Indian farmers earn payments for Climate-friendly practices
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Around 2,500 farmers in Punjab and Haryana, India, recently received payments for adopting agricultural practices that reduce carbon emissions.
The payments, totaling approximately Rs 2.5 crore, are based on verified carbon credits and not on the size of their landholdings. Farmers earned between Rs 3,000 and Rs 15,000 for practices like avoiding the burning of crop residue, using direct seeded rice to conserve water, and managing crop residue instead of burning it.
Grow Indigo initiated the program in 2019 with technical support from the Indian Council of Agricultural Research (ICAR). ICAR scientists are helping farmers implement these practices and documenting their progress using technologies like satellite monitoring and soil sampling. The program aims to reward farmers for climate-smart farming techniques that also improve soil health and water conservation.
The initiative builds on existing efforts in Punjab to reduce farm fires, incidents have fallen from over 83,000 in 2020 to fewer than 5,000 in 2025, and a separate carbon credit scheme for agroforestry. Grow Indigo intends for the payments to continue as long as farmers maintain these beneficial practices, creating a sustainable economic incentive for environmentally friendly agriculture.
