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The project will rehabilitate the existing Nurgal irrigation canal in Kunar province, improving both the quantity and reliability of irrigation water for agricultural production

The Food and Agriculture Organisation of the United Nations (FAO) in partnership with the Government of Japan has launched a four–year project that aims to increase the amount of irrigated land, boost local food production and strengthen the food security and livelihood resilience of more than 12 600 vulnerable people in the Kunar province of eastern Afghanistan.

Facilitated by the Japan International Cooperation Agency (JICA), the $9.5 million project will also provide direct environmental benefits to local communities, helping to protect fragile rangelands and recharge vital groundwater resources, which are particularly important in the context of the increasing impacts of the climate change.

Access to water is critical in Afghanistan, a country where more than 70 per cent of food production depends on irrigation.

The project will rehabilitate the existing Nurgal irrigation canal in Kunar province, improving both the quantity and reliability of irrigation water for agricultural production and increasing the total command area – the agricultural land irrigated by the canal – by 70 hectares to a total of 643 hectares, leading to both increases in overall agricultural production and increases in productivity of at least 12 per cent.  Importantly, the project will enable poor food insecure rural households to plant two crops a year, rather than just a single wheat crop, boosting incomes, resilience and food security. 

The project will also deliver benefits to communities, helping to protect more than 2,000 hectares of fragile rangelands through improved and adapted plant varieties.  The project builds on and enhances the Green Ground Project initiated in 2003 by Tetsu Nakamura and Peace (Japan) Medical Services (PMS) to build irrigation systems in the Kunar River Basin. By 2023, the PMS project will have transformed 23,800 hectares of abandoned arid farmlands back into green fields. Over 650,000 people have benefitted from this project.  

The project will rehabilitate the existing Nurgal

This social financing to IndusInd Bank will be used by farmers to purchase farm equipment, crops, seeds, and fertilisers

Citi and the Japan International Cooperation Agency (JICA) have announced a co-financing loan to IndusInd Bank. This includes a $30 million loan by Citi and JPY 13 billion ($97.6 million) loan by JICA. This high-impact social finance offering that Citi arranged for IndusInd Bank is expected to improve financial access for farmers and catalyse capital investment in the agricultural sector in India.

K Balasubramanian, head of the corporate bank for Citi in South Asia covering India, Bangladesh, and Sri Lanka said, “This social financing to IndusInd Bank will be used by farmers to purchase farm equipment, crops, seeds, and fertilisers, as well as by small agricultural supply chain service providers. This transaction, in which Citi collaborates with JICA, marks our first structured co-financing arrangement to support India’s agricultural sector”.

This agreement highlights Citi and JICA’s support for strengthening food security in the country through funding the agricultural sector and sustainable food systems.

Citi has committed $1 trillion to sustainable finance by 2030, as well as expanding access to basic services for 15 million underserved and low-income households, including 10 million women. This financing contributes to Goals 1, 8, and 17 of the Sustainable Development Goals (SDGs), reducing disparities in India by helping improve financial access to projects that contribute to solving agricultural issues. It also helps contribute to food security amid concerns about high food prices and supply shortages due to instability in the global situation.

This social financing to IndusInd Bank will