NEW DELHI, 21 July 2025: India's agriculture and allied sectors have maintained steady growth over the last two decades, recording an average annual growth rate of 3.9?tween 2005–06 and 2024–25.
Contributing 18% to the country's Gross Value Added (GVA) and employing 46.1% of the workforce, agriculture is the backbone of India’s economy and food security, feeding a population of 1.4 billion. As the world’s largest producer of milk, pulses, and jute, and the second largest of rice, wheat, sugarcane, cotton, vegetables, and fruits, India’s food landscape is diverse and vital.
However, climate change-induced shifts in temperatures, rainfall, and weather patterns threaten agricultural output, rural livelihoods, and national food security. To address this dual challenge, India’s climate adaptation strategies must go hand in hand with mitigation of greenhouse gas (GHG) emissions from agriculture.
According to a state-wise assessment using IPCC Tier 2 methodology and country-specific emission factors, India's agriculture sector—including crop production and livestock—emitted 490 million tonnes (Mt) of CO₂ equivalent (CO₂e) from methane and nitrous oxide in 2022–23. Factoring in electricity use, total emissions reached 688 Mt CO₂e.
Yet, significant mitigation potential exists: adopting water management practices in rice cultivation, conservation agriculture, better fertiliser and manure management, livestock feed additives, and expanding the use of solar energy on farms could reduce emissions by 130–150 Mt CO₂e annually. This transition to low-carbon agriculture not only aids climate goals but creates new income sources for farmers through carbon credit markets.
India’s Energy Conservation (Amendment) Bill of 2022 lays the groundwork for a domestic carbon credits market, incentivising sustainable agriculture. Aligning natural, organic, regenerative, and solar-powered farming schemes with carbon trading can encourage farmers and organisations to participate actively. To ensure fair returns and genuine emission cuts, the government is urged to set a minimum floor price of $20 per carbon credit.
With no mandatory emission reduction targets for agriculture, allowing other sectors to offset their emissions by purchasing credible farm-based carbon credits is a pragmatic way forward. India’s experience could become a model for climate-resilient and food-secure agriculture in other developing economies.
Image credit: fairclimate.com