Sep032021
Posted by:admin
Climate Change Adaptation Strategies for Agri-entrepreneurs
Climate change is increasingly directly affecting our daily lives. On July 22nd 2021, Caspian Debt in collaboration with TiE Bangalore organized a webinar titled ‘Impact of Climate Change on Agritech Start-ups’ to help agri-entrepreneurs start assessing business risks emanating from climate change issues, and also suggest coping strategies one could adopt to mitigate potential negative impacts.
The panelists were
1. Dr. Chirag Dhara, contributing author to Assessment of Climate Change over the Indian Region
2. Dr. Shyamasree Dasgupta, contributing author to Climate Vulnerability Assessment for Adaptation Planning in India Using a Common Framework
3. Dr. Rama Rao, contributing author to Risk & Vulnerability Assessment of Indian Agriculture to Climate Change
4. Mr. Yogesh Patil, CEO Skymet – India’s largest meteorological tracking company.
The panel was moderated by Sanjoy Sanyal, Senior Advisor Caspian.
The main objective was to view climate change from the lens of an agri-entrepreneur and answer the question ‘How can I assess and prepare for the climate change induced risks that affect my business?’
Here are excerpts of useful information shared by the panelists on the above topic during the webinar
Climate trends in recent years
1) The temperature change over the Indian land region, relative to pre-industrial times is 0.7 degrees Celsius (as against the average temperature change of 1.5 degrees Celsius over the global land region)
2) Relatively muted temperature rise over the Indian subcontinent can be attributed to being located in the tropical belt (which generally faces relatively lower temperature rise) as well as the presence of aerosols in the atmosphere, which is caused by air pollution. These aerosols block some part of the sun’s radiation which has in effect slowed down the Indian land region’s temperature rise. But with the dispersion of these aerosols (aerosols being a temporary feature), temperature rise can happen pretty rapidly – leaving less time for building coping strategies
3) 45+ degrees Celsius temperatures are more frequently being observed in June and October.
4) Decline in average rainfall over India in last 70-80 years is approximately 6%, but the frequency of heavy precipitation events has increased by 75% in the same time frame. Frequency of dry spells in last 30 years is also 30% more than the preceding 30 years. Frequency and extent of droughts has also increased, especially in central India.
5) Instances of differences in precipitation between nearby villages (which did not happen 15-20 years earlier) and in some cases precipitation differences even within a single village, are being reported.
6) Apart from cyclone formations in the Bay of Bengal – increased cyclones along the Arabian sea have also been seen in the last 20-25 years – a signal that the Arabian Sea is getting warmer (cyclone formation happens over warmer water) and increasing the threat to India’s west coast
Mid-century weather expectations:
1) Mid-range scenario predicts an average temperature rise expectations in excess of 2 degrees Celsius for India
2) Increase in frequency and duration of heatwaves by a factor of 2.5 and 20% respectively
3) Precipitation is said to increase by 6-7% in the next 30 years along with a significant increase in heavy rainfall events
4) Cyclones – intensity of cyclones are expected to increase, particularly in the Arabian Sea
I. Making business sense of climate change related definitions
Some common terms that entrepreneurs will need to understand are:
1) Vulnerability: predisposition to damage or harm (ex. farmer without access to irrigation is more likely to be affected by dry spells and hence more ‘vulnerable’)
2) Exposure: coming into contact or being present in a region or area prone to climate change risks (ex. coastal regions are relatively more ‘exposed’ to cyclones)
3) Hazards: Climate events that can harm human health, livelihoods or natural resources (ex: droughts, cyclones, floods).
II. Institutions that publish data and reports that can aid entrepreneurs in both identifying opportunities and adaptation strategies
– https://icar.org.in/ [Indian Council of Agricultural Research]
– http://www.icar-crida.res.in/ [Central Research Institute for Dryland Agriculture]
– https://www.nraa.gov.in/Publication.aspx [National Rainfed Authority of India]
– https://www.nbsslup.in/ [National Bureau of Soil Survey and Land Use Planning]
III. Data points that entrepreneurs should look for in risk and vulnerability reports
Below are some data points that Agri-entrepreneurs can use for assessing the district they are operating/wish to operate in:
1) Demand-side indicators: District level income levels, population density metrics, women participation in labor force (a positive indicator for higher family expenditure capacity), road connectivity, infant mortality rates (opportunities to sell nutritious foods)
2) Supply-side indicators: low livestock/human ratio (making livestock rearing a possibility and a cushion for the local population against climate change as an alternate source of income), Crop yield variability – (if variability is high, the crop is likely to be more sensitive to climate change and a business opportunity to influence farmers to switch to horticulture or more climate-resilient crops arise)
3) Climate vulnerability assessments: monsoon projections (especially June and July rainfall) – which are critical to sowing operations and crop rotation planning and making decisions on rainwater harvesting techniques, groundwater management (ex. if projections of extreme rainfall are given, it would be prudent to invest in technologies that store the excess rainfall)
4) Other vulnerability angles such as socio-economic, infrastructure vulnerability should also be considered.
IV. Resource Efficiency and Climate risk adaptation options for Agri-entrepreneurs
Following were some of the options discussed:
1) Climate change-resistant crops developed by agencies like ICAR (Indian Council of Agricultural Research) and CRIDA (Central Research Institute for Dryland Agriculture)
2) Micro-irrigation which is an efficient way of using resources that can help to adapt to climate change
3) Balanced usage of N, P, and K (Nitrogen, Phosphorous, and Potassium) & other micronutrients for crops and reducing the use of harmful nitrogen fertilizers primarily used in rice and wheat cultivation
4) Technologies to reduce loss of moisture from the soil (say procedures that use plastic covers)
5) Storage technologies for animal fodder that can be used during a lean period or summer months
6) Providing weather data to farmers
7) Businesses in agri-allied industries that can absorb the excess agricultural labor force
8) Packaging technologies to increase shelf life
9) Exploring gender-specific interventions
V. Means to improve incomes of small and marginal farmers
Following were some of the options discussed:
1) Technologies – such as irrigation, climate-smart energy generation
2) Diversification of crops – providing market linkages, investing in building supply chain
3) Encouraging adoption of methods that reduce the cost of production/cultivation
4) Skill building interventions – working with allied government programs such as Skill India, to equip farmers with alternate skills and income sources
If you are an agri-entrepreneur and want to understand more of how Caspian Debt can help you fund your business please do not hesitate to get in touch.
