New grant of $40.5 million has been announced by the Asian Development Bank (ADB) to help farmers and agribusinesses develop sustainable and climate-smart agriculture value chains in the Lao People’s Democratic Republic (Lao PDR).
The Climate-Friendly Agribusiness Value Chains Sector Project will help Lao PDR improve crop productivity, diversify agricultural products, and enhance climate resilience by improving storage and processing facilities, promoting the use of biofertilizers and organic farming, and disseminating crop varieties that are flood- and drought-tolerant.
According to the ADB Principal Climate Change Specialist for Southeast Asia, Mr. Srinivasan Ancha, “Agriculture remains a significant portion of the economy of Lao PDR, but the sector’s vulnerability to climate change puts the country’s development prospects and food security at risk. ADB’s support will help make the Lao PDR’s agriculture sector more commercialized, sustainable, and climate-resilient, improving the country’s growth prospects.
The project is expected to benefit at least 100,000 people from 20,000 households in Lao PDR, increasing their income by at least 30%, and promote regional cooperation and integration in the Greater Mekong Subregion through harmonization of quality and safety standards and support to regional seed-trading agreements.
