5 solutions for financing sustainable agriculture

Sustainable agricultural practices may not be possible without accessible, affordable financing, says RBI Deputy Governor:

Sustainable agricultural practices like organic farming, climate-smart technologies, and modern irrigation systems may seem costly upfront, but they offer long-term benefits by improving productivity, resilience and environmental stewardship. Without accessible and affordable financing options, the much-needed shift to sustainable farming practices will remain a distant dream for many, said Swaminathan J, Deputy Governor, RBI.

Delivering a keynote address at an International Research Conference on 'Sustainable Financing for Food Security and Farm Income - Opportunities, Challenges, and the Way Forward' hosted by Pune based College of Agricultural Banking, Swaminathan said many farmers, especially those in rural or underserved regions, struggle with economic, institutional, and social constraints that limit their access. “Therefore, sustainable finance should not only promote environmentally friendly practices, but also ensure that financial resources are available to the farmers who need them most,” he said.

That institutional credit to agriculture reached an all-time high of ₹25.10 trillion during 2023-24, reflected the importance of financing in driving agricultural growth. He also said approximately 74 million active Kisan Credit Cards have emerged as vital tools for providing timely and flexible credit, especially for short-term needs.