INDIA - FERTILIZER PROMOTION PROJECT

The GOI"s Ministry of Agriculture and Irrigation (MOAI) will implement the project. Project activities will be in three areas. First, the GOI will use loan funds to import 500,000 nutrient tons of fertilizer, or about 10% of its total imports. Second, to improve the fertilizer delivery system, the GOI will deliver fertilizer by truck into remote areas, establishing what are known as roadheads, to ensure fertilizer availability and to alleviate current fertilizer shipping pressures on the railroads. In addition, in areas where availability is a problem, input fertilizer distribution centers may be established for storage and retail purposes. A forthcoming GOI study will assess local warehousing needs and any further action regarding these centers. Alternative transportation incentives for fertilizer dealers are also being weighed. Third, the GOI will continue its efforts to promote the use of fertilizer in remote areas. These efforts will include block demonstrations involving a number of farms in one area; "adoption" of villages by fertilizer companies to provide technical assistance in fertilizer usage and village improvement; integrated nutrient supply schemes as a part of village adoption programs; and continuance of the GOI"s Intensive Fertilizer Promotion Campaign to organize fertilizer consumption goals and plans in areas that are lagging. Evaluations of these promotional activities are under consideration, although none have been conducted. USAID funding for such evaluations will be made available to the GOI upon request. Major project benefits will include downward pressure on the price of foodgrains, due to increased market surplus; increased incomes of participating farmers; and a more equitable distribution of income between advanced and backward areas of India.