Integrating ESG Investments with India’s Globally Important Agricultural Heritage Systems

 Integrating ESG Investments with India’s Globally Important Agricultural Heritage Systems


Introduction 1

Background 2

Objectives of the National Policy 2

Connection with ESG Investment 3

Investment Linkages: 4

Conclusion 5

Key Takeaways 5


Introduction

India has long been known as the land of agriculture, with diverse farming traditions deeply rooted in culture, ecology, and livelihoods. Recognizing this, the Food and Agriculture Organization (FAO) launched the Globally Important Agricultural Heritage Systems (GIAHS) programme, which celebrates agricultural practices that sustain biodiversity, promote food security, and preserve cultural heritage. As of today, India is home to three GIAHS sites: Koraput region (Odisha), Kuttanad farming system (Kerala), and Saffron Heritage (Kashmir). Each of these sites embodies the unique relationship between people, ecology, and agriculture.

The Government of India, in alignment with FAO’s vision, has announced national-level initiatives and policy support to strengthen these systems through targeted interventions, while simultaneously linking them to broader goals of sustainability and global investment under the ESG (Environmental, Social, Governance) framework.

Background

The GIAHS programme by FAO identifies traditional farming systems that are rich in biodiversity, cultural practices, and ecological knowledge. India’s three recognized GIAHS sites showcase diverse landscapes and traditional methods:

  • Koraput, Odisha: Known for its paddy landraces and rich genetic diversity of medicinal plants, preserved by tribal communities through traditional ecological knowledge. The government is supporting this region with community seed banks, organic farming initiatives, and branding of indigenous crops.

  • Kuttanad, Kerala: A below-sea-level farming system, one of its kind, where wetlands are used for paddy cultivation, fisheries, and coconut-based farming. Current projects under RKVY-DPR focus on ecological solutions like harnessing water hyacinth and improving farming infrastructure.

  • Saffron Heritage, Kashmir: Famous for its organic saffron cultivation, intercropping, and agro-pastoral practices, this site has received dedicated funding under RKVY and MIDH for economic revival and conservation of soil biodiversity.

Objectives of the National Policy

The national policy to promote GIAHS sites in India aims to:

  1. Conserve biodiversity and landraces by strengthening community-based seed banks and organic farming.

  2. Support traditional ecological knowledge of indigenous communities and promote its intergenerational transfer.

  3. Boost rural livelihoods and branding of heritage crops like Koraput rice and Kashmiri saffron.

  4. Create resilient agro-ecosystems that align with climate change adaptation and sustainable land use.

  5. Encourage eco-tourism and agri-tourism models that integrate local heritage with economic growth.

  6. Leverage ESG-based investments for strengthening sustainable infrastructure and market linkages.

Connection with ESG Investment

GIAHS sites represent a natural intersection of ESG principles, making them highly attractive for impact investors and policy-driven funding.

  • Environmental (E):

    • Conservation of crop diversity, soil health, and organic farming reduces ecological footprints.

    • Wetland management in Kuttanad and eco-utilization of water hyacinth showcase sustainable ecosystem practices.

  • Social (S):

    • Preservation of tribal knowledge in Koraput sustains community identity and rural employment.

    • Saffron cultivation in Kashmir empowers local farmers and women-led cooperatives.

  • Governance (G):

    • Transparent schemes under Rashtriya Krishi Vikas Yojana (RKVY) and Mission for Integrated Development of Horticulture (MIDH) ensure accountability in funding.

    • State-driven branding of indigenous crops builds structured value chains and traceability.

Investment Linkages:

  • ESG funds can directly support organic certification, climate-resilient infrastructure, and agri-tourism facilities in these heritage sites.

  • Public-Private Partnerships (PPPs) can enhance branding and global export potential for products like Kashmiri saffron and Koraput rice.

  • Green financing instruments, such as green bonds or sustainability-linked loans, can be channelled towards conserving these ecosystems.

Conclusion

The recognition of Koraput, Kuttanad, and Kashmir under the GIAHS programme is not only a matter of cultural pride but also a strategic opportunity for India to align traditional farming wisdom with global sustainability agendas. The national policy framework, backed by schemes like RKVY and MIDH, demonstrates the government’s proactive approach in conserving biodiversity, boosting farmer incomes, and enhancing sustainable agriculture.

With ESG-conscious investments, these heritage systems can serve as global models of balancing ecology, equity, and economy, while ensuring that India’s agricultural roots remain resilient in the face of modern challenges.

Key Takeaways

  • India hosts three FAO-recognized GIAHS sites: Koraput (Odisha), Kuttanad (Kerala), and Saffron Heritage (Kashmir).

  • National policies focus on biodiversity conservation, organic farming, infrastructure development, and branding of indigenous crops.

  • ESG linkages make these sites attractive for sustainable investments, green financing, and impact-driven agriculture projects.

  • Integration of traditional wisdom with modern policies ensures resilient agro-ecosystems and improved rural livelihoods.

  • GIAHS promotion aligns India with global sustainability goals and climate action frameworks.

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