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Introduction
IFAD is implementing a project in India to build resilient farming communities through investments in
agroecology value chains. The project will focus on identifying viable business opportunities and MSME
entrepreneurs linked to agroecology clusters and value chains, providing investment support for
integrated agroecology production systems, and offering grants for MSMEs and agroecology producer
organization enterprises to improve their value addition and market linkages.
Priority will be given to youth and women entrepreneurs. Technical assistance for business and value
chain development will also be provided. It is a key requirement that the proposed investment has viable
backward linkages of a technical and financial nature to small farmers and that this investment results in
agro-ecologically sound production systems.
The following three aspects distinguish this IFAD agroecology value chain project from traditional value
chain projects and will be used to judge the suitability of a project for investment. The proposed business
ideas must address all three aspects.
First, any project for investment will have to align with IFAD’s vision regarding agroecological principles
as given in Table 1 below. The Table provides a full description of the 10 Elements of Agro-Ecology,
from the Food and Agricultural Organisation of the United Nations (FAO). It also includes suggestive
(non-exhaustive) examples for each element.
Diversity
� Diversification is key to � Crop rotations
agroecological transitions to
ensure food security and � Polycultures
nutrition while conserving,
protecting, and enhancing
natural resources. � Intercropping
� Animal integration
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Table # 1: The Ten Elements of Agroecology
� Diversity in landscaping
Synergies
� Building synergies enhances � Permanent soil cover through mulching.
key functions across food
systems, supporting production � Contour lines that use traditional ecological knowledge
and multiple ecosystem
with scientific knowledge used to maintain soil health,
services.
prevent erosion, etc.
Efficiency
� Innovative agroecological � Enhanced productivity and other efficiency (input/output)
practices produce more using measures
fewer external resources.
� Reduction in wastage
Recycling
� More recycling means � Production and use of compost/equivalent
agricultural production with
lower economic and � Reduce pollution/Reduce waste
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Table # 1: The Ten Elements of Agroecology
environmental costs.
� Recycling of nutrients and biomass, water, etc, to enhance
efficiency, reduce pollution, etc.
Co-creation
� Agricultural innovations � Local practical and context-specific knowledge of methods
and Sharing
of Knowledge respond better to local of farming and production inspired by tradition
challenges when they are co-
created through participatory � Producer experimentation that results in new hybrid
processes.
knowledge, which is a combination of lab-to-land and local
context-specific knowledge
Resilience
� Enhanced resilience of people, � Natural methods of pest control
communities, and ecosystems
is key to sustainable food and � Natural methods to increase soil health
agricultural systems.
Human and
� Protecting and improving rural � Health, food, and nutrition security for humans and nature
Social Values
livelihoods, equity, and social
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Table # 1: The Ten Elements of Agroecology
Culture and
� By supporting healthy, � Traditional integrated systems
Food
Traditions diversified, and culturally
appropriate diets, agroecology � Preservation of cultural agricultural systems
contributes to food security and
nutrition while maintaining the
health of ecosystems. � Hybrid of traditional and scientific food systems and habits
Responsible
� Sustainable food and � Access to land, natural (including water), and other
Governance
agriculture require responsible common property resources, including mutual guarantee
and effective governance social justice systems
mechanisms at different scales
– from local to national to � Long-term investments for maintaining and preserving all
global.
local knowledge and systems, as mentioned in the other
components
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Table # 1: The Ten Elements of Agroecology
Circular and
� Circular and solidarity � Increased incomes for producers
Solidarity
Economy economies that reconnect
producers and consumers � Producers and buyers co-exist and swap different products
provide innovative solutions
(milk production and tea shop example)
for living within our planetary
boundaries while ensuring the
social foundation for inclusive � Agrotourism and eco-tourism
and sustainable development.
� Mutual guarantee systems
Note: The proposed agro ecology value chain project/business does not need to demonstrate all of the
elements; it may cover one or more with clear articulation of the alignment.
The project/business can: a) promote use of natural/organic inputs and/or judicious use of artificial inputs
based on precise scientifically derived requirements in the production processes across the value chain; b)
not cause soil degradation, water depletion, environmental instability, and the like; c) not encourage/use
shifting cultivation or equivalent; and/or d) not add value to the product (or produce) using
environmentally unsound technologies, processes, chemicals and other such additives, etc.
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The project/business must be able to run on its own after the proposed gestation period. In other words, it
must demonstrate a clear, realistic, and time-bound vision toward financial sustainability.
The Focus states are Meghalaya, Nagaland, Mizoram, Assam, Odisha, Uttarakhand,
Maharashtra, Madhya Pradesh and Chhattisgarh.
● Joint venture proposals from for profit enterprises are also eligible.
Applicant (s) must be registered entities; grants from the Fund will not be given to individuals or
unregistered organizations. POEs/producer collectives should have sound established management and
governance systems.
Size of Investment
The Fund will make grant investments in the range of INR 20 lakhs (2 million) to 2 crores (20 million). It
is expected that a minimum of 30% of project cost is funded from other sources including own
contribution/equity of the enterprise/entrepreneur.
Section I: Entity Information (provide following details for all proposing entities )
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2) Registered Address:
4) Type of Entity: Farmer Producer Organisation/ Private Business enterprise/ Other (Please
mention for Other)
5) Date of registration
7) Please provide the link of Website/ other social media of the Entity (if available)
Name:
Designation:
Email:
Phone:
Address:
Section II: Proposed Business/Project (Please share separate proposals for different businesses or value
chain projects, as also separate proposals for individual Producer Organization Enterprises/Collectives)
11) Brief description of past two years’ experience (at least) and business turnover (in 300 words)
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12) Please describe the exact nature of your business/activity for which investment in sought (in not
more than 5 sentences).
14) Please explain how the proposed business activity is in conformity with the agroecological
principles and how it will contribute to positive agro ecological outcomes. Please be as specific
as possible, as this information is very crucial in determining eligibility. Refer to the Table on
Description of FAO Elements of Agro ecology. (Max 500 words)
15) Please explain how your business activity will impact the small holder producers or farmers (such
as reducing cost of production/reducing wastage/value addition/better price realization direct
impact on income increase, reducing vulnerabilities, mitigation of risks). Provide realistic
estimate of number of small holder producers/farmers involved and estimate of income increase
along with enabling factors that lead to income increase Please be specific; this information is
crucial in determining eligibility. (Max 500 words)
16) Please explain how your business activity will become completely self-sustaining over time.
Please also specify the level of sustainability to be achieved over a five-year period. (Max 500
words)
17) What specific post-harvest and post-production activities does your project/business idea focus on
(if any)? (Max 300 words)
18) Will your business benefit youth, women, and other disadvantaged and/or excluded
entrepreneurs? If so, how? (Max 300 words)
19) What is the total investment outlay for your proposed business activity ? How much of it would
you be investing yourself? How much would you require from IFAD? Have you received firm
commitments from others for grants and/or loans toward the project? If so, how much and
wherefrom? Please list these details in the Table below
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Table # 3: Business activity Budget, Grant Required, and Other Sources of Funds
Own Funds
20) Please indicate specific technical assistance and capacity building requirement/s (up to two)
which are key for success of the proposed business activity ?
By signing below, I confirm that the information provided above is true and accurate to the best of my
knowledge.