Incentivizing Regenerative Farming

Agriculture is the backbone of India’s economy, employing nearly 50% of the population and contributing significantly to GDP. However, despite the Green Revolution's success in boosting production, the long-term impact of intensive farming has placed small and marginal farmers at a severe disadvantage. The excessive use of chemical fertilizers, water-intensive monoculture practices, and soil degradation have created a crisis that threatens food security, farmer livelihoods, and ecological sustainability.

With over 86% of Indian farms categorized as small and marginal holdings, these farmers struggle with limited access to high-quality seeds, chemical inputs, modern irrigation, and mechanization. While large-scale farmers have benefited from agricultural subsidies, the same cannot be said for the millions of smallholders who bear the brunt of rising input costs and declining soil fertility. It is clear that India’s agricultural model needs to be reimagined, prioritizing long-term resilience over short-term productivity.

Regenerative Farming: A Paradigm Shift in Agriculture

Regenerative farming presents itself as an alternative, sustainable agricultural model that enhances soil health, biodiversity, and overall ecosystem stability. Unlike conventional methods reliant on chemical inputs, regenerative agriculture promotes:

• Organic soil enrichment by increasing organic carbon content and microbial activity.
• Water conservation through efficient irrigation techniques and natural water retention systems.
• Biodiversity restoration by incorporating intercropping, crop rotation, and agroforestry.
• Natural pest control through biological means rather than chemical pesticides.

This approach not only rejuvenates the environment but also ensures long-term productivity and economic stability for farmers. Countries across the world have successfully implemented regenerative farming to increase yields while reducing reliance on synthetic fertilizers and pesticides. India, too, must now scale up these practices for sustainable agricultural transformation.

The Urgent Need for Policy Reforms and Incentives

Despite the growing recognition of regenerative farming’s benefits, India’s current agricultural policies still heavily favor chemical-intensive farming. Fertilizer subsidies, which have grown from Rs 60 crore in 1976-77 to a staggering Rs 2.25 lakh crore in 2023-24, inadvertently encourage overuse of synthetic fertilizers, depleting soil fertility. Over time, the yield efficiency of fertilizers has dropped drastically—from producing 12 kg of grain per kg of fertilizer in the 1960s to just 5 kg today. Moreover, soil organic carbon levels have plummeted from 2.4% to 0.4% over the last seven decades.

The 2024 Union Budget laid a foundation for change by prioritizing regenerative farming under the theme “Productivity and Resilience in Agriculture.” The budget allocated Rs 2,481 crore for the National Mission on Natural Farming, aiming to train one crore farmers in regenerative practices by 2026. While this is a commendable step, a more structured approach is required to ensure long-term adoption of these sustainable techniques.

A New Approach: Direct Benefit Transfers for Regenerative Farmers

To make regenerative farming a viable alternative, financial incentives must be structured to support farmers transitioning away from chemical-intensive agriculture. The existing fertilizer subsidy system should be restructured to offer Direct Benefit Transfers (DBT) to farmers who adopt regenerative practices.

For example, consider the urea subsidy. The government currently subsidizes a 45 kg bag of urea at Rs 1,958, bringing the cost down to Rs 242 per bag for farmers. The average urea consumption per acre is around 100 kg for paddy and 80 kg for wheat. This means:

• The per-acre fertilizer subsidy for paddy amounts to approximately Rs 4,348.
• The per-acre fertilizer subsidy for wheat is around Rs 3,466.

If an equivalent subsidy were directly transferred to farmers who adopt regenerative practices, they would have a strong financial incentive to shift away from chemical fertilizers. This model not only ensures fair distribution of subsidies but also accelerates the transition toward sustainable farming.

The Long-Term Benefits of Regenerative Farming

The global success of regenerative farming demonstrates its potential to:

• Enhance farm productivity by improving soil fertility and reducing dependency on external inputs.
• Mitigate climate change by reducing greenhouse gas emissions from synthetic fertilizers and promoting carbon sequestration in soil.
• Strengthen farmer resilience against climate variability by improving soil water retention and reducing drought risks.

Achieving ‘Viksit Bharat’ Through Sustainable Agriculture

As India aims to become a developed nation by 2047 (Viksit Bharat 2047), the agricultural sector must play a crucial role in this transformation. Sustainable agriculture is not just an environmental necessity but an economic imperative that can drive rural prosperity. By realigning subsidy policies, investing in research and development, and providing direct financial incentives, the government can empower farmers to embrace regenerative farming at scale.

At GRM, we recognize the importance of sustainable agriculture in securing India’s food future. Our commitment to quality, innovation, and sustainability drives us to support initiatives that promote regenerative farming, ensuring a prosperous future for farmers and consumers alike. As we move forward, collaboration between policymakers, agribusinesses, and farmers will be key to fostering a resilient and environmentally responsible agricultural ecosystem.

The time for change is now. Let’s cultivate a future where agriculture flourishes in harmony with nature.