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Brief Description of Assam Agricultural Competitiveness Project (AACP)


Through the AACP, irrigation development would focus on expanding dry season cultivation. Leading to increased intensification and diversification of production systems, by promoting small scale irrigation systems using both ground and surface water resources and pilot testing new irrigation technologies.

Components of Project:

Project activities would be grouped into three components :

(i) Investment Grant Scheme:

The scheme includes the training of poor farmers and rural communities, promotion of income generating farm investments by small farmer groups in mechanization, irrigation and community investments in micro-watershed.

S. No. Activity Description Incentive
1 Irrigation Development formation of 60,000 irrigation groups of 3-5 farmers acquiring Shallow Tube-Wells (STW) to irrigate 132,000 hectares (ha); 20,000 groups developing low lift pump schemes irrigating 44,000 ha; and pilot operations in sprinkler irrigation. matching grants for development costs would be given to supplement beneficiary contributions
2 Irrigation and Farm Mechanization formation of 750 Agro Service Groups (ASG) made up of 10-20 small farmers acquiring tractors and another 1500 ASGs acquiring power tillers for own use and provision of contract farming services financing of irrigation and mechanization would follow the formula-

Equity: 15-20%,

Commercial Bank Loan: 50-55%, Matching Grant: 30%

3 Micro-Watershed Drainage assisting flood plain communities, restoring natural drainage lines, reducing crop loss and water logging on 20,000 ha, involving an estimated 15,000 farm families. government will contribute 70% of the cost with the balance 30% coming from field Management Committee in the form of cash of labour or a combination of both.

(ii) Agriculture Services and Market Chain Development: This component would promote decentralized, pluralistic research and extension systems, upgrade the productive capacity of livestock and fish-cock and strengthen farmers market knowledge and linkage.

(iii) Infrastructure Development: Upgrading of 24 rural primary wholesale markets and 50 local retail markets (known locally as haats).


Eligibility: This project would finance

  • Selected rehabilitation and equipping of offices vehicles/TE/Hiring of Vehicles to increase field mobility;
  • Field experiments and demonstrations’ field days and farmer exposure visits;
  • NGOs to assist in community mobilization and sustainability;
  • A pilot enterprise development fund selected studies and market surveys and implementing agency operating costs;
  • Farmer interest and self-help groups


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