By BasisPoint Insight
June 30, 2025 at 9:15 AM IST
ITC Ltd. is intensifying efforts to build climate-resilient agricultural systems using digital technologies to strengthen backend sourcing for both its cigarette and non-cigarette consumer goods businesses. This strategy will also support the expansion of its value-added exports, thereby enhancing foreign exchange earnings.
According to its annual report for 2024-25, ITC is executing its 'Climate Smart Agriculture' programme to mitigate risks for farmers from unpredictable weather. The initiative focuses on location-specific practices, mechanisation and institutional services. In 2024-25, ITC mapped climate hotspots and introduced region-specific seed varieties across major sourcing states. The aim is to enhance crop intelligence, reduce emissions and improve soil health.
ITC works directly with more than 2.1 million farmers and over 2,050 farmer producer organisations across 18,000 villages in 11 states through its MAARS (Metamarket for Advanced Agriculture and Rural Services) platform. While it doesn't operate plantations, the company enables farmers with advanced agri-tech tools and sustainable practices to improve yields and procurement efficiency. The MAARS network is now set for expansion.
The company’s agri-business division played a key role in navigating global trade shifts during 2025-26 and ensured business continuity despite demand pressures. With farm linkages, traceable sourcing and an agile supply chain, ITC achieved strong growth across its diversified agri-portfolio.
ITC’s foreign exchange earnings over the past decade stood at nearly $9.5 billion, with agri-exports contributing 60%. In 2024-25, the company earned ₹104.5 billion from exports, mainly from agricultural commodities. Its operations span over 3.5 million tonnes in throughput across 22 states and 20-plus value chains, including spices, coffee, frozen marine products and processed fruits.
ITC’s agri-business also expanded its value-added range, especially in organic, steam-sterilised and powdered products. These capabilities will increasingly support its FMCG portfolio, providing a competitive edge through traceable and sustainable sourcing.