Repurposing Public Policies and Programmes in Agriculture for Protecting Biodiversity
An Indian Council for Research study on International Economic Relations (ICRIER) study by the authors says why Agrifood systems are vital for the achievement of 2030 Kunming-Montreal Global Biodiversity Framework (KM-GBF) and the National Biodiversity Strategy and Action Plan (NBSAP) Targets 2030, particularly Target 18 “Repurpose detrimental incentives for biodiversity”
Biodiversity forms the foundation of agriculture, facilitating the evolution of farming systems since agriculture began about 10,000 years ago. It is the source of all crop species and domesticated livestock, and their variations. Additionally, biodiversity underpins the ecosystem services vital for sustaining agriculture and human well-being. Over the last fifty years, excessive consumption and unsustainable production have intensified biodiversity loss. In 2023, over half of the world’s GDP, approximately US$58 trillion (tn), was generated by economic activities moderately to highly dependent on nature, with critical sectors like agriculture being particularly vulnerable to biodiversity loss and nature’s decline. In 2020, industries with high dependence on nature generate around US$13 tn (15 percent of global GDP), while those with moderate dependence account for US$31 tn (37 percent of global GDP). Externalities (i.e., effects of an economic activity affecting the environment, such as the greenhouse gas emissions, water pollution, or soil degradation, but not reflected in market prices) associated with sectors contributing to biodiversity loss -such as agriculture, livestock, fisheries, forestry and fossil fuels- are estimated to total US$10.7 tn inflation-adjusted to 2023.
Examples of agroecosystem services negatively affected by biodiversity loss—and their financial implications — include pollination, climate regulation, and soil fertility. Essential pollinators like bees, butterflies, and birds support plant reproduction and contribute significantly to agricultural productivity. However, declining populations of some pollinator species, driven by biodiversity loss, could result in reduced crop yields and increased food costs. Their role in global crop production is valued at approximately US$235 to US$577 bn each year. Natural ecosystems, including forests play a vital role in climate regulation by storing carbon and producing oxygen. However, as biodiversity declines, these ecosystems lose their ability to effectively store carbon, contributing to climate change. Estimates suggest that the financial impact of deforestation and other land-use changes could reach US$3.3 tn annually by 2030. Similarly, biodiversity loss negatively affects soil fertility, leading to degradation that reduces agricultural productivity. The estimated annual cost of soil erosion and degradation is around $300 bn, reflecting its significant economic consequences (Kumar et al. 2024).
The efforts in restricting the loss of global biodiversity have remained insufficient; also the Aichi Targets 2020 set by the Convention on Biological Diversity have not resulted in the expected response from the member countries. As a result, the Kunming-Montreal Global Biodiversity Framework (KM-GBF) was adopted at the 15th Meeting of the Conference of the Parties to the Convention on Biological Diversity (COP 15) in December 2022. It includes a monitoring framework to track progress towards its goals and targets. India is committed to KM-GBF 2030 targets including Target 18 “Repurpose detrimental incentives for biodiversity”. Agriculture sector in India is largely driven by policy signals and incentives, thus identification of incentives that are detrimental to biodiversity is the first step to define its repurposing strategy.
India has experienced an impressive transformation since then from being a ‘foodgrain deficient’ to a food sufficient and food surplus economy. Foodgrain production in India has increased from a mere 50.8 MMT in 1950-51 to 332.3 MMTin 2023-24 with per capita net foodgrain availability increasing from 144.1 kg per year in 1951 to 207.6 kg per year in 2023. The major change took place in the period of green revolution and the transformation is attributed to high yielding varieties of seeds, along with irrigation, and fertiliser usages. This was made possible by agriculture policies that provided various input and output subsidies and incentives to ensure food security. The agrifood policies and incentives from GoI and states have helped to grow the agriculture and allied sector ofIndia, which has made impressive strides in producing food to feed a growing population (1.4 bn), reducing real food prices for consumers (particularly of wheat and rice), providing livelihood opportunities for 46.1 percent of the workforce, and contributing 17.8 percent of the country’s gross value added in FY24.
Supporting agriculture through various incentives and support was a necessary step during a period of hunger. However, agriculture incentives, when they lower input costs and/or enhance output prices can result in greater levels of input such as fertilisers, pesticides, other chemicals, irrigation or more mechanization. This can have various impacts on biodiversity such as the loss of non-target species (pollination from bees), eutrophication of various ecosystems, soil degradation and erosion leading to loss of beneficial soil microbiota. This may also lead to the conversion of more natural land into agricultural land through land use change leading to loss of natural biodiversity. Further, agricultural incentives may influence cropping choices (spatial and temporal diversity), which may impact biodiversity.
Therefore, the budgetary provisions for this sector need to be understood from the long-term perspective of their impact on biodiversity. Against this backdrop, the main objective of this report is to explore the linkages between AFBS and the possible detrimental biodiversity consequences. This report synthesizes, calculates, and critically assesses the extent and impact of biodiversity detrimental AFBS provided by GoI and state governments of pilot states: Punjab, Madhya Pradesh, and Telangana. Bringing forward the detrimental biodiversity effects from support may prove to be the critical dimension that affects the decision about whether to remove, keep or repurpose the AFBS.
Three categories of budgetary support are provided to the agrifood sector of the country: (i) providing individual farmer centric budgetary support (e.g. direct income support, input subsidies, risk cover etc.) to boost farmers’ income; (ii) those delivering public goods that enhance the overall capacity of the sector through sector-wide improvements in infrastructure and agricultural technologies (e.g. research and extension, irrigation, connectivity through roads, etc.) and (iii) safety net (e.g. food subsidy, employment guarantee). The support has been analyzed (qualitative and quantitative) for the duration FY01 to FY25 (BE), in the three step process:
Step One
Each incentive (including subsidies) was screened for the duration FY01 to FY25 (BE) for its potential adverse impact on agrifood related targets set in KM-GBF and NBSAP
Step Two
Demonstration of the cause/effect link between incentives and the state of agrobiodiversity through government data and published literature.
Step Three
Based on the impacts, the incentives have been categorized into four categories. Categories: (i) biodiversity positive incentives; (ii) biodiversity detrimental incentives; (iii) biodiversity neutral incentives; and (iv) incentives that have mixed impacts on biodiversity.
WHY AGROBIODIVERSITY MATTERS?
The Indian gene centre is among the 12 megadiversity regions of the world. India is also one of the world’s eight Vavilov centres of crop plant origin and diversity and has composite mosaic of distinct agroecosystems (20 broad agro-ecological zones). At least 166 food/crop species including rice (with around 15,658 rice landraces), many legumes (e.g., chickpea, pigeon pea), vegetables (e.g., eggplant, cucumber), tubers (e.g., taro, yam), fruits (mango, citrus tamarind), spices and dyes have been originated in India. India also has one of the world’s largest diversities of domesticated animals, with 30 breeds of cattle, 10 breeds of buffalo, 40 of sheep, 20 of goats, 8 of camels, 6 of horses, and 18 of poultry, and nearly 11 percent of the world’s fish resources are reported to occur in India. Modern farming systems, which evolved in response to the growing needs of the human society to ensure food and nutritional security have progressively replaced traditional agriculture. More than half of the cultivated area under major crops is now covered by improved varieties and farming practices with high inputs of fertilisers, pesticides, water and electricity as well as mechanization. Agriculture incentives and subsidies has encouraged this trend. However, the heavy reliance on a few species, varieties and breeds and the vanishing pollinators and other beneficial organisms that support food and agriculture can pose serious threats to food security and economic stability, disrupting the resilience of the agriculture system’.
