Despite numerous technological innovations, adoption of low-carbon rice cultivation practices remains dismal due to insufficient incentives and a failure to address “real-world problems”, according to industry experts.
At a panel discussion titled “Low-Carbon Rice: Decarbonisation Opportunities in Rice Cultivation,” stakeholders discussed strategies to drive adoption, including rethinking business models and improving farmer profitability.
The conversation underscored the urgency of reducing greenhouse gas (GHG) emissions in rice farming, which is a significant contributor to global methane emissions, particularly in Southeast Asia.
The session took place during the Asia-Pacific Agri-Food Innovation Summit held in Singapore from 19–21 Nov 2024.
Tech solutions not adopted
While technological advancements aimed at increasing yields and reducing emissions are available, their adoption by farmers has been limited. Dhruv Sawhney, CEO of Rize, highlighted the disconnect between solutions and their applications.
“We’ve been in such conferences for the last five to ten years, hearing about great technology solutions. But are we seeing adoption, impact, and results? The resounding answer is no,” he said.
Sawhney likened the current situation to purchasing a car without insurance, describing how farmers face high risks with little support.
“For a farmer taking inputs [like seeds or fertilisers] on credit, there’s a two-in-five chance of falling into debt due to climate impacts. But there are no structured insurance products that are easily accessible to them. We need to rewire how business is done in agriculture,” Sawhney said.
The panellists agreed that market-driven solutions must lead the change, where consumers recognise and pay premiums for low-carbon rice.
This added value would incentivise farmers to adopt sustainable practices, said Chitnucha Buddhaboon, deputy director general of Thailand’s Ministry of Agriculture and Cooperatives.
“Customers have to be willing to pay more for low-carbon rice. This added value can go back to the farmers, enabling them to improve yields while reducing emissions,” Buddhaboon said.
Buddhaboon emphasised the importance of distinguishing between mass-market and low-carbon rice, as this differentiation allows value to flow through the supply chain.
Collaborative efforts involving private companies and international organisations have begun integrating technological innovations to improve efficiency and reduce emissions. However, success ultimately depends on consumer willingness to pay a premium.
Incentives and seamless adoption
For farmers, yield improvement remains the top priority, according to Ezhil Subbian, founder and CEO of String Bio.
As farmers are already dealing with climate unpredictability and trying to ensure decent yields, adding the requirement of low-carbon farming creates additional complexity.
“Adoption rates are shaped by market dynamics and the straightforward value proposition of improving yields. However, when we introduce additional layers, such as low-carbon enablement, we’re asking too much of the farmers,” said Subbian.
That is why the technology must be easy for farmers to adopt.
For example, String Bio developed a microbial biological input applied to rice fields two to three times during each crop’s life cycle, which can both improve yield by 15–40% and offset methane emissions by up to 50%.
Additionally, there is a need to address financial barriers, which remain a major hurdle for smallholder farmers who often lack the means to invest in innovations, said Dirk Jan Kennes, head of Food & Agriculture Research Asia at Rabobank.
Financial support and standardisation
Kennes shared a case study of a project involving Rabo Bank, the International Finance Corporation (IFC), and Mars, where financial institutions absorbed first-loss risks, ensuring farmers could access credit and guaranteed market access.
“Implementation is the real challenge. We need to integrate fintech with agtech to include unbanked or underbanked smallholders in the broader food economy,” Kennes said.
Another pressing issue is the lack of a unified language for sustainable rice farming.
The ecosystem comprises various stakeholders – farmers, project developers, tech service providers, financial institutions, and offtakers. The key is aligning everyone around a unified language of sustainability.
“We’re all discussing the same broad themes – whether it’s AWD (Alternate Wetting and Drying), DSR (Direct Seeded Rice), yield improvements, or soil health – but we need more standardisation. Institutes like SRP (Sustainable Rice Platform) are working on creating a standardised label, which is a step in the right direction.
“A label like ‘sustainably grown rice’ could function similarly to energy efficiency labels for houses in Europe. This would provide a foundation for offtakers to compete and drive change in the market. It doesn’t need to focus on a green premium; it just needs to represent a better version of what’s already happening,” said Sawhney.
Collaboration and open data
Standardisation also extends to methodologies and data-sharing. Devdut Dalal, co-founder of Mitti Labs, called for open-source data initiatives to accelerate innovation.
“Many startups spend years building proprietary datasets, which limits progress. Open data can add layers of validation and make sustainable practices more accessible,” Dalal said.
Dalal also highlighted the potential of emerging technologies, such as satellites and drones, for real-time emissions tracking, while stressing the importance of localised solutions.
Sawhney provided an example that underscored the need for tailored solutions, which also ties into the necessity for behavioural change at the ground level: In Vietnam, synchronised planting helps minimise crop losses, whereas Indonesia’s flexible planting schedules exacerbate rat infestations.
“If a technology is presented to a farmer promising a 10% increase in yield, the farmer might respond, ‘I’m already losing 50% of my crop to rats – what can you do about that?’”
“To drive behaviour change, you really need boots on the ground. Agriculture won’t change on its own; you won’t move the needle without a holistic approach. We need to consider policy, business models, and implementation more comprehensively to reach the desired outcome,” said Sawhney.
Subbian agreed, saying that the path to low-carbon rice involves rethinking business models, creating standardised systems, and fostering collaboration among stakeholders. Subbian also added that “meaningful transformation must happen within the next decade – not over the next 20 years”.
Rice is a staple crop in Asia and a significant contributor to methane emissions. Therefore, addressing emissions from rice farming is critical, said Ling Min Hoon, investment director at GenZero and the session’s moderator,
“Hopefully, over time, it won’t be a trade-off between yields and emissions. Many of the innovations we’ve seen have demonstrated that it’s possible to reduce emissions while enhancing yields. The key is ensuring that the economics flow back to farmers in a meaningful way, providing them with a natural incentive to adopt more sustainable farming practices,” Ling said.
