Rinu Jose
Abstract
Climate change embodies a profound and intensifying threat to the global agricultural sector, directly challenging its economic viability and stability. The agricultural sector is facing multifaceted vulnerabilities with subsequent effects on the bottom line for producers, markets and national economies due to changing climate. The paper is an attempt to explore the economic costs of climate change-induced vulnerabilities within the global agricultural sector. The findings reveal that the economic impacts are not merely future risks but are already being felt through increased production costs, price volatility and compromised farm incomes. The economic vulnerability is shown to be highly heterogeneous, disproportionately affecting smallholder farmers and developing economies with limited adaptive capacity, thereby exacerbating existing inequalities. Key economic channels of impact include direct revenue losses from crop failure and livestock mortality, rising expenses for irrigation and pest control and destabilizing effects on regional and global food trade networks. However, the window for cost-effective adaptation is narrowing, underscoring the urgency of integrated climate-agriculture policy. To conclude, the economic vulnerability of the agricultural system is a critical amplifier of broader climate risk, with the potential to undermine food security, hinder economic development and provoke social instability. Safeguarding the global food supply and the economic welfare of those who depend on agriculture requires immediate and targeted interventions that bridge climate action and economic policy, ensuring the sectorâs resilience and protecting the livelihood.