CLIMATE CHANGE IS no longer a distant concern — it’s here, in our fields, affecting every sowing cycle and every harvest. Erratic rainfall, extended droughts, heatwaves, and shifting crop patterns are affecting productivity across India. Farmers are witnessing first-hand the effects of climate change — from unseasonal rains ruining harvests to water shortages delaying sowing. Over 120 million Indian farmers rely on agriculture for their livelihood, and for many of them, every season is becoming a gamble.

This is not just a rural issue. Agriculture impacts food prices, food security, and the broader economy. With agriculture contributing nearly 18% to India’s GDP and employing nearly half of the population, a climate crisis in farming quickly escalates into a national concern. What’s needed is not just mitigation — such as reducing emissions — but solid adaptation strategies that help us stay ahead of climate shocks.

Lessons from around the world

Countries around the globe are already implementing forward-thinking strategies. In the Netherlands, cutting-edge greenhouses and vertical farms powered by AI help optimise resource use and ensure year-round crop production. Israel, despite its arid climate, has become a global leader in drip irrigation and water recycling. Kenya has pioneered satellite-based insurance schemes that offer real-time protection to smallholder farmers.

India can certainly learn from these efforts. But given the diversity of crops, climates, and farmer profiles here, we need home-grown solutions. Despite ICAR projections that yields in rain-fed areas could fall by up to 25%, climate adaptation in India is still scattered across pilot projects, NGO initiatives, and government schemes that often don’t scale.

Need for new approach

There’s a growing need to think beyond traditional risk management. Agri-businesses must lead this shift by integrating climate resilience into their core strategies. This includes using weather forecasting tools, conducting climate risk audits, and offering farmers real-time advice through digital platforms. Promisingly, India’s agritech sector attracted over $1 billion in funding in 2023. That’s a clear sign of potential to move the needle from productivity-at-any-cost to sustainability-by-design.

Techniques such as regenerative agriculture are, hence, gaining traction. These strategies prioritise soil health, biodiversity, and carbon capturing — making farming not just less harmful, but actively beneficial for the environment. Many players are committing to such practices across their supply chains. In India, this can translate into practices like mixed cropping, low-till farming, and greater use of bio-inputs. These not only reduce input costs but improve long-term soil productivity.

Three areas for innovation

To build a truly climate-resilient agri-ecosystem, innovation must happen at three levels:

1. Procurement models

The current model often puts all the risk on the farmer. Agri-businesses must rethink this by introducing long-term contracts, climate-indexed payments, and joint crop planning. These not only stabilise farmer incomes, but secure supply chains during climate disruptions.

2. Smarter insurance

Traditional insurance is often slow, opaque, and underused. With tools like drones, GIS mapping, and mobile-based claim systems, insurers can process claims faster and more transparently. What’s important is co-designing these products with farmers to ensure usability and trust.

3. Public-private R&D

Developing and deploying climate-resilient seeds — drought-tolerant, flood-resistant, and pest-resilient — are key. Initiatives like NICRA are a good foundation, but scaling adoption requires partnerships with private players, community engagement, and localised extension services.

Embedding resilience: From policy to practice

A climate resilience playbook is no longer optional — it must be viewed as a business continuity strategy for Indian agriculture. Given that agriculture accounts for the majority of India’s freshwater usage, water-use efficiency must be treated as a national priority. Innovations in irrigation, precision farming, and sensor-based monitoring need rapid scaling — supported by both government and private-sector investments.

Complementing this, policy reforms are needed to address the unchecked extraction of groundwater, without which gains in efficiency will be unsustainable. Simultaneously, India must act decisively on the adoption of genetically modified (GM) technology. The success of BT Cotton, which helped triple India’s cotton production in just over a decade, is instructive. But stagnating yields and rising pest resistance underline the urgency for trials and deployment of next-generation GM seeds across more crops, especially in the face of erratic climate and pest dynamics.

India holds a distinct advantage in the form of traditional agricultural knowledge — practices like mulching, seed saving, and community water management — that can synergise with modern technologies. Unlocking the full potential of these practices, through tech integration and data-driven planning, can drive scale and sustainability.

Government schemes such as Pradhan Mantri Fasal Bima Yojana, Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM), and Soil Health Cards are promising starts. However, tighter integration across ministries and alignment between state and central programmes will be essential for deeper impact.

At the grassroots, farmer producer organisations (FPOs) hold transformative potential. As collective entities, they can enable shared infrastructure, better price negotiation, and quicker adoption of climate-smart practices. Corporates have a critical role in equipping FPOs with market linkages, digital tools, and capacity building.

Finally, India’s agri-education system must be realigned with the climate agenda. Whether it’s universities, vocational institutes, or frontline extension agents — climate resilience must become a core competency. These individuals form the human capital that will bridge knowledge with action, ensuring that climate resilience travels the last mile. India has the tools, talent, and tradition — it now needs the will.

Views are personal. The author is Chairman & Senior Managing Director, DCM Shriram Ltd.