ITC's Annual Report 2025-26 highlights the company's work in digital farming, water conservation and sustainable forestry. According to the report, these initiatives use technology and better resource management to help farmers improve productivity, conserve water, strengthen agricultural supply chains and support climate-resilient farming.

ITCMAARS Expands Digital Agriculture Network

According to the report, the digital agriculture offering by ITC called ITCMAARS now serves more than 2.6 million farmers through 2,100 Farmer Producer Organizations (FPOs) operating across 11 states. The digital agricultural system leverages the use of technology with physical presence on the ground in order to offer advice based on artificial intelligence and machine learning, satellite insights, Krishi Mitra voice assistance using GenAI, precision farming via drones, biological inputs, quality assurance, market connection and rural services. The super app is available in eight regional languages.

It is also noted that ITCMAARS is contributing to the establishment of traceable value chains of agriculture that will conform to the needs of the evolving global standards. The platform is working on digital solutions for compliance with the European Union Deforestation Regulation (EUDR) and also organic agriculture as well as food safe and residue free agriculture.

In ITC’s Agri Business unit, roughly four million tons of agricultural produce are managed each year in 22 states and over 20 agricultural value chains. According to the report, AI and machine learning technologies have been applied in efforts to enhance sourcing decisions, improve the effectiveness of the supply chain management process and cope with changing agricultural scenarios. As a result of direct sourcing from ITCMAARS, 40% of wheat is sourced for Aashirvaad Atta and Agri Business operations.

Operation Dronagiri Improves Farmer Returns

The report also features Operation Dronagiri, which is a joint effort by ITC and the Department of Science and Technology, Government of India, in Varanasi. By means of ITCMAARS, hyperlocal crop advisory based on AI and machine learning technology was provided to more than 27,000 wheat farmers over an area of almost 39,000 acres through 15 Farmer Producer Organisations.

Independent assessments cited in the report found that farmers who adopted the customised advisory recorded around 15% higher crop yields and nearly 30% higher net returns. The findings suggest that data-driven and location-specific advisory services can improve farm productivity while increasing farmers' incomes.

Water Conservation Efforts Exceed 2030 Target

Water stewardship remains another major focus area. According to the report, ITC has already achieved its 2030 Sustainability 2.0 target of creating rainwater harvesting potential equivalent to more than five times its net water consumption. As of 31 March 2026, the company had cumulatively harvested over 67 million kilolitres of rainwater, while integrated watershed projects covering 1.98 million acres have created rainwater harvesting potential of about 66.31 million kilolitres. These programmes currently cover 72 districts across 17 states.

Additionally, the report mentions the “More Crop Per Drop” program that was initiated by the company. In this program, water-efficient cultivation methodologies like micro-irrigation systems and crop-specific agronomy techniques have been adopted in over 2.01 million hectares of land across 12 states. It is estimated that these programs have resulted in savings of over 1,520 million kiloliters of water for 15 different crops, and the saving ratio stands at around 15 percent to 50 percent of the water utilized in traditional farming.

In the cities, the firm has initiated the water security initiatives of Bengaluru and Chennai which are aimed at rejuvenation of waterbodies, enhancing groundwater recharging capacity and encouraging rainwater harvesting as measures of increasing resilience to water shortages and floods. It is further stated in the report that water positive status has been attained by the company in four river sub-basins located in Maharashtra, Madhya Pradesh, Tamil Nadu and Telangana. Further, restoration efforts have been made in the South Pennar River basin of Karnataka in collaboration with Karnataka government, IISc and Vyakti Vikas Kendra.
As of March 2026, nine ITC units had received Alliance for Water Stewardship (AWS) Platinum certification, making the company the second-largest holder of AWS Platinum certifications globally, according to the report.

Sustainable Forestry Supports Paper Business

The Annual Report also highlights the company's continued investment in sustainable forestry to support its Paperboards and Specialty Papers business. The business model focuses on renewable fibre sourcing, development of high-yielding and disease-resistant clonal saplings, efficient manufacturing supported by in-house pulp capability, imported pulp substitution, product innovation, digital technologies and energy-efficient operations. The report also notes that the business benefits from strong linkages with ITC's Education & Stationery Products and Packaging & Printing businesses.

According to the report, India's per capita paper consumption is approximately 16 kg per year, significantly lower than the global average of 57 kg, indicating substantial long-term growth potential for the sector.

Focus on Climate-Resilient Agriculture

The Annual Report presents these initiatives as part of ITC’s efforts to make agriculture climate-resilient, improve water security, increase agricultural productivity and build more sustainable supply chains. By using digital technology, artificial intelligence, water conservation, and sustainable forestry, the company aims to improve resource efficiency while supporting farmers and promoting long-term agricultural resilience.