Global Sustainability Alliance summit urges investors to support Gujarat’s sustainable agriculture

New Delhi: The Global Sustainability Alliance (GSA) Gujarat Edition, held in Gandhinagar, emphasized the urgent need for large-scale investments and foreign direct investment (FDI) to support sustainable farming in Gujarat. 

The summit, titled “Accelerating Progress: Resource-Conscious and Low-Carbon Agricultural Development,” brought together key experts and industry leaders. Speakers at the event stressed that with global markets enforcing strict sustainability standards, Gujarat must create an investment-friendly environment to ensure its farmers remain competitive and able to thrive in the face of changing regulations.

During the event, R.A.S. Patel, Deputy Commissioner (RFS) at the Department of Agriculture & Farmers Welfare, Government of India highlighted, “We have support from the Government of India, but getting investments from private sectors and FDI is also crucial. Investments is not just an economic necessity but a strategic imperative. Gujarat can continue to thrive in the global agricultural market in compliance with stringent sustainability standards that are coming into place only if there is large-scale investment.”

Gujarat, a major agricultural state, produces over 40.5% of India’s groundnuts and nearly 35% of its cotton and is the largest exporter of tobacco. However, the state’s agricultural achievements come with significant challenges, including a reliance on water-intensive crops like cotton, tobacco, and groundnuts, leading to groundwater depletion and increased water scarcity. These issues are further exacerbated by climate change, which has resulted in erratic rainfall and rising temperatures, threatening crop yields and agricultural stability.

Prof. Anil Kumar Gupta, Padmashree Awardee and Member of the Governing Board at the National Innovation Foundation commented, “Gujarat farmers are pioneers in sustainable farming due to their ability to experiment, innovate and commercialise solutions. However, with climate change and other environmental factors, it is difficult for the soil to absorb nutrients and crops are unable to retain the moisture. Hence, an FDI is much needed for co-manufacturing machinery and precision farming techniques, a massive amount should go into the processing aspect followed by infrastructure and better drainage, especially in the rural areas.”

The Indian government has launched several initiatives, such as the National Mission for Sustainable Agriculture (NMSA) and the Agri Infrastructure Fund, to promote sustainable farming practices across the country. However, the impact of new European Union (EU) sustainability standards on India’s agricultural exports, especially those from Gujarat, remains a significant concern. The EU’s Carbon Border Adjustment Mechanism (CBAM), Environmental, Social, and Governance (ESG) regulations and Farm to Fork Strategy impose stringent requirements that Indian exporters must comply with to retain access to international markets. These evolving global standards make attracting investments and fostering innovation critical to sustaining Gujarat’s agricultural growth.

Bhikhubhai N. Patel, President of the Gujarat Tobacco Merchant & Farmer Association, emphasized, “Private sector investment and FDI are key to addressing the financial challenges of meeting sustainability standards. While Gujarat is the highest tobacco-producing state, there is an urgent need to educate the farmers on the derivatives of tobacco farming industries like medicine & food grade is a key source of demand for tobacco/nicotine.”

“In the absence of an export policy for tobacco in India, this is a major opportunity that we are missing out on. Hence the government needs to establish ‘ease of doing farming’ with the help of FDI in the sector. A focused sectoral approach with incentives being directed to farmers will enable tobacco byproducts to attract international trade opportunities,” he added.

The other speakers included Megha Desai, Senior Coordinator, National Farmer’s Forum Network, SEWA, Anand, President, Gujarat Tobacco Merchant Association, BK Singhal, Chief General Manager, NABARD (Gujarat Regional Office), Dr. Ashok Dalwai, CEO, National Rainfed Area Authority (NRAA) and others.