Punjab, Haryana Rice Farmers Set To Earn Carbon Credits For Sustainable Practices

Chandigarh, Jan 20 (KNN) In a first-of-its-kind initiative, smallholder rice farmers in Punjab and Haryana will begin earning carbon credits by the end of the current fiscal year for adopting environmentally sustainable farming practices.

Pilot Programme and Scale

The initial phase covers about 30,000 acres across the two states and is expected to generate over 50,000 carbon credits. Practices such as direct-seeded rice and low or no tillage are being promoted, with plans to expand the programme to other crops and regions, according to The Financial Express.

Launched in 2022 by Grow Indigo, a joint venture between Mahyco and US-based Indigo, the programme will see 75 per cent of carbon credit revenues returned directly to farmers, while Grow Indigo aggregates and sells the credits.

Standards and Farmer Benefits

The initiative has been audited under the Verra protocol, a globally recognised voluntary carbon market standard. 

Grow Indigo aims to scale up to one million carbon credits annually by 2027. Farmers can earn roughly one carbon credit per acre per year, with credits currently valued between USD 10 and USD 40.

Wider Adoption and Sustainability Impact

Over 100,000 farmers across one million acres in Punjab and Haryana are already participating in sustainable practices under the programme. Future plans include encouraging a shift from water-intensive rice to maize to conserve water.

Participating farmers adopt methods such as direct seeding, no-tillage, and retention of paddy straw, which improve water efficiency, enhance soil health, and reduce emissions.

Link to Carbon Markets

Industries such as aviation, mining and fertilisers can purchase these credits to offset emissions. The Ministry of Agriculture has also issued a framework for voluntary carbon markets to support such initiatives.

With India producing about 150 million tonnes of rice in 2024–25, the initiative is seen as a step toward aligning agricultural sustainability with global carbon markets while boosting farmer incomes.

(KNN Bureau)