India’s strategy to repurpose subsidies for biodiversity conservation

By Dr. Ruchi Pant, Head, NRM, and Biodiversity, and Ms Vibhupriya Singh, Consultant, NRM and Biodiversity, UNDP India.

India, home to diverse ecosystems and a rich biocultural heritage, has updated its National Biodiversity Strategies and Action Plan (NBSAP) to better align with global conservation goals. Launched at the 16th Conference of the Parties (COP) to the Convention on Biological Diversity (CBD) in Cali, this plan includes 23 National Biodiversity Targets, providing a roadmap to safeguard the country’s genetic and natural resources. It also strengthens India's commitment to the Kunming-Montreal Global Biodiversity Framework (KM-GBF).

The impact of agricultural subsidies on biodiversity

India's agricultural policies, including subsidies and incentives, have historically supported food security and economic stability. However, some have unintended negative impacts on biodiversity. For example:

• Fertilizer subsidies played a crucial role in overcoming food shortages after the series of droughts and famines between the 1940s to 1960s and wars in 1948, 1962, and 1965 (PIB 2022). However, prolonged reliance on these subsidies has degraded soil health, causing deficiency in essential nutrients, acidification, and water pollution.
• Government procurement policies prioritizing wheat and rice over other crops have discouraged crop diversity. Between 1960-61 and 2021-22, the area under paddy and wheat cultivation surged, while coarse cereals and millets cultivation declined significantly.
• Since the Green Revolution (in the mid-1960s), there has also been a considerable reduction in the cultivation of traditional varieties of wheat, rice, millet, lentils, etc., with an increased harvest of hybrid varieties (ICRIER & UNDP, 2025).

Understanding target 18 of the NBSAP and its significance

Among the targets adopted at CBD COP 15, Target 18 stands out for its potential to redesign subsidies: "Identify and repurpose incentives, including subsidies, detrimental to biodiversity and scale up positive incentives for conservation and sustainable use." This is particularly significant for India’s agrarian economy, where long-standing subsidies—such as fertilizer price controls and Minimum Support Prices (MSP)—shape farming practices but may not always support biodiversity.

Photo credit: Ganesh D.

UNDP's strategic commitment to achieving Target 18

Since 2015, UNDP has supported governments through its global Biodiversity Finance Initiative (BIOFIN) in preparing Biodiversity Finance Plans linked to their NBSAPs, thus helping in the assessment of funding required for their implementation. In India, UNDP has focused on mainstreaming biodiversity into agriculture as one of the key financial solutions, recognizing its importance in the nation’s economic and ecological fabric. To this end, UNDP has commissioned two critical studies that have laid the foundation for achieving Target 18 in India.

ICAR study (2020-21)

The first study, conducted by ICAR-National Academy of Agricultural Research Management (2020-21), identified 21 priority central schemes across five ministries with significant biodiversity considerations in agriculture. Among these, schemes like Paramparagat Krishi Vikas Yojana (PKVY) or Traditional Agricultural Development Scheme, Sub-Mission for Seed and Planting Material (SMSP), and the National Livestock Mission (NLM) particularly stand out. PKVY promotes organic farming and quality assurance, SMSP ensures farmers’ access to diverse and quality seeds, and NLM ensures improvement in livestock production systems. The study also proposes key activities to better integrate biodiversity values into each of the 21 schemes.

ICRIER study (2024-25)

The second study, led by the Indian Council for Research on International Economic Relations (ICRIER) in 2024-25, examined subsidies impacting biodiversity in the agriculture sector. It analyzed subsidies exceeding USD 1.15 billion[1]  (INR 10,000 crores) and categorized them into:

• • Negative impact on biodiversity
  • Positive impact on biodiversity
  • Biodiversity-neutral impact
  • Mixed impact

These subsidies are further categorized into fiscal subsidies to producers (e.g., input/income support for farmers), monetary transfers for sector development (e.g., research, extension, and irrigation), and fiscal subsidies to consumers (e.g., price support and safety nets for access to and affordability of food).

The study reveals that subsidies were generally on the rise and peaked during the pandemic. The only exception is that the government has decontrolled the prices of phosphate and potassium-based fertilizers which resulted in a relative decrease in their usage. However, controlled pricing of nitrogen-based fertilizers, like urea, has led to its overuse, thus adversely impacting soil and groundwater quality. In fact, 24.2 percent of sampled wells in Punjab recorded high uranium levels, which can be linked to excessive nitrogen use and soil salinity, partially explaining the prevalence of cancer in pockets of Punjab's Malwa region. Additionally, nitrogen fertilizer production and use in 2021-22 resulted in 100.83 million metric tons of CO2 equivalent of greenhouse gas (GHG) emissions (Singh 2024), accounting for 3.19 percent of India’s anthropogenic GHG emissions (MoEFCC 2023).

Furthermore, the government ensures remunerative prices for the farmers by offering Minimum Support Price (MSP) for 23 commodities including cereals, pulses, and oilseeds, along with fair and remunerative prices for sugarcane. However, government procurement through MSP is largely skewed towards wheat and rice. The disproportionate procurement, coupled with significantly rising MSPs, often results in frequent overflowing of stocks and discourages crop diversification, further exacerbating mono-cropping practices in some states. The Pradhan Mantri Annadata Aay SanraksHan Abhiyan (Prime Minister's Food Protection Campaign), launched in 2018, can address this issue to some extent, by facilitating procurement of notified pulses, oilseeds, and copra, and providing fair prices to the farmers of perishable horticultural crops. Additionally, the expenditures on irrigation have also been considered to have mixed impacts on biodiversity since modern irrigation projects for agricultural development may lead to changes in the pre-existing ecology of a landscape (ICRIER & UNDP, 2025).

Repurposing subsidies: strategies for positive change

Building on these findings, UNDP is supporting the Government of India to develop strategies to redesign harmful subsidies towards biodiversity-positive or neutral incentives, which have been identified during these two studies. Key strategies include:
✅ Scaling up positive incentives, such as organic and natural farming, integrated pest management, and community seed banks.
✅ Encouraging cultivation of traditional crop varieties to restore agro-biodiversity.
✅ Engaging stakeholders - farmers, policymakers, and local communities—to ensure inclusive policy reforms.
✅ Piloting subsidy reforms in select regions to assess feasibility and impact before wider implementation.

India’s progressive initiatives in conservation

India has launched several biodiversity-friendly initiatives:

• Bhartiya Prakritik Krishi Paddhti (BPKP) under PKVY promotes natural, chemical-free farming. Building on its success, the National Mission on Natural Farming was launched last year, to scale up natural farming practices nationwide.
• National Mission on Natural Farming (2023) scales up sustainable agricultural practices.
• PM-PRANAM Scheme (2023) incentivizes states to reduce chemical fertilizer use, reallocating savings to conservation programs.

A vision for the future

India’s commitment to Target 18 demonstrates that economic growth and biodiversity conservation can coexist. By redesigning harmful subsidies and promoting sustainable practices, the country is setting an example for the world. The challenge now lies in effective implementation, ensuring that these policies reach farmers and communities for real impact.

With continuous innovation and stakeholder engagement, India is poised to transform its agricultural landscapes into biodiversity-rich ecosystems while ensuring food and economic security.

Key references

Press Information Bureau (PIB). Government of India, Ministry of Agriculture and Farmers Welfare. (2021). Achieving Aatmanirbharta in Agriculture. Accessed from:  https://pib.gov.in/FeaturesDeatils.aspx?NoteId=151185&ModuleId+=+2&reg=3&lang=1

Singh R. (2024). Indian Journal of Fertilisers, Volume 20, Number 12, December 2024: 1254-1258, Fertilizer Association Of India

MoEFCC. (2023). India’s Third National Communication and Initial Adaptation Communication. Submitted to The United Nations Framework Convention on Climate Change (UNFCC).

ICRIER and UNDP. (2025). Re-purposing Public Policies and Programs in Agriculture for Protecting Biodiversity.