India is an agrarian economy with about 116 million farm holdings having an average size of 1.4 ha, accounting for about 17-18% of GDP and employing about 40% of the country’s workforce. The energy demand in agriculture sector shall increase to 70 million tonnes of oil equivalent (Mtoe) in 2047 from 33 Mtoe in 2022@CAGR of 3.01%, primarily having demand in tractors and pumps. There could be some penetration of e-tractors starting from 2027, which will continue to grow and reach 12% of total tractors by 2047 in the agriculture sector. The share of electricity consumption in agriculture sector will decrease from 15% to 12% by 2047 due to increase of shares of solar-based pumping.
The future of India’s agricultural growth will depend on two types of crops — 1) energy crops and 2) food crops. The sector needs to be self-sustainable with respect to energy use. National Biofuel Policy was enacted in 2018 to promote the production and consumption of biofuels. PM KUSUM programme by MNRE aims to add solar capacity of 30.8 GW till 2026.
Agriculture accounts for 5% of overall energy demand and about 85% of India’s water demand. Water use efficiency on farms in India is among the lowest in the world. India needs a clear policy direction to switch from flood irrigation practices to targeted irrigation techniques. Market plays a significant role in the growth of Indian agriculture sector. By aligning market forces with sustainable practices, the agriculture sector is likely to achieve energy independence much faster. Low Carbon Farming (LCF) has the potential to provide multiple benefits to the farm sector. There is a rising need to have a single commission onagriculture demand management that could ensure sustainable and low carbon growth of the sector.
Energy demand, Electricity consumption, Self-sustainable, Agriculture growth, Low carbon growth
