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IMPACT OF CLIMATE CHANGE ON BUSINESSES IN INDIA
Group 3
Aditya Aggarwal G004Arjun Bhatia G007Uday Dangra G015Sameer Ganu G019Prajesh Gupta G025Venketeshwaran Iyer G028Preet Jain G030Rahul Rao G051
INTRODUCTION
Developing countries in tropical region are most vulnerable to climate change impact due to Strong dependence on agricultural sector Limited financial and technological resources Intensifying of tropical climate
Impact of climate change on India by 2030: Warmer climate- avg temp rise by 2 ᵒC Wetter climate- increased rainfall with fewer
rainy days Cyclonic disturbances- increased frequency
and intensity storm surges Sea level rise- 1.3mm/year rise on avg
INTRODUCTION CASE I CASE II CASE III CONCLUSION
Climate change is the change in global or regional climate patterns attributed largely to the increased levels of atmospheric carbon dioxide produced by the use of fossil fuels.
IMPACT OF CLIMATE CHANGE ON RAIN FED AGRICULTURE IN INDIA
Rainfed agriculture practiced in 2/3rd of the total cropped area of 162 million hectares
It supports 40% of national food basket
91% coarse grains, 90% pulses, 85% oilseeds & 65% cotton are grown in rainfed areas
Receives annual rainfall of 400 mm to 1000 mm, unevenly distributed
Highly erratic rainfall results in fall in food production
.
INTRODUCTION CASE I CASE II CASE III CONCLUSION
CASE STUDY I Dharwad district in Karnataka was studied to assess the impact of
climate change, where the rainfed farmers face frequent droughts and other climatic changes
Chronic drought had hit dharwad in the years 2001, 2003 and 2006 The shortfall in rainfall in drought has been to the extent of 38%. Since the rainfall was less and unevenly distributed, it reflected in
the yield of rainfed crops The specific objectives of the study was to assess the impact of
drought on the yield of rainfed crops and to identify the factors influencing in decision making on the coping mechanism to mitigate the impact of climate change
Compound growth rate and instability index were employed to analyse the data among rainfed farmers
INTRODUCTION CASE I CASE II CASE III CONCLUSION
IMPACTSINTRODUCTION CASE I CASE II CASE III CONCLUSION
Crop (1) Compound Growth rate (percent) (2)
Instability Index (3)
Sorghum -17.47 0.83Maize -6.00 0.56
Tur -8.44 0.58Groundnut -13.06 0.61
Wheat -16.00 0.70Onion -3.93 0.53Cotton -10.65 0.79
Table 1: Growth and Instability in the yields of major rain fed crops
Crop (1) Percent loss of normal yield (2)Sorghum 43.03
Maize 14.09Tur 28.23
Groundnut 34.09Wheat 48.68Onion 29.56Cotton 59.96
Table 2: Effect of drought on rained crop yield in Dharwad District
SOURCE: International Journal of Environmental Sciences and Development, Vol 3, No. 4 , August 2012
EFFECTS & RESULTS Factors (1) Small
Farmers (2)
Medium Farmers (3)
Large Farmers (4)
Total Farmers (5)
Reduction in yield 90.00 80.00 60.00 76.67
Reduction in net income 93.33 86.67 80.00 86.67
Pest and disease outbreak 73.33 76.67 73.33 74.44
Fast evaporation of soil moisture
86.67 73.33 53.55 71.11
Erratic rainfall 100.00 80.00 80.00 86.67
Crop Failure 96.67 96.67 66.67 86.67
Shifting of seasons 60.00 50.00 53.33 54.44
Land unsuitable for cultivation 76.67 63.33 53.33 64.44
Change in climactic and rainfall patterns
86.67 83.33 80.00 83.33
Other factors/no idea 0.00 3.33 20.00 7.78
Table 3: Farmers’ Perception on the impact of climate change (percent)
INTRODUCTION CASE I CASE II CASE III CONCLUSION
SOURCE: International Journal of Environmental Sciences and Development, Vol 3, No. 4 , August 2012
EFFECTS & RESULTS Coping Mechanism (1) Small
Farmers (2)Medium Farmers (3)
Large Farmers (4)
Total Farmers (5)
Change uncropping pattern
60.00 40.00 26.67 42.22
Mixed/inter cropping 93.33 76.67 56.67 75.56Cultivation tree crops 0.00 10.00 76.67 28.89Soil organic matter enhancement
46.67 46.67 16.67 36.67
Drought Resistant/tolerant crops
13.33 43.33 20.00 25.56
Integrated/Mixed farming system
93.33 76.67 43.33 71.11
Reduced consumption expenditure
60.00 50.00 0.00 36.67
Shifting to other profession
80.00 50.00 20.00 50.00
Borrowing 86.67 50.00 10.00 48.89Crop insurance 6.67 16.67 10.00 48.89Selling of land and livestock
26.67 6.67 3.33 12.22SOURCE: International Journal of Environmental Sciences and Development, Vol 3, No. 4 , August 2012
Table 4: Major coping mechanism used by rainfed farmers to mitigate climate change (%)
INTRODUCTION CASE I CASE II CASE III CONCLUS
ION
INFERENCES & RECOMMENDATIONS Study indicates small and medium rainfed farmers were extremely
vulnerable to the change in climate and temperature Farmers respond by adopting technical coping mechanism and
switching to other professions Intensifying need for the proper policy decisions and implementations
on climate change Minimum wages act (1948) to provide financial aid to farmers Deccan Agriculturalists Relief Act of 1879 (Bombay Agricultural
Debtors' Relief Act of 1939) to reduce farmer debt United Nations Convention to Combat Desertification (UNCCD) &
Ministry of Environment, Forest and Climate Change to deal with issue of Desertification, Land Degradation and Drought (DLDD) in arid, semi-arid and dry sub-humid areas of dry lands
INTRODUCTION CASE I CASE II CASE III CONCLUS
ION
CASE-2 Muzaffarnagar in UP is a major sugar and paper production centre
and is also Asia’s largest jaggery market
The climatic impacts on the sugar & paper mills in Muzaffarnagar was very severe
Changing weather patterns caused new diseases for crops that reduced the quality and quantity of agricultural produce
Muzaffarnagar paper mills used to rely on locally available bagasse, (sugar cane fibre) from the sugar mills for paper pulp and fuel
The changing rainfall patterns and temperature variation had forced them to shift the production cycle and work at a higher capacity
INTRODUCTION CASE I CASE II CASE III CONCLUS
ION
IMPACTS ON PAPER MILLS
Sugar mills received a capital subsidy of Rs. 20 lakh/ MW of power produced from biomass
The excess bagasse earlier sold to paper mills for the purpose of their own power generation
Papermills forced to look for alternate bagasse sources.
They shifted to bagasse form local jaggery making units
This jiggery bagasse is finer in size than that generated in sugar mills and resulted in better quality paper
INTRODUCTION CASE I CASE II CASE III CONCLUS
ION
Changes in the dynamics between sugar mill, paper mill and household jaggery unit due to regulatory driver
INTRODUCTION CASE I CASE II CASE III CONCLUS
ION
POSITIVE EFFECTS Prior to the usage of jaggery bagasse by paper mills, roughly 300
units producing jaggery Bagasse generated as by product was burnt as waste in the
agricultural fields After shift, a new market with potential of absorbing 5000 tons
bagasse/day resulted in livelihoods diversification for local farmers An optional business sector has additionally been made to transport
bagasse from jaggery units to paper plants Entrepreneurs consulted for this study attributed an increase in
prosperity into region to this development
INTRODUCTION CASE I CASE II CASE III CONCLUS
ION
CASE 3: TEXTILE INDUSTRY• Makes up 4% of India’s GDP• Exports totaled INR 48816 crore • 2nd Largest employer after
Agricultural Sector• Direct employment to 3.5 crore
people.
• Chemical intensive industry that causes large scale water pollution
• Water used for alkaline boiling of fibers, bleaching and dyeing
• Air pollution during drying of solvents• High energy requirements depending on
degree of mechanization• No specific environmental laws for textile
industries.
INTRODUCTION CASE I CASE II CASE III CONCLUS
ION
UNIVERSAL TEXTILES CASE Partially automated textile manufacturing company in Faridabad. Caters to European and Canadian markets Business problems due to climate change: a) Heat waves and increasing temperatures leading to increase air
conditioning costsb) Greater use of Diesel generator to meet the increased energy requirementsc) Extreme climatic conditions affecting raw material sourcing and shipmentd) Potential water scarcity in the future due to shifting rainfall patters as a result of climate change
Climate change leading to increased costs that are making business unviable
INTRODUCTION CASE I CASE II CASE III CONCLUS
ION
RECOMMENDATIONS Employ latest advanced technology machines to save energy Use solar panels to meet electricity demand during summer months Initial cost of a 2KVA cell= 3.2 lakhs. Savings= Rs 6.5/KWh.
Breakeven in 5-6 years Water purifier units and Water harvesting to reduce dependency on
local water bodies. Diversify supply chain to mitigate fluctuations in raw materials due
to extreme weather conditions Dispose of solid wastes responsibly in an ecofriendly manner
INTRODUCTION CASE I CASE II CASE III CONCLUS
ION
CONCLUSION Climate change has an indirect impact on production costs, quality and
availability of raw materials Cost of raw materials from agricultural sector rising Small & medium rain fed farms most vulnerable Competitive advantage and profit margins of businesses affected Imperative for Government to have a proper road map to deal with
climate change Consultation for communities, NGO’s and industry to be included in
forming new climate policies
INTRODUCTION CASE I CASE II CASE III CONCLUS
ION
REFRENCES http://www.ijesd.org/papers/249-CD0059.pdf
Krishna Kumar, K. “Impact of Climate Change on India’s MonsoonClimate and Development of High Resolution Climate ChangeScenarios for India”.
Dinar, A. R., Mendelsohn, R., Evenson, J. Parikh, A. Sanghi, K. Kumar,J. McKinsey and S. Lonergen , “Measuring the Impact of ClimateChange on Indian Agriculture”
http://www.smechamberofindia.com/about_msmes.aspx
http://www.climate-expert.in/index.php?option=com_content&view=article& id=78&Itemid=176
http://www.cuts-citee.org/SESTI/pdf/Report-Environmental_Standards_Trade-A_Study_of_Indian_Textiles_and_Clothing_Sector.pdf
http://nopr.niscair.res.in/bitstream/123456789/24908/1/IJFTR%2026(1-2)%2011-21.pdf International Journal of Environmental Science and Development, Vol. 3, No. 4, August
2012.
http://articles.economictimes.indiatimes.com/2012-12-14/news/35820184_ 1_solar-power-fsia-renewable-energy
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