Economic efficiency as a condition for the adoption of green technologies in the agricultural sector

Currently, the Indian agricultural sector is highly dependent on subsidized chemical fertilizer and pesticides. Such a model negatively affects soil quality, increases production costs for farmers, and leads to yield stagnation against a backdrop of rising expenses. Given limited profit margins, farmers often cannot afford to transition to organic methods unless they provide a direct economic return.

According to Maninder Singh Nayyar, founder of the CEF Group, sustainable development in agribusiness is possible only through the creation of market mechanisms where the costs of environmental solutions are offset by efficiency. Circular economy models, in which organic waste is processed into bio-CNG and bio-fertilizer, serve as an example of this approach. This allows farmers to use cheaper alternatives to chemical agents while simultaneously creating an additional income source from waste that previously required disposal costs.

To successfully scale such solutions, it is necessary to integrate waste management, biofuel production, and the agricultural resources market into a single system. In this scheme, every participant benefits: urban infrastructure solves the waste disposal problem, farmers gain access to affordable fertilizer, and the fuel market receives an alternative to fossil resources. As Maninder Singh Nayyar notes, such interventions are viable only when downstream consumers pay for specific results, as occurred during the implementation of the national SATAT biofuel program.

Agriculture places high demands on new technologies, as errors in the selection of agricultural resources directly threaten a farmer's livelihood. Biopreparations derived from recycled waste must compete with traditional products in terms of yield and cost per acre. When evaluating "green" projects, investors and regulators are encouraged to focus not on carbon footprint reduction indicators, but on an analysis of the unit economics for all links in the chain — farmers, waste processors, and fuel buyers.