Archive · 17 Sep 2026
Indian Farmers Receive First Carbon Credit Payments for Sustainable Practices
Some farmers in Punjab and Haryana received money for farming in ways that help the environment.
This is the first time Indian farmers have received these kinds of payments.
They earned carbon credits by reducing pollution and keeping more carbon in the soil.
Examples include not burning leftover rice plants, using less water and testing soil.
About 2,500 farmers received a total of around Rs 2.50 crore.
The payments were based on verified improvements, not simply on how much land a farmer owned.
Grow Indigo and agricultural scientists checked the practices using field evidence and technology.
Officials hope the payments will encourage more farmers to use climate-friendly methods.
Around 2,500 farmers in Punjab and Haryana received about Rs 2.50 crore in carbon credit payments.
The farmers generated more than 50,000 verified carbon credits through improved agricultural practices.
Payments ranged from about Rs 3,000 to Rs 15,000, although some examples cited payments of Rs 19,000.
Practices included direct-seeded rice, reduced tillage, residue management, soil testing and efficient fertiliser use.
Grow Indigo launched the programme in 2019 with technical guidance from the Indian Council of Agricultural Research.
- Who
- Around 2,500 farmers from Punjab and Haryana, with support from Grow Indigo and the Indian Council of Agricultural Research.
- What
- Farmers received their first carbon credit payments for adopting practices that reduce emissions and conserve soil and water.
- When
- The first payout round was reported in 2025; the programme began in 2019.
- Where
- The beneficiaries were mainly from Punjab and Haryana, and a farmer felicitation event was held in Ludhiana.
- Why
- The payments provide an economic incentive for farming practices that reduce greenhouse-gas emissions and increase or retain carbon in soil.
- Beneficiaries
- Around 2,500 farmers: about 1,400 from Punjab and the remainder from Haryana.
- Total payout
- Approximately Rs 2.50 crore.
- Carbon credits
- More than 50,000 verified credits were generated.
- Payment basis
- Payments were linked to verified carbon credits attributed to farmers, not acreage.
- Qualifying practices
- Direct-seeded rice, reduced or zero tillage, residue management and more efficient fertiliser use.
- Monitoring
- Satellite and remote-sensing systems, geo-fencing and soil sampling are used for verification.
- Programme origin
- Grow Indigo initiated the programme in 2019 with technical guidance from the Indian Council of Agricultural Research.