Improving cotton farmers’ resilience to climate change in India
Smallholder farmers in India face significant climate-related risks with limited resources. IIED, SEWA and AIDMI are studying the vulnerabilities of women cotton farmers in India and how insurance can boost resilience and protect their livelihoods.
Senior project manager (food systems and inclusive blue economy), Shaping Sustainable Markets research group
India’s position as a critical player in the global textile supply chain is being increasingly threatened by climate change.
The country is the second largest producer of cotton globally – accounting for nearly a quarter of the world’s production. But cotton farmers are exposed to environmental and economic risks that threaten their livelihoods.
For example, climate change is increasing the vulnerability of farmers to extreme weather such as drought or excessive rainfall. International cotton prices have been increasing steadily since early 2020, but farmers are likely to be ill-prepared for price fluctuations and the inevitable cycle downturn.
Scarcity of income and assets is a major constraint for farmers to cope with these risks. Farmers are pressed for cash to pay for immediate necessities such as food and costs such as housing, healthcare, education and transport, and have very little ability to make other necessary but longer-term investments.
Moreover, reliance on a cash crop means that harvest failures or disruptions to price and demand have serious consequences for their livelihoods. For women these challenges are especially stark given the extremely unequal access to resources and decision-making within households.
Insurance can help individual households or farmers manage the risks of adverse shocks. Crop insurance penetration is still relatively low in India, and affordability remains a big barrier to its widespread adoption.
What is IIED doing?
IIED is working with AIDMI and SEWA, our partners in India, to generate evidence about the vulnerabilities, perceptions and responses of cotton farmers to climate and other shocks. We are also exploring the current and potential use of crop insurance to help farmers cope with and prepare for these challenges.
With this evidence, IIED is supporting SEWA, Primark and other stakeholders in the cotton sector to make better decisions on the risk management of farmers associated with cotton sourcing.
These decisions will eventually lead to improving the livelihoods of the farmers, especially women, and have the long-term impact of increasing the sustainability of the cotton supply chain.