Nexus Between Greenhouse Gas Emission in Agriculture and its Economic Impact

Trade plays a significant role in India’s economy, with agricultural trade contributing about 7.6 per cent of total tradable commodities (FAO, 2022). Trade-adjusted carbon emission considers not only the emissions generated domestically but also those associated with imports (adding) and exports (subtracting). High agricultural exports from developing nations can lead to increased domestic emissions without reflecting the consumption-based emissions of importing nations. Addressing this imbalance requires integrating carbon footprint assessments into trade policies and promoting sustainable practices in global supply chains to ensure equitable emission reductions. While much research focuses on greenhouse gas (GHG) emissions from the secondary sector, the primary sector receives less attention. This study analyses trade-adjusted emissions from 2001 to 2022 using secondary data from various sources like FAO, IPCC, etc. Basmati shows negative trade-adjusted emissions in years like -0.6020 (2011) and -0.5322 (2005), indicating net import years, while wheat maintains low values ranging from 0.0001 (2010) to 0.0802 (2008) but remains a net exporter. The results reveal that India is a net exporter of emissions in several commodities but may become a net importer in some sectors, underscoring the need for sustainable agricultural practices to meet SDG 13.