JICA's Groundbreaking Loan Boosts Asian Coffee Supply Chains

The Japan International Cooperation Agency (JICA) has entered into a $75 million loan agreement with ECOM Agroindustrial Corp and its group company ECOM Agroindustrial Asia Pte Ltd. The loan, co-financed with the Asian Development Bank (ADB), strengthens coffee supply chains across Asia, as announced by JICA on Wednesday.

This financing initiative marks JICA's first exclusive working capital loan, underscoring its strategy to collaborate with international agricultural trading firms. It is designed to help stabilize the coffee procurement process affecting over 60,000 smallholder farmers across India, Indonesia, Papua New Guinea, and Vietnam.

Furthermore, the funding includes provisions for purchase funds, consulting services in coffee certification, climate change adaptation initiatives, and support for female farmers. Aligning with India's ''Doubling Farmers' Income'' mission and the G7's coffee value chain commitment, as expressed in the Apulia G7 Leaders' Communiqué, this project advances JICA's SAFE programme, focusing on agricultural and food supply chain strengthening.

(With inputs from agencies.)