Senior Communications Officer, Centre for Responsible Business
Indian agriculture stands at a critical crossroads. With over 50% of the population dependent on farming, the sector is facing rising environmental stress. Nearly 30% of agricultural land in India is now degraded, largely due to exploitation of natural resources, poor soil health management, and excessive chemical use. Moreover, as many as 60% of India’s agriculture still depends on rains, which face several challenges due to increasing erratic rainfall.
Climate change is also worsening the situation. For the country’s 86% farmers who cultivate less than two hectares each, challenges such as droughts, floods, and unseasonal rainfalls are translating into heightened economic vulnerability and an urgent call for resilient agricultural practices and economic structures.
To address these issues, there has been a push from the government to promote sustainable agriculture. Schemes such as the Rashtriya Krishi Vikas Yojana – Remunerative Approaches for Agriculture and Allied Sector Rejuvenation (RKVY-RAFTAAR) aim to mitigate risks, strengthen farmers’ efforts, and promote agri-business entrepreneurship through the development of agricultural infrastructure. National Mission on Sustainable Agriculture (NMSA), through schemes such as the Paramparagat Krishi Vikas Yojana (PKVY), promotes organic farming, soil health management, and efficient water use in an effort to make agriculture climate resilient. Several such schemes – on national and state level – focus on food security and farmers’ well-being.
However, there is a lack of awareness among farmers regarding the government schemes. Moreover, effective implementation of several schemes remains an issue.
Farmers who have adopted sustainable agricultural practices often face significant market barriers, including limited access to premium markets and the lack of awareness of certifications. Although various schemes support the shift to sustainable practices, smallholder farmers remain hesitant due to the high costs associated with the transition and the limited visibility of successful examples they can relate to.
The UN Environment Programme (UNEP), through its hosted initiative The Economics of Ecosystems and Biodiversity (TEEB), has partnered with CRB on an IKEA Foundation funded project titled ‘True Value Accounting: Making the Economic Case for Food Systems Transformation in India and Kenya’. CRB and UNEP have been engaging with agri-businesses, farming communities, Farmer Producer Organisations (FPOs), Farmer Producer Cooperatives (FPCs), Cluster-Based Business Organisations (CBBOs), and agri-entrepreneurs. Through the programme, CRB has introduced a Capitals Approach – a framework that highlights the importance of different forms of capital such as natural, social, human, and produced. Through this approach, stakeholders can deepen their understanding of the value of various capitals beyond financial capital and how they can be benefitted with them.
A Capitals Approach is a relevant and timely framework to promote and drive sustainable agriculture in India. By recognising and measuring both tangible and intangible impacts – such as ecosystem health, farmer knowledge, community trust, and resource efficiency – it offers a more comprehensive view of agricultural value creation. For farmers and agri-businesses alike, this approach helps demonstrate the return on investments made in soil regeneration, local employment, or ecosystem restoration, which are often overlooked in conventional metrics.
Importantly, a Capitals Approach is not merely an evaluation tool; it represents a mindset shift, with the potential to contribute to larger adoption of sustainable practices. It encourages stakeholders to think beyond short-term inputs and outputs, and to focus instead on building long-term resilience across environmental and social dimensions.
As India seeks to make its agriculture more resilient and inclusive, adopting Capitals Approach can help create a more balanced and forward-looking model – one that values people, nature, and livelihoods equally.
“NOTE: The views expressed here are those of the authors and do not necessarily represent or reflect the views of CRB.”
