Climate change and vulnerability of agribusiness: Assessment of climate change impact on agricultural productivity

The current study has mapped the impact of changes in different climatic parameters on the productivity of major crops cultivated in India like cereal, pulses, and oilseed crops. The vulnerability of crops to different climatic conditions like exposure, sensitivity, and adaptive indicators along with its different components and agribusiness has been studied. The study uses data collected over the past six decades from 1960 to 2020. Analytical tools such as the Tobit regression model and Principal Component Analysis were used for the investigation which has shown that among climatic parameters, an increase in temperature along with huge variations in rainfall and consistent increase in CO2 emissions have had a negative impact by reducing crop productivity, particularly cereals (26 percent) and oilseed (35 percent). Among various factors, adaptive factors such as cropping intensity, agricultural machinery, and livestock density in combination with sensitivity factors such as average operational land holding size and productivity of cereals, and exposure indicators like Kharif (June-September) temperature, heavy rainfall, and rate of change in maximum and minimum Rabi (October-February) temperature have contributed significantly in increasing crop vulnerability. The agribusiness model needs to be more inclusive. It should pay attention to small and remote farmers, and provide them with inclusive finance that can facilitate the adoption of climate-smart financial innovations, serve the underserved segments, and help them reach the target of a sustainable and inclusive agribusiness model. Though the social, technological, and economic initiatives can enhance the adaptive capacity of farmers, political measures still have a major role to play in providing a healthy climate for agriculture in India through tailored adaptive approaches like the adoption of craft climate adaptation program, dilating the irrigation coverage and location-centric management options. Hence, multidisciplinary and holistic approaches are worth emphasizing for evaluating the future impacts of change in climate on Indian agriculture.