The World Bank has approved a $200 million project to help Kerala farmers to adapt to climate change and boost agri-entrepreneurship.

The Kerala Climate Resilient AgriValue Chain Modernization (KERA) Project is expected to benefit around 400,000 farmers by promoting climate-smart practices. This includes replanting climate-resilient varieties of coffee, cardamom, and rubber, and expanding “food parks” in rural areas, the World Bank in its annual report 2024 said.

These parks will provide essential infrastructure like water, power, and waste management to support agri-businesses in food processing and value-added products.

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The project will also form alliances between farmer groups and agribusinesses to strengthen the link between producers and buyers, with the public sector facilitating these connections. Besides, the project will support the incubation of agri-tech startups. At least $9 million in commercial finance to be leveraged benefitting women-led SMEs. This project will further infuse private sector investment and integrate agricultural value chains for the benefit of farmers and SMEs.

Moreover, it will support agri-based SMEs, especially women who currently own only 23 per cent of MSMEs in the State—to gain access to commercial finance by providing training for business plans and to strengthen their commercial viability.

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Indira Devi, Professor Emeritus, Kerala Agricultural University said Kerala Climate Resilient Agri-Value Chain Modernization (KERA) project aims to address two major challenges of the agricultural sector — climate change and farm income. Funded by World Bank, the total outlay of the project is ₹2765 crore, and it is expected to kick-start in 2025.

The project is expected to transform Kerala’s agri-sector through job creations, farm income enhancement and promotion of climate resilient practices. The support for agri-food SMEs, especially women’s groups, aims to promote income through value addition. The promotion of startups in agri has also given due importance The project, unlike in previous situations, included major spices and plantation crops, rubber, coffee and cardamom, with major thrust on replantation of senile plantations as well as supporting GAP/organic certification.

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Another focus area is farm income enhancement through facilitating smallholder commercialization for value addition. With the majority (96 per cent) marginal farmers having only very low per capita operational holding, commercial operations become very difficult. The aim is to promote the farmer collectives (FPOs/FPCs) and connect them with agribusiness players, provide market information support and technical advisories, she said.