Environment

Agricultural Carbon Market and Soil Carbon Credits

GS3 Agriculture and environmentPrelims and Mains

In the news since 17 September 2026

Why in news
On 17 September 2026, ICAR's Director General initiated the first DBT soil carbon payments, over ₹2.9 crore to 2,550 farmers in Punjab and Haryana, at PAU Ludhiana.
What it is
Aadi is a farmer carbon programme run by Grow Indigo, a private firm, since 2019 with ICAR technical guidance. Farmers adopt regenerative practices such as direct seeded rice, reduced tillage and residue management. The resulting emission cuts and soil carbon gains are measured, independently verified, and issued as credits under the Verra VM0042 methodology.
Programme
Aadi is a Grow Indigo farmer carbon programme launched in 2019 with ICAR technical guidance.
Methodology
Credits are issued under Verra's VM0042 methodology, and the programme spans seven states.
Practices
Farmers adopted DSR, reduced tillage and crop residue management during 2019-2022.
Payment options
Farmers could choose an assured upfront payment or 75 per cent of net carbon revenue after sale.
First issuance
The first issuance covered about 30,000 acres and over 50,000 credits, with farmers getting roughly ₹3,000-₹15,000.
Farm fires
Punjab recorded 5,114 farm-fire incidents in the 2025 paddy season, 93 per cent fewer than in 2021.

Don’t confuse with Voluntary vs compliance carbon market: Verra credits sold by private firms belong to the voluntary market. India's Carbon Credit Trading Scheme under the Energy Conservation Act is the compliance market.

Don’t confuse with DSR vs transplanting: Direct seeded rice sows seed directly and can cut irrigation needs. Conventional transplanting moves seedlings into puddled fields.

Environment: Prelims tests bodies, programmes and the law behind them; Mains asks why plans fall short.

Test yourself

Worth revising until Prelims 2028: most news questions come within two years of the event.

Each time it was in the news

  1. 17 September 2026

    On 17 September 2026, ICAR's Director General initiated the first DBT soil carbon payments, over ₹2.9 crore to 2,550 farmers in Punjab and Haryana, at PAU Ludhiana.