The World Bank has approved a $50-million additional credit for an ongoing agricultural project in Assam.

The Assam Agricultural Competitiveness Project (AACP) aims at increasing the productivity, profitability and market access of the farming community in the State. The focus is on mainstreaming management approaches and practices, strengthening the agriculture technology management agencies and making ground water usage more sustainable.

Investments in rural roads in select districts with low-cost construction and innovative bridge designs also form part of the project. The roads are meant to connect smaller habitations and for linking agricultural production with markets in a cost-effective manner.

A World Bank report says that according to the Planning Commission estimates of 1999-2000, about 36 per cent of the people in Assam live below the poverty line and the State is fourth in terms of poverty ratio. This is next only to Orissa, Bihar and Madhya Pradesh.

Mr Roberto Zagha, World Bank Country Director for India, said that the ongoing project had played an important role in raising the productivity and market access of targeted farmer groups of Assam. It has mobilised more than three lakh beneficiaries across the fishery, agriculture, dairy, forestry and livestock sectors.

The project investments will also focus on raising crop production through a combination of increased irrigated ‘boro' rice output, crop diversification, improved extension advice and wide-spread use of micro-nutrients. The additional World Bank credit will help scale up these project activities.

The credit will be provided by the International Development Association, the World Bank's concessionary lending arm, which extends interest-free loans with 25-year maturity period and a five-year grace period.

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