• UGI USER
  • Dec 07, 2023
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DECIPHERING AGRICULTURAL IMPACT ON THE ENVIRONMENT

India’s Dual Challenge:

International Demand vs. Domestic Pressure:

  • Large swathes of India contribute to meeting international demands for grains, fruits, and vegetables, placing stress on soil and water resources.
  • Simultaneously, India’s expansive consumer market extends its land usage beyond borders to fulfil domestic needs.

Global Impact of Agricultural Demand:

  • Escalating global demand triggers profound social and environmental repercussions.
  • The expansion of International trade links consumers directly to far-reaching impacts, including carbon emissions biodiversity loss, freshwater depletion, soil degradation, and labour-rights issues.

National Multidimensional Poverty Index (MPI )2023: Dubious Reductions: 

  • India’s MPI value shows a suspicious near-halving from 2015-16 to 2019-21, raising reliability concerns.
  • Reliance on NFHS 4 and 5 for data raises questions about the accuracy of the MPI estimates.

Accounting Challenges and Shifts:

  • Expansion of imports heightens environmental pressure in exporting countries.
  • Criticisms of production-based accounting prompt the exploration of consumption-based accounting for a fairer and more comprehensive assessment.
  • Consumption-based accounting gains prominence, urging consumer responsibility and sustainable practices.

Perspectives on Demand and Supply:

  • From a demand view, consumers in developed nations bear the impact of their consumption practices.
  • From the supply end, consumption-based accounting incentivizes cleaner production and safeguards living standards.

Benefits of Environmental Action and Global Impact Attribution:

  • Consumption-based accounting identifies consequences of both domestic and foreign demand.
  • Encourages coordinated global environmental action, allowing developing economies to improve while developed nations take responsibility.

Challenges and Opportunities of Consumption-Based Accounting

  • While challenging, it serves as a diagnostic tool for impact-intensive consumption patterns.
  • Shifts focus from producers to consumers, fostering individual and collective changes in consumption behaviour.