Gujarat Needs Big Investments and FDI to Help Farmers Meet Global Sustainability Standards

At the Global Sustainability Alliance Gujarat Edition, experts called for more government action to attract large-scale investments, including foreign direct investment (FDI), to support farmers in Gujarat. With global markets enforcing stricter sustainability standards, delegates stressed that it is crucial for Gujarat to create an investment-friendly environment to help its farmers stay competitive.

The event, titled ‘Accelerating Progress: Resource-Conscious and Low-Carbon Agricultural Development’, featured several prominent speakers, including Professor Anil Kumar Gupta, a key figure in agricultural innovation, and R.A.S. Patel, Deputy Commissioner from the Ministry of Agriculture. They were joined by leaders from various sectors, including the National Farmers Forum Network, NABARD, and the National Rainfed Area Authority.

R.A.S. Patel emphasized that while government programs provide some support, private investment and FDI are vital for Gujarat’s agricultural future. “Investments are not just a financial necessity but a strategic imperative. For Gujarat to continue thriving in the global agricultural market and comply with new sustainability standards, large-scale investments are essential,” Patel said.

Gujarat plays a major role in India’s agricultural exports, being a leading producer of groundnuts, cotton, and tobacco. However, growing these water-intensive crops has led to a significant drop in groundwater levels, causing water scarcity in farming regions. Climate change, with unpredictable rainfall and rising temperatures, has also worsened the situation, threatening crop yields.

Professor Gupta noted that Gujarat’s farmers are known for their innovative approaches to sustainable farming but are now facing challenges due to environmental changes. “FDI is needed to bring in advanced machinery and precision farming techniques. Significant investment is also needed for better processing infrastructure and drainage systems in rural areas to ensure long-term sustainability,” he said.

The Indian government has already launched initiatives like the National Mission for Sustainable Agriculture (NMSA) and the Agri Infrastructure Fund to support sustainable practices. However, international standards, especially from the European Union, like the Carbon Border Adjustment Mechanism (CBAM) and Environmental, Social, and Governance (ESG) regulations, pose additional challenges for India’s exports, particularly from Gujarat.

Bhikhubhai Patel, a prominent agricultural leader, added that FDI and private investment are key to helping farmers meet these financial and sustainability challenges. He pointed out that while Gujarat is the top tobacco producer in India, farmers need education on using tobacco for new industries like medicine and food. “Without an export policy for tobacco, we are missing out on huge opportunities. The government must simplify farming regulations and attract FDI to help farmers explore international trade opportunities for tobacco byproducts,” he said.

The conclave highlighted that strategic investments in infrastructure, education, and technology are crucial for Gujarat’s farmers to adapt to global sustainability standards and maintain their success in international markets.

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