Archive · 6 Aug 2026
Tamil Nadu Budget Launches Carbon Trading for Farmers, Soil Mission
The government of Tamil Nadu, a state in India, announced a new agriculture budget to help farmers.
The budget has special plans to deal with climate change and bad weather.
One plan is called carbon trading, where farmers can earn extra money by growing crops in ways that keep harmful gases out of the air.
These methods, like Direct Seeded Rice and Alternate Wetting and Drying, can cut greenhouse gas emissions by about half.
The government also started the Tamil Nadu Soil Fertility Mission, a five-year plan costing around Rs 600 crore.
This mission will make soil healthier, fix salty soils, and reduce the use of chemical fertilisers.
Farmers who grow food organically can get Rs 4,000 per acre, and some organic certification fees will be waived.
A new agroforestry plan will plant trees like teak and sandalwood on 12,500 acres of unused farmland.
The government is worried about a strong weather pattern called Super El Nino, and 12 districts may face severe effects this year.
Tamil Nadu Minister for Agriculture and Farmers Welfare R Vinoth presented the Agriculture budget 2026-27 on Thursday, rolling out climate-resilient initiatives.
The budget allocated Rs 60 lakh for carbon trading demonstration projects across 2,000 acres and for developing monitoring and verification protocols.
Farmers can earn supplementary income through carbon credits by adopting emission-reducing practices such as Direct Seeded Rice (DSR) and Alternate Wetting and Drying (AWD), estimated to cut greenhouse gas emissions by about 50 per cent.
The 'Tamil Nadu Soil Fertility Mission', a five-year plan with an estimated outlay of Rs 600 crore, was unveiled, with Rs 122.51 crore sanctioned for 2026-27 across 10 components.
An Agroforestry scheme with a Rs 17.70 crore outlay aims to restore 12,500 acres of cultivable fallow land by planting high-value timber species at 200 saplings per acre.
Citing the anticipated 'Super El Nino', the government said 12 districts in Tamil Nadu are predicted to face severe climatic effects during the Kuruvai season.
- Who
- Tamil Nadu Minister for Agriculture and Farmers Welfare R Vinoth, on behalf of the Tamil Nadu government.
- What
- The Agriculture budget 2026-27 was presented, launching a carbon trading scheme for farmers, the Tamil Nadu Soil Fertility Mission, and an Agroforestry scheme.
- When
- Thursday, for the financial year 2026-27.
- Where
- Tamil Nadu, India; the budget was announced in Chennai.
- Why
- To address severe climate uncertainties, including the anticipated Super El Nino phenomenon, and to promote climate-resilient and sustainable farming.
- Budget
- Agriculture budget 2026-27
- Carbon trading demonstration outlay
- Rs 60 lakh across 2,000 acres
- Estimated emission reduction
- Approximately 50 per cent via DSR and AWD practices
- Soil Fertility Mission total outlay
- Rs 600 crore (five-year plan)
- Soil Fertility Mission 2026-27 allocation
- Rs 122.51 crore across 10 components
- Organic farming incentive
- Rs 4,000 per acre across 20,000 acres (Rs 8 crore)
- Agroforestry scheme
- Rs 17.70 crore; 12,500 acres; 200 saplings per acre
- Districts at risk from Super El Nino
- 12 districts during the Kuruvai season