CSR Contributions to Agriculture

Syllabus: GS 3/Economy, Agriculture

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According to the National Corporate Social Responsibility (CSR) Portal, from 2014 to 2023, ₹1.84 lakh crore of CSR funds were disbursed.

It involves companies taking responsibility for their impact on environmental and social well-being, working to improve society and reduce negative impacts.
India’s CSR Mandate: India became the first country to legally mandate Corporate Social Responsibility (CSR) under Section 135 of the Companies Act 2013.
- It requires companies to undertake social welfare projects.
- It aims to advance sustainable development goals and foster public-private partnerships to drive India’s transformation.

Education: Investments in schools, scholarships, educational resources, and infrastructure improvements, especially in underserved communities.
Health: Improving healthcare access through hospital construction, mobile clinics, and telemedicine for underserved areas.
Employment: Creating job opportunities, skill training, and inclusive hiring to support marginalized groups.
Skill Development: Programs for technical and vocational training, apprenticeships, and certifications.
Sports: Supporting sports events, building facilities, and promoting participation among youth and marginalized groups.
Livelihood: Enhancing livelihoods with support for income-generating activities, microfinance, and sustainable practices.
Environmental Sustainability: Reducing ecological impact through conservation, eco-friendly practices, and resource management.

Agriculture employs nearly 47% of India’s workforce and contributes 16.73% to GDP.
- However, challenges include natural resource degradation, stagnant farmer incomes, and climate threats.

Many companies are focusing CSR efforts on climate action and sustainability in agriculture.
An outlook report showed that 23% of surveyed companies prioritize “environment and sustainability” for CSR.
CSR funds support agriculture through projects like grain banks, farmer schools, livelihood projects, water conservation, and energy-efficient irrigation.

There is no precise way to track CSR funds specifically targeted at agriculture due to a lack of categorization in reporting mechanisms.
Agricultural sustainability-related CSR activities can fall under 11 sectors listed in Schedule VII of the Companies Act. These categories are broad, making it hard to track agriculture-specific CSR spending.

Developing a sector-specific CSR reporting framework would help address agricultural sustainability needs effectively and support India’s sustainable growth and just transition goals.
To ensure effective funding and impact, agriculture should be specified as a distinct sector in CSR reporting.
This would enhance targeting, transparency, and assessment of CSR contributions to agriculture.

Source: TH

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