Sustainability and Value Added in Agricultural Supply Chains – Commodity Hub India

Over 46% of India’s 1.4 billion population works in agriculture and allied sectors, undertaking farming activities at the beginning of global supply chains. Cotton, tea, spices, and coffee are among the country’s key commercial crops contributing to farmers income and exports. India has the largest area under cotton cultivation in the world, is the largest exporter of spices, and the second-largest producer of tea. 

Despite this significant agricultural output, smallholder farmers continue to face challenges farming like low productivity, quality, price and income, crop losses due to climate change, and limited access to knowledge on good/sustainable farming practices and direct market linkage with the industry. Only a small portion of the production area meets internationally recognised sustainability and quality standards.

The commodity hub India works across four fields of action to address these issues:

1. Sustainable production – Smallholder farmers and their organisations such as Farmer Producer Organisations (FPOs), Women’s Self-Help Groups (SHGs) adopt more sustainable farming practices aligned with internationally recognised sustainability standards.
2. Local value addition – local processing capacities are strengthened, innovations piloted, and skills developed.
3. Sustainable supply chains – Working with key supply chain actors and stakeholders, sustainable supply chains are established “from shelf to field,” linking consumers directly with producers.
4. Global knowledge transfer – Programme partners exchange good agricultural practices and innovations across the selected supply chains.

The project in India has benefitted over 270,000 cotton farmers and workers along the textile supply chain, and over 176,000 tea & spice growers and workers. Additionally, it has a reach of about 190,000 as a part of its Covid-19 response measures, and another 100,000+ farmers were reached as a part of its global crisis response initiatives.

Outlook on future prospects

• Promoting best management practices for cotton farmers with a focus on best management practices for Kasturi Cotton from field to ginning and skill development for textile workers after the ginning process, aligned with Government of India priorities.
• Supporting market development and exploring export potential for Kasturi Cotton, including B2C communication on traceability, point-of-sale claims, and premium price propositions for farmers.
• Scaling capacity building on harvest and post-harvest management through pilots and ToTs, with focus on trash minimisation, quality-wise segregation, moisture management, and contamination reduction.
• Launching Phase 2: “Field to Fanshop” in partnership with 9 German football clubs and BRANDS Fashion, linking Indian farmers to major German supply chains.
• Enhancing farm productivity through precision farming, carbon monetisation, and improved water-use efficiency in collaboration with business partners.
• Sensitisation on impacts of low controls on sustainable supply chains
• Partnering with industry and associations to promote women’s health, wellness, and safe working conditions, and to conduct sensitisation workshops on sustainability implications.