Sustainable farming and its economic imperative
Sustainable farming has been a prevalent practice for centuries, its origin can be found in ancient civilisations. The Harappan civilisation popularised the practices of crop rotation, vegetative propagation, employing organic matter to maintain soil fertility etc.
Organic farming has its references in ancient “Vedas” with Sanskrit phrases of “Jivamitra”, Panchagavya etc. In the post-independence era, challenges arose concerning food security. This led to the Green Revolution and the usage of chemical fertilizers.
The Green Revolution led our country from a grain deficit to a surplus nation. However, over time, it has adverse effects on soil fertility, water resources, toxicity, global warming etc.
With India’s changing agriculture landscape and at threshold of a new era of economic development, sustainable farming emerges as a vital instrument to ensure food security, environmental conservation, and economic prosperity.
Feeding the growing population along with increased environmental concerns, sustainable farming practices are of paramount importance achieving inclusive growth and revitalising rural economies.
Embracing sustainable farming: A necessity for India
Sustainable farming involves agricultural practices that meet current food needs without compromising the ability of future generations to meet theirs.
Techniques such as organic farming, crop rotation, conservation tillage, and integrated pest management are central to this approach. These methods improve soil health, conserve water, enhance biodiversity, and reduce dependency on chemical inputs.
For instance, organic farming eliminates the need for expensive synthetic fertilizers and pesticides, thereby reducing input costs.
According to a study by the ICAR, farmers practising organic farming have seen input costs decrease by up to 25 per cent. Moreover, sustainable practices can lead to yield improvements over time.
A report by the Food and Agriculture Organization (FAO) notes that sustainable agricultural methods can increase productivity by 79 per cent in low-income countries, highlighting the potential for similar gains in India.
Economic benefits and cost savings
The economic impact of sustainable farming is significant, particularly for small and marginal farmers who constitute 86 per cent of India’s farming community.
By adopting sustainable practices, these farmers can reduce expenses related to chemical fertilizers and pesticides. For example, the adoption of integrated pest management has been shown to reduce pesticide use by up to 50 per cent, leadig to substantial cost savings.
Additionally, conservation agriculture practices can lower labor and fuel costs due to reduced tillage.
Sustainable farming also opens doors to premium markets. There is a growing domestic and international demand for organic and sustainably produced food.
The organic food market in India is expected to reach ₹75,000 crore by 2025, growing at a CAGR of 20 per cent. Farmers can command higher prices for their produce, increasing their income levels. This is particularly beneficial for smallholders, who can achieve better returns on their limited output.
Moreover, sustainable farming contributes to long-term soil fertility and water conservation, reducing the risk of crop failure due to environmental degradation. This stability is crucial for farmers’ economic resilience, especially in the face of climate change-induced weather uncertainties.
Global perspectives and indicators
Globally, sustainable agriculture is recognized as a key driver for achieving the United Nations Sustainable Development Goals (SDGs), particularly Goal 2 (Zero Hunger) and Goal 12 (Responsible Consumption and Production). Countries like Brazil and China have made significant investments in sustainable farming, leading to improved food security and economic growth.
In Brazil, the adoption of conservation agriculture practices has resulted in increased crop yields and reduced soil erosion.
The country’s “Low-Carbon Agriculture Plan” has been instrumental in promoting sustainable practices on millions of hectares of farmland. China’s “Ecological Agriculture” initiative has promoted organic farming and reduced chemical inputs, improving both environmental health and farmer incomes.
These global examples illustrate the potential benefits that India can realize by scaling up sustainable farming initiatives.
Challenges
Despite the evident benefits, the transition to sustainable agriculture in India faces several challenges. Financial constraints are a significant barrier, as the initial costs of adopting new practices—such as purchasing organic inputs or installing drip irrigation systems—can be high for small farmers.
There is also a lack of awareness and technical knowledge about sustainable methods. Extension services currently reach only about 40% of farmers, leaving many without access to vital information.
Market access is another hurdle. Farmers practicing sustainable agriculture often struggle to find markets that offer fair prices. The absence of robust supply chains and certification mechanisms undermines profitability and discourages farmers from adopting sustainable practices.
Additionally, policy implementation at the grassroots level is inconsistent, and bureaucratic hurdles can impede progress.
Recommendations for government action
To harness the full potential of sustainable farming, the government should take decisive action in the upcoming budget. Increasing funding for sustainable agriculture is paramount.
Allocating greater resources to schemes like the Paramparagat Krishi Vikas Yojana (PKVY) and the Pradhan Mantri Krishi Sinchai Yojana (PMKSY) can support more farmers in transitioning to sustainable practices.
Enhanced funding can facilitate access to necessary inputs and technologies, reducing the financial burden on farmers.
Strengthening extension services is crucial for educating farmers about sustainable methods. Investing in training programs and leveraging digital platforms, such as mobile apps and online portals, can broaden outreach and accessibility.
Facilitating access to credit is essential; expanding the Kisan Credit Card (KCC) scheme to include provisions for sustainable inputs can alleviate financial constraints.
Supporting farmer producer Organisations (FPOs) is another vital step. Strengthening FPOs can help small farmers aggregate their produce, access better markets, and invest in collective resources.
The government’s current success in forming 10,000 FPOs by 2024 should be matched with adequate financial and technical support. These organizations can play a pivotal role in scaling sustainable practices and enhancing farmers’ bargaining power.
Conclusion
Sustainable farming is more than an environmental necessity; it is an economic strategy that can drive inclusive growth and ensure a vibrant future for India.
By addressing the financial, educational, and infrastructural challenges faced by farmers, the government can unlock the full potential of sustainable agriculture.
Integrating global best practices, conducting thorough analysis of cost savings and enhanced incomes, and improving policy implementation are crucial steps toward this goal.
The Union Budget 2024 is not just a fiscal document but a blueprint for the nation’s agricultural renaissance. It is an opportunity to sow the seeds of change that will yield a prosperous and sustainable future for the country.
It is a time for remembering Gandhian principles of “Sarvodaya”- well-being of all, which encourage decentralized and sustainable agriculture which envision villages as self-sufficient communities. An ideology of his which is true for the moment “The Earth has enough for everyone’s need but not for everyone’s greed”.
The author is Partner, Grant Thornton Bharat LLP