India’s First Soil Carbon Payments Put Farmers at the Centre of Regenerative Agriculture

Key Highlights:

• India’s first soil carbon payments have been initiated for over 2,500 smallholder farmers in Punjab and Haryana.
• Farmers receive payments for adopting regenerative agriculture practices such as Direct Seeded Rice (DSR), reduced tillage, and crop residue management.
• The initiative is part of 'Aadi', a Grow Indigo farmer carbon programme, with technical guidance from ICAR.
• The first issuance covered 30,000 acres and over 50,000 carbon credits, with participating farmers receiving approximately ₹3,000–₹15,000.
• The program aims to reduce greenhouse gas emissions, increase soil carbon, conserve water, and reduce stubble burning.

Detailed Insights:

• The payments link sustainable agricultural practices with additional income for farmers, moving the carbon market from policy to the farm level.
• Practices adopted between 2019-2022 led to verified greenhouse-gas reductions and increased soil carbon, issuing carbon credits under Verra VM0042 methodology.
• The program currently covers over two million acres and 100,000 farmers across seven states, demonstrating significant scale.
• ICAR institutions provide scientific and field expertise, including greenhouse-gas accounting, crop-simulation modelling, and soil-sampling protocols.
• Environmental benefits include an estimated saving of 45 billion litres of water and avoiding 1,000 tonnes of PM2.5 emissions by preventing 2 lakh tonnes of crop residue burning (2019-2022).
• The initiative aligns with the Viksit Krishi Sankalp Abhiyan and ICAR's Lab-to-Land approach through Krishi Vigyan Kendras (KVKs).
• It also connects to international cooperation, with the BRICS Network of Centres of Excellence on Agroecology and Regenerative Agriculture established under India's chairship in 2026.

Key Concepts Involved:

• Regenerative Agriculture: Farming practices focused on soil health, biodiversity, and climate resilience, enhancing ecosystem services.
• Carbon Credits: Tradable permits allowing the holder to emit one tonne of carbon dioxide equivalent, generated by projects reducing emissions.
• Direct Seeded Rice (DSR): A method of rice cultivation where seeds are sown directly into the field, reducing water and labor requirements.