India’s First Soil Carbon Payments to Farmers Under Aadi Programme
Why in News?
India has initiated its first farm-level soil carbon payments, with ₹2.9 crore being disbursed to 2,550 smallholder farmers in Punjab and Haryana. The Direct Benefit Transfer (DBT) was initiated at Punjab Agricultural University (PAU), Ludhiana, on 16 September 2026. The payments are linked to verified carbon credits generated through regenerative farming practices under the Aadi farmer carbon programme of Grow Indigo, launched in 2019 with technical guidance from the Indian Council of Agricultural Research (ICAR).
What are Soil Carbon Credits?
Soil carbon credits are carbon-market units generated when agricultural practices reduce greenhouse-gas emissions or increase the amount of carbon stored as soil organic carbon (SOC). Under the Aadi programme, participating farmers adopted practices such as:
- Direct Seeded Rice (DSR)
- Reduced tillage
- Crop-residue management
- Improved water-management practices
The resulting greenhouse-gas reductions and soil-carbon changes were measured and independently verified before carbon credits were issued.
Aadi Farmer Carbon Programme
The Aadi programme was launched by Grow Indigo in 2019 with technical guidance from ICAR. It currently covers more than 2 million acres and over 100,000 farmers across seven states. The programme has issued agricultural carbon credits using Verra’s VM0042 Improved Agricultural Land Management methodology. VM0042 quantifies greenhouse-gas emission reductions and soil organic carbon removals resulting from improved agricultural land management. The first issuance covered approximately 30,000 acres and more than 50,000 carbon credits. Participating farmers received approximately ₹3,000 to ₹15,000, depending on their share of the credits generated from their fields.
Regenerative Agriculture and Environmental Benefits
The programme connects climate-smart farming with additional farmer income. Between 2019 and 2022, enrolled fields are estimated to have:
- Saved 45 billion litres of water.
- Kept more than 2 lakh tonnes of crop residue out of fires.
- Avoided an estimated 1,000 tonnes of PM2.5 emissions.
Direct Seeded Rice can reduce irrigation requirements compared with conventional transplanted rice. Improved residue management can also reduce stubble burning and associated air pollution. The initiative therefore links soil health, water conservation, climate mitigation and farmer income.
Importance for India’s Carbon Market
The soil-carbon payments demonstrate how agricultural carbon credits can create an additional income stream for farmers. The process involves multiple stages, including:
Adoption of improved practices → Measurement → Verification → Carbon-credit issuance → Farmer payment
Farmers who joined the programme after 2022 are part of subsequent monitoring cycles and will receive payments as their verified credits are issued.
Soil Carbon Payments India: Important Facts for Exams
| Feature | Details |
|---|---|
| Programme | Aadi Farmer Carbon Programme |
| Implementing organisation | Grow Indigo |
| Technical guidance | ICAR |
| First payments | September 2026 |
| Farmers receiving payments | 2,550 |
| States | Punjab and Haryana |
| Total payment | Over ₹2.9 crore |
| Individual payment | Approximately ₹3,000–₹15,000 |
| First issuance | 30,000 acres, 50,000+ credits |
| Key practices | DSR, reduced tillage, residue management |
| Carbon methodology | Verra VM0042 |
| Wider programme coverage | 2 million+ acres, 100,000+ farmers |
| States covered by wider programme | Seven |
- Soil Organic Carbon (SOC) refers to carbon stored in soil in organic forms.
- Direct Seeded Rice (DSR) involves sowing rice directly in the field instead of transplanting nursery-raised seedlings.
- Reduced tillage limits soil disturbance during agricultural operations.
- Regenerative agriculture focuses on improving soil health, resource efficiency and ecosystem functions.
- VM0042 is Verra’s methodology for Improved Agricultural Land Management and covers greenhouse-gas reductions and soil organic carbon removals.
- ICAR functions under the Department of Agricultural Research and Education (DARE), Ministry of Agriculture and Farmers’ Welfare.
- Carbon credits require appropriate measurement, reporting and verification before issuance.
- The Aadi programme demonstrates the potential connection between carbon markets and farmer income.
