Sustainable Agriculture Market in India 2024 - 2028

Sustainable Agriculture Market in India 2024 ─ 2028

Market insights:

The sustainable agriculture market in India embodies a pivotal sector within the nation's agricultural landscape, offering profound insights into the intersection of environmental stewardship, economic viability, and social equity. With agriculture serving as the backbone of India's economy, the imperative for sustainability has gained prominence in recent years, driven by escalating environmental concerns, climate variability, and the imperative to ensure food security for a burgeoning population.

The government's proactive interventions, encompassing policy frameworks, financial incentives, and technological support, have been instrumental in fostering a conducive ecosystem for sustainable agricultural practices. Initiatives such as the National Mission for Sustainable Agriculture (NMSA) and the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) underscore the government's commitment to promoting resource-efficient farming techniques, water conservation, and soil health management. Furthermore, the emphasis on organic farming, agroforestry, and precision agriculture techniques has not only enhanced environmental resilience but also bolstered farm productivity and livelihoods, particularly for smallholder farmers.

Growth opportunities and recent trends:

India’s adoption of innovative ag-tech and new crop varieties through gene-editing will create a consistent feedstock supply to meet bioethanol targets, leading to energy security, higher farmer incomes and ultimately decarbonization.

The Council on Energy, Environment and Water (CEEW) has identified 16 sustainable agricultural practices (SAPs), including organic farming, natural farming, integrated farming systems, agro forestry, etc. Although only some SAPs have been adopted by more than 4% of farmers in India, the transition towards sustainable farming is increasingly visible across the country. For instance, Sikkim has already become 100% organic by adopting organic farming, while Andhra Pradesh aims to move towards 100% zero-budget natural farming by 2027.

Besides, using various biological solutions, alternate wetting & drying and direct seeding methods for paddy cultivation can help minimize methane emissions and water usage and improve soil health. Subsequently, it helps in reducing the cultivation cost and increases the farmers’ income. Thus, creating an additional source of income through compensation for the carbon credits generated due to the switch in the cultivation practice aligning with Indian Government’s enhancing farmers’ mission.

Market influencers:

The sustainable agriculture market in India is witnessing a paradigm shift, with discerning consumers increasingly gravitating towards ethically produced, environmentally friendly food products. This shift in consumer preferences has spurred investments and innovations across the agricultural value chain, from input suppliers to food processors and retailers, driving the adoption of sustainable practices.

However, amidst the promising growth prospects, the sustainable agriculture market also confronts a myriad of challenges, including limited access to finance and technology, inadequate infrastructure, and fragmented supply chains. Addressing these challenges necessitates concerted efforts from all stakeholders, including policymakers, industry players, and civil society, to foster an enabling environment for sustainable agriculture to flourish.