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India’s First Soil Carbon Payments to Farmers

Why in the News?

More than 2,500 farmers in Punjab and Haryana are set to receive over ₹2.9 crore through digital payments for adopting regenerative agriculture practices. The initiative marks a link between measured soil-carbon gains, carbon credits and additional farmer income.

Key Highlights

  • 2,550 farmers from Punjab and Haryana received Direct Benefit Transfer (DBT).
  • Programme: ‘Aadi’, a Grow Indigo farmer carbon programme launched in 2019 with technical guidance from ICAR.
  • Practices adopted during 2019-2022:
    • Direct Seeded Rice (DSR)
    • Reduced/minimum tillage
    • Crop-residue management
  • Resulting greenhouse-gas reductions and soil-carbon increases were measured and independently verified.
  • Carbon credits were issued under Verra VM0042 methodology.
  • Programme covers:
    • 2 million+ acres
    • 1 lakh+ farmers
    • 7 states

How Does Soil Carbon Payment Work?

Sustainable farming practice → Measurement of GHG reduction/soil carbon → Independent verification → Carbon credits → Sale/issuance → Farmer payment

  • Farmers are paid according to their share of carbon credits generated from their fields.
  • First issuance covered around 30,000 acres and 50,000+ carbon credits.
  • Participating farmers received approximately ₹3,000-₹15,000.
  • Grow Indigo made payments from its own funds before the credits were fully sold.
  • Farmers could choose:
    • Assured upfront payment, or
    • 75% of net carbon revenue after credit sale.

Environmental Benefits

For enrolled fields during 2019-2022, the programme estimates:

  • 45 billion litres of water saved
  • More than 2 lakh tonnes of crop residue kept out of fires
  • Around 1,000 tonnes of PM2.5 emissions avoided

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