
Almost 2/3 of Assam’s farmers lived below the poverty line: They could plant only one crop a year because there was too little water in the dry season and too much in the monsoon season. 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 were from poor genetic stock. Despite numerous water bodies, fish production fell far short of demand. Rural infrastructure was deficient.

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