Climate & Nature

Agroforestry Provides Sustainable Livelihood Pathway for Rain-Fed Farmers in India

ESG Broadcast Desk· 22 May 2026· 2 min read

Agroforestry has emerged as a globally recognised climate-resilient farming approach that offers small and marginal farmers in India's rain-fed regions a sustainable pathway to address simultaneous pressures of erratic rainfall, soil degradation, crop failure and rural debt. The approach is considered particularly relevant for Vidarbha in Maharashtra and Western Odisha, where climate change has intensified longstanding agricultural vulnerability.

Small and marginal farmers — who hold less than two hectares — constitute the majority of India's agricultural population and face the greatest exposure to climate-related production risks. In rain-fed zones like Vidarbha and Western Odisha, where poor soil fertility, unreliable rainfall and limited irrigation compound climate stress, farm incomes have stagnated while input costs have risen. Agroforestry addresses these pressures by integrating perennial trees with annual crops, generating multiple income streams that smooth revenue across seasons and years of climatic adversity.

The climate mitigation co-benefits of agroforestry are increasingly recognised in national and international policy frameworks. Trees on agricultural land sequester carbon in biomass and soil, contribute to India's forest and tree cover targets, and provide ecosystem services including watershed protection and biodiversity habitat. India's Nationally Determined Contribution includes a target of creating an additional carbon sink of 2.5 to 3 billion tonnes of CO2-equivalent through additional forest and tree cover by 2030, to which well-designed agroforestry programmes can contribute.

Government programmes including the Sub-Mission on Agroforestry under SMAF have provided financial incentives for farmers to adopt tree integration, but implementation has been uneven across states. Effective scaling requires simplifying land-use regulations that restrict tree felling on agricultural land — a disincentive for farmers to plant trees — alongside insurance, credit and market linkages for agroforestry products. With international momentum building around nature-based solutions and land restoration finance, agroforestry offers India a convergent investment opportunity linking food security, climate adaptation and carbon sequestration.

Key figure — India's NDC targets 2.5-3 billion tonnes CO2-equivalent additional carbon sink by 2030

This content is AI-assisted and reviewed by the ESG Broadcast editorial team. It is for informational purposes only and is not investment or ESG-rating advice. See our Technology & Transparency policy.

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Agroforestry Provides Sustainable Livelihood Pathway for Rain-Fed Farmers in India | ESG Broadcast