
Almost 2/3 of Assam’s farmers lived below the poverty line: Only one crop could be planted each year because there was too little water in the dry season and too much in the monsoon. Only 7% of the state's irrigation potential was exploited and Assam’s rice yields were far lower than in other Indian states. Farming practices were old, and cattle belonged to poor genetic stock. Despite the abundance of ponds and other water bodies, the demand for fish fell far short of supply. There was also a shortage of rural infrastructure .

The work done under this project will be taken to the next level by the new US$154 million Assam Agricultural Competitiveness Project. The new project will emphasize:
- Marketing of produce
- Further increasing milk production
- Providing farmers with tractors and power tillers while reducing subsidy from 70% to 30%
- Improving rural infrastructure such as village markets and link roads