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Pernod Ricard helps farmers raise yield by 10%, cut input costs 15% via regenerative, sustainable agriculture

Posted on May 26, 2025

Pernod Ricard India, a fast-growing alcohol-beverage firm in the country,  has helped its group of targeted farmers increase agricultural yield by 10-20 per cent and lower their input costs by 15-22 per cent. This has come through regenerative and sustainable agriculture practices, through its corporate social responsibility (CSR) initiative.

According to Gagandeep Sethi, Senior Vice-President Integrated Operations, Sustainability & Responsibility, Pernod Ricard India, the country’s agricultural transformation is a critical pillar of Pernod Ricard India’s CSR strategy. “Pernod Ricard India (PRI) actively supports farmers across India focusing on long-term agriculture sustainability through regenerative practices,” he told businessline in an e-mail interaction.

Targeted training

PRI works with non-governmental organisation (NGO) partners, who help farmers integrate climate-resilient practices and create robust value-chains. “Our farmer support model transcends short-term interventions and focuses on embedding resilience into the local agricultural ecosystem. We offer training programmes that provide expert guidance to farmers, helping them navigate challenges from pre-production to post-harvest,” he said.

PRI’s  programme takes a regional approach to build an agricultural supply chain that is economically viable and environmentally sustainable. This includes targeted training for farmers and linking them to Community Resource Centres or “Kisan Sansadhan Kendras” to help them access agricultural inputs, seeds and farm equipment.  

“By focusing on sustainable and regenerative practices, PRI not only supports farmers but also strengthens the agricultural supply chain. Over time, this approach reduces dependency on external inputs like chemical fertilizers and pesticides, improving both environmental and economic resilience,” said Sethi.

Improving water efficiency

The company’s CSR activities focuses on region-specific interventions, ensuring that each initiative addresses the unique water challenges of different areas. “In water-scarce regions, PRI has implemented projects that help replenish and improve local water availability and quality. In other regions, the focus has been on improving water efficiency at production sites and reducing wastewater impact,” the PRI official said.

The firm collaborates with local partners, experts in watershed management, rainwater harvesting, and sustainable agricultural practices that conserve water resources. “Since 2019, PRI has constructed 2,355 water storage and recharge structures, generating a groundwater recharge potential of 4,484 million litres (which needs 1,794 swimming pools to hold). The company follows an innovative 4R approach—Reduce, Reuse, Recycle, and Recharge—replenishing 2.6 times more groundwater than it withdraws, across diverse ecological contexts,” he said.

On the impact of its initiatives, Sethi said farmers in regions such as Nashik (Maharashtra), Behror (Rajasthan), and Dera Bassi (Punjab) have diversified their crop portfolio, improved soil health and increase their cropping cycles. It has resulted in fertilizer use declining by 10-30 per cent and resulting in an increased in yield. 

Diversifying income

“Our efforts have also enabled farmers to diversify their income through agroforestry and value-added products, while mechanised tools provided via ‘Kisan Sansadhan Kendras’ help improve efficiency. The formation of 72 Women Farmer Interest Groups has further enhanced productivity and empowered rural communities,” said Sethi.

In regions where farmers are more mature, they have diversified to even value-added products and services.

On the operations side, the integration of IoT and AI-driven analytics for real-time resource monitoring has led to smarter production planning, improved efficiency, and reduced operational costs — benefiting farmers and the company’s own manufacturing process, he said.

Stating that Farmer Producer Organisations (FPOs) are critical to democratising access to agri-economics for smallholders, the PRI official said the company has incubated 8 FPOs across 5 states, focusing on backward linkages (like seed and fertilizer access) and forward linkages (processing and marketing). “We’ve built Farmer Resource Centres that serve as last-mile knowledge and input hubs,” he said.

Hubs’ offerings

These hubs offer essential training on sustainable and climate-resilient farming practices, market information, and weather updates. Local agro-dealers and extension workers often run demonstration farms  at these hubs and act as trusted advisors, encouraging farmers to adopt improved technologies and practices.

“What differentiates our model is the focus on women-led FPOs and enterprise governance training. We see FPOs not just as an economic set-up but as platforms for leadership and dignity in rural communities,” said Sethi..

PRI’s has women empowerment “multiplier” strategy. Till now, it has empowered 31,546 women by facilitating access to essential skills and resources necessary for their success.  

Aiding women initiatives

“A cornerstone of our approach is fostering innovative microenterprises by partnering with 56 Women Producer Groups. We prioritise their active participation in local governance and decision-making platforms, ensuring gender-balanced representation-achieving 50 per cent female membership on Water User Committees and Farmer Producer Organisation boards alike,” he said.

In Nashik, PRI has supported women-led initiatives such as tomato polytunnels and flour mills, while in Kanpur, traditional artisanal skills have been transformed into viable, sustainable enterprises.  

The company’s sustainability efforts also extend to local sourcing and logistics optimisation, including the use of CNG transportation and packaging redesigns to reduce environmental footprints. “In terms of CSR, PRI maintains strong partnerships with mission-based NGOs, government agencies, and industry peers, forming an ecosystem for sustainable development,” he said.

Published on May 26, 2025

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