CSR Contributions to Agriculture in India

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CSR Contributions to Agriculture in India

Context:

Between 2014 and 2023, ₹1.84 lakh crore in CSR funds were disbursed, as reported by the National CSR Portal. With contributions on the rise, it prompts the question: how can CSR initiatives benefit agriculture?

Background on CSR in India:

  • India was the first country to legally mandate Corporate Social Responsibility (CSR) under Section 135 of the Companies Act, 2013.
  • Companies are required to invest in social welfare projects to promote sustainable development and enhance public-private partnerships.
  • ₹1.84 lakh crore disbursed in CSR funds from 2014-2023 according to the National CSR Portal.

CSR Contributions to Agriculture:

  • Agricultural Employment: Nearly 47% of India’s workforce depends on agriculture, contributing 16.73% to GDP.
  • CSR Focus: Many companies prioritise environmental sustainability and climate action, aligning with the agricultural sector’s needs.
  • Targeted Projects: CSR funds support initiatives like grain banks, farmer schools, livelihood projects, water conservation, and energy-efficient irrigation.

Challenges in Tracking CSR Contributions:

  • Lack of Clear Reporting: There are no distinct mechanisms to track CSR funds aimed at agriculture. 
    • Reporting is scattered across multiple broad categories in the Companies Act’s Schedule VII.
  • Diverse Allocation: CSR funds can be allocated to sectors like gender equality, poverty alleviation, and environmental sustainability, making it difficult to pinpoint agriculture-related expenditures.

Importance of Sector-Specific Reporting:

  • Targeted Funding: Identifying agriculture as a distinct CSR sector would ensure funds are directed toward specific agricultural needs like sustainable farming and climate resilience.
  • Transparency and Accountability: Clear reporting mechanisms would increase transparency, helping stakeholders assess the impact of CSR on agricultural sustainability.
  • Enhanced Impact Measurement: Accurate tracking would allow for better measurement of CSR contributions’ effectiveness in agricultural development.

Recommendations for Improvement:

  • Establish Agriculture as a Separate CSR Category: Designating agriculture as a distinct sector within CSR reporting would enhance clarity and effectiveness. 
    • This change would facilitate targeted funding and improve accountability.
  • Implement Comprehensive Reporting Frameworks: Developing robust tracking mechanisms for CSR funds specifically allocated to agricultural projects is essential for clear categorisation and effective impact assessments.
  • Focus on Sustainability Needs: Directing funds toward identifiable sustainability challenges within agriculture can optimise resource allocation and align funding with specific requirements in agroecosystems.
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