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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.
