The Asian Development Bank (ADB) has inked a sustainability-linked debt facility worth USD 16 million (EUR 15.3 million) with ABIS Exports India Private Limited (ABIS). The funds will be directed towards establishing a micro-aquafeed plant in the country.
This initiative is not only aimed at enhancing aquaculture production but also focuses on empowering farmers with climate-resilient fish farming practices and financial literacy. ADB plans to train up to 6,000 farmers as part of its broader effort to fortify food security in India.
The specialized aquafeed to be manufactured by the plant will be smaller in size compared to standard feed, enabling consumption by a wider range of fish species. ADB emphasizes that the use of micro-aquafeed can significantly enhance feed efficiency and mitigate water pollution, as it can float on the water surface for a longer duration.
According to Tushna Dora, Senior Investment Specialist at ADB’s Private Sector Operations Department, fisheries play a pivotal role in India’s nutrition and food security, providing livelihoods for over 28 million fish farmers nationwide. Dora notes that the collaboration with ABIS signifies a crucial step towards introducing innovation and efficiency in feed inputs, ultimately supporting increased production and rural livelihoods.
This partnership marks ADB’s inaugural private-sector sustainability-linked financing arrangement. The pricing of the facility will be tied to predefined sustainability targets, including emissions reduction, water conservation, and farmer training, with adjustments made upon their achievement.
Under the agreement, participating farmers will undergo training supported by a USD 500,000 (EUR 478,000) technical assistance grant. This training will focus on implementing climate-smart fish farming practices and enhancing financial literacy, aiming to bolster the climate resilience of small-scale fish farmers, with a special emphasis on facilitating female farmers’ access to aquaculture information and training.
Bahadur Ali, Managing Director of ABIS Exports, expresses gratitude for ADB’s support, highlighting their commitment to reducing carbon emissions, improving water conservation efforts, and enhancing farmer extension services. Ali underscores that ABIS’s mission revolves around uplifting farmers’ livelihoods while meeting ambitious environmental, social, and governance targets.
ABIS Exports India Private Limited, a subsidiary of the Indian Broiler group, operates across various sectors including poultry, poultry feed, dairy, edible oil, and hospitality.
This partnership aligns with ADB’s broader strategy to allocate at least USD 14 billion (EUR 13.4 billion) by 2025 to address food crises in Asia and the Pacific region, amidst escalating impacts of climate change and biodiversity loss. A significant portion of this funding, including USD 3.5 billion (EUR 3.3 billion) for the private sector, will be directed towards supporting farmers and agribusinesses directly, complemented by USD 5 billion (EUR 4.8 billion) in co-financing.
The collaboration between ADB and ABIS represents a significant step towards fostering sustainable aquaculture practices and enhancing food security in India, while also advancing climate resilience and environmental stewardship in the region.
