WASHINGTON, D.C., April 25 -- The International Finance Corporation (IFC) recently signed investment agreements in New Delhi to provide a loan of US$10 million to United Riceland Limited for the construction of a new rice milling plant in Gurgaon, Haryana state. The company already purchases paddy from nearly 70,000 farmers. IFC's investment will help to triple this number to 200,000.
"We are very pleased to be associated with a project that will raise production of high value basmati rice, increase returns to the agricultural sector, boost exports, and contribute to foreign exchange earnings," said Mr. Karl Voltaire, Director of IFC's Agribusiness Department.
United Riceland is the country's largest private processor and exporter of rice. Established in 1981 for processing and export of basmati rice, the company sells most of its produce to the United Kingdom and the Middle East and is also active in the domestic market. It has grown rapidly in recent years, resulting in orders exceeding processing capabilities.
As one of the major participants in the rice market, United Riceland has helped to strengthen market institutions that improve paddy pricing for local farmers. It also undertakes extension work by selecting, grading, and distributing high quality seeds. Along with the local rice research station, the company provides farmers with information, technical assistance, and equipment.
IFC is a member of the World Bank Group and is the largest multilateral source of equity and loan financing for private sector projects in developing countries. Preparation of this project was supported by the European Community through the EC-IFC Technical Assistance Facility for Economic Cooperation with Asia.
