• Agriculture has become a point of focus in the past few years in the context of climate change.
• This focus is not misplaced, as agricultural activities are responsible for 19-29 per cent of global greenhouse gas (GHG) emissions and 14 per cent of India’s total GHG emissions.
• To sustainably develop our food system, the scientific community, policymakers and civil society have dedicated most attention to the production of food.
• They suggested various interventions like the development of new hybrid varieties, the introduction of water-efficient irrigation systems and switching away from chemical inputs.
• But it is time to start focusing on the whole agricultural value chain rather than just the production to tackle the three-fold challenges of rural livelihoods, adaptation and mitigation.

Reasons to focus on Agricultural Value Chain

• The environmental impacts of these value chains'' post-production.
• The need to develop efficient supply chains where the sustainably produced agricultural output can compete with established value chains of their unsustainable counterparts.
• This approach will distribute the burden of the sustainability transition from the farmer to other actors along the supply chains.

Environmental Impact of Agricultural Value Chains

• Different steps exist between commodity production and reaching the end consumer:
• Value addition and packaging
• Procurement
• Distribution via land, air, and sea
• International trade
• Consumption patterns
• Storage at various stages
• Wastage during the life cycle
• Certain commodities like sugar and rubber undergo large-scale processing, which can contribute to environmental issues such as water pollution and high energy consumption.
• The environmental impacts of these steps can significantly affect a commodity''s overall footprint.
• Example: Cotton serves as an example, as energy use and emissions from farming represent only a small portion of the total energy use and emissions throughout the cotton yarn value chain
• The horticulture sector in India is a major producer, consumer, and exporter of commodities like bananas, cashews, and onions.
• Due to their perishable nature, cold storage is essential during transportation.
• India''s current cold storage capacity covers only 6.7% of its total produce, which should increase to approximately 20% to meet growing production demands (as mentioned in a 2016 study).
• The existing cold-storage capacity accounts for 1.2 gigawatts (0.5% of total electrical capacity).
• It may rise to 7.8 gigawatts by 2030.
• The approach to meeting this increased demand for electrical energy will determine the associated emissions from the cold chain.

Value chains for sustainably produced commodities

• There has been a renewed emphasis on organic farming over the past decade, with various approaches such as-
• Zero-budget natural farming,
• Agroecology,
• Organic agriculture, and
• Regenerative agriculture.
• These approaches advocate moving away from chemical-intensive monoculture towards a more nature-friendly production system. It involves-
• Biological inputs,
• Mmulti-cropping, and
• Seed conservation.
• Policymakers are increasingly interested in the positive impacts of these alternative approaches on soil health, water management, and biodiversity.
• Andhra Pradesh, Himachal Pradesh, Meghalaya, and Sikkim are leading the way by implementing state-specific policies.
• They are securing funding to train farmers in nature-friendly techniques and expand organic agriculture.
• Government of India has launched the National Mission on Natural Farming to support these practices at a national level.
• However, a significant challenge lies in marketing and distribution, as sustainably farmed produce must compete with conventionally farmed produce that has well-established supply chains.

Challenges

• The demand side challenge is to identify markets where price-conscious Indian consumers are willing to pay a premium for eco-friendly produce and trust its authenticity.
• Farmers need access to established chains and processes that protect them during the transition to sustainable farming.
• Using Reliable sourcing, distribution, and marketing channels is necessary for all stakeholders, along with eco-certification initiatives that can create new demand and markets.
• It may also reduce prices to be comparable with conventionally farmed produce.
• Traditional distribution channels may not always be suitable for naturally farmed produce.
• Naturally farmed produce requires separate handling, higher prices, and reaching niche markets.
• During the COVID-19 pandemic, several basket models and farm-to-plate start-ups emerged in urban areas, but their reach was limited to affluent consumers.

Need for Transition in Agriculture

• Farm-focused efforts often place an excessive burden on farmers on particularly small and marginal farmers because they lack the resources and agency to bring about significant changes in their practices.
• Achieving a just transition in agriculture requires distributing the burden of action equitably across the entire value chain, considering the shared environmental impacts while safeguarding rural livelihoods and farm incomes.
• Both small and large agri-businesses are implementing sustainability initiatives, such as waste reduction, recycled packaging, quality planting material, research for new varieties, and efficient technologies.
• These initiatives showcase the willingness with greater resources and agency to take responsibility and drive change in the industry.
• However, agri-businesses need to further invest in building the capacity of farmers, providing safety nets, and offering extension services to ensure a more comprehensive approach.

Reasons to focus on Agricultural Value Chain:

• The environmental impacts of these value chains'' post-production.
• The need to develop efficient supply chains where the sustainably produced agricultural output can compete with established value chains of their unsustainable counterparts.
• This approach will distribute the burden of the sustainability transition from the farmer to other actors along the supply chains.

Sustainable Practices in the Private Sector

• International climate commitments have prompted many businesses to voluntarily establish sustainability targets.
• Several influential companies in specific commodity sectors have the potential to drive significant change and contribute to the transition towards sustainability.
• These companies can facilitate two crucial transitions:
• Micro-level transition: Supporting farmers in adopting sustainable practices on their farms.
• Supply chain-level transition: Transforming procurement, processing, packaging, and transportation methods for agricultural products.
• By actively engaging in these transitions, these key players can contribute to a more sustainable and environmentally friendly agriculture sector.

Conceptualising sustainability in the agricultural commodity sector by making the value chain the unit of analysis and intervention can take long in meeting the challenges that agricultural production must address that is mitigating environmental footprints, adapting to a changing climate while delivering economic benefits to the farmers and other actors in the value chain. This can facilitate the adoption of new environment-friendly technologies and practices and the capacity building of farmers.