India Initiated Its First Soil Carbon Payments to Farmers

India has taken a landmark step in linking sustainable farming with real income, as the country's agricultural carbon market moved from policy to practice. India initiated its first direct benefit transfer payments for soil carbon credits on 16-17 September 2026 to more than 2,500 smallholder farmers in Punjab and Haryana.

India's First Soil-Carbon Payments Reach 2,550 Farmers in Punjab, Haryana

The first-ever payments were rolled out at an event held at Punjab Agricultural University (PAU), Ludhiana. Dr M. L. Jat, Secretary, Department of Agricultural Research and Education (DARE) and Director General of ICAR, kicked off the Direct Benefit Transfer to 2,550 farmers across the two states, rewarding them for adopting regenerative farming methods.

Over ₹2.9 Crore to Be Disbursed to 2,550 Farmers

Together, these farmers will receive more than ₹2.9 crore, transferred digitally straight into their accounts. Individual payouts ranged between ₹3,000 and ₹15,000, based on how much carbon credit each farmer's field generated.

Payments Are Part of 'Aadi,' a Grow Indigo Farmer Carbon Program

These payments fall under 'Aadi', a carbon initiative launched in 2019 by Grow Indigo with technical support from ICAR. Between 2019 and 2022, participating farmers switched to practices like Direct Seeded Rice, reduced tillage, and proper crop-residue management, all of which helped cut emissions and boost soil carbon.

Programme Features and Coverage

Aadi now spans over two million acres and touches more than 100,000 farmers across seven states. The very first batch of credits, verified under the globally recognised Verra VM0042 methodology, covered nearly 30,000 acres and generated over 50,000 carbon credits. Farmers also had a choice: take an assured upfront amount or wait for 75% of the net revenue once credits sold.

Financial and Environmental Impact

Beyond the money, the environmental gains are just as notable. Enrolled fields are estimated to have saved around 45 billion litres of water and kept over two lakh tonnes of crop residue from being burned, cutting nearly 1,000 tonnes of harmful PM2.5 emissions. Punjab has also seen farm fires drop sharply, hitting a record low in 2025. This initiative shows how scientific innovation and farmer welfare can work hand in hand for a greener future.