Ramesh Chand of NITI Aayog has urged the central government to reform agricultural subsidy structures in order to promote climate-resilient growth. He stressed that subsidies on electricity and fertilizers are creating price distortions that incentivize unsustainable farming practices. To correct this, Chand recommended implementing direct cash transfers in place of power subsidies and bringing urea prices in line with market rates. These measures, he noted, would enable a more generous Minimum Support Price (MSP) system without straining public finances. Chand also called for financial incentives for farmers who grow nitrogen-fixing crops, which naturally enrich soil health. Broader reforms to remove economic distortions across sectors, he added, are crucial for achieving sustainable development goals
Despite rising temperatures and growing concerns about climate change, agricultural crop yields in India have so far not declined—thanks largely to the application of science, technology, and innovation, according to Ramesh Chand, Member of NITI Aayog. Speaking at the Confederation of Indian Industry’s (CII) Annual Business Summit 2025, Chand credited research and development, along with improvements in irrigation and agronomic practices, for mitigating the negative effects of climate change on farm productivity.
Chand emphasized that advancements in technology have played a crucial role in offsetting the projected losses due to climate change. Citing the example of wheat, he noted that while climate models predicted a 4 per cent drop in yields over 30 years, new high-yielding varieties developed through research instead led to a 20 per cent increase—resulting in a net gain of 14 per cent.
However, Chand cautioned against complacency. According to him, the absence of yield decline does not imply that climate change is not occurring and there will come a tipping point beyond which technological interventions may no longer be effective.
Highlighting the substantial environmental footprint of agriculture—responsible for 30–40 per cent of India’s total carbon emissions—Chand pointed out a unique challenge: agricultural emissions are largely invisible, unlike in other sectors. This makes addressing them more complex, yet all the more critical.
He also outlined five key policy priorities to support innovation-led, climate-resilient agriculture:
Correcting price distortions in agricultural inputs and outputs, such as subsidy-driven imbalances that encourage the overproduction of specific crops.
Promoting cultivation in agro-climatically suitable regions to reduce emissions and resource stress.
Enhancing input efficiency, particularly in the use of fertilizers, to minimize environmental damage.
Increasing crop yields through continued investment in research and sustainable intensification.
Mainstreaming sustainable agricultural practices to reduce the sector’s carbon footprint and ensure long-term ecological balance.
The CII session, titled “Innovating for Climate-Resilient Agriculture,” brought together leaders from government, industry, and academia to explore scalable innovations and inclusive strategies for a sustainable agricultural future. Discussions focused on empowering farmers, leveraging smart technologies, and embedding sustainability into India’s agricultural growth model.
