The Asian Development Bank (ADB) has signed a $50 million sustainability-linked loan agreement with ETC Group (ETG) to strengthen sustainable coffee and cashew supply chains in India and Vietnam.
The financing will provide working capital to help ETG procure sustainably sourced coffee and cashew products from approximately 5,700 smallholder farmers across the two countries. Around one-quarter of the participating farmers are women, with the initiative aiming to improve income stability, market access, and long-term agricultural resilience.
The project will support farmers in obtaining sustainability certifications and fair contractual agreements, helping reduce exposure to market volatility while improving opportunities for export and trade. In addition to the loan, ADB will provide $850,000 in technical assistance to enhance climate resilience through regenerative agroforestry practices and other sustainable farming techniques.
According to ADB, the initiative is designed to address key challenges facing coffee and cashew producers, including limited access to financing, aging crop stocks, soil degradation, and the growing impact of climate change. Women farmers, who often face barriers to land ownership, capital, and training, are expected to benefit significantly from the program.
The loan is structured as a sustainability-linked financing instrument, meaning borrowing costs are tied to environmental and social performance targets. The arrangement is part of a broader syndicated financing facility involving several international development finance institutions.
The investment aligns with ADB’s broader commitment to mobilize funding for food system transformation across Asia and the Pacific by 2030. By supporting sustainable agriculture and strengthening rural livelihoods, the project aims to create more resilient supply chains while boosting economic opportunities for smallholder farming communities in India and Vietnam.
