Wednesday, December 21, 2011


More than 4000 minor irrigation schemes will be constructed in 18 out of 19 districts in the state

NEW DELHI, December 21, 2011 — The World Bank today signed a US$ 250 million credit and loan agreement with the Department of Economic Affairs, Ministry of Finance, Government of India, and the Government of West Bengal for increasing agricultural production of small and marginal farmers.

About 139,000 hectares (ha) of irrigated area are expected to be developed under the West Bengal Accelerated Development of Minor Irrigation Project (ADMIP), benefitting an estimated 166,000 farm families.

Agriculture serves as the backbone of West Bengal’s rural economy. It accounts for about 20 percent of the state’s Gross Domestic Product (GDP) and provides employment to more than 55 percent of workers in the state. Agricultural growth over the past decade was on average about 3 percent per annum.

Maintaining this growth rate requires infrastructure support, crop diversification and market access. There is, however, very little scope for increasing the current cultivable area with more than 93 percent of landholders belonging to small and marginal farmer categories with land areas of less than one or two ha respectively.

“Average agricultural productivity levels are still low in West Bengal in comparison to that of advanced agricultural states in the country. Given the importance of irrigated agriculture for increasing agricultural growth and providing rural employment round the year, the government attaches high priority to expanding irrigation facilities in the state and optimizing the utilization of available water resources. The Project will focus on investments targeted at strengthening community-based institutions for the management of minor irrigation schemes; development of surface and ground water based irrigation systems; and agricultural development along with improved support services to farmers to enhance agriculture productivity and income in 4,660 minor irrigation schemes to be developed under the Project,” said Mr. Venu Rajamony, Joint Secretary in the Department of Economic Affairs, Ministry of Finance, Government of India.

The agreement was signed by Mr Venu Rajamony, Joint Secretary, Department of Economic Affairs, on behalf of the Government of India; Mr Subrata Biswas, Secretary to the Government of West Bengal, Department of Water Investigation and Development, on behalf of the Government of West Bengal; and Mr Roberto Zagha, Country Director for India on behalf of the World Bank.

Irrigation will continue to be critical to increasing agricultural production, incomes, and rural livelihood. A recent
World Bank study, ‘The Impact of Irrigation on Agriculture Productivity: Evidence from India,’ on the impact of irrigation
on India’s agricultural productivity shows that irrigation has a strong and significant impact on land productivity,
cropping intensities, and land prices,” said Mr. Roberto Zagha, World Bank Country Director for India. The study
makes the case for continuing support for investments in improving both access and quality of irrigation.”

The absence of assured irrigation supplies inhibits the use of improved seeds, fertilizers, and other complementary inputs,
which in turn affects production levels. In West Bengal, the average yield of paddy – which accounts for more than half the annual cultivated area in the state — is about 70 percent of the Indian average and less than half of what is obtained in more advanced agricultural states. An important reason behind the low productivity is that large cultivated areas are still rain-fed
and exposed to weather fluctuations. “The World Bank is well-placed to assist West Bengal with an integrated approach that strengthens community-level institutions, develops small-scale irrigation infrastructure, and provides support services 

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