ITC's agri business doubles to ₹20,300 crore in FY26, climate smart farming to cover 40 lakh acres by 2030

ITC Ltd is stepping up its climate smart agriculture programme, aiming to expand its coverage from nearly 32 lakh acres today to 40 lakh acres by 2030, as MD & chairman Sanjiv Puri said India needs to shift from productivity-led farming to value-led, climate-resilient agriculture to strengthen food security, improve farmer incomes and build globally competitive agricultural value chains.

The company's agri business has doubled its revenue in just over five years to nearly ₹20,300 crore in FY26, making it the country's largest private sector agri enterprise, with the company now using its scale to accelerate climate smart farming across India.

Addressing shareholders at the company's annual general meeting, Puri said climate change, fragmented land holdings, low productivity and limited value addition continue to constrain Indian agriculture despite the country being the world's second largest agricultural producer.

"India possesses vast arable land, diverse agroclimatic zones and leadership in several commodities. Yet, low productivity, fragmented holdings, limited value addition, climate vulnerability and inefficient market access continue to constrain its potential," he said. Agriculture contributes only 18% to India's gross value added and about 2.2% to global farm exports, while supporting nearly 46% of livelihoods, highlighting the opportunity to transform the sector into a more competitive and export-oriented engine of growth.

"The Indian FMCG market is poised for significant expansion, with the company's addressable market estimated at around ₹8 trillion by 2035, pointing to the immense headroom to grow," he added.

Puri said agriculture remains deeply integrated with ITC's business. About 94% of the company's businesses are linked to agricultural crops or plantations. ITC manages 21 value chains across 23 states, sourcing nearly 6 million tonnes of agricultural produce annually.

Digital tools and climate resilience at the core

Puri said ITC's strategy centres on building climate resilient, technology-enabled farming ecosystems through digital platforms, precision agriculture and stronger farmer institutions.

At the centre of this effort is ITC's digital ecosystem, ITCMAARS, which has already onboarded more than 2.6 million farmers across 11 states. The company aims to benefit 10 million farmers by 2030 through personalised advisories, scientific agronomy, quality inputs, market linkages and climate smart farming practices. Initial estimates indicate crop yields have improved by 15% to 20%, while net returns have increased by 25% to 30%, he said.

The company is also introducing precision farming technologies including IoT-enabled weather monitoring, remote sensing and drone-based services. It plans to develop four additional hybrid, open field and controlled environment agriculture clusters following a horticulture pilot to create reliable and traceable fresh produce supply chains.

Puri said ITC's climate smart agriculture programme now spans nearly 32 lakh acres across 17 states and benefits more than 12 lakh farmers. "Impact studies have shown that CSA practices in rice and wheat have reduced costs by over 20%, improved yields by 10% and enhanced net returns by over 23% compared to conventional practices," he said.

ITC is also expanding its value-added agriculture portfolio, which has grown at a compound annual growth rate of 33% over the last five years. The portfolio includes certified organic crops, processed agricultural products, premium coffee, aquaculture and specialised crops such as high starch maize and high gluten wheat. The company intends to further develop a farming-as-a-service ecosystem where crop value chains are tailored to buyer requirements.