India stands at the crossroads of two historic transformations: ensuring food security for 1.4 billion citizens and leading a global clean energy transition. Surprisingly, the solution to both may lie in the same field: agriculture.
India’s agricultural sector is on the verge of an extraordinary transformation. Long seen solely as the provider of food, farmers have the potential to become the powerhouse of the nation’s clean energy revolution. Agriculture already sustains 40 percent of India’s workforce and contributes to nearly 18 percent of India’s GDP. But its real power lies ahead, as a driver of the energy transition.
Farmers as prosumers
Thanks to progressive policies like the National Policy on Biofuels, 2018, and PM-KUSUM, India’s farmers are being positioned not only as food growers but also as “prosumers”: producers and consumers of energy. Ethanol blending in petrol has already reduced 2.7 million tonnes of CO₂ emissions. Ethanol demand is set to cross 10 billion litres by 2025. Solar-powered pumps and small renewable installations are becoming more common, making farms self-reliant in both food and fuel.
Breaking the water-Energy trap
Yet, deep challenges persist. India’s irrigation practices, especially for water-intensive crops like rice and sugarcane, waste precious water and electricity. Current incentives encourage this unsustainable cycle. The way out can be to promote low-water crops such as millets and pulses expand Direct Benefit Transfers of Electricity (DBTE) to reward water and energy efficiency.
Low carbon farming (LCF) a triple win
India’s agricultural sector must also tackle its carbon footprint. Fertilizers, irrigation, and land use contribute heavily to greenhouse gas emissions. LCF offers a win-win situation. Practices like crop rotation, agroforestry, and use of green fertilizers can improve soil health, boost biodiversity, and lower emissions. Market mechanisms — like green credits — can reward farmers who adopt climate-smart methods.
Empowering farmers for just energy transition
Modernizing agriculture is not just about technology but also about empowering resource-poor farmers. Policy priorities can include fast-tracking renewable energy access for farms, making nitrogen-efficient fertilizers affordable, offering production-linked incentives (PLIs) for electric tractors and scaling up ethanol and biofuel initiatives without endangering food or water security.
India’s clean energy future is not just about solar panels and wind turbines. It’s about recognizing farmers as central players in this journey. If policymakers, industry, and farmers join forces, India can lead the world in sustainable agriculture — ensuring food security, rural prosperity, and climate leadership all at once. The moment is now to give our farmers the tools to power India’s clean, green tomorrow.
The author is Director, Ashoka Centre for a People-Centric Energy Transition (ACPET), Ashoka University
Published on June 9, 2025