Soil Carbon Payments Reach Indian Farmers
Soil Carbon Payments have brought India’s agricultural carbon market directly to farmers. More than 2,500 farmers in Punjab and Haryana are set to receive over ₹2.9 crore through digital transfers. The first payments were released at Punjab Agricultural University in Ludhiana.
Soil Carbon Payments and Regenerative Farming
Dr M. L. Jat, Secretary, DARE and Director General, ICAR, initiated DBT payments to 2,550 farmers. The payments followed verified improvements in soil carbon and reductions in greenhouse-gas emissions.
The initiative comes under Aadi, a Grow Indigo farmer carbon programme launched in 2019 with ICAR’s technical guidance. Between 2019 and 2022, participating farmers adopted Direct Seeded Rice (DSR), reduced tillage and crop-residue management.
The programme covers more than two million acres and over 100,000 farmers across seven states. It has issued agricultural carbon credits under the Verra VM0042 methodology.
Environmental Benefits
For enrolled fields, the programme estimates savings of 45 billion litres of water. More than two lakh tonnes of crop residue were kept out of fires. This avoided an estimated 1,000 tonnes of PM2.5 emissions.
Grow Indigo released payments from its own funds before the credits were fully sold. Farmers could choose an assured upfront payment or 75% of net carbon revenue after credit sales. The first issuance covered around 30,000 acres and more than 50,000 carbon credits. Participating farmers received approximately ₹3,000–₹15,000.
Farmers joining after 2022 will receive payments during the next monitoring cycle.
The initiative also supports India’s broader regenerative-agriculture efforts. ICAR institutions, agricultural universities, KVKs and State institutions contribute scientific and field-level expertise.
In addition, the BRICS Agriculture Ministers’ Meeting in June 2026 agreed to establish a network of centres focused on agroecology and regenerative agriculture. The initiative connects scientific research, environmental outcomes and farmer income through sustainable agricultural practices.
