The World Bank Implementation Status & Results Report State of Maharashtra's Agribusiness and Rural Transformation Project (P168310) State of Maharashtra's Agribusiness and Rural Transformation Project (P168310) SOUTH ASIA | India | IBRD/IDA | Investment Project Financing (IPF) | FY 2020 | Seq No: 12 | Archived on 03-Sep-2024 | ISR01542 Implementing Agencies: Department of Agriculture, Government of Maharashtra 1. OBJECTIVE 1.1 Development Objective Original Development Objective (Approved as part of Approval package on 16-Dec-2019) The project development objective is to support the development of inclusive and competitive agriculture value chains, focusing on smallholder farmers and agri-entrepreneurs in Maharashtra. Has the Development Objective been changed since Board Approval of the Project Objective? No 2. COMPONENTS Name Component A: Enhancing Institutional Capacity to Support Agricultural Transformation.:(Cost 42,200,000.00) Component B: Expanding Market Access and Supporting Enterprise Growth.:(Cost 204,500,000.00) Component C: Building Risk Mitigation Mechanisms.:(Cost 20,200,000.00) Component D: Project Management, Monitoring and Learning.:(Cost 33,100,000.00) 3. OVERALL RATINGS Name Previous Current Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Overall Risk Rating Substantial Substantial 4. KEY ISSUES & STATUS Sep 03, 2024 Page 1 of 13 The World Bank Implementation Status & Results Report State of Maharashtra's Agribusiness and Rural Transformation Project (P168310) 4.1 Implementation Status and Key Decisions The project has continued to maintain an improved pace of implementation with approximately 80% of overall disbursements being made during the past 18 months. Since the previous mission in December 2023, full project proposals (FPPs) sanctioned for financing have increased from 692 to 767, corresponding to total committed expenditures increasing from $100 million (Rs. 834 crores) to $111 million (Rs.924 crores); actual grant money released to Community Based Organizations (CBOs) has increased by 42% from $21 million (Rs. 173 crores) to $36 million (Rs. 300 crores); and an additional $10 million of commercial loan financing has been leveraged, bringing total commercial loans mobilized to $33 million (Rs. 273 crores). The project has also signed an Memorandum of Understanding (MOU) with the National Bank of Agriculture and Rural Development (NABARD) to jointly develop and pilot an FPO Accelerator Program to provide capacity-building support to selected FPOs. 400 women’s FPOs have been registered by MSRLM and MAVIM. This is a major achievement of the project if they can be provided adequate support to access markets and become sustainable. However, due to the initial two years lost at the outset, the project still lags expected implementation and disbursement targets at this stage and the project needs to continue to pick up the pace of implementation to catch up on implementation and disbursement lags. As agreed during the Mid Term Review (MTR) mission, the Government of Maharashtra (GoM) has sent a restructuring request to the Department of Economic Affairs (DEA). Key implementation challenges that need to be addressed are as follows: 1. Project has low fund balance and budgetary allocations for this fiscal year. This needs to be urgently rectified so that the project can meet planned expenditures. 2. The project needs to enhance technical assistance to Farmer Producer Organizations (FPOs) financed , including on improving food safety and quality parameters. 3. The project needs to further strengthen procurement functions and update Project Implementation Plan, Procurement Manual, and Community Procurement Manual. 4. The Village Social Transformation Foundation (VSTF) needs to mobilize private sector financing committed to the project. 5. SYSTEMATIC OPERATIONS RISK-RATING TOOL Rating at Approval Last Approved Rating Risk Category Approval Package - ISR Seq. 011 - 17 Jun Proposed Rating 17 Dec 2019 2024 Political and Governance Low Low Low Macroeconomic Low Low Low Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Substantial Substantial Substantial Sep 03, 2024 Page 2 of 13 The World Bank Implementation Status & Results Report State of Maharashtra's Agribusiness and Rural Transformation Project (P168310) Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Substantial Substantial Substantial Stakeholders Moderate Moderate Moderate Overall Substantial Substantial Substantial Sep 03, 2024 Page 3 of 13 The World Bank Implementation Status & Results Report State of Maharashtra's Agribusiness and Rural Transformation Project (P168310) 6. RESULTS 6.1 PDO Indicators by PDO Outcomes Increase in net price realization at producer level Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 Oct/2019 0.00 31-Mar-2023 33.00 Mar/2027 Comments on Measured in real terms by increase in the gross value of marketed output less costs at Increase in net price achieving targets producer level over Baseline value. Gross value is defined as the product of selling price and realization at producer level output sold to the sub-project. Costs will include costs of cultivation and marketing to the (Percentage) sub-project. The indicator will be a composite indicator measuring the profitability accruing to project beneficiaries from sub-projects relating to 6 commodities viz. cotton, maize, pigeon pea, banana, tomato and goat. Full Time Equivalent jobs generated in beneficiary firms Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 Oct/2019 2,798.00 30-Nov-2023 9,700.00 Mar/2027 Full Time Equivalent jobs Comments on Measured by number of incremental full time equivalent (FTE) jobs in beneficiary firms, generated in beneficiary achieving targets disaggregated by gender and social category. Beneficiary firms refer to the project firms (Number) supported CBOs and project supported enterprises. Of which, to female 0.00 0.00 4,700.00 beneficiaries Comments on Disaggregated by gender (Number) achieving targets 0.00 0.00 1,950.00 Of which, to SCs and Comments on Disaggregated by SCs and STs STs (Number) achieving targets Sep 03, 2024 Page 4 of 13 The World Bank Implementation Status & Results Report State of Maharashtra's Agribusiness and Rural Transformation Project (P168310) Private sector finance mobilized by the project Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 Oct/2019 32,173,000.00 30-Nov-2023 58,500,000.00 Mar/2027 Private sector finance Comments on This indicator measures the amount of private sector finance mobilized by the project. mobilized by the project achieving targets Private sector finance refers to the amount of debt raised by project beneficiaries as a part (Amount(USD)) of beneficiary contribution towards the sub-projects. The contribution from VSTF has also been included. Farmers reached with agricultural assets or services Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 Oct/2019 505,000.00 30-Nov-2023 1,900,000.00 Mar/2027 Comments on This indicator measures the number of farmers who were provided with agricultural assets achieving targets or services as a result of World Bank project support. "Agriculture" or "Agricultural" includes: crops, livestock, capture fisheries, aquaculture, agroforestry, timber, and non-timber forest products. Assets include property, biological assets, and farm and processing equipment. Biological assets may include animal agriculture breeds (e.g., livestock, fisheries) and genetic Farmers reached with material of livestock, crops, trees, and shrubs (including fiber and fuel crops). Services agricultural assets or services include research, extension, training, education, ICTs, inputs (e.g., fertilizers, pesticides, (Number) labor), production-related services (e.g., soil testing, animal health/veterinary services), phyto-sanitary and food safety services, agricltural marketing support services (e.g., price monitoring, export promotion), access to farm and post-harvest machinery and storage facilities, employment, irrigation and drainage, and finance. Farmers are people engaged in agricultural activities or members of a agriculture-related business (disaggregated by men and women) targeted by the project. Farmers reached with 0.00 158,000.00 820,000.00 agricultural assets or services - Female (Number) Sep 03, 2024 Page 5 of 13 The World Bank Implementation Status & Results Report State of Maharashtra's Agribusiness and Rural Transformation Project (P168310) 0.00 87,000.00 245,000.00 Of which, SC and ST Comments on Disaggregated by SC and ST farmers farmers (Number) achieving targets 6.2 Intermediate Results Indicators by Components Component A: Enhancing Institutional Capacity to Support Agricultural Transformation. Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year People using digitally enabled services (Number of people) CRI People using digitally enabled services – Youth (Number of people) CRI People using digitally enabled services – Female (Number of people) CRI No Oct/2019 No 30-Nov-2023 Yes Mar/2027 Progress against outcome Comments on This indicator, measures whether the outcome goals defined and accepted by the goals tracked and reported achieving targets Department of Agriculture are met by the Department and reported annually. The DLI is annually by DoA (Yes/No) linked to meeting the outcome goals as well as reporting the same annually on the agreed upon platform.DoA denotes Department of Agriculture, Government of Maharashtra. No Oct/2019 Yes 30-Nov-2023 Yes Mar/2027 Sep 03, 2024 Page 6 of 13 The World Bank Implementation Status & Results Report State of Maharashtra's Agribusiness and Rural Transformation Project (P168310) Annual ranking of markets in Comments on DoM will develop ranking of market health indicators. This indicator tracks whether such Maharashtra and publication achieving targets rankings have been generated and reports thereof are published by DoM. DoM denotes of the same (Yes/No) Department of Marketing, Government of Maharashtra. 0.00 Oct/2019 1.00 30-Nov-2023 6.00 Mar/2027 Functional Agriculture Comments on This indicator measures the number of functional Agriculture Stewardship Councils Stewardship Councils achieving targets established. A functional Agriculture Stewardship Council is defined as one contributing to established (Number) one or more policy recommendations based on a Vision Document and Institutional Developmet Plan. Component B: Expanding Market Access and Supporting Enterprise Growth. Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 Oct/2019 0.00 31-Mar-2023 0.00 Mar/2027 Productivity for select Comments on This indicator measures increment in the productivity of select five agricultural commodities commodities (mt/ha) achieving targets (cotton-lint, maize, pigeon pea, banana, tomato). Baseline productivity is measured across (Number) all districts. From year 1 onwards, the productivity will be measured in the project districts. 0.29 Oct/2019 0.29 31-Mar-2023 0.43 Mar/2027 Cotton - Lint Comments on Productivity of cotton- lint. (Number) achieving targets 2.91 Oct/2019 2.91 31-Mar-2023 3.58 Mar/2027 Maize (Number) Comments on Productivity of maize. achieving targets 0.93 Oct/2019 0.93 31-Mar-2022 1.14 Mar/2027 Pigeon pea (Number) Comments on Productivity of pigeon pea. achieving targets Banana (Number) 52.29 Oct/2019 0.87 31-Mar-2023 64.37 Mar/2027 Tomato (Number) 23.39 Oct/2019 14.64 31-Mar-2023 28.79 Mar/2027 16.00 Oct/2019 14.00 31-Mar-2023 19.70 Mar/2027 Sep 03, 2024 Page 7 of 13 The World Bank Implementation Status & Results Report State of Maharashtra's Agribusiness and Rural Transformation Project (P168310) Comments on This indicator measures the live weight of an average goat (as a commodity) at 6 months Average goat live weight (kg) achieving targets (measured in kilograms). Baseline average live weight is measured across all districts. From (Number) year 1 onwards, the average live weight of goat (at 6 months) will be measured in the project districts. Beneficiaries meeting quality 0.00 Oct/2019 0.00 31-Mar-2023 70.00 Mar/2027 standards set by sub-projects (Percentage) Market linkages established 0.00 Oct/2019 214.00 30-Nov-2023 120.00 Mar/2027 with the support of the Comments on This indicator measures the number of unique market linkages that will be established with project (Number) achieving targets the support of the project. 0.00 Oct/2019 0.00 30-Nov-2023 2,000.00 Mar/2027 Project supported Comments on Individual entrepreneurs aiding the development of the project Value Chains will be enterprises making achieving targets supported by the project. Preference would be given to those enterprises which support the incremental investments overall objectives of the sub-project. Enterprises are those which support sub project (Number) objectives in the given geography. This is further segregated by women entrepreneurs and by social category entrepreneurs. Of which, female 0.00 Oct/2019 0.00 30-Nov-2023 1,200.00 Mar/2027 entrepreneurs Comments on Disaggregated by gender (Number) achieving targets Of which, SC and ST 0.00 Oct/2019 0.00 30-Nov-2023 400.00 Mar/2027 entrepreneurs Comments on Disaggregated by social category (Number) achieving targets Volume of credit accessed 0.00 Oct/2019 31,431,000.00 30-Nov-2023 48,571,000.00 Mar/2027 from FIs by CBOs and Comments on This indicator measures the volume of credit accessed by project supported CBOs and enterprises supported by the achieving targets Enterprises from Financial Institutions (FIs). project (Amount(USD)) Of which, by female-led 0.00 3,150,000.00 20,000,000.00 CBOs and female Sep 03, 2024 Page 8 of 13 The World Bank Implementation Status & Results Report State of Maharashtra's Agribusiness and Rural Transformation Project (P168310) entrepreneurs (Amount(USD)) Of which, by SC and ST 0.00 0.00 1,714,000.00 entrepreneurs Comments on Disaggregated by social category (Amount(USD)) achieving targets Component C: Building Risk Mitigation Mechanisms. Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Beneficiaries who are aware 0.00 Oct/2019 0.00 01-Jun-2023 660.00 Oct/2027 of market intelligence given by the project (Number (Thousand)) Of which, female 0.00 Oct/2019 0.00 01-Jun-2023 198.00 Mar/2027 beneficiaries (Number Comments on Disaggregated by gender (Thousand)) achieving targets Of which, SC and ST 0.00 Oct/2019 0.00 01-Jun-2023 85.80 Mar/2027 beneficiaries (Number Comments on Disaggregated by social category (Thousand)) achieving targets 0.00 Oct/2019 4.78 30-Nov-2023 518.99 Mar/2027 Warehouse receipts issued to Comments on This indicator measures the number of beneficiaries to whom warehouse receipts (WRs) are project beneficiaries achieving targets issued. WRs will include the WRs issued by the CMAs and are acceptable to bankers linked to (Number (Thousand)) the CMAs. Of which, to female 0.00 Oct/2019 0.00 01-Jun-2023 51.90 Mar/2027 beneficiaries (Number Comments on Disaggregated by gender (Thousand)) achieving targets Of which, to SC and ST 0.00 Oct/2019 0.00 01-Jun-2023 67.47 Mar/2027 beneficiaries (Number (Thousand)) Sep 03, 2024 Page 9 of 13 The World Bank Implementation Status & Results Report State of Maharashtra's Agribusiness and Rural Transformation Project (P168310) Component D: Project Management, Monitoring and Learning. Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 Oct/2019 95.00 30-Nov-2023 85.00 Mar/2027 Grievances registered related Comments on This indicator measures the transparency and accountability mechanisms established by the to delivery of project benefits achieving targets project so that the target beneficiaries have trust in the processes and are willing to that are actually addressed participate, and feel that their grievances are attended to promptly. Thus, the project (Percentage) monitoring system should provide information on the number of complaints received against the number actually resolved. 6.3 Performance Based Conditions (PBC) Actual (Previous) Actual (Current) PBC Name Baseline Closing Period Value Date Value Date 1:Institutional Agri programs Agri programs remain Agri programs remain realignment and remain focused on focused on input focused on input strengthening of Value input subsidy subsidy provision, subsidy provision, Department of provision, not not outcomes. 28-Feb-2020 not outcomes. 28-Feb-2020 Agriculture and outcomes. allied departments towards outcomes Allocated 0.00 0.00 0.00 (Text) Amount PBC allocation 6,920,000.00 Mismatch in staff Mismatch in staff Mismatch in staff 2:Enhanced staff skills and capacity for skills and capacity skills and capacity for Value 28-Feb-2020 28-Feb-2020 capacity of DoA to market-oriented for market-oriented market-oriented technical service technical service technical service Sep 03, 2024 Page 10 of 13 The World Bank Implementation Status & Results Report State of Maharashtra's Agribusiness and Rural Transformation Project (P168310) achieve outcomes provision and provision and provision and (Text) promoting private promoting private promoting private sector investments. sector investments. sector investments. Allocated 0.00 0.00 0.00 Amount PBC allocation 5,600,000.00 Weak policy and Weak policy and Weak policy and 3:Enhanced market institutional institutional institutional linkages, food Value framework to framework to framework to quality and safety support agri- support agri- support agri- 28-Feb-2020 28-Feb-2020 standards for focus transformation transformation. transformation. geographies and commodities (Text) Allocated 0.00 0.00 0.00 Amount PBC allocation 7,700,000.00 Sep 03, 2024 Page 11 of 13 The World Bank Implementation Status & Results Report State of Maharashtra's Agribusiness and Rural Transformation Project (P168310) 7. DATA ON FINANCIAL PERFORMANCE 7.1 Cumulative Disbursements 7.2 Disbursements (by loan) Loan/Credit/TF Status Original Revised Cancelled Disbursed Undisbursed % Disbursed IBRD-90310 Effective 210.00 210.00 0.00 40.90 169.10 19.48% 7.3 Key Dates (by loan) Loan/Credit/TF Status Approval Signing Effectiveness Orig. Closing Rev. Closing IBRD-90310 Effective 17-Dec-2019 24-Jan-2020 23-Mar-2020 31-Mar-2027 31-Mar-2027 8. KEY DATES Sep 03, 2024 Page 12 of 13 The World Bank Implementation Status & Results Report State of Maharashtra's Agribusiness and Rural Transformation Project (P168310) Key Events Planned Actual Approval 17-Dec-2019 17-Dec-2019 Effectiveness 15-Apr-2020 23-Mar-2020 Mid-Term Review No. 01 22-Nov-2023 22-Nov-2023 Operation Closing/Cancellation 31-Mar-2027 9. RESTRUCTURING HISTORY 10. ASSOCIATED OPERATION(S) There are no associated operations Sep 03, 2024 Page 13 of 13