Initiative to help farmers adopt best practices in soil nutrition, climate-resilient farming
The Asian Development Bank (ADB) has announced that it would fund the farm efficiency initiative of Smartchem Technologies Limited (STL), a wholly-owned subsidiary of Deepak Fertilisers And Petrochemicals Corporation Limited (DFPCL), through a $30 million loan facility with a tenor of 5 years. This is ADB’s first agribusiness ‘Blue Loan’, and the first such blue loan in India in the agribusiness sector across institutions. The loan will be used to finance capital expenditure as well as research and development of enhanced-efficiency speciality fertilisers.
STL was chosen as a suitable candidate for Asian Development Bank (ADB) support because of its leading market position in the enhanced efficiency specialised fertilisers (EESF) segment, with advanced technical capability and satisfactory financial performance. Growth potential from the enhancement of fertiliser production capacity to provide quality inputs.
Actions to encourage the application of EESFs, which will support the sustainable transformation of agriculture in India while improving its resilience to climate change.
ADB has also given approval for a technical assistance grant of $5,00,000 for building capacity for Soil Nutrition Management among Smallholder Farmers and Climate Resilience in India. The said grant is in addition to financing of $30 Million (“Blue loan”).
Enhanced-efficiency speciality fertilisers have shown increased output while reducing the need for fertiliser application rate and also reduces environmental impact and supports Nutrient uptake efficiencies and thus delivers better productivity leading to improved food security.
