A science-backed, climate-smart farming programme delivered the first carbon credit payments to smallholder farmers in Punjab and Haryana, at an event at Punjab Agricultural University, Ludhiana, with Dr M L Jat, Director General, ICAR, as Chief Guest.

Ludhiana, 15 September 2026:  In a first for Indian agriculture, smallholder farmers in Punjab and Haryana have received the first carbon credit payments for climate-friendly practices adopted on their own fields. The payments were released digitally at an event held at Punjab Agricultural University (PAU), Ludhiana, on 14 September 2026, with Dr M L Jat, Director General, Indian Council of Agricultural Research (ICAR), as the Chief Guest.

The dais was graced by Dr M L Jat, Director General, ICAR (Chief Guest); Dr Rajbir Singh, Deputy Director General (Agricultural Extension), ICAR; Dr Ajmer Dhatt, Director of Research, Punjab Agricultural University; Dr V K Sehgal, Principal Scientist, ICAR-Indian Agricultural Research Institute; and Dr Usha Barwale Zehr, Executive Director, Grow Indigo.

The payments are part of Aadi, a farmer carbon programme run by Grow Indigo. Between 2019 and 2022, the farmers adopted climate-smart practices such as direct-seeded rice, reduced tillage and crop-residue management. These practices lower greenhouse-gas emissions and help store carbon in the soil. The resulting climate impact, independently measured and verified, were issued as carbon credits. Aadi is India’s first issuance of carbon credits for agriculture under the Verra VM0042 methodology.

The programme rests on a strong scientific foundation, with support from ICAR institutions. Scientists at the ICAR-Indian Agricultural Research Institute (IARI), New Delhi, guided the greenhouse-gas accounting through crop-simulation models, and helped establish the protocols for soil sampling, device validation and the scientific training of field teams. IARI scientists also supported the satellite and remote-sensing methods used to monitor practices across thousands of fields. Grow Indigo works with the ICAR-Agricultural Technology Application Research Institute (ATARI), Zone 1, under a memorandum of understanding to promote regenerative agriculture.

Every eligible farmer was paid on the same fair basis, with each farmer’s payment reflecting their share of the credits their fields helped generate. Payments were made digitally from Grow Indigo’s own funds, ahead of the complete sale of the credits, so that farmers did not have to wait. Each farmer was offered a choice: to accept an assured payment now, or to wait and receive 75% of the net carbon revenue when the credits are sold.

The first payments, in numbers

Beyond additional income, the practices deliver significant co-benefits. Direct-seeded rice, in place of transplanting, saves large volumes of irrigation water, and reduced burning of crop residue (parali) improves air quality. Across the enrolled fields over the 2019 to 2022 period, this adds up to an estimated 45 billion litres of water saved, more than two lakh tonnes of crop residue kept out of the fire, and around 1,000 tonnes of PM2.5 emissions avoided, with clear benefits for public health, and especially for women and children in farming households.

The payment marks the culmination of a rigorous, multi-year process of measurement and independent verification. Farmers who joined after 2022 are in the next monitoring period and will be paid as their credits are issued. The programme offers a replicable model for climate-smart agriculture that raises farmer incomes while advancing national goals on water conservation, cleaner air and climate action.

Remarks

Dr M. L. Jat, Secretary, DARE and Director General, ICAR, said: “That the initiative demonstrates how climate-smart farming practices, backed by scientific assessment and rigorous verification, can create additional income opportunities for smallholder farmers while contributing to water conservation and improved air quality. He congratulated the participating farmers and acknowledged the contribution of ICAR institutions to the scientific framework supporting the initiative.”

Dr Usha Barwale Zehr, Executive Director, Grow Indigo, said: “For the first time in India, a farmer is being paid for the carbon their soil holds. This is a proud moment for Indian agriculture, and above all, a moment of gratitude to the farmers who trusted us and waited patiently through years of rigorous science and verification.”

Harinderjeet Gill, a farmer from Nurpur Bet, Ludhiana, said: “We took a leap of faith to join Grow Indigo’s carbon programme five years ago, and today it has borne fruit with the payment reaching us. It gives us the confidence to keep going.”

Amandeep Kaur, a farmer from Sangrur, said: “Avoiding crop-residue burning improves soil health and also benefits people and the environment. We are honoured to be rewarded for doing the right thing, through carbon credits.”

About the programme

Aadi is Grow Indigo’s flagship farmer carbon programme in Punjab and Haryana. It is part of Grow Indigo’s carbon farming programmes, which span over two million acres and more than 100,000 farmers across seven states. Grow Indigo, founded by Mahyco and Indigo Ag (USA), works to bring prosperity to farmers through sustainable agriculture, across carbon and biologicals.

For more information: Ozair Hamdani, Grow Indigo  |  ozair.hamdani@growindigo.co.in  |  +91 7023356587