v) Responsibility Matrix designed and included in PIM.
vi) Audit will also review procurement performance at all levels.
vii) Large agricultural inputs procurement will be planned in advance of the planting
season and appropriate LTA deployed.
viii) Community participation procurement to be limited to NRM with a cap of USD
5000 equivalent for each activity.
ix) IFAD End-to-End Procurement system (OPEN) and its subsequent
enhancements will be deployed.
x) A second level appellate authority will be notified for all procurement protests.
 xi) Government of JK e-procurement system (JK Tender) will be used for soliciting
bids, opening and notification of award.
xii) Project website will have dedicated page for tenders and awards.

Need for hands-on support

Coupled with weaknesses in current procurement, this project is first externally aided
project for this department. Hence hands on support is considered absolutely essential.

Contract management capability and capacity

• The Director nominates a committee to verify quality and quantity, who certifies
the correctness. However, no clear contract management procedures.
• No comprehensive contract management plan for major contracts in place
• As per discussions, variations are rare. As per existing practice, concerned Director
and chief officers in district have powers to amend contract within their powers for
contract approval. However, schedule of power notification no. A/PS/DC/2019-62
dated 9 January 2020, does not mention about contract amendment.
• For goods, quantity and specifications are verified against the contract. For works,
check measurement is done for final payment. For services, acceptance of
deliverables need improvements.
• The Government maintains an online platform named BEAMS (Budget Estimate
Allocation and Monitoring Systems). Funds are allocated virtually to approved
projects and funds are virtually disbursed though physically funds remain with the
treasury of the government. As soon as contract obligations are met, the DDO
certifies payment on the platform and payment is directly transferred to the
beneficiary. If funds are available, transfer is made within a day and it could take
more time if funds are not available with the treasury.
• The contractual provisions include arbitration proceedings for dispute resolution if
model tender document used. However, at directorate level, it is missing in most
cases.

Complaint management and dispute resolution system-

• There is no effective complaint handling mechanism. First complaint is to procuring

entity and appeal is to be made to LG Grievance cell. No record of complaints on
the procurement noted.

Procurement trends

Public procurement accounts for a significant level of public expenditure and hence
strengthening public procurement systems is central to achieve concrete and sustainable
results, build effective institutions, and gain substantial savings in the use of scarce public
resources. Public procurement has a strategic function as a mechanism for supporting
economic development, conserving and making optimum use of resources through
application of sustainable criteria, and increasing job creation and private sector growth
including enhanced participation of small and medium enterprises in a country.
Government expenditure through public procurement has long been used as a means of
stimulating growth at all levels (national, regional, and local), including accomplishing the
government’s vision and mission.

The Government of India (GoI) has progressively undertaken various initiatives in

reforming its public procurement system during the past many years, including setting up
a functional Procurement Policy Division (PPD) at the Department of Expenditure, GoI,
revising the General Financial Rules (GFRs), preparing procurement category-wise
manuals, adopting the electronic government procurement (e-GP) platform, and setting
up the Government Electronic Marketplace (GeM), among many initiatives.
One of the key initiatives implemented by the government is the e-procurement system,
which enables suppliers to submit bids electronically and allows for greater transparency
and efficiency in the procurement process. The system has been successful in reducing
the time and cost of procurement, as well as improving the quality of goods and services
procured. The system is also available as an application in Google Play. Payment of fees
and EMD are also linked to the system, eliminating paper securities.

Market analysis of construction sector

With the booming Indian economy, construction of infrastructure (roads, highways and
real estate) was well developed. There are sufficient groups of players (large, medium,
and small) servicing this sector at the State level. In rural areas, the availability of
suppliers is limited to 4-5, as this sector employs manual labour along with equipments.
It is difficult for a contractor to move beyond his operational area due to labour
mobilization etc. Cartelisation happens to some extent due to the small pool of available
suppliers. For this project, works procurements have not been envisaged.

Market analysis of supply sector

India’s economy has been growing steadily over the past decade, with an average annual
growth rate of around 6% and the country has emerged as the fifth largest economy in
the world. This has led to an increase in consumer spending, which has created
opportunities for businesses operating in various sectors.

The market for goods and services in India is diverse, with opportunities in sectors such
as agriculture, manufacturing, retail, tourism, and telecommunications. Agriculture is the
backbone of India's economy, with about 54% of the population engaged in farming. For
2022-23, the share of Gross value added (GVA) of agriculture and allied sectors in total
economy at current prices is 18.3% and growth of GVA of agriculture and allied sectors
for the year is 3.3%. There are opportunities in the agriculture sector for businesses that
supply inputs such as seeds, fertilizers, and machinery, as well as for those involved in
processing and exporting agricultural products.

India has a very robust seed system comprising both public sector institutions and private
seed companies. However, last mile delivery is fragmented with small suppliers and
traders.

Analysis of Consultancy Market

The consultancy market in India has been growing steadily in recent years, driven by
increasing demand for professional services across various sectors of the economy,
including government, private businesses, and non-profit organizations. The Government
of India has been actively promoting entrepreneurship and private sector development,
leading to an increase in demand for consultancy services in areas such as business
planning, market research, and investment advisory. Heavy public investment in
infrastructure has also created opportunities for consultancies to offer services related to
project management, feasibility studies, and technical assistance.

Overall, the consultancy market in India is expected to continue growing in the coming
years, as the country continues to implement its development agenda and attract
investment from both domestic and international sources.
 Procurement Risk Analysis for abovementioned contract/group of similar
contracts

Procurement Type Risks Mitigation Measures

Works Contracts • Very small dispersed works not • Packaging of works to be done
(though not preferred by the contractors to attract the suppliers
envisaged for this • Lack of qualified supervision • Solicit prototypes of
project except very • High cost of maintenance climate/disaster proof models.
small works • High cost of construction • Promote alternative materials
through materials
community)
Goods Contracts • No proper need assessment • Conduct detailed needs
conducted. assessment.
• Dispersed destination delivery not • Engage in proper advance
preferred by the suppliers. planning to ensure goods are
• Small traders in the rural areas obtained in time, without
do not have the capacity to delaying implementation.
supply. • Use Long Term Agreements
• Low quality seeds with multiple suppliers for
• No advance planning for cropping regularly required goods.
seasons
Consultancy • Growing but still small market • Comprehensive TORs to ensure
Services Contracts may result in inadequate selection of qualified suppliers.
expertise in various fields. • Automatic advertisement of
• Project has difficulty in procurement notices in E-
estimating/evaluating the price, procurement system
as no benchmark price available • Engage technical resource
• Oligopolistic market may persons in evaluating the
constrain competition proposals

Procurement Objective for abovementioned contract/group of similar contracts

(related to the 5 Rs)

1. Maximize Value for Money

2. Timely completion of contracts
3. Achieve adequate competition
4. Selection of qualified suppliers with good track record in implementation
and addressing of SECAP concerns

Recommended Procurement Approach for the Project Procurement Approach

Works Contracts:

Attribute Selected arrangement Justification

Summary/Logic
Specifications (SECAP Conformance SECAP compliance requirements
compliance) to be adhered:
i) No child labour to
be employed
ii) Strict oversight for
structural stability
iii) Mitigation of OSH
risks by following
statutory legal
requirements
iv) Making available
rest sheds for
workers
v) Deployment of
 skilled labour to
operate heavy
equipments.
Sustainability Yes
Requirements
Contract Type A. Traditional Most of the works' contracts
follow the normal contracting
process. These are easy to
manage.

Pricing and costing A. Schedule of These two methods are

mechanism Rates/Admeasurement applicable and can be used in
B Percentage basis (when detailed the pricing and cost mechanism
BoQ is not feasible) of these contracts.

Supplier Relationship A. Collaborative

Price Adjustments A. None, fixed price Fixed Price applies or
Admeasurement price for small
variations authorized.

Form of Contract D. State any special conditions of Include SECAP compliance

(Terms and contract requirements clearly.
Conditions)

Selection Method A. Requests for Quotations(RFQ) NCB requirements deter

contractors to submit bids. Also
the works are dispersed and
small.
Selection Arrangement A. Commercial Practices In some instances, the market
provides the best option

Market Approach A. Type of Competition Open competition places the

1. Advertised RFQ bids to the entire market to
B. Number of Envelopes/Stages obtain
1. Single Envelope
No negotiations are allowed on
works contracts

C. Negotiations - No

Pre / Post Qualification Since bids are advertised in the

B. Post-Qualification open market, Post qualification
is the most ideal method.

Evaluation of Costs A. Adjusted Bid Price (corrected for Adjusted bid price is the most
a bidder’s minor deviations) ideal method. Before award,
bidder has to accept the
corrected price.
• Domestic No All bidders are domestic. No
Preference international bidders would be
interested due to small
packages.
 • Rated Criteria List the type of criteria to be used Lowest Price on BoQ or Lowest
(mandatory) Evaluated cost.

Debriefing Preferred To be conducted after award to

identify the errors/failure to
submit documents. This would
increase the credibility of the
organization to widen the
competition.

Goods Contracts:

Attribute Selected Justification

arrangement Summary/Logic
Specifications (SECAP Conformance For agricultural inputs
compliance) (seeds/plant materials) all the
materials should have been
authorized by the Government
for release.
In case of pesticides, no
prohibited pesticides to be
procured.
Sustainability Yes Sustainability should always be
Requirements considered in all procurement
activities
Contract Type For the proposed project, only
Traditional based
standard traditional contract
on Employer’s/ IA
may apply for procurements of
A. A. Traditional based on design
goods.
Employer’s/IA design

B. Design and Build (design by

contractor)
C. Design, Build, Operate,
Maintain

Pricing and costing A. Lump Sum Lumpsum pricing serves well in

mechanism most of the procurement of
goods for the project
A. Lump-Sum

B. Performance based
contracts

C. Schedule of
Rates/Admeasurement

D. Time and Materials

E. Cost Plus

Supplier Relationship A. Collaborative Collaborative relationships work

well where suppliers agree on
Adversarial/Collaborative the prices and terms to be met.
Price Adjustments A. None, fixed Fixed prices will apply to
price procurement of goods as no
negotiations are allowed for
A. None, Fixed Price procurement of goods. Contract
duration is not expected to be
B. Negotiated or MoA
more than even one year.
C. Percentage
Form of Contract (Terms D. State any special
and conditions of
Conditions) contract

Selection Method A. Requests for Bids (RFB) Most of the

B. Requests for procurements will go
Quotations (RFQ) through RFB to give an
opportunity for
C. Direct Selection
competition and a wide
range of competitors.
Need assessment to be
done and technical
specifications in a range
(not exact leading to a
particular brand/model).
Conduct market survey.
Direct selection only for
very low value
consumables for office
equipments.

Selection Arrangement A. Commercial Practices Both these methods

B. Framework could be used.
Agreements/LTA

Market Approach A. Type of Competition Most of these tenders

1. Open are open to encourage
competition amongst
2. Advertised RFQ
suppliers in the market
3. Direct contracting
(for low value) Single Envelope will be
4. Government E- used for procurement of
Market Place (GEM) goods.
without bids.
No negotiations are
B. Number of allowed for procurement
Envelopes/Stages of goods.
1. Single Envelope

C. Negotiations (No)

Pre / Post Qualification A. Post-Qualification Good supplier pool

available as such post-
qualification will be the
most ideal method to be
used.
Evaluation of Costs A. Bid Price (exclusive of Bid price substantially
taxes) compliant to the
B. Life-Cycle Costs specifications. Life cycle
costs to be considered
for capital assets like
machinery (for agro
processing)
• Domestic No International bidding not
foreseen. All domestic
Preference
suppliers (manufactured
or already imported
prior to supply)
• Rated Criteria Mandatory Best evaluated price
substantially responsive
to requirements.
 Consultancy Services Contracts:

Attribute Selected arrangement Justification

Summary/Logic
Specifications (SECAP Conformance When used on
compliance) TA/advisory role,
SECAP requirements to
be adopted for final
report, which has
implications for
downstream
procurement.
Sustainability Yes Sustainability will be a
Requirements mandatory requirement
for any procurement
carried out in this
project.
Contract Type A. Traditional Most of the consultancy
contracts will follow the
traditional method

Pricing and costing A. Lump Sum Most of the consultancy

mechanism B. Time based contracts will be lump
sum. However, any of
these methods can be
used.

Supplier Relationship A. Collaborative Collaborative

relationship will apply in
all contracts with
consultants
Price Adjustments A. Yes, beyond 24 Both Fixed Price and
months negotiated contracts
B. Negotiated methods will be used.
Price adjustments to be
done for long term
contracts beyond 24
months. The consultant
and the Client to agree
on the modality of
increase.
Form of Contract D. State any special Legal recourse to
(Terms and conditions of dispute resolution only
Conditions) contract after exhausting all
appellate and
arbitration avenues.
Replacement of team at
contract stage not
allowed. Long term
contracts, exceeding 12
months, each
 replacement requires
Client approval.
Frequent replacements
lead to suspension and
termination.
Selection Arrangement A. Commercial Practices Selection arrangements
B. United Nations (UN) will be based on
Agencies standard commercials
C. Government agencies practices.
on single source
D. Single source

Market Approach A. Type of Competition Competition is national.

1. Open In very isolated cases
2. Limited direct selection could
also be used.
3. National
5. No
Competition -
Direct Selection
B. Number of
Envelopes/Stages
1. Two Envelopes
3. Single Stage
4. Multistage
C. Negotiations (Yes)

Pre / Post Qualification A. Pre-Qualification Shortlisting (pre-

B. Post-Qualification qualification) applies to
C. Initial Selection majority of the cases.
(limited tendering) Where the assignment
is specific (like audit
where there is
hesitancy to submit
pre-qualification
documents, due to ICAI
advisory, post
qualification could be
used.
Consultant Selection & A. Quality Cost Based All these are
Evaluation Method Selection (QCBS) acceptable. QBS is to
B. Fixed Budget Based be used exceptionally.
Selection (FBS)
C. Least Cost Based
Selection (LCS)
D. Quality Based
Selection (QBS)
E. Consultant’s
Qualifications Based
Selection (CQS)
D. Direct Selection
Evaluation of Costs A. Adjusted Bid Price Both methods are
(after negotiations) applicable
 • Domestic No No
Preference
• Rated Criteria List the type of criteria to Highest combined score
be used for QCBS. Highest
(mandatory/desired) technical score within
budget (FBS). Highest
technical score with
lowest financial cost.
Though QBS is allowed,
it is not generally used
for rural development
projects.
Government official If the proposed
(serving/retired/resigned) consultant is a
as part of consultancy team government official,
IFAD may agree on a
case-by-case basis to
the hiring of a
government official of
the Government under
consulting contracts in
the Borrower/Recipient
country, either as an
individual or as a
member of the team of
experts proposed by a
consulting firm, only
when:

a) the services of the

government official of
the Borrower
Government are of a
unique and exceptional
nature, or his/her
participation is critical to
project implementation;

b) his/her hiring would

not create a conflict of
interest;

c) his/her hiring does

not conflict with any
laws, regulations, or
policies of the
Government; and

d) he/she is on an
unpaid leave of absence
granted by the current
government employer.

The contract of the

concerned government
 official (proposed
consultant) with its
government employer
needs to have ended
(resigned or retired) or
has been halted for the
duration of the
assignment and an
official letter from its
current employer to this
effect must be
submitted.

Engagement of Government agencies

Memorandum of Agreement (MOA) is a form of procurement contract entered between the

borrower and a party or parties of special legal status like a ministry, state agency, UN
agencies or other international organizations. The MOA specifies the exact service outputs
to be delivered, the delivery schedule and stipulates the corresponding service fees and
payments over a specified period of time.

Used typically for specialized non-commercially operating providers of a special legal

status.

The use of MOA with private firms is not permitted.

Justification to ensure the best value for money for the project compared to a competitive
procurement process involving the private sector.

Payment of any kind of salary to government staff is prohibited. Their DSA/per diem, travel
and related expenditures to deliver the services or activities specified in the MOA are
permissible.

The MOA is written in the template (Letterhead) of the originating ministry/state entity.

The MOA cannot be legally enforced in normal courts, therefore the risk of non-compliance
needs to be reduced as much as possible.

Clear payment modalities (time-based or output-based) and payment schedule needs to

be included with a high last (final) payment subsequent to full delivery and acceptance.

The MOA should automatically terminate after its expiry (maximum 12 months) and
without any automatic extension. If needed, the MOA can be extended beyond 12 months
but any extension is subject to positive performance evaluation and completion of
identified deliverables. Delay in performance should not be a reason for extension beyond
12 months.

Initial engagement and extension is subject to IFAD prior review irrespective of value and
must be supported with a strong justification why entering into a MOA with the designated
entity represents the best option and best value for money for the project compared to a
competitive procurement process.
Contract Management

It is to be understood that procurement actions do not end when the contract or purchase
order is signed. The contractual obligations to be followed up systematically till the
intended results are achieved as a result of procurement and cessation of all legal
obligations as per the provisions of the contract with the parties.

During the course of contract administration, the receipt of goods/works as per the
technical specifications agreed to be monitored and any shortfall/shortcomings to be
informed to the supplier and made good. For Consultancy services, the contract
management acquires importance as any delay in achievement of deliverables as per the
timeline agreed, impact the project implementation. As per the Responsibility Matrix of
PMU Staff (as included in PIM) the contracts to be closely monitored for satisfactory
performance and occurrence of any force majeure conditions. Each payment to the
consultancy services should be properly validated against the contract provisions and
deviations should be communicated to the party, in writing. If unsatisfactory performance
continues, appropriate actions to be initiated with strict adherence to the contract. In
consultancy contracts, replacement of team members should not be authorized within 12
months except under extraneous or medical conditions. Frequent change of staff with or
without justification should be viewed as non-performance and action to be initiated for
reduction in management cost and/or suspension/termination of contracts following due
process.

All disputes related to the contract should be resolved through mutual consultation and if
unresolved disputes persist, arbitration process, as per the national law, should be
initiated. All contractors should sign an undertaking that without exhausting the arbitration
procedures, no judicial intervention should be proceeded. The results of arbitration will be
subject to judicial review.

The end date of the contracts should be closely monitored and if any
amendment/extension is warranted, these should be taken up sufficiently in advance.
Amendment or extension of contracts, which lapsed, should be strongly discouraged.

Procurement Audit

Procurement is one of the key driver in project implementation. The procurement

management is a process that describes how the public resources should be managed until
the closure of the contract, to obtain project objectives. These include preparing the
independent estimates, constraints, assumptions, procurement documents, bidding and
sourcing of suppliers/technical assistance/consultancy services.

A procurement audit is a project management process that reviews different contracts and
contracting processes to determine the completeness, efficiency as well as the accuracy
and transparency of the procurement process. It is a structured review that stems from
the planning of procurement process through the procurement cycle.

The objective of this particular process is to determine the success and failures that require
acknowledgement during the implementation which would inform the Project management
to resolve problem areas of internal control.

Procurement audit is basically a method in project management that formally evaluates

the performance of the procurement processes being practiced. It is also used to create a
record that can be used to shape and streamline the procurement practices of the
organization.
It is to be understood that the internal audit team which performs the procurement audit
function should deploy qualified persons with procurement skills and experience. The ToR
should identify the methodology and sampling checks and tools for compliance. The
procurement audit observations and the management responses to resolve these should
be submitted to IFAD and placed before the Project Management Committee or Project
Steering Committee.

Procurement Capacity Development

The procurement staff engaged for the project should have benchmark qualifications and
skills. No staff should be engaged without the benchmark skills.

The capacity of the procurement staff will be augmented in the following manner:

i) Senior Procurement Specialist and the Procurement Officer should be

nominated for the Training Programme on Project Procurement (Basic and
Advanced) conducted by Arun Jaitley National Institute of Financial
Management within 3 months of engagement.
ii) ITC/ILO has a project procurement training programme (Blend of online and
offline), BUILDPROC. BUILDPROC is a capacity-building programme in
procurement for agricultural and rural development. The cost of the programme
would be borne by the project resources. To retain the talent, the PMU may
specify minimum number of years of service to be completed, beyond
certification.
iii) IFAD India Country Office will conduct additional need based training
programmes through its staff and accredited procurement consultants.

Procurement Supervision Plan

IFAD will field an annual Supervision Mission to the project and the Procurement Specialist
in the mission among other issues will (i) review the procurement contracting and
implementation processes and timeliness and appropriateness of procurement actions; (ii)
assess contract administration and management procedures and review the completeness
and updated nature of contract data in the Contract Monitoring Tool; (iii) determine
whether adequate systems are in place for procurement planning, implementation and
monitoring, and whether procurement documentation and records (including securities)
are maintained as per required standards and can be relied upon.

In addition to the annual Supervision Mission, IFAD India Country Office will also organise
a Startup workshop within 2 months from entry into force. Procurement workshop will be
either part of the start up workshop or will be separately organised with in two months
from entry into force.

Additional specific adhoc support missions will also be fielded by IFAD.

 Annex 5

Appendix C6A5 : SECAP and Procurement Actions

Environmental and Social Safeguards

Risk
Biodiversity conservation Consequence Guidance for Project
Rating

1.8 Could the project involve or lead Moderate Minor No major construction is envisaged in
to procurement through primary this project. However, depending on the
Project may possibly require
suppliers of natural resource type of construction project in
procurement of natural resources
materials? discussion with PMU, adequate
through primary suppliers, and
requirement as part of bid document
resource extraction is tightly
will be incorporated.
regulated. Alternatives to
procurement of natural resources These provision does not need to be
through primary suppliers exist. incorporated for types of construction
work or activities where it is not
feasible to obtain nor identify sources
of materials in remote rural locations.

Resource Efficiency and Risk

Consequence Guidance for Project
Pollution Prevention Rating

2.6 Could the project involve inputs Moderate Minor Project to include in the tender
of fertilizers and other modifying document a list of approved/certified
The project requires minimal use of
agents? chemicals and incorporate them in the
fertilizers.
contract. The list of approved/certified
chemicals would be based on existing
national regulation.

Indigenous Peoples Risk Consequence Guidance for Project

Rating

4.1 Could the project be sited in Moderate Negligible

areas where indigenous people are
 present (including the project area of The project is not sited in areas Procurement packaging to work with
influence)? commercialization or use where indigenous people are present. community directly (community
of their traditional knowledge and participation in procurement) with
practices? indigenous knowledge, technology and
material.

Bidder required to have past knowledge

or experience and potential include
some form of compensation to
indigenous people, if it is contracted
out.

4.2 Could the project result in Moderate Negligible

activities located on land and
The project is not sited in an area Procurement packaging to work with
territories claimed by indigenous
which indigenous people would claim community directly (community
people?
as their territory. participation in procurement) with
indigenous knowledge, technology, and
material.

Bidder required to have past knowledge

or experience and potential include
some form of compensation to
indigenous people, if it is contracted
out.

The IFAD Self Certification which includes IFAD Right to Audit, Anticorruption and SEA/SH Safeguards is mandatory for all projects. This is
simply to ensure that these provision which are not necessarily adequately referenced in the National SBD’s (Standard Bidding
Documents) are included and adhered to, in line with provision of the GC and IFAD policy documents.

For WB and ADB funded Projects, the e-GP allows WB and ADB funded projects to select WB/ADB SDB’s instead of the National SBD.
However, the e-GP does not provide or allow similar arrangement for IFAD SBD’s which we only developed two years back. We should
explore the potential to incorporate IFAD SBD’s in the e-GP. This would minimise the need to include the Self-Certifications.
India

Competitiveness Improvement of Agriculture and Allied Sectors Project in Jammu and

Kashmir (J&KCIP)

Project Design Report

Annex 9: Integrated Project Risk Matrix (IPRM)

Mission Dates: 03 Oct 2023 to 20 Oct 2023

Document Date: 08/03/2024
Project No. 2000003933
Report No. 6741-IN

Asia and the Pacific Division

Programme Management Department
Overall Summary
Risk Category / Subcategory Inherent risk Residual risk

Country Context Substantial Low

Political Commitment Moderate Low

Governance Moderate Low

Macroeconomic Moderate Low

Fragility and Security High Moderate

Sector Strategies and Policies Moderate Low

Policy alignment Low Low

Policy Development and Implementation Moderate Low

Environment and Climate Context Moderate Moderate

Project vulnerability to environmental conditions Moderate Moderate

Project vulnerability to climate change impacts Moderate Moderate

Project Scope Moderate Low

Project Relevance Low Low

Technical Soundness Moderate Low

Institutional Capacity for Implementation and Sustainability Moderate Low

Implementation Arrangements Moderate Low

Monitoring and Evaluation Arrangements Moderate Low

Project Financial Management Substantial Substantial

Project Organization and Staffing Substantial Substantial

Project Budgeting Moderate Moderate

Project Funds Flow/Disbursement Arrangements Substantial Substantial

Project Internal Controls Substantial Substantial

Project Accounting and Financial Reporting Substantial Substantial

Project External Audit Moderate Moderate

Project Procurement Substantial Substantial

Legal and Regulatory Framework Substantial Substantial

Accountability and Transparency Substantial Substantial
Capability in Public Procurement Substantial Substantial

Public Procurement Processes Substantial Substantial

Environment, Social and Climate Impact Low Low

Biodiversity Conservation Moderate Moderate

Resource Efficiency and Pollution Prevention Moderate Moderate

Cultural Heritage Low Low

Indigenous People Moderate Moderate

Labour and Working Conditions Low Low

Community health, safety and security Low Low

Physical and Economic Resettlement Low Low

Greenhouse Gas Emissions Low Low

Vulnerability of target populations and ecosystems to climate variability and Moderate Moderate
hazards

1/10
 Risk Category / Subcategory Inherent risk Residual risk

Stakeholders Moderate Moderate

Stakeholder Engagement/Coordination Moderate Moderate
Stakeholder Grievances Moderate Low
Overall Moderate Moderate

Country Context Substantial Low

Political Commitment Moderate Low
Risk: Moderate Low

The risk is moderate. A political and governance risk on account of impending

National elections in April 2024 and local elections (not yet determined) remains.

Mitigations:

In order to mitigate this risk, the project design has been completed during 2023
and negotiations will be completed prior to elections.

Governance Moderate Low

Risk: Moderate Low

The risk is moderate. The project area is administered by the Government of India
under its Ministry of Home Affairs through an Administrator appointed by the President
of India. In J&K the Administrator is called the Lieutenant Governor. The Agricultural
Production Department has been designated as Lead Project Agency, with robust
administrative and governance practices ensuring full alignment of administrative
procedures and oversight to the practices and standards of the Government of India.

Mitigations:

IFAD procurement, safeguards and fiduciary compliances will be applied, and regular
supervision will be conducted to ensure full compliance.

Macroeconomic Moderate Low

Risk: Moderate Low

India’s economy may slow down, coming off a strong recovery in FY21/22 (April
2021–March 2022) on account of the spillovers from the Russia-Ukraine war, In
addition, the global monetary policy tightening cycle is expected to weigh on India’s
economic outlook. The debt servicing track record of GoI remains excellent.

Mitigations:

No project interventions required.

Fragility and Security High Moderate

2/10
Risk: High Moderate

J&K’s security situation has been improving continuously since 2019. The Security
Risk Assessment determined by UNDSS establishes that there is no significant
direct threat to the proposed project in J&K that could adversely affect the project.

Mitigations:

IFAD management will ensure that the recommended security measures are put in
place to make the proposed project compliant with SRM for Jammu, Kashmir &
Ladakh and the specific Risk Assessment prepared for the project.
Additionally, the focus of the project on community empowerment and participatory
processes is also expected to have a positive impact at the community level.

Sector Strategies and Policies Moderate Low

Policy alignment Low Low

Risk: Low Low

In Dec 2022, GoJ&K launched a “Holistic Agriculture Development Programme in

J&K” (HADP). JKCIP’s goal, objectives and interventions are in sync with the J&K’s
strategies including this recently launched initiative.

Mitigations:

The detailed design of JKCIP is done as a complimentary project to the

Government’s Initiative.

Policy Development and Implementation Moderate Low

Risk: Moderate Low

The project is fully aligned with the sectoral policies and proposes to leverage
government programmes through convergence. The risk in implementation is the
capacity of the Lead Implementing Agency to ensure timely start-up and converge
with other line departments in the field.

Mitigations:

The project has built-in a structured mechanism for co-ordination and convergence
of project activities. APD will be the Lead Implementation Agency. The project
implementation will be harmonised with the working of the Directorates and
Universities under the APD. Additionally, IFAD will provide necessary capacity-
building support since this is the first IFAD project in J&K. Some of the Project
partners (eg. SKUAST) have experience of working on a World Bank project.

Environment and Climate Context Moderate Moderate

Project vulnerability to environmental conditions Moderate Moderate
Risk: Moderate Moderate

The project is expected to have a moderate impact on the environment, as it is

expected to engage in nursery management and seedling rearing or purchase.
More than a risk, changing farmers' perception and behaviour on use of chemical
inputs and shift to Good Agriculture Practices (GAP), is a challenge.

3/10
Mitigations:

The project has well incorporated environmental and climate adaptation

interventions. Good Agricultural Practices (GAP) and Climate resilient
Agriculture/Horticulture will be promoted. FPO will be capacitated and supported on
GAP and Climate Smart Practices. Nursery and seedling management will follow
environmentally sustainable practices. JKCIP will not be involved in any
procurement of natural resources that are not environmentally sustainable.

The project will adopt zero deforestation and forest encroachment strategy. All the
interventions will be conducted outside the forest area. The geographic targeting
strategy has excluded blocks with conservation and protected areas to avoid any
potential impacts on biodiversity.

Project vulnerability to climate change impacts Moderate Moderate

Risk: Moderate Moderate

The project area is likely to experience river flood, landslides, and hailstorm. Heat
waves are expected to become more common, putting a burden on the society and
the environment. Rising temperatures and changing precipitation patterns could
have an effect on available water resources. Precipitation is expected to rise
slightly to moderately in the future, with much of the increase attributed to heavy
downpours. The adverse impact of these climate and environmental conditions on
agriculture production, biodiversity, and ecosystem sustainability.

Project outcomes may be adversely impacted by climate change, and without the
provision of effective adaptation measures, beneficiaries may face financial
challenges, while the ecosystem and biodiversity may face degradation.

Smallholder farmers and target groups display a moderate awareness of climate

risks and related adaptive and mitigation measures.

Mitigations:

The project components are designed to encourage livelihood diversification,

enterprise development in response to market signals, and climate adaptation
considerations in order to face the problems in the context of climate change.
Building the capacity of vulnerable target groups to diversify activities through
investments in new varieties, small-scale livestock, and off-farm enterprise growth
is a subcomponent of the project. The vulnerable groups (women, the poor, and
young people) will become more resilient to hazards associated with climate
change as a result of capacity development and training components included in
various programs.

Support has been ensured on water management to tackle precipitation fluctuation

and water stress. Suitable variety of crops, together with appropriate management
practices, will be promoted to adapt with heat stress. The project will facilitate
protected agriculture to tackle hailstorms.
Project efforts to build the adaptive capacities of its beneficiaries must emphasize
the need for disaster risk planning, climate resilient cropping, and reduced post-
harvest losses, among other interventions that build the beneficiary's capacity to
cope with, or recover from, the effects of climatic shock events.

Project Scope Moderate Low

Project Relevance Low Low
Risk: Low Low

The project holds little risk as it is well aligned with the development reality of the
target communities. The project is complementary to GoJ&K’s innovative and
transformative HADP launched in Dec 2022, with a budget outlay of
INR 50,130 million (USD 650 million) that aims to transform Agriculture in J&K from
subsistence to sustainable and commercial agriculture.

Mitigations:

No additional interventions are required.

4/10
Technical Soundness Moderate Low
Risk: Moderate Low

The project aims to address the gaps in the existing programs of the J&K by
supporting the identification and promotion of climate-resilient high-value niche
crops to harness agroclimatic advantages as an alternative to regular field crops.
With a focus on niche agriculture and horticulture crops and support to vulnerable
communities, the project will be able to keep a strong focus on the poor and remote
farming communities. The project will also help create an ecosystem of start-ups
and innovations that include business incubation, agribusinesses promotion,
potential export facilitation etc. These will result in increased production,
productivity and value realization and consequently, an increase in household
income.

Mitigations:

During project design, value chain profiles and agro-climatic suitability assessments
have been carried out and based on this value chains have been selected.

Institutional Capacity for Implementation and Sustainability Moderate Low

Implementation Arrangements Moderate Low

Risk: Moderate Low

This is the first time APD is implementing an Externally Aided Project in recent
times although the Dept has implemented the Jammu & Kashmir Horticulture
Project (1978-86). The human resource capacity of project implementing partners
has been assessed. APD is in the process of engaging additional staff and set up a
PMU to implement HADP. The capacity for staff related to procurement and M&E
needs further strengthening.

Mitigations:

The project has incorporated substantial capacity-building efforts into the project.
These efforts will be front-loaded to ensure adequately trained human resources.
The project will also allocate funds for the engagement of technical expertise to
guide project implementation with a specific emphasis on commercial orientation.
The project implementation will be mainstreamed into the working of Directorates
and Universities. JKCIP has made allocations for engaging staff required for
mainstreaming priorities, finance, procurement and M&E. Additionally the cabinet
constituted the J&K ERA (J&K Economic Reconstruction Agency) a society
registered under the JK Societies Act in 2004 to implement externally aided
projects. JKERA is currently implementing two World Bank funded projects which
are expected to end in Dec 2024 and some of the staff for procurement and
financial management are likely to become available. The GoJ&K is likely to
onboard them for JKCIP to ensure quick transition.

Monitoring and Evaluation Arrangements Moderate Low

Risk: Moderate Low

The current arrangements within the APD are not fully adequate to meet IFAD’s
requirements. The government has a data collection and reporting system but not a
structured M&E system. There is also a shortage of staff overall for such normative
functions as M&E.

Mitigations:

The project design has made provisions for M&E and MIS staff. BMGF has put in
place a team of 6 technical experts to support the APD. Allocations are also made
for baseline, midline and end-line surveys.

Project Financial Management Substantial Substantial

Project Organization and Staffing Substantial Substantial

5/10
Risk: Substantial Substantial

Although India has a well-developed accounting profession, IFAD-funded projects

can’t attract good quality FM staff due to low salaries and not attractive career
perspectives

Mitigations:

Complete competitive selection of adequately qualified and experienced FM staff

for PMU

Project Budgeting Moderate Moderate

Risk: Moderate Moderate

Budgeting will follow government regulations. Collecting budgets for all

implementing partners will be challenging task.

Mitigations:

- PIM/FMM will have clear roles and responsibilities for budgeting and timelines.
- Create a budget team from PMU staff responsible for the timely collection of
budget inputs.

Project Funds Flow/Disbursement Arrangements Substantial Substantial

Risk: Substantial Substantial

The state government will pre-finance project expenditures, and IFAD reimburses
quarterly. Timely allocation of funds to all implementing partners will be key.

Mitigations:

Local commercial bank online banking module will be implemented to timely

allocation of funds and payments

Project Internal Controls Substantial Substantial

Risk: Substantial Substantial

There are potential internal control weaknesses at implementing partners’ level.

Implementing partners will be responsible for collecting supporting documents and
filing them. Low staff capacity at implementing partners level may result in not
timely and inadequate filing of supporting documents.

Mitigations:

- introduction of the online banking system for all implementing partners

- the development of PIM and FMM with clear roles for supporting documents filing
and accounting record keeping for all implementing partners
- Private sector internal auditors will prepare semi-annual internal audit reports to
the Steering Committee.
-The project will provide Grants and Subsidies, which are prone to higher risks, to
agri-businesses in line with pre-agreed eligibility criteria with IFAD eligibility criteria
and funds flow arrangements.

Project Accounting and Financial Reporting Substantial Substantial

Risk: Substantial Substantial

Accounting records must be maintained for all implementing partners in one

accounting software.

Mitigations:

Implementation of Tally accounting software for accounting record keeping,

financial reporting and accounts reconciliations.

6/10
Project External Audit Moderate Moderate
Risk: Moderate Moderate

CAG will audit project financial statements. The audit may be

delayed due to a shortage of staffing resources and other priorities of CAG.

Mitigations:

PMU will actively follow-up with CAG to complete the audit on time.

Project Procurement Substantial Substantial

Legal and Regulatory Framework Substantial Substantial

Risk: Substantial Substantial

There is no central or state legislation on public procurement. The Ministry of

Finance at the central level and Finance Departments at the State level have
issued executive orders relating to procurement. The regulatory functions of public
procurement are fragmented.

Mitigations:

Through the Financing Agreement, the adoption of IFAD Procurement Guidelines,

Procurement Handbook and IFAD SBD and templates will be made applicable for
project procurement.

Accountability and Transparency Substantial Substantial

Risk: Substantial Substantial

Insufficient attention to the best practices and publication of data related to public
procurement.

Mitigations:

GoJ&K has an e-tendering system which will be used for receiving bids/proposals
in a transparent manner. 100% procurement performance audit for community
procurement will be carried out. Supreme Audit Institution (SAI) Comptroller and
Auditor General (CAG) will carry out procurement performance audit. Necessary
details of awards of the contract will be uploaded to the project website. Grievance
redressal mechanisms and designation of independent investigative authority exist.
Measures preventing prohibitive practices and an appeal mechanism will be set up
at the project level.

Capability in Public Procurement Substantial Substantial

Risk: Substantial Substantial

Insufficient capacity of the Government Directorates and Departments for the full
gamut of the procurement cycle, particularly in a project mode. Availability and
willingness of professionals to be deployed in remote locations from other parts of
the country may be a challenge. The nodal department does not have experience
in implementing an externally aided project, hence not conversant with the
procedures and processes and compliance requirements.

Mitigations:

Project procurement units at PMU and Directorate levels to be set up by engaging

skilled procurement professionals. After the need assessment, procurement
training will be arranged through National Institutes or other public procurement
training service providers for government staff responsible for project procurement.
Technical Assistance support is also included in the cost estimates.
Additionally please refer to section on Implementation arrangements and proposed
mitigation above)

Public Procurement Processes Substantial Substantial

7/10
Risk: Substantial Substantial

The executive orders or General Financial Rules do not address all aspects of
public procurement and the State Government does not fully follow the National
Task Force and Ministry of Finance guidelines and processes.

Mitigations:

Project Procurement under JKCIP shall follow IFAD Procurement Guidelines,

Procurement Handbook, SBD and document templates. IT systems will be used to
link the AWPB with the procurement plan and contract administration. For low-value
procurement, GeM portal will be recommended for use. A detailed procurement
manual will be developed for the project in line with the Financing Agreement and
Procurement Arrangements Letter. The procurement thresholds will be set up in
line with the detailed risk assessment and mitigation measures proposed during
design.

Environment, Social and Climate Impact Low Low

Biodiversity Conservation Moderate Moderate

Risk: Moderate Moderate

The project’s adverse impacts on biodiversity are expected to be minimal. The risk
rating is moderate as JKCIP will engage in nursery management and seedling
handling or purchase.

Mitigations:

The project will promote Good Agricultural Practices.

Inter or multi cropping will be promoted to increase agro biodiversity. The use of
chemical inputs will be regulated and the project will promote bio input use.

As mentioned above, JKCIP will have ‘zero’ deforestation and forest encroachment
approaches. Blocks are selected to avoid conservation or protection areas.

Resource Efficiency and Pollution Prevention Moderate Moderate

Risk: Moderate Moderate

The risk is rated as moderate, as JKCIP will involve inputs of fertiliser. However,
the project will not engage or lead to release pollutants to the environment.

Mitigations:

The project will promote the use of bio inputs and regulate chemical inputs. GAP
will be promoted and organic farming will be among the focus areas. Integrated
pest management will be promoted, it will be included in FPO capacity building
events. FPO and entrepreneurs will be trained in waste management systems.
Training, awareness programs will be organised to create awareness and
sensitization on pollution prevention. Local wastewater treatment and reuse will be
promoted.

Cultural Heritage Low Low

Risk: Low Low

The project has no adverse impacts on the cultural heritage. The blocks have been
identified during design, taking into account the cultural heritage sites and also
other environmentally sensitive areas and biodiversity hotspots.

Mitigations:

No project interventions will impact any existing physical heritage sites. The project
will apply a national chance find procedure if any heritage found during project
implementation.

8/10
Indigenous People Moderate Moderate

Risk: Moderate Moderate

The project will support the nomadic tribes to improve their quality of life and
incomes. Hence the impact of the project on the IPs is expected to be positive.

Mitigations:

The project will strictly follow IFAD’s guidelines on targeting. Geographical

targeting, self and direct targeting will be applied in the project intervention areas.
FPIC implementation plan has been prepared and will be applied.
Inclusive and meaningful participation of tribal communities, where applied, will be
ensured to increase their participation and ownership on the project activities.

Labour and Working Conditions Low Low

Risk: Low Low

The project will have minimal impact on labour and working conditions. As
confirmed during the field visit and stakeholder consultation, the project will not
engage or lead to increase in child or forced labour, and sexual and gender based
violence.

Mitigations:

Awareness raising at the community level and among project stakeholders to

ensure project activities allow decent working conditions and refrain from GBV
practices. Contractor contracts and stakeholders will abide by contract//partnership
clauses to ensure adequate working conditions. Furthermore, the GRM system will
be established/strengthened so that affected people have access to address and
resolve their complaints. Sensitisation will also be done in collaboration with
relevant authorities to prevent GBV and child labour.
Local facilitators engagement will be increased to work with local leaders and male
households’ members and promote campaigns for sensitization on gender equality
and against gender biases. Gender sensitive and participatory consultations will be
ensured while finalising and implementing project activities.

Community health, safety and security Low Low

Risk: Low Low

The risk is rated low. JKCIP will not have construction activities. Project will not
engage in gender based violence, neither increase it.

Mitigations:

The Safeguards specialist, together with PMU team, will assess the ground
situation and implement solution measures if any new issues emerged during the
activities implementation.

Physical and Economic Resettlement Low Low

Risk: Low Low

The project interventions will not have any direct or indirect impact or cause any
physical or economic resettlement of the project targeted population or
stakeholders.

Mitigations:

The project will ensure proactive targeting to benefit vulnerable and marginal
communities so that there will be no issues on economic benefit sharing.

Greenhouse Gas Emissions Low Low

9/10
Risk: Low Low

Not applicable

Mitigations:

Not applicable

Vulnerability of target populations and ecosystems to climate variability and Moderate Moderate
hazards

Risk: Moderate Moderate

The project area is likely to experience river flood, landslides, and hailstorm. Heat
waves are expected to become more common, putting a burden on the society and
the environment. Rising temperatures and changing precipitation patterns could
have an effect on available water resources. Precipitation is expected to rise
slightly to moderately in the future, with much of the increase attributed to heavy
downpours.

Mitigations:

The following measures are proposed in ESCMP;

Flood and Landslide: i) Adequate, disaster complaint housing for livestock, storage
of fodder, veterinary care support, CSA training; ii) Weather forecasts and use
Hailstorm: Encourage government department to support nets, promote protective
farming
Drought: i) Crop diversification, drought tolerant crop; ii) Alternate crops, recycle
water; iii) Household water harvesting, iv) Micro irrigation, v) Weather forecasts,
and vi) Multi and inter cropping

Stakeholders Moderate Moderate

Stakeholder Engagement/Coordination Moderate Moderate

Risk: Moderate Moderate

APD coordinates between the different directorates/ Universities as well as

between the teams in the Jammu and Kashmir divisions. Since this is the first IFAD
project implemented by APD in recent years, there could be some possibility of
exclusion of stakeholder or lack of meaningful engagement.

Mitigations:

Along with the extensive consultation to design the project, a stakeholder

engagement plan has been prepared and will be implemented, in addition to the
GoJ&K’s ongoing initiatives.

Stakeholder Grievances Moderate Low

Risk: Moderate Low

GoJ&K has established channels to voice grievances by the stakeholders. The

efficacy of this system needs further strengthening.

Mitigations:

JKCIP will follow the government's well established and operational grievances
redress mechanism, details in the FPIC implementation plan. The community
platforms through Gram Sabhas and other village-level institutions will offer a
platform for beneficiaries to voice their grievances. The project-promoted FPOs will
become platforms for grievance redressal.

10/10
India

Competitiveness Improvement of Agriculture and Allied Sectors Project in Jammu and

Kashmir (J&KCIP)

Project Design Report

Annex 10: Exit Strategy

Mission Dates: 03 Oct 2023 to 20 Oct 2023

Document Date: 08/03/2024
Project No. 2000003933
Report No. 6741-IN

Asia and the Pacific Division

Programme Management Department
Annex 10: Exit Strategy
JKCIP has been designed as a complementary project of HADP which has been designed
in consultation with a high-powered committee under the chair of Dr Mangal Rai, Retired
Director General of the Indian Council of Agricultural Research with accomplished
members. This committee extensively consulted with the relevant Directorates and
Universities of Agriculture Science and Technology to identify interventions. These consultations
and discussions have resulted in a sound approach and a suite of interventions which
will be implemented with strong community participation and engagement of
government officials and the private sector. JKCIP’s exit strategy hinges on the progress
achieved with regard to the sustainability of three major activities of the project: (i) FPO
promotion and support for collectivization; (ii) value chain support for miche agricultural
and horticultural crops; and (iii) enterprise support for expanding value addition and
marketing.
FPO promotion and support for collectivization: The project plans to support 56
existing FPOs and mobilise 45 new FPOs. The mobilisation strategy will build in
sustainability and exit strategy from the very beginning. Farmer Producer Organizations
(FPOs) are collectives or cooperatives formed by small and marginal farmers to improve
their bargaining power, access resources, and enhance the sustainability of their
agricultural practices. Sustainability and exit strategies for FPOs are essential to ensure
their long-term success and the well-being of their members. As the first step, the
project will support continuous training and capacity-building programs for FPO
members to enhance their skills and knowledge related to sustainable agricultural
practices, efficient resource management, and market trends.
The capacity building will focus on the emergence of the FPOs as sustainable businesses.
The sustainability of the FPOs depends on the financial viability of FPOs covering their
operational costs and providing dividends or benefits to their members. This involves
effective financial management, including budgeting, cost control, and revenue
generation through marketing, value addition, and access to government schemes and
grants. The project has built-in required capacity building and handholding to achieve
this. Best practices such as mobilization of the FPO around businesses to be owned and
managed by the community, payment of operating costs against the achievement of the
targets in achievement of performance standards and continuous performance
assessment to ensure course correction during implementation will be implemented.
The project intends to facilitate the FPOs to establish strong market linkages to ensure
that their produce is sold at fair prices. Contracts with wholesalers, retailers, or
agribusinesses can secure market access, stabilize prices, and create a steady income
for members. The project intends to address these aspects with support for the
aggregation of inputs and outputs coupled with the establishment of market linkages.
The project will also provide support for business planning and for establishment of the
businesses related to diversification and value addition so that FPOs can enhance their
sustainability by diversifying their product portfolio and adding value to their produce.
For example, they can explore processing and packaging, which can increase the shelf
life of products and fetch higher prices. FPOs would focus on ensuring their members
have access to modern farming technology, quality seeds, fertilizers, and other inputs,
which can improve agricultural productivity and sustainability. The project will promote
sustainable agricultural practices, such as organic farming and efficient water
management which lead to environmentally friendly and sustainable farming.
Exit strategies for FPOs have been designed to ensure that the organization's benefits
and impact continue even if the original leadership or stakeholders change. The exit
strategy options built into mobilization include: (i) a strategy where members gradually
take on a larger role in management and ownership of the organization with a well-
structured plan for rotation of leadership membership rotation coupled with training
members to assume leadership positions and make important decisions; (ii)
collaborations with agribusinesses companies to provide stability and resources which
can involve joint investments, knowledge sharing, and access to markets, which, over
time, might lead to joint ownership or shared governance; and (iii) strengthening the
FPO's bylaws and governance structure to ensure smooth transitions and prevent the
organization from becoming overly dependent on specific individuals leading to elite
capture. The sustainability and exit strategies for FPOs have developed considering
experience from other IFAD-funded projects and will be periodically reviewed to adapt
to changing circumstances.
Value chain support for niche agricultural and horticultural crops: the project
intends to support niche agriculture crops. The project support for value chain support
will be for improving the production and productivity of the niche crops. The major niche
crops identified include Saffron, Black Cummin, Offseason vegetables, Lavender, etc.
The project will build the capacity of the community to implement good agricultural
practices to improve the production of quality produce, judicious use of fertilizer and
pesticides and reduction of transaction costs. The project will help the establishment of
market linkages for the farmers to start shifting towards market-led production. The
project will provide support for the expansion of the production area and to implement
good agricultural practices with matching grants not exceeding 50 percent of the total
investment costs. As an exit measure, the project will put in place systems for recovering
the support provided to the community from the project and start a system of revolving
the same amongst the community members.
The project will also support the expansion of horticultural crops with the expansion of
high-density apple orchards and area expansion under other diversified fruit crops. The
project will provide 50 percent support for area expansion with systems for recovering
project support as an exit strategy to ensure the revolving of project support amongst
the members. Many apple farmers are facing production, productivity and quality decline
due to inadequate focus on tree management. The sustainability of project interventions
and exit depends on the ability of the farmers to increase the quantum of A-grade fruits.
The project will also support an enterprise-led solution to tree management practices.
The project will initially support the establishment of this enterprise and thereafter,
systems will be put in place to operate this activity as a business for the benefit of both
farmers and the entrepreneur. These measures will make project exit seamless.
Enterprise support for expanding value addition and marketing. The project
proposes a private entrepreneur-led enterprise promotion support. Sustainability and
exit strategies are critical considerations in an entrepreneur-led model of development,
especially in the context of startups and businesses that aim to create positive social or
environmental impacts. These two concepts are interrelated and play a significant role
in ensuring the long-term success and impact of such ventures. Sustainability in the
context of entrepreneurship and development refers to the ability of a business or
project to maintain its operations and impact over the long term. Sustainable ventures
consider economic, environmental, and social factors. The profitability of the business
is the key criterion for achieving sustainability but at the same time, the entrepreneurs
should focus on: (i) the social and environmental impacts of their ventures which is
known as the "triple bottom line," that ensures the businesses consider people and the
planet alongside profits; (ii) sustainable businesses optimize their use of resources,
reduce waste, and minimize their carbon footprint which not only reduces costs but also
aligns with environmental goals; (iii) the ability to adapt to changing market conditions
and evolving social and environmental needs which require entrepreneurs to be agile
and responsive to stay relevant and effective; and (iv) engaging with stakeholders,
including customers, employees, and local communities, that are vital to understanding
their needs and building support for the venture's goals.
The project’s enterprise support considers two major aspects related to sustainability
and exit from project support. The project will support private entrepreneurs to take
enterprise development that will add value to the agriculture and horticulture products
from J&K. The project will initially support the entrepreneurs with business development
services for the preparation of the project reports and feasibility reports. These services
will facilitate the entrepreneurs to understand the project’s profitability and the ability
to repay the loans. The project will also facilitate bank linkages to assist the
entrepreneurs in financing the project and to conduct the next level of due diligence
from the loan appraisal perspective.
Since the cost of investment is very high in the Himalayan region in general and J&K in
particular mainly on account of higher transport costs, the project in consonance with
the GoI and GoJ&K guidelines provided matching grant not exceeding 50 percent of the
investment costs to improve the financial viability of the project. In addition, the
matching grant also enhances the risk-taking ability of the project. These aspects
enhance the ability of the project to exit with a speedy progression of entrepreneurs
into profitability.
The exit strategy for the project focusing on enhancing financial access and inclusivity
in the Jammu and Kashmir region involves several key steps to ensure sustainability
and continued impact after the project's completion. These steps are designed to
transition the responsibility and capability to the local stakeholders, including
smallholders, Farmer Producer Organizations (FPOs), and entrepreneurs. Here’s an
outline of the exit strategy based on the project activities:
1. Self-Sustainability of Pilot Projects: Ensure that the pilot projects for improved
access to finance are designed to become self-sustaining. This involves establishing
clear business models and revenue streams or integrating the pilots into existing
local systems that can continue without external support.
2. Integration of Financial Literacy into Local Institutions: Transfer the
responsibility of continuing financial literacy campaigns to local educational
institutions, community organizations, or FPOs. Develop a train-the-trainer model
to create a cadre of local trainers who can perpetuate financial literacy education.
3. Local Ownership of Credit Facilitation: Train local stakeholders, such as the
staff of FPOs or community leaders, to take over the role of the Rural Finance
Manager. This would include skills in navigating credit processes, proposal writing,
and understanding credit terms, ensuring that the community retains these
capabilities.
4. Strengthening Partnerships: Solidify partnerships and alliances with NBFCs,
MFIs, and technology firms to ensure they are robust and continue beyond the
project lifespan. These partnerships should be structured to provide ongoing
support to the local communities and FPOs.
5. Sustainable FPO Development: with a clear roadmap for FPOs to achieve
financial management self-reliance, ensuring they can maintain compliance and
access to banking services independently. This might involve setting up internal
training programs, mentorship structures, or partnerships with local financial
institutions.
India

Competitiveness Improvement of Agriculture and Allied Sectors Project in Jammu and

Kashmir (J&KCIP)

Project Design Report

Annex 11: Mainstreaming themes – Eligibility criteria checklist

Mission Dates: 03 Oct 2023 to 20 Oct 2023

Document Date: 08/03/2024
Project No. 2000003933
Report No. 6741-IN

Asia and the Pacific Division

Programme Management Department
Mainstreaming themes – Eligibility criteria checklist

Be gender transformative Be youth sensitive Be nutrition sensitive Prioritize persons with disabilities Prioritize indigenous peoples Include climate finance
Build adaptive capacity

Situation National gender policies, National youth National nutrition National policies, strategies and International standards,
analysis strategies and actors policies, strategies and policies, strategies and actors national policies, strategies and key
Gender roles and actors actors Main groupings among PwDs IPs' organizations
exclusion/discrimination Main youth groups Key nutrition problems Context-based barriers and Main IPs communities,
Key livelihood problems Challenges and and underlying causes, by opportunities for PwDs demographic, social, cultural and
and opportunities, by gender opportunities by youth group political characteristics
group Nutritionally vulnerable Important livelihoods
beneficiaries, by group constraints and opportunities for
IPs and their cultural heritage

Theory of Gender policy objectives Pathways to youth Nutrition pathways Pathways to PwDs’ socioeconomic Pathways to IPs'
change (empowerment, voice, socioeconomic Causal linkage empowerment using a twin-track socioeconomic empowerment
workload) empowerment between problems, approach
Gender transformative Youth employment outcomes and impacts
pathways included in project
Policy engagement on objectives/activities
GEWE
Logframe Outreach disaggregated by Outreach Outreach Outreach disaggregated by sex, Outreach indicator
indicators sex, youth and IPs (if disaggregated by sex, disaggregated by sex, youth, disability and IPs (if appropriate) disaggregated by sex, youth and
appropriate) youth and IPs (if youth and IPs (if IPs
Women are > 40% of appropriate) appropriate) IPs are > 30% of target
outreach beneficiaries Persons with new Targeted support to beneficiaries
IFAD empowerment index jobs/employment improve nutrition (CI 1.1.8)
(IE.2.1) opportunities (CI 2.2.1)
Outcome level CIs

CI 1.2.8 MDDW
CI 1.2.9 KAP

Human Staff with gender TORs Staff with youth Staff or partner with Staff with disability inclusion-specific Staff with IPs-specific TORs IFAD $50,776,000
and Funds for gender activities TORs nutrition TORs TORs Funds for IPs related activities, Adaptation
financial Funds for IFAD Funds for youth Funds for nutrition Funds for disability inclusion-related including FPIC Finance
resources activities activities activities (including accessibility)
empowerment index in M&E
budget IFAD $0
Mitigation
Finance

Total IFAD $50,776,000

Climate-
focused
Finance

1/2
 ECG Gender
Remarks
Nutrition

Youth

Persons with Disabilities

Indigenous Peoples

☐ No social inclusion themes

2/2
India

Competitiveness Improvement of Agriculture and Allied Sectors Project in Jammu and

Kashmir (J&KCIP)

Project Design Report

Annex 12: List of eligible activities to be financed by FIPS

Mission Dates: 03 Oct 2023 to 20 Oct 2023

Document Date: 08/03/2024
Project No. 2000003933
Report No. 6741-IN

Asia and the Pacific Division

Programme Management Department
Annex 12: Grant regime and financing plan for household-level investments

Category of Example activities # of Total Value of Grants Grant/Loan Grant/ loan policy
beneficiaries grants budgeted size
Farmer Equity support for 45 Total investment US$ Max Rs 2000 per Matching equity support (50%)
Producer mobilizing equity capital 481,000 member. from the project – additional
Organizations for the FPOs Beneficiary: US$ 240,500 incentives to women and youth
(50%) to be worked out by the project
but not exceeding Rs 3,000 per
IFAD grant – US$ 192,000
women/youth member.
(40%)
This will be the equity capital of
GoJK grant: US$ 48,100 the FPO and will be partly used
(10%) as a contribution for business
investments. The FPO will have
been receiving services for at
minimum six months (or
whatever is determined in the
scorecard methodology)
Farmer Equity support for 120 Total investment: US$ 2.58 Unit cost Rs These investments will be
Producer Collective investments million 200,000 to Rs performance based available to
Organizations (semi-public) – Beneficiary: US$ 1.29 1,000,000. 70% FPOs with a minimum 100
aggregation of inputs million (30%) grant initially. members and have mobilized
and outputs, farm the required contribution of
IFAD Grant – US$ 0.1.03
mechanization units, 30% based on participatory
million (40%)
collective business planning, subject to
irrigation/water GoJK grant: US$ 0.774 achieving Level 2 (and after a
management systems, million (30%) minimum of 18 months as
orchard management project FPOs). A total of two
business and other grants may be awarded to each
businesses. FPO, based on access to
finance, performance with a
declining grant percentage.
During the project
implementation pilots will be
developed provide loans to
FPOs and thereafter this
support will be reviewed. The
equity capital noted above may
be used for FPO contribution.
The project will work with the
banks and develop tools and

1
Category of Example activities # of Total Value of Grants Grant/Loan Grant/ loan policy
beneficiaries grants budgeted size
products to improve access of
farmers to bank finance.

Smallholder Support for enhancing 7,270 Total Investment US$ Unit cost of Rs The project will target FIGs and
farmers for production and 33.29 million 5000 to Rs 34,000 individual farmers to provide
niche productivity. Beneficiary: US$ 16.65 per Kanal. this support. Balance 50%
agricultural Diversification into million (50%) Limit of 500,000 either from own contribution of
crop Saffron, Black Cummin, and/or 20 Kanals, the farmer or through loans
IFAD grant – US$ 13.3
production Aromatic rice, Off- which ever is under Kisan credit card.
million (40%)
season vegetables, lowest. Maximum
GoJK grant: US$ 3.33 [The project will implement
aromatic and medicinal 50% grant only for
million (10%) this activity in clusters and will
plant and other niche fixed assets, with develop FIGs comprising not
crops the exception of more than 20 persons. This will
saffron which will enable ease of extension
include 1 year of service delivery and also
working capital if aggregation of inputs and
required. outputs for forward and
backward linkages.]
Small holder Support for enhancing 44,200 Total Investment US$ 37.64 Unit cost of Rs The project will target FIGs and
farmers for production and million 20,000 to Rs individual farmers. Balance
horticultural productivity of Beneficiary: US$ 18.82 200,000 per Kanal. 50% from own contribution of
crop horticultural crops and million (50%) 50% grant the farmers. During project
production diversification and Limit of 500,000 implementation products for
IFAD grant – US$ 15.06
intensification of fruit and/or 20 Kanals, financing the horticultural
million (40%)
and nut crops – Apple, whichever is crops will be introduced and
Walnut, Mango, Litchi, GoJK grant: US$ 3.76 thereafter the grant support
lowest.
Citrus, Kiwi and others million (10%) will be reduced. The grant will
only finance the fixed asset
investment.
Small holder Support for horticultural 1,635 Total Investment US$ 19.88 Unit cost of Rs The project will target FIGs,
farmers for nurseries, solar fencing, million 200,000 to Rs FPOs and individual farmers.
horticultural irrigation facilities Beneficiary: US$ 9.94 1,000,000. 50% For fixed assets and land
crop million (50%) grant improvements only. Balance
production 50% from own contribution of
IFAD grant – US$ 7.95
the farmers. During project
million (40%)
implementation innovative
GoJK grant: US$ 1.99 products for financing these
million (10%) activities will be introduced and
thereafter the grant support
will be reduced.

2
Category of Example activities # of Total Value of Grants Grant/Loan Grant/ loan policy
beneficiaries grants budgeted size
Entrepreneurs Grading lines, processing 2,321 Total Investment US$ 53.07 Unit cost from Rs The project will target individuals,
units, CA storages, million 200,000 to Rs partnerships and companies with
mushroom production, Beneficiary: US$ 26.53 2,000,000. In grant supported investments to
agri-tourism, honey million (50%) some cases such be rural based outside (>50km of
production and as CA stores cost Srinagar and Jammu) Grants will
IFAD grant – US$ 21.22
processing and others may reach Rs 105 be for no more than 50% of the
million (40%) fixed asset investments.
million. Grant of
GoJK grant: US$ 5.31 50% but not Disbursement of grants will be
million (10%) exceeding Rs 10 contingent upon the securing of
million. loan financing from banks. This
Grants ensures that grant funds are
allocated in tandem with
<50000: Support additional financial support,
40(ifad), 10 GoJK reinforcing the viability and
500000-2 MM: commitment of the
Support 30 (IFAD), entrepreneurial projects. The
10 GoJK project will assist with the
2MM-10 MM: screening/pre qualification of
Support 20(IFAD) potential grant recipients. The
and 10 (GoJK) bank will evaluate the business
and financial proposals and
sanction the disbursement of
grant against the loan approval.
During project implementation
innovative products for financing
these activities will be introduced
and thereafter the grant support
will be reduced. The project will
establish special incentives to
attract women and youth owned
businesses. Preference will be
given to those financial
proposals/entrepreneurs which
indicate a high percentage of
sourcing from smallholders. A
complete list of eligible business
types and investment types will
be outlined in the PIM.

3
 Category of Example activities # of Total Value of Grants Grant/Loan Grant/ loan policy
beneficiaries grants budgeted size
Start-ups Start-up businesses in 358 Total Investment US$ 2.80 Only seed capital The project will target
agri and allied sectors million of Rs 200,000 per individuals with business idea
IFAD grant – US$ 2.24 start-up to be and mentor them to grow into
million (80%) provided as grant businesses. The mentorship
and all scale up will include both technical and
GoJK grant: US$ 0.56
capital will be financial mentorship.
million (20%)
accessed through
bank loan and
convergence.
Vulnerable Milk collection centres, 5,012 Total Investment US$ 1.06 Unit cost of Rs The project will target
community processing of milk million 120,000 to 250000 vulnerable communities
support products, ice boxes for IFAD grant – US$ 0.85 (individuals) to Rs comprising pastoralists and
fisherfolk (largely semi- million (80%) 251,000 to fisherfolk. The grant release for
public investments 1,000,000 milk collection centres and milk
GoJK grant: US$ 0.21
(communities). products will be given to
million (20%)
80% grant groups, and due diligence will
be conducted to ensure that
the infrastructure will be
managed
Vulnerable Micro-enterprise support 2,050 Total Investment US$ 5.34 Unit cost of Rs The project will target
community - trading, small shops, million 200,000. 50% vulnerable communities who
support livestock units Beneficiary: US$ 2.67 grant have started settling down.
million (50%) Grant release linked to
financing of loans from
IFAD grant – US$ 2.13
banks/MFIs
million (40%)
GoJK grant: US$ 5.34
million (10%)

Rationale for grant

• Governments provide grants for farm and enterprise investments to promote these investments for fast-tracking
employment generation in the local area to reduce outmigration to the cities in search of jobs.
• Agriculture and enterprise investments in remote locations require higher levels of initial investments making them not
competitive with other parts of the country and hence the Government provides higher levels of grants in J&K. However
the investments must be competitive and this will be determined by a feasibility study.
• These investments are prone to unforeseen risks both climate and market risks and the grants reduce the investment
risks of the farmers and enhance production and productivity. Grant provision for such underserviced special areas is a
global phenomenon to hedge these risks.
4
 • High level of collateral requirements make access to finance difficult. Grants combined with access to finance activities
should improve access to finance.
• Grants, carefully articulated, help accelerate investment and economic development of rural areas and the government
will reap economic benefits from higher tax collection, improved employment generation, reduced migration and reduced
stress on overcrowded cities.
Grant principles
• Individual entrepreneurs/farmers/companies and partnerships will get only one-time grant support, disbursed in tranches
linked to Business plan milestones and bank financing. There will be no second tranche of support and they will not have
had any grant or subsidy support from government or other projects for the last 5 years, including subsidized rents and
leases, subsidy in utilities, subsidy for inputs etc.
• All other grants (with exception of FPOs), including those to FIGs and smallholder farmers under production grants, will
get only one-time grant support. There will be no second tranche of support and they will not have had any grant or
subsidy support from government or other projects for the last 5 years, including subsidized rents and leases, subsidy in
utilities, subsidy for inputs etc. Smallholder farmers as part of an FPO may receive a grant under these categories for
individual business needs. Receipt of technical assistance will be a requirement and will be indicated as part of the
screening.

• All grants in enterprise promotion will be subject to the sanction of bank loans. They will prepare a detailed investment
and business plan which will be developed in a format with input from bank partners. All feasibility studies will include a
pro forma calculation of returns w/o grant support/subsidy, as well as with grant/subsidy support. They will also include
explicit ties to smallholders as suppliers. The project will pre-screen these recipients against criterion, and the bank will
evaluate the financial proposal for feasibility. The grant will be released by the bank only subject to loan approval.
• All farm-based grants will be subject to farmers’ ability to mobilize the balance amount through their sources and or bank
loans.
• FPO capitalization grants will be recovered and used for reinvestment. Yearly grant for covering seed and fertilizer supply
will not be provided. All grants will be one time and based on a business plan.
• The grant procedures will be aligned with the ongoing grant mechanisms of the J&K and will be restricted to no more than
50% of the cost of investment. In the event, GoJK reduces the grant quantum in the sector, the same will apply to JKCIP.
Any changes to the grant regime will be outlined and evaluated in a supervision mission and with the no objection of IFAD.
• The release of grants to FPO will be linked to the achievement of specific levels in a graduation scorecard. Receiving
services for a minimum period (six months or as determined by the scorecard methodology) and achieving Level 1 in the
scorecard are prerequisites for initial equity funding. Reaching Level 2, after a minimum of 18 months as project FPOs, is
required for additional support.
• The grant disbursement for milk collection centres and milk product processing will be exclusively allocated to group
initiatives rather than individuals. Comprehensive due diligence will be conducted to ensure that the proposed
infrastructure will be effectively and sustainably managed.

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• During implementation, the principles, rationale and quantum of grants will be further finetuned and operationalised in
discussion with the GoJ&K and will be guided by the above, to ensure a harmonized approach on the ground with a focus
on limiting the risk of elite capture, sustainability and a clear exit strategy.

6
India

Competitiveness Improvement of Agriculture and Allied Sectors Project in Jammu and

Kashmir (J&KCIP)

Project Design Report

Annex: Annexure on Value Chains profile

Mission Dates: 03 Oct 2023 to 20 Oct 2023

Document Date: 08/03/2024
Project No. 2000003933
Report No. 6741-IN

Asia and the Pacific Division

Programme Management Department
Annex 11: Value Chain Profiles

Market Review: Saffron

JK
 Key facts of Saffron value chain

Few • Monoculture
Main final products: Saffron Cropping System
facts • Cultivated from saffron corms ( Crocus sativus Saffron variety, characterized 1. Soil: Well-draining, pH 6-8, enriched with
bulbs). by its long, deep red stigmas and strong compost.
• Corms can produce flowers for aromatic flavor 2. Planting: Corms planted in summer (Aug-Sep),
up to a decade. 10-15 cm apart/deep.
3. Growth: Flowers bloom in autumn; each has
• Harvesting the flowers. After three red stigmas.
harvest, the saffron stigma (the Yield 4. Harvesting: Hand-pick flowers in early morning,
red part of the flower) is 2.5 kg/ha separate saffron threads.
5. Drying: Sunlight, shade, or dehydrator.
extracted Number of Producers: 16,000
6. Storage: Airtight containers in a cool, dark
Area under production: 3715 place.
Quantity produced : 9.2 MT 7. Dormancy: Winter phase; protect from
excessive moisture.
Season of production 8. Corm Multiplication: Cormlets produced
August to November Producing Districts:
around original corm; replant every few years.
9. Pests/Diseases: Monitor for fungi and pests
Pulwama, Srinagar, Budgam and like rodents.
Kishtwar,Baramulla, Poonch, Batote,
Rajori
Profile of farmers

Type of farming: Marginal and small Type of farming: large farm

Type of farming: Medium farm
farm Size of the farm: 1 ha and above
Size of the farm: 0.5 to 1 ha (majority)
Size of the farm: 0.5 ha (majority) (majority)
Labor intensive – hand picked corns and
Labor intensive – hand picked corns and Labor intensive – hand picked corns and
removal of saffron stigma manually.
removal of saffron stigma manually. removal of saffron stigma manually.
 Special Consideration and Challenges

Special Consideration for Saffron

• Harvest Timing: Saffron flowers bloom for only a few weeks in the fall, and the saffron threads (stigmas) must be harvested
by hand on the morning they bloom.
• High Labour Intensity: It takes thousands of flowers to produce a single pound of saffron spice, making it one of the
world's most labour-intensive crops.
• Storage: Saffron threads are delicate and must be stored in a cool, dry place to maintain their flavour and potency.

Challenges
• Low Productivity: The productivity of saffron has faced a decline, which may be attributed to outdated farming practices,
soil degradation, and disease incidence.
• Irrigation Infrastructure: The region has faced challenges in maintaining consistent and efficient irrigation, which is crucial
for saffron cultivation.
• Quality Corms Availability: The availability of high-quality corms is a challenge. Corms determine the yield and quality of
the saffron crop.
• Cheap Imports: Influx of cheaper saffron from other countries affects the profitability of the local farmers.
• Fragmented Supply Chain: A disorganized supply chain makes it difficult for farmers to get fair prices and reach wider
markets.
• Middlemen: Their presence in the value chain often reduces the profits that reach the actual producers.
• Climate Change: Changing weather patterns (reduced rainfall and snowfall and temperature fluctuation adversely affect
saffron production.
 Main Actors in the Rice Value Chain

Mains actors
Actors

Farmers
Pvt Companies Village collectors Traders Traders
Individual Traders Farmers Pvt. Companies
Nurseries Farmers Pvt. Companies
Function

SUPPLY PRODUCTION COLLECTION PROCESSING TRADE

Land preparation Collecting dried Grading based on quality Wholesale

Bulb supply Planting bulbs saffron threads
Bulk storage Packaging for retail or bulk distribution
Input supply
Activities

Irrigation and nutrient

management sale Retail sale
Flower harvest International export
Thread extraction
Drying
Women are key actors in the saffron value chain, as they do flower extraction, thread extraction and dying
Saffron collectors /
intermediaries at village
Activities
Women

• Flower harvest
and commune levels
• Thread extraction Aggregation,
• Drying collection, weighing,
sales
Activities

• Purchasing • Land preparation Aggregation, Buying,

Men

• Planting bulbs Traders and retailers

collection, Price negotiations, Buying, Price negotiations,
• Irrigation and nutrient weighing, Selling, logistics
management Selling, Export, logistics
sales
• Flower harvest
• Decision-making
 Special Gendered Observations:

• Decision Making: In traditionally patriarchal societies like J&K, major decisions related to finances, selling,
and expansion is made by men. However, women, especially those involved in the day-to-day operations,
have significant influence and provide crucial insights.
• Labour Intensity: The labour-intensive nature of saffron harvesting and processing means that all available
family members, both male and female, are often involved in these tasks during the peak season.
• Economic Empowerment: Saffron cultivation can be a means of economic empowerment for women,
especially in regions where they can take on roles like grading, packaging, and retailing.
 Main Actors in the Saffron

Mains actors
Actors

Farmers
Pvt Companies Village collectors Traders Traders
Individual Traders Farmers Pvt. Companies
Nurseries Farmers Pvt. Companies
Function

SUPPLY PRODUCTION COLLECTION PROCESSING TRADE

Land preparation Collecting dried Grading based on quality Wholesale

Bulb supply Planting bulbs saffron threads
Bulk storage Packaging for retail or bulk distribution
Input supply
Activities

Irrigation and nutrient

management sale Retail sale
Flower harvest International export
Thread extraction
Drying

Shifts in temperature: May affect the growth and quality of

saffron.
Climate
Change

Unpredictable rainfall: Can affect the planting and harvesting

Risk

of saffron.
Droughts: Affecting the availability of water for irrigation.
Pest changes: Climate change can introduce new pests or
increase the prevalence of existing ones.

Research drought-resistant varieties: To counter the effects of

Recomm
endation

reduced rainfall.
Shift planting dates: To align with changing weather patterns.
s

Enhanced pest control measures: Address increased pest

threats due to climate changes.
Improved irrigation methods: Efficiently utilize water resources
in case of shortages.
 Financial Products and Recommendation

Mains actors
Actors

Farmers
Pvt Companies Village collectors Traders Traders
Individual Traders Farmers Pvt. Companies
Nurseries Farmers Pvt. Companies
Function

SUPPLY PRODUCTION COLLECTION PROCESSING TRADE

Land preparation Collecting dried Grading based on quality Wholesale

Bulb supply Planting bulbs saffron threads
Bulk storage Packaging for retail or bulk distribution
Input supply
Activities

Irrigation and nutrient

management sale Retail sale
Flower harvest International export
Thread extraction
Drying
• Term loan facilitation
• Working capital term • Warehousing finance
• High Risk • Working Capital Loan.
loan, and cash credit • Cash credit • Trade Financing
• Union Bank, J&K Bank • Term Loan from banks to • Term loan/ fixed asset • Advances against
Financial
Products

providing collateral free purchase equipment’s financing, lease letter of credit

loan up-to 1.6 lakhs • Cash credit financing • Export insurance
• Capital subsidy available • HDFC, J&K bank, otherleasing
under national companies providing
Horticulture Mission warehousing finance , term
loan available under MUDRA
Recomm
endation

• bank • Loan facilitation scheme,

facilitation • Bank project • Documentation and
s

detailed report • Documentation and capacity building,

• roduction loan with moratorium for capacity building business planning
at least 18 months , crop insurance • Business planning • Bank facilitation
• J&K bank providing up-to 3 lakhs • Bank facilitation
based on Hypothecation of the Asset
created. Third Party Guarantee of two
persons

• Pilot of crop insurance / weather

based insurance, policy level
initiative
 Identify and Review Market
Issues

• Low saffron prices: The price of saffron fluctuates due to several factors, such as overproduction in major saffron-producing regions, counterfeiting, and
adulteration. This can impact genuine saffron producers who invest significant effort and resources into ensuring quality.

• High input costs: Saffron cultivation requires specific conditions, and any inputs, such as specialized fertilizers or equipment for thread extraction, can be
costly. Moreover, the labor-intensive process of saffron harvesting makes it one of the most expensive spices to produce.

• Lack of access to credit: Saffron farmers, especially in traditional growing areas, may not have easy access to formal credit systems, limiting their ability to
invest in improved cultivation methods or technologies.

• Adulteration and Counterfeit products: The high value of saffron makes it a prime target for adulteration and counterfeit products, which not only deceive
consumers but also depress the price of genuine saffron.

• Poor infrastructure: In some saffron-producing regions, there insufficient infrastructure to efficiently transport, process, and store the saffron, leading to
quality degradation and potential loss of income for farmers.

• Climate change: As with many crops, saffron is sensitive to climatic conditions. Unpredictable weather patterns, including unexpected rainfall or temperature
fluctuations, can adversely affect saffron yields.

• Stringent quality standards for export: Exporting saffron to international markets requires adherence to stringent quality standards. Meeting these standards
can be challenging for small-scale farmers or those without the resources to ensure consistent quality.
 Proposed Intervention
1. Soil & Water Management in J&K for Saffron:
• Soil Management: The unique loamy soil of J&K is ideal for saffron cultivation. Maintaining its health through practices like
organic matter incorporation can ensure optimal saffron yields. Soil testing in the saffron fields can help monitor nutrient levels.
• Water Management: Given J&K's varying rainfall, efficient irrigation techniques can be crucial. Drip irrigation can ensure water
reaches saffron corms directly, minimizing waste.
2. IPM & INM for Saffron in J&K:
• IPM: Saffron fields in J&K occasionally face threats from pests like corm rot. Implementing IPM can help manage such threats
using sustainable methods.
• INM: The practice can be adapted to ensure saffron fields get nutrients both from organic (like compost) and inorganic sources,
optimizing growth.
3. New Area Development for Saffron in J&K:
• Exploring potential areas within J&K that have the right altitude and climate for saffron cultivation, and providing necessary
infrastructure support.
4. Market Promotion of GI Tagged Saffron from J&K:
• Kashmiri saffron has received a GI tag due to its distinct flavor and color. Promoting this GI tag can attract a premium in both
national and international markets, emphasizing its superior quality and authenticity.
5. Enterprise Strengthening through FPO in J&K:
• FPOs can help saffron farmers in J&K with collective procurement of corms, shared processing units, and access to larger
markets, ensuring better prices and reduced intermediaries.
6. Private Sector Collaboration for COE Business Planning for Saffron in J&K:
• Engaging with private entities can establish research and training centers focused on saffron in J&K. These can be hubs for
advancing saffron cultivation techniques and post-harvest practices.
7. Protected Indoor Cultivation Technology for Saffron in J&K:
• Given the sensitivity of saffron to environmental factors, exploring protected cultivation methods in J&K can help ensure
consistent yields. Techniques like greenhouse cultivation can be researched for their viability for saffron.
Vegetables Value Chain :
J&K
 Key facts of Vegetable value chain
Cropping System
Few facts The cropping system is primarily influenced by the altitude and climatic conditions, ranging from subtropical in Jammu to
temperate and cold arid in Kashmir and Ladakh, respectively. Here's a brief overview of the vegetable cropping system in Jammu
and Kashmir:
Main products : Zonal Cropping Systems:
Capsicum, carrot, cucumber, okra, Sub-Tropical Zone (Jammu region): Vegetables like tomato, brinjal, okra, cucurbits, and chillies are grown during the
kinnow, and lemon summer months. During winters, the region sees the cultivation of off-season vegetables such as cauliflower, radish, peas,
and carrot.
Temperate Zone (Kashmir Valley): The primary crops include cabbage, cauliflower, knol-khol, turnip, radish, carrot, and
beetroot. Given the temperate climate, the valley also sees the cultivation of some exotic vegetables like broccoli, lettuce,
and celery.
Season of production
Cold Arid Zone (Ladakh region): Due to the short growing season and cold conditions, the main vegetable crops are hardy
All year around ones like turnip, radish, pea, and spinach.
Seasonal Cropping:
Yield 28.5 MT/Ha Kharif Season (Summer): Major vegetables cultivated during this season include tomato, brinjal, pumpkin, cucumber, and
Area under production: 31,000 Ha beans.
Production: 8,83,500 MT Rabi Season (Winter): Vegetables like cabbage, cauliflower, knol-khol, turnip, radish, and spinach are grown.
Zaid Season (Short season between Rabi and Kharif): This season sees cultivation of quick-growing vegetables like
melons, cucumbers, and gourds.

Profile of farmers

Type of farming: Small farm Type of farming: Medium farm

Type of farming: Large farm
Size of the farm: 0.25 – 1.5 ha Size of the farm: 0.25-1.5 ha
Size of the farm: 2 – 5 ha
Mechanization: Minimal Mechanization: Few primary processing
Mechanization: few processing units
Mainly subsistence farming units
 Vegetable Cultivation in CAISAR Project Area

Challenges
• Quality Seeds: Limited access to high-quality seeds affects yield and market produce quality.
• GAP (Good Agricultural Practices): Low awareness among farmers leads to reduced productivity and
potential safety issues.
• Irrigation: Inadequate water management results in variable crop yield and quality.
• Post-Harvest Losses: Absence of proper facilities leads to significant economic losses and higher market
prices.
• Middlemen: Dominance in the market means farmers often receive undervalued prices for their produce.
• Marketing Challenges: Access barriers to broader markets limit profit potential and can saturate local
markets.
• Post-Harvest Practices: Improper storage, handling and pre colling shorten produce shelf life, reducing
market reach and profitability.
 Overview of the value chain
Mains actors

Traders/ mandi
Farmers
Actors

Seed suppliers Middlemen traders (wholesalers)

FPOs
Agrochemical suppliers Farmers Fixed collectors
Trader/ Middlemen
Cooperatives FPOs Retailers
Farmers
Function

SUPPLY PRODUCTION COLLECTION PROCESSING TRADE

Seed collection Farm preparation, Washing, Cutting, chopping,

Aggregation, sorting,
Seed Treatment, Production, bottling,
Seed supply grading, packing, Retail
Sowing/transplanting, labeling, branding, packing,
Activities

Input supply transport marketing, Inventory,

Nutrient Management,
Weed control, storage, machinery, working
Irrigation Management, capital, accounting
Harvesting
Women are key actors in Vegetable value chain
• seed treatment, Weeding, Aggregation, sorting,
Cutting, chopping,
harvesting, sorting grading, grading, packing
Production, bottling,
Wholesalers and retailers
• Financial operation
Activities

labeling, branding, packing,

Women

storage • Management

• Purchasing • Farm preparation, Aggregation,

Activities

• Seed Treatment, sorting grading, Cutting, chopping,

Men

• Sowing/transplanting, packing, transport Production, bottling,

• Nutrient Management, labeling, branding, packing,
• Weed control, storage
• Irrigation Management,
• Harvesting
 Special Gendered Observations:

Women are Key Actors in Vegetable Value Chain in Jammu & Kashmir: Their involvement is
integral at various stages of the vegetable cultivation and selling process.
• Physical Work: Women in Jammu & Kashmir take on significant manual labour
responsibilities. They are actively engaged in tasks such as transplanting and harvesting,
which are crucial for vegetable cultivation.
• Purchasing Role: Women have a dominant role in buying the necessary agricultural inputs.
This suggests they are trusted with financial decisions and play an essential part in the
investment aspects of farming.
• Decision-Making: In the Jammu & Kashmir context, women aren't just manual laborers; they
are involved in critical decision-making processes that determine the farming methods and
strategies. This indicates they have a voice and influence in the overall farming process.
 Climate Change Risk
Mains actors

Traders/ mandi
Farmers
Actors

Seed suppliers Middlemen traders (wholesalers)

FPOs
Agrochemical suppliers Farmers Fixed collectors
Trader/ Middlemen
Cooperatives FPOs Retailers
Farmers
Function

SUPPLY PRODUCTION COLLECTION PROCESSING TRADE

Seed collection Farm preparation, Washing, Cutting, chopping,

Aggregation, sorting,
Seed Treatment, Production, bottling,
Seed supply grading, packing, Retail
Sowing/transplanting, labeling, branding, packing,
Activities

Input supply transport marketing, Inventory,

Nutrient Management,
Weed control, storage, machinery, working
Irrigation Management, capital, accounting
Harvesting

• • Heat stress inhibiting • Transportation disruptions

Temperature impacts on • Extreme weather Water scarcity affecting
growth and yield. water-intensive methods. from extreme events.
dormancy and causing post-harvest
germination. • Drought leading to • Disruptions in power and Price volatility from climate-
losses.
• reduced yield. induced shortages.
Rainfall unpredictability • Humidity and heat infrastructure due to
Climate

causing waterlogging or • Flooding risks from extreme weather. Reduced shelf life due to
challenges during
Risk

drought. excessive rains. • Variable raw material temperature and humidity

storage.
• Increased pest activity • Emerging or prevalent quality impacting changes.
affecting seed quality. pests and diseases., processing.

• Implement soil conservation techniques, such as contour ploughing • Invest in energy-efficient

Develop and promote climate- and terracing. Use water-saving technologies like drip irrigation. equipment and renewable • Develop and implement efficient supply
endations
Recomm

resilient seed varieties. • Shift planting dates to adapt to new climate patterns. energy sources. chain management to minimize losses.
Enhance seed storage facilities • Encourage crop diversification for resilience. and Employ organic • Adapt processing methods
• Invest in climate-controlled
to be climate-controlled. farming practices, such as Integrated Nutrient Management (INM), to to account for variable raw
improve soil health. transportation options.
Research and invest in drought material quality. • Promote local trade to reduce carbon
and flood-resistant seed types • Consider cropping system changes to include intercropping, • Implement water recycling footprint from long-distance transport
agroforestry, or crop rotation to enhance resilience against climate and conservation methods
uncertainties. in processing plants.
 Financial products and Recommendation
Mains actors

Traders/ mandi
Farmers
Actors

Seed suppliers Middlemen traders (wholesalers)

FPOs
Agrochemical suppliers Farmers Fixed collectors
Trader/ Middlemen
Cooperatives FPOs Retailers
Farmers
Function

SUPPLY PRODUCTION COLLECTION PROCESSING TRADE

Seed collection Farm preparation, Washing, Cutting, chopping,

Aggregation, sorting,
Seed Treatment, Production, bottling,
Seed supply grading, packing, Retail
Sowing/transplanting, labeling, branding, packing,
Activities

Input supply transport marketing, Inventory,

Nutrient Management,
Weed control, storage, machinery, working
Irrigation Management, capital, accounting
Harvesting

• Short term loan with bullet • Warehouse receipt

Equipment Financing
payment option • Supply chain financing Working Capital Loans Over draft
• Cash credit • Cold storage loans/ post
• Insurance Trade financing,
Financial
Products

• Research grants
• Leasing for hire and farm harvest equipment Factoring
for new seed machinery financing
development

• Kisan Credit Card Facilitation of

endations

• Facilitation
Recomm

facilitation for land owners warehouse receipt Cash credit

of Cash Facilitating Secure
• Joint Liability Group Facilitation over draft,
credit financing for land less/ land equipment advances against
on lease financing purchase order
• farm equipment financing
 Identify and Review Market
Issues

• Lack of Market Information: Farmers often lack timely and accurate information about market prices, demand, and
consumer preferences, leading to poor decision-making.
• Middlemen Dominance: The presence of numerous intermediaries in the value chain often reduces the profit margins for
farmers.
• Inadequate Storage Facilities: Absence of proper cold storage and warehousing lead to significant post-harvest losses.
• Inefficient Supply Chain: Delays and inefficiencies in transportation result in the deterioration of vegetable quality.
• Limited Access to Modern Markets: Many farmers are unable to access modern retail markets, which often offer better
prices and terms.
• Standardization Issues: Absence of standardized grading and sorting systems can lead to varied pricing and quality
perceptions.
• Seasonal Gluts and Price Drops: Overproduction during certain seasons can lead to sudden drops in market prices.
• Inadequate Market Infrastructure:
• Lack of proper roads, market sheds, and cleanliness in traditional marketplaces.
• Lack of Value Addition: Limited facilities or knowledge to process vegetables and add value, such as producing pickles,
chips, or frozen goods.
• Volatile Market Prices: Fluctuating prices due to various factors, from climatic changes to international market trends, can
make earnings unpredictable.
• Credit Constraints: Difficulty in accessing affordable and timely credit can limit farmers' ability to invest in production or
marketing activities.
• Low Bargaining Power of Farmers: Fragmented production and the absence of collective bargaining often puts farmers at a
disadvantage.
 Proposed Intervention
1. 1Minimize Wastage:
• Quick Delivery to Market: Ensure a streamlined supply chain to reduce the time taken from farm to market.
• Sort and Separate Vegetables: Differentiate easily perishable vegetables, like leafy greens, from longer-lasting ones to manage
storage needs.
• Cold Storage and Chillers: Invest in modern cold storage facilities to maintain vegetable freshness and prolong shelf life.
• Primary Processing: Adopt methods like drying, smoking, and pickling to preserve vegetables and add value to the produce.
2. Protected Cultivation:
• Offseason Vegetables: Utilize greenhouse and shade net technologies to cultivate vegetables during offseasons. This helps in
fetching better prices due to low supply during these times.
3. Land Development:
• Area Expansion: Engage in land reclamation, terracing, and other land development techniques to increase the arable land
available for vegetable cultivation.
4. Assured Irrigation:
• Invest in modern irrigation systems like drip and sprinkler irrigation. This ensures a consistent water supply, optimizes water usage,
and promotes better crop yields.
5. Assured Market Linkage:
• Contract Farming: Develop partnerships between farmers and buyers where pricing and procurement are predetermined, ensuring
security for both parties.
• Cooperatives: Encourage farmers to form cooperatives or groups to collectively sell their produce, ensuring better bargaining
power.
6. Transportation Facilitation:
• Improved Logistics: Invest in refrigerated transport and better road connectivity. This ensures vegetables reach the market in fresh
condition and reduces transit losses.
• Supply Chain Optimization: Implement tracking and management systems to streamline the delivery process and reduce delays.
Aromatic Rice Value Chain :
J&K
 Key facts of Aromatic Rice value chain

Few Main cropping system:

• Main districts: Anantnag, Budgam, Baramulla Main final products:
facts • Yield - Current: 5.5 MT/ha Rainfed + transplanting + Sowing: Late May to June;
Main Rice Variety: Aromatic Rice famous for
• Number of producers: 723 (approx.) Harvesting: September to October. + traditional
• Area under production (ha): 259 unique aroma and taste,
• Production (MT): 259
methods with minimal chemicals.

Long-term rice Short-term rice

Season of production Traditional basmati varieties Fast maturing varieties
September-October
Planted: May - June Planted: May - June
Harvested: November- December Harvested: September –
October

Profile of farmers

Type of farming: Small farm Type of farming: Medium farm Type of farming: Large farm
Size of the farm: 0.25 ha (majority) Size of the farm: 0.25-1.5 ha Size of the farm: 1.5ha and above
Mechanization: Limited, mainly manual Mechanization: Combination of manual labor Mechanization: Tractors or combine
labor and machinery harvesters + provide services for others
 Main Actors in the Aromatic Rice Value Chain

Mains actors

Seed suppliers Village collectors

Actors

Farmers Custom millers Wholesalers

Agrochemical suppliers Traders Commercial millers Retailers
Cooperatives Farmers Food processing Large millers
Farmers Custom / Commercial millers factories Exporters
Millers Cooperatives Village-based mills
Function

SUPPLY PRODUCTION COLLECTION PROCESSING TRADE

Seed collection Land preparation Paddy collection

Seed supply Seeding/transplanting Drying Retail
Input supply Pest and weed control Storage Paddy export
Activities

Harvesting Paddy selling Milled rice export

Drying
Threshing

Women are key actors in the rice value chain

• Manual tillage operation Sowing/transplanting,
• Purchasing inputs Nutrient management,
Activities
Women

• Transplanting Irrigation Management

• Harvesting Harvesting
• Threshing
• Decision-making
Activities

• Purchasing • Physical work (land Farm preparation,

Men

preparation) Sowing/transplanting, Rice mill owners and operators Wholesalers and retailers
• Decision-making Nutrient management, Irrigation at commune and district levels • Financial operation
Management • Financial operation • Management
Harvesting • Management
 Identify and Review Climate Change Risk

Mains actors

Seed suppliers Village collectors

Actors

Farmers Custom millers Wholesalers

Agrochemical suppliers Traders Commercial millers Retailers
Cooperatives Farmers Food processing Large millers
Farmers Custom / Commercial millers factories Exporters
Millers FPO Village-based mills
Function

SUPPLY PRODUCTION COLLECTION PROCESSING TRADE

Seed collection Land preparation Paddy collection

Seed supply Seeding/transplanting Drying - winnowing, milling, storage Retail
Input supply Pest and weed control Storage Paddy export
Activities

Harvesting Paddy selling Milled rice export

Drying
Threshing

• Land Preparation: Dry periods, excessive rainfall.

• Seed Collection: Drought,
• Transplanting/Planting: Delayed monsoons, frosts.
excessive rainfall, Milling: Power outages due to Wholesale: Transportation
• Pest/Weed Control: Temperature changes affecting pest/weed weather events.
unexpected frost. disruptions from extreme
proliferation.
Climate
Change

• Seed Supply: Weather Food Processing: Raw material weather.

Risk

• Harvesting: Rainfall delays, grain quality reduction.

unpredictability affecting shortages from production Retail Export: Global
• Drying: Humidity, rain impacting drying.
storage and transportation. disruptions. weather affecting
• Threshing: Wet conditions, grain quality reduction. Selling: Supply chain disruptions
• Input Supply: Weather demand/supply.
• Paddy Collection: Extreme weather disruptions.
disruptions to input from extreme weather.
• Storage: Humidity, flooding causing rot/infestation.
manufacturing and delivery. • Paddy Selling: Weather disruptions to transportation.
Recomm
endation

• Assured Irrigation facilities,

s

soil & water management

 Financial Market Involvement

Mains actors

Seed suppliers Village collectors

Actors

Farmers Custom millers Wholesalers

Agrochemical suppliers Traders Commercial millers Retailers
Cooperatives Farmers Food processing Large millers
Farmers Custom / Commercial millers factories Exporters
Millers Cooperatives Village-based mills
Function

SUPPLY PRODUCTION COLLECTION PROCESSING TRADE

Seed collection Land preparation Paddy collection

Seed supply Seeding/transplanting Drying - winnowing, milling, storage Retail
Input supply Pest and weed control Storage Paddy export
Activities

Harvesting Paddy selling Milled rice export

Drying
Threshing

• Warehouse receipt Over draft

• Cash credit • Short term loan with bullet • Supply chain financing Equipment Financing Trade financing,
Financial
Products

• Research grants payment option Factoring

• Insurance • Cold storage loans/ post Working Capital Loans
for new seed harvest equipment
• Leasing for hire and farm
development financing
machinery
in Cambodia
Involvement

• Kisan Credit Card Facilitating Secure

• Facilitation facilitation for land owners Facilitation of Cash credit over draft,
FM

of Cash • Joint Liability Group warehouse receipt advances against

credit financing for land less/ land Facilitation purchase order
on lease equipment
• farm equipment financing financing
 Identify and Review Market
Issues

• Quality Seeds: Ensuring access to high-quality seeds and maintaining seed purity is vital. Cross-pollination with non-aromatic
varieties can dilute the aroma and overall quality.
• Weed Control: Aromatic rice fields are often susceptible to invasive weeds which compete for nutrients, requiring regular
weeding which can be labor-intensive.
• Irrigation: Precise water management is essential for aromatic rice. Both water scarcity and waterlogging can affect yield and
quality.
• Pest & Diseases: Aromatic rice varieties are more vulnerable to certain pests and diseases, such as the rice blast fungus,
brown plant hoppers, and bacterial blight.
• Storage Pests: After harvest, the rice is at risk from pests like weevils and moths during storage, potentially affecting the
grain quality and reducing yields.
• Climatic Sensitivity: Requires specific temperature and rainfall patterns for optimal aroma and flavor development.
• Soil Quality: Optimal soil types are crucial for the best aroma, flavour, and yield.
• Long Growth Duration: Longer exposure to environmental risks compared to non-aromatic varieties.
• Price Volatility: Market fluctuations based on global demand, quality, and regional production.
• Labour Intensiveness: Practices like hand transplanting and weeding are labour-intensive.
• Post-harvest Handling: proper drying, storage, and milling are critical to retain the aroma and quality.
• Adulteration Concerns: The high value of aromatic rice leads to risks of adulteration, challenging authenticity and purity.
• Climate Change Impacts: Changing weather patterns affect cultivation regions and crop quality.
 Proposed Intervention
• Nematode Management:
• Conduct soil testing specifically for nematodes.
• If nematode presence is confirmed, incorporate pre-rice cropping with marigold and sesbania (either rostrata or aculeata) to act as
a biocontrol against nematodes.
• Seed Quality Assurance:
• Ensure the provision of high-quality seeds with a germination rate of at least 90%.
• Implement seed treatment with a 1% salt solution to enhance seed viability and health.
• Input Assurance: Prioritize the use of quality inputs for rice cultivation to ensure the best yield and grain quality.
• Certification: Obtain Organic Produce Certification to appeal to a niche market seeking organic products and potentially fetching better
prices.
• Milling & Storage Improvements:
• Upgrade rice mills to advanced models that reduce the incidence of broken rice grains.
• Enhance storage facilities to maintain grain quality, reduce post-harvest losses, and manage storage pests.
• Diversification: Consider cultivating varieties like Japonica and non-basmati aromatic rice. These have a growing demand and present
lucrative export opportunities.
Pulse Value Chain :
J&K
 Key facts of Pulse value chain

Few Main final products: Main cropping system:

• Main districts: Kathua, Samba, Rajori, Poonch,
Rainfed +Irrigated + Activities: Farm preparation,
facts Udhampur, Ananatnag, Kulgam, Shopian, Badgam, Pulses: Black Gram, Green Gram
Kupwara, Bandipora Seed Treatment, Sowing/transplanting, Nutrient
(Moong), Rajmash, Peas, Lentil
• Yield - Current: 0.9 MT/ha (approx.) Management, Weed Control, Irrigation
• Yield - Projected: 1.3 MT/ha (approx.) (Masoor), Chickpeas (Chana)
• Number of producers - Current: 20,524 (approx.)
Management, Harvesting.
• Number of producers - Projected: 30,530 (approx.)
•Production (MT) - Current: 6,619 (approx.) •
• Production (MT) - Projected: 7,400 (approx.)

Season of production
Rabi & Kharif (October & April)

Profile of farmers

Type of farming: Small farm Type of farming: Medium farm Type of farming: Large farm
Size of the farm: 0.25 ha (majority) Size of the farm: 0.25-1.5 ha Size of the farm: 1.5ha and above
Mechanization: Limited, mainly manual Mechanization: Combination of manual labor Mechanization: mechmaisation +
labor and machinery provide services for others
 Main Actors in the Pulse Value Chain

Mains actors

Seed suppliers
Actors

Farmers Village collectors Wholesalers

Agrochemical suppliers Traders Retailers
Cooperatives Local markets
Processing units
Large millers
Farmers Packaging units
Exporters
Millers FPO
Function

SUPPLY PRODUCTION COLLECTION PROCESSING TRADE

Seed collection Land preparation Cleaning, Dehulling (removing the Wholesale trade
Pod collection,
Seed supply Sowing outer skin), Splitting, Milling,
Input supply Pest and weed control
segregation,
Packaging
Retail distribution
Activities

threshing& Export
Harvesting winnowing, sorting,
Drying and initial grading, storage documentation and
storage shipping (if applicable)

• Sowing Pod collection, segregation, Cleaning, Dehulling (removing the

threshing& winnowing, sorting,
• Pest and weed control outer skin), Splitting, Milling,
Activities
Women

grading, storage Packaging

• Harvesting
• Drying and initial storage
Activities

• Purchasing • Land preparation Pod collection, segregation,

Men

• Sowing storage Cleaning, Dehulling Wholesalers and retailers

• Pest and weed control (removing the outer skin), • Financial operation
• Harvesting • Management
Splitting, Milling,
• Drying and initial storage
Packaging
 Identify and Review Climate Change Risk

Mains actors

Seed suppliers
Actors

Farmers Village collectors Wholesalers

Agrochemical suppliers Traders Retailers
Cooperatives Local markets Processing units Large millers
Farmers Packaging units Exporters
Millers FPO
Function

SUPPLY PRODUCTION COLLECTION PROCESSING TRADE

Seed collection Land preparation Cleaning, Dehulling (removing the Wholesale trade
Pod collection,
Seed supply Sowing outer skin), Splitting, Milling,
Input supply
segregation, Retail distribution
Pest and weed control Packaging
Activities

threshing& Export
Harvesting winnowing, sorting,
Drying and initial grading, storage documentation and
storage shipping (if applicable)

• Land Preparation: Dry periods, excessive rainfall.

• Seed Collection: Drought,
• Transplanting/Planting: Delayed monsoons, frosts.
excessive rainfall, Milling: Power outages due to Wholesale: Transportation
• Pest/Weed Control: Temperature changes affecting pest/weed weather events.
unexpected frost. disruptions from extreme
proliferation.
Climate
Change

• Seed Supply: Weather Food Processing: Raw material weather.

Risk

• Harvesting: Rainfall delays, grain quality reduction.

unpredictability affecting shortages from production Retail Export: Global
• Drying: Humidity, rain impacting drying.
storage and transportation. disruptions. weather affecting
• Threshing: Wet conditions, grain quality reduction. Selling: Supply chain disruptions
• Input Supply: Weather demand/supply.
• Pulse Collection: Extreme weather disruptions.
disruptions to input from extreme weather.
• Storage: Humidity, flooding causing rot/infestation.
manufacturing and delivery. • Pulse Selling: Weather disruptions to transportation.
Recomm
endation
s

Soil & water management

 Main Actors in the Pulse Value Chain

Mains actors

Seed suppliers
Actors

Farmers Village collectors Wholesalers

Agrochemical suppliers Traders
Pulse mills (both custom
Retailers
Cooperatives Local markets
and commercial)
Large millers
Farmers Processing units
Exporters
Millers FPO Packaging units
Function

SUPPLY PRODUCTION COLLECTION PROCESSING TRADE

Seed collection Land preparation Cleaning, Dehulling (removing the Wholesale trade
Pod collection,
Seed supply Sowing outer skin), Splitting, Milling,
Input supply Pest and weed control
segregation,
Packaging
Retail distribution
Activities

threshing& Export
Harvesting winnowing, sorting,
Drying and initial grading, storage documentation and
storage shipping (if applicable)

Over draft
• Warehouse receipt Trade financing,
• Cash credit • Short term loan with bullet • Supply chain financing Equipment Financing
Financial
Products

payment option Factoring

• Research grants • Cold storage loans/ post Working Capital Loans
• Insurance
for new seed harvest equipment
• Leasing for hire and farm
development financing
machinery

land less/ land on lease

• Facilitating Secure
• Facilitation farm equipment financing Facilitation of Cash credit over draft,
of Cash warehouse receipt advances against
credit Facilitation purchase order
equipment
• isan Credit
financing
Card
facilitation
for land
owners
• Joint
Liability
Group
financing for
 Identify and Review Market
Issues

1. Suboptimal Yield Performance

• Description: Despite the potential for higher yields, pulse crops often underperform due to a myriad of reasons ranging from poor farming practices to
unfavorable weather conditions.
• Impact: Reduced income for farmers, potential market shortages, and inconsistent pricing.

2. Inadequate Access to Quality Seeds

• Description: Farmers often don't have access to high-grade, disease-resistant seeds, leading them to use subpar seeds that might not yield optimal results.
• Impact: Lower crop yields, increased susceptibility to diseases, and reduced market value for the produce.
3. Non-adherence to Good Agricultural Practices (GAP)
• Description: Ignorance or negligence towards GAP can lead to inconsistent produce quality, excessive use of harmful chemicals, and non-sustainable
farming methods.
• Impact: Risk of producing items that don't meet market or export quality standards, environmental degradation, and potential health hazards.
4. Post-harvest Storage Issues and Pest Infestations
• Description: Traditional storage methods and facilities are susceptible to pests, leading to significant post-harvest losses.
• Impact: Economic losses due to wasted produce, reduced market availability, and potential health risks from consuming pest-infested products.

5. Lack of Modern Farming Knowledge and Equipment

• Description: Many farmers might not be updated with modern farming techniques, technologies, or might not have access to modern farming equipment.
• Impact: Stagnant or declining productivity levels, increased labor intensity, and inefficiencies in farming operations.
6. Economic Constraints and Limited Resources
• Description: Financial challenges might prevent farmers from investing in quality seeds, modern equipment, or training sessions.
• Impact: Reluctance or inability to adopt improved farming practices, leading to reduced yields and income.

7. Climate Variability and Unpredictable Weather Patterns

• Description: Pulse crops can be sensitive to climatic changes and may be adversely affected by unpredictable weather patterns.
• Impact: Crop failures, reduced yields, and increased vulnerability to diseases and pests.
 Proposed Intervention
Interventions and Their Impacts:
1. Production of Quality Planting Material and Seed Villages
• Implementation: Establish dedicated zones or 'seed villages' where high-grade, disease-resistant seeds are produced.
Collaborate with agricultural research institutions to develop and distribute such seeds.
• Benefits: Ensures consistent and enhanced yields, reduces vulnerability to diseases, and elevates the overall quality of produce.
Farmers get reliable access to top-tier planting materials.
2. Capacity Development
• Implementation: Conduct training sessions, workshops, and field demonstrations for farmers on modern farming techniques,
efficient use of resources, and sustainable agricultural practices.
• Benefits: Empowers farmers with the latest knowledge and skills, leading to increased productivity, reduced resource wastage, and
adherence to GAP.
3. Ensuring Quality Inputs
• Implementation: Develop and implement a robust supply chain for delivering quality fertilizers, pesticides, and other essential
inputs. Ensure these inputs meet the requisite quality standards.
• Benefits: Consistent crop quality, reduced risk of produce rejection in markets due to substandard inputs, and better soil health.
4. Organic Produce Certification
• Implementation: Set up a certification body or collaborate with existing agencies to certify farms that adhere to organic farming
practices. This certification can serve as a quality assurance marker for consumers.
• Benefits: Offers a competitive advantage in the market, fetches better prices, ensures health and safety standards, and promotes
sustainable farming practices.
5. Storage Pest Control Protocols
• Implementation: Introduce and standardize pest control methods, both preventive and reactive, tailored for storage facilities. This
might include the use of natural repellents, improved storage infrastructure, and periodic inspections.
• Benefits: Drastically reduces post-harvest losses, ensures the longevity and quality of stored produce, and prevents potential
health risks from consuming pest-infested products.
Spices Value Chain :
J&K
 Key facts of Spice value chain

Few Main districts: Bandipore, Kupwara, Ganderbal,

Main final products: Main cropping system:
Anantnag, Badgam, Poonch, Rajori, Doda,
facts Kishtwar, Ramban. Spices Black Cumin, Kashmiri Chilli, Rainfed Cultivation + Irrigated Cultivation + Inter-
cropping + Mixed Cropping + Rotational Cropping+
Number of producers - Current: 21,221 approx Coriander, Fennel, Ginger, Caraway
(as per the previous data you provided). Agroforestry System
Seeds, Cinnamon, Turmeric, Bay Leaf,
Number of producers - Projected: 26,099 approx.
Aniseed.
Production (MT) - Current: 19,446 approx.
•
Production (MT) - Projected: 22,500 approx.

Season of production
May to July and October-November

Profile of farmers

Type of farming: Small farm Type of farming: Medium farm Type of farming: Large farm
Size of the farm: 0.25 ha (majority) Size of the farm: 0.25-1.5 ha Size of the farm: 1.5ha and above
Mechanization: Limited, mainly manual Mechanization: Combination of manual labor Mechanization: mechmaisation +
labor and machinery provide services for others
 Main Actors in the Spice Value Chain

Mains actors
Actors

Farmers Village collectors

Seed supplier Wholesalers
Traders
Input shops Retailers
Local markets Processing units
Exporters
Packaging units
FPO
Function

SUPPLY PRODUCTION COLLECTION PROCESSING TRADE

Farm preparation Sorting, grading, drying, pulverising, •Wholesale trade

Seed collection and Seed Treatment for Soil packing, storage
propagation Borne Disease
Aggregation, Retail distribution
Activities

anting sorting grading, Export

Nutrient Management packing, transport
and inorganic inputs documentation and
Weed Control
(fertilizers, pesticides Irrigation Management shipping (if applicable)
Harvesting

Seed Treatment for Soil Aggregation, sorting grading, Sorting, grading, drying, pulverising,
packing, packing, storage
Activities

Borne Disease
Women

Sowing/transplanting
Nutrient Management
Weed Control
Irrigation Management
Harvesting
Activities

• Purchasing Farm preparation, Seed Aggregation, sorting grading,

Men

packing, transport Sorting, grading, drying, Wholesalers and retailers

Treatment pulverising, packing, storage
Sowing/transplanting • Financial operation
Nutrient Management, Weed • Management
Control, Irrigation • Logistics
Management, Harvesting
 Identify and Review Climate Change Risk

Mains actors
Actors

Farmers Village collectors

Traders Wholesalers
Seed supplier Processing units Retailers
Local markets
Packaging units Exporters
FPO
Function

SUPPLY PRODUCTION COLLECTION PROCESSING TRADE

Seed collection and

Farm preparation Sorting, grading, drying, pulverising, •Wholesale trade
Seed Treatment for Soil packing, storage
propagation
Borne Disease Aggregation, sorting Retail distribution
Activities

Supply of organic and Sowing/transplanting grading, packing, Export

inorganic inputs Nutrient Management transport
(fertilizers, pesticides Weed Control
documentation and
Irrigation Management shipping (if applicable)
Harvesting
• Land Preparation: Dry periods, excessive rainfall.
• Seed Collection: Drought,
• Transplanting/Planting: Delayed monsoons, frosts.
excessive rainfall, Processing: Power outages due to Wholesale: Transportation
• Pest/Weed Control: Temperature changes affecting pest/weed weather events.
unexpected frost. disruptions from extreme
proliferation.
Climate
Change

• Seed Supply: Weather Food Processing: Raw material weather.

Risk

• Harvesting: Rainfall delays, grain quality reduction.

unpredictability affecting shortages from production Retail Export: Global
• Drying: Humidity, rain impacting drying.
storage and transportation. disruptions. weather affecting
• Threshing: Wet conditions, grain quality reduction. Selling: Supply chain disruptions
• Input Supply: Weather demand/supply.
• spice Collection: Extreme weather disruptions.
disruptions to input from extreme weather.
• Storage: Humidity, flooding causing rot/infestation.
manufacturing and delivery. • spice Selling: Weather disruptions to transportation.
Recomm
endation
s

Assured Irrigation facilities

Soil & water management
 Main Actors in the Spice Value Chain

Mains actors

Seed suppliers
Actors

Farmers Village collectors

Agrochemical suppliers Traders Wholesalers
Cooperatives Local markets
Processing units Retailers
Farmers Packaging units Exporters
Millers FPO
Function

SUPPLY PRODUCTION COLLECTION PROCESSING TRADE

Seed collection Land preparation Cleaning, Dehulling (removing the Wholesale trade
Pod collection,
Seed supply Sowing outer skin), Splitting, Milling,
Input supply Pest and weed control
segregation,
Packaging
Retail distribution
Activities

threshing& Export
Harvesting winnowing, sorting,
Drying and initial grading, storage documentation and
storage shipping (if applicable)

Over draft
• Warehouse receipt Trade financing,
• Cash credit • Short term loan with bullet • Supply chain financing Equipment Financing
Financial
Products

payment option Factoring

• Research grants • Cold storage loans/ post Working Capital Loans
• Insurance
for new seed harvest equipment
• Leasing for hire and farm
development financing
machinery

land less/ land on lease

• Facilitating Secure
• Facilitation farm equipment financing Facilitation of Cash credit over draft,
of Cash warehouse receipt advances against
credit Facilitation purchase order
equipment
• isan Credit
financing
Card
facilitation
for land
owners
• Joint
Liability
Group
financing for
 Identify and Review Market
Issues

• Low Productivity: Inefficient farming practices and Limited access to advanced agricultural technology.

• Quality Seed Material: Lack of access to high-quality seed varieties and Challenges in seed storage and germination.

• Irrigation: Inadequate water supply and management systems and dependency on seasonal rains, leading to unpredictable
yields.

• Good Agricultural Practices (GAP): Limited knowledge and implementation of GAP and lack of standardized farming
practices across regions.

• Storage Pests: Infestation of stored spices leading to losses and inadequate storage facilities and pest control methods.

• Low Prices: Fluctuations in market prices affecting farmers' income and inadequate support price mechanisms for spices.

• Middlemen: Dominance of intermediaries leading to reduced profits for farmers and lack of direct market access for many
spice farmers.

• Adulteration: Mixing spices with inferior or inedible materials and absence of stringent quality checks and monitoring.

• Cheap Imports: Competition with imported spices affecting local markets and quality concerns with imported products.
 Proposed Intervention
• Setting up Nurseries for Production of Quality Planting Material:

• Establish specialized nurseries dedicated to spice crops.

• Ensure availability of genetically superior and disease-free planting material.

• Foster research collaborations to introduce new and improved spice varieties.

• Ensuring Quality Inputs:

• Facilitate access to certified and quality-controlled fertilizers.

• Promote the use of organic inputs like Farm Yard Manure (FYM) and vermi-compost to boost soil health.

• Conduct periodic soil tests and guide farmers on customized fertilizer usage.

• A Network of Sprinkler Irrigation Sets:

• Introduce modern irrigation infrastructure tailored for spice cultivation.

• Promote efficient water usage through sprinkler systems, reducing water wastage.

• Educate farmers on the best irrigation practices for specific spice crops.

• Capacity Development for Good Agricultural Practices (GAP):

• Organize training sessions and workshops to educate farmers about GAP.

• Develop a standardized set of guidelines for spice cultivation.

• Foster collaborations with agricultural institutions to keep updating farming practices.

• Market Linkages:

• Establish direct connections between spice producers and buyers, minimizing middlemen intervention.

• Introduce platforms or cooperatives where farmers can collectively bargain for better prices.
• Collaborate with export agencies to tap into international spice markets.
Lavender Value Chain :
J&K
 Key facts of Lavender value chain

Few • Main districts: Pulwama, Budgam, Anantnag,

Baramulla, Ganderbal, Doda, Ramban, Kathua, Main final products: Lavender Cropping System
facts Poonch, Rajori • Lavender oil • Altitude & Site: Preferably 800 to 1,300 meters above
• Number of producers - Current: 2,368 approx • Dried Lavender flowers sea level, on sunny slopes.
• Soil: Well-drained, slightly alkaline. Enhanced drainage
• Number of producers - Projected: 3,500 approx • Value added products
• Production (MT) - Current: 1,065 approx
with sand or gravel. Raised beds commonly used.
• Propagation: Primarily through root or hardwood
• Production (MT) - Projected: 1,200 approx
cuttings.
• Planting: Spring season, with a spacing of 3 x 2 feet
between plants.
• Watering: Regular during establishment, less frequent
once matured.
• Fertilization: Farmyard manure added pre-planting;
minimal fertilization post-establishment.
Season of production • Weed Management: Regular weeding, especially
during initial growth.
• June to October
• Pest & Disease: Integrated pest management for issues
like spittlebugs and root rot.
• Harvesting: During full bloom, typically June to July.
• Post-Harvest: Flowers dried in shade, then distilled for
oil or used in products.
• Intercropping & Rotation: Possible with other aromatic
plants or legumes.

Profile of farmers
Type of farming: Small farm
Size of the farm: 0.25 ha (majority)
Mechanization: Limited, mainly manual
labor
 Main Actors in the Lavender Value Chain

Mains actors
Actors

Farmers Village collectors

Seed supplier Wholesalers
Traders
Input shops Processing units Retailers
Local markets
Packaging units Exporters
FPO
Function

SUPPLY PRODUCTION COLLECTION PROCESSING TRADE

Farm preparation Drying of flowers, Wholesale trade

Seed collection and Seed treatment for soil sorting/grading & oil
propagation
Aggregation, Retail distribution
extraction, Value added
Activities

borne disease sorting grading,

products Export
Sowing/transplanting packing, transport
and inorganic inputs Nutrient Management documentation and
(fertilizers, pesticides Weed Control, Harvesting shipping (if applicable)

Seed treatment for soil Aggregation, sorting grading, Drying of flowers, sorting/grading &
packing, oil extraction,
borne disease
Activities
Women

Sowing/transplanting
Nutrient Management
Weed Control
Harvesting
Activities

• Purchasing Farm preparation Aggregation, sorting grading,

Value added products
Men

Seed treatment for soil packing, transport Wholesalers and retailers

borne disease • Financial operation
Sowing/transplanting • Management
Nutrient Management • Logistics
Weed Control, Harvesting
 Identify and Review Climate Change Risk

Mains actors
Actors

Farmers Village collectors

Traders Wholesalers
Seed supplier Retailers
Local markets Processing units
Exporters
Packaging units
FPO
Function

SUPPLY PRODUCTION COLLECTION PROCESSING TRADE

Seed collection and Farm preparation

Drying of flowers, sorting/grading & •Wholesale trade
propagation Aggregation, sorting oil extraction, Value added products Retail distribution
Seed treatment for soil
Activities

Supply of organic and borne disease grading, packing, Export

inorganic inputs Sowing/transplanting transport
(fertilizers, pesticides documentation and
Nutrient Management
shipping (if applicable)

• Soil degradation due to erratic rainfall

• Seed Collection: Drought,
excessive rainfall, • Water scarcity impacting irrigation • Yield of oil affected by quality of Wholesale: Transportation
unexpected frost. • Increased pest/disease incidence due to temperature changes lavender disruptions from extreme
Climate
Change

• Seed Supply: Weather • Early or late blooming due to climate unpredictability • Distillation process affected by weather.
Risk

unpredictability affecting • Quality degradation due to temperature and humidity changes temperature and humidity Retail Export: Global
storage and transportation. during transportation variations weather affecting
• Input Supply: Weather • Disruption in transportation due to extreme weather events demand/supply.
disruptions to input

manufacturing and delivery.

Recomm
endation
s

Soil & water management

 Main Actors in the Lavender Value Chain

Mains actors

Seed suppliers
Actors

Farmers Village collectors

Agrochemical suppliers Traders Wholesalers
Cooperatives Local markets
Processing units Retailers
Farmers Packaging units Exporters
Millers FPO
Function

SUPPLY PRODUCTION COLLECTION PROCESSING TRADE

Seed collection and Farm preparation Drying of flowers, sorting/grading & •Wholesale trade
propagation Seed treatment for Aggregation, sorting oil extraction, Value added products Retail distribution
Activities

Supply of organic and soil borne disease grading, packing,

inorganic inputs
Export
Sowing/transplanting transport
(fertilizers, pesticides documentation and
Nutrient Management
shipping (if applicable)

Over draft
• Warehouse receipt Trade financing,
• Cash credit • Short term loan with bullet • Supply chain financing Equipment Financing
Financial
Products

payment option Factoring

• Research grants • Cold storage loans/ post Working Capital Loans
• Insurance
for new seed harvest equipment
• Leasing for hire and farm financing
development
machinery

land less/ land on lease

• Facilitating Secure
• Facilitation farm equipment financing Facilitation of Cash credit over draft,
of Cash warehouse receipt advances against
credit Facilitation purchase order
equipment
• isan Credit
financing
Card
facilitation
for land
owners
• Joint
Liability
Group
financing for
 Identify and Review Market
Issues

1. Quality Planting Material

• Issue: Unavailability of high-quality planting material can lead to suboptimal growth and yield.
• Impact: This can directly influence the overall quality and quantity of lavender produce, which can, in turn,
affect market pricing and consumer trust.
2. Low Productivity & Quality
• Issue: Factors such as soil degradation, improper irrigation, pests, and diseases can lead to low productivity.
Additionally, subpar farming practices can result in lower quality lavender.
• Impact: Low yield means reduced supply, which can elevate prices. Low quality can deter potential
consumers and diminish brand reputation.
3. Cheap Synthetic Material in the Market
• Issue: The presence of cheap synthetic lavender substitutes can undercut genuine lavender products, making
it challenging for genuine producers to compete on price.
• Impact: Consumers might opt for these cheaper alternatives, unaware of the possible inferior quality. This can
diminish market share for authentic lavender products.
4. Branding & Marketing
• Issue: Inadequate or ineffective branding and marketing can make it challenging for lavender products to
stand out in a saturated market.
• Impact: Limited market reach, reduced consumer recognition, and potential loss of sales.
 Proposed Intervention

1. Improved Distillation Methods, Including the Equipment

• Rationale: The quality and essence of lavender oil are largely determined by the distillation process. Using outdated or inefficient
methods can lead to lower yields and inferior quality oil.
• Expected Outcome: Higher yield of lavender oil that retains its purity, fragrance, and therapeutic qualities. This can lead to better
market prices and increased demand.
2. Setting up Nurseries for Production of Quality Planting Material
• Rationale: The foundation of a healthy lavender crop begins with the quality of planting material. Nurseries dedicated to producing
superior lavender saplings can ensure consistent and optimized yields.
• Expected Outcome: Improved crop health, increased yield, and uniformity in lavender quality across farms.
3. Ensuring Quality Inputs
• Rationale: Beyond just planting material, the quality of inputs like soil, fertilizers, and pesticides can significantly impact lavender health
and yield.
• Expected Outcome: Consistent and high-quality lavender production, leading to a trustworthy brand image in the market.
4. Strong Branding & Promotion of High-Quality Product
• Rationale: In a market inundated with synthetic substitutes and varying quality levels, effective branding can set genuine high-quality
lavender products apart.
• Expected Outcome: Increased consumer trust, higher demand, and potentially premium pricing for genuine lavender products.