CSR and Agriculture 

Source: This post CSR and Agriculture has been created based on the article “Are CSR contributions to agriculture properly tracked?”, published in The Hindu on 8th Nov 2024. 

Syllabus Topic – GS Paper 3 – Agriculture  

News: India mandated Corporate Social Responsibility (CSR) a decade ago under Section 135 of the Companies Act, 2013. But its potential could not be realized for the agriculture sector. 

What are the important facts about CSR and Agriculture in India?  

1) Agriculture employs about 47% of India’s workforce and contributes 16.73% to the GDP, indicating its economic significance.  

2) Nearly ₹1.84 lakh crore allocated between 2014 and 2023 for CSR activities. CSR spending plays a crucial role in various development areas.  

3) Many corporates are keen on supporting agricultural sustainability and climate action under their CSR commitments. 

4) Indian agriculture faces infrastructure gaps that require capital investment. CSR has previously supported initiatives like grain banks, farmer training, water conservation, and energy-efficient irrigation projects. 

What are the issues that are hindering CSR’s potential in agriculture? 

Lack of Sector-Specific Reporting: Agriculture-related CSR initiatives are spread across 11 of 29 categories outlined in Schedule VII of the Companies Act, 2013. These categories, including environmental sustainability, rural development, and poverty eradication, make it difficult to pinpoint exact allocations to agricultural projects. 

Overlapping CSR Categories: Many CSR categories include activities only partially related to agriculture, which complicates the tracking of funds directed solely toward agricultural sustainability, thus hindering a clear assessment of impact. 

Limited Transparency: Without a specific agricultural category, current reporting lacks transparency, diminishing the potential to analyze sectoral impacts effectively. 

Recommendations for Improved CSR Framework in Agriculture 

Dedicated Reporting for Agriculture: Establishing agriculture as a distinct category within CSR reporting would enable better tracking of funds and clearer impact assessments. 

Focused Allocation Based on Sustainability Needs: Directing CSR contributions toward identifiable sustainability challenges within agriculture can optimize resource use, aligning funding with specific requirements in agroecosystems. 

Enhanced Transparency and Impact Evaluation: Improved transparency through a revised CSR framework would support targeted funding, ensuring that contributions genuinely advance agricultural sustainability and resilience.