EconomyGS3

Farmers Receive India's First Soil Carbon Payments for Regenerative Farming

PIB·2026-09-18· Read original

"Farmers Receive India's First Soil Carbon Payments for Regenerative Farming"

Prelims Facts

  • •Verra VM0042 is the methodology cited for issuing agricultural soil-carbon credits.
  • •Aadi farmer carbon programme was launched in 2019 by Grow Indigo.
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Key Terms

Soil carbon credits

Payments for measurable increases in soil organic carbon stored by farming practices.

Regenerative agriculture

Farming that restores soil health, biodiversity and long-term productivity.

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Study Note

BackgroundCore Concept

Background

India's intensive paddy–wheat system in the north has long produced large volumes of crop residue and placed heavy demands on groundwater. The economics of fast field clearing and narrow sowing windows have sustained residue burning despite enforcement. Regenerative farming practices aim to reverse soil degradation and increase long-term soil organic carbon while restoring water and nutrient cycles. Over recent years, private programmes and research institutions have piloted methods to quantify carbon gains from changed practices so that farmers can be paid for measurable carbon sequestration.

A market mechanism requires three pieces:

  • •(1) agronomic practices that increase or retain carbon in soil
  • •(2) credible measurement, monitoring and verification
  • •and (3) a payment channel to transfer value to producers. Agricultural research agencies provide the scientific protocols for measurement, third-party standards convert measured gains into tradable units, and platforms or buyers monetise those units. The new payments link all three: field-level practice adoption, independent verification using established protocols, and digital payments to farmers

The Topic Explained

Soil-carbon payments remunerate farmers for measurable increases in soil carbon stocks resulting from regenerative practices. Typical practices include Direct Seeded Rice (DSR), reduced or no-tillage, residue retention, crop diversification, and improved crop rotations. These measures alter soil biology and aggregate stability, slowing decomposition and storing more carbon in stable organic fractions. The same practices often reduce irrigation demand and lower air pollution from stubble burning.

Credible issuance of credits depends on standardised methodologies and independent verification. The programme reported here used the Verra VM0042 methodology to quantify soil-carbon changes. …

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Related PYQs

2018GS1 Prelims

With reference to the circumstances in Indian agriculture, the concept of "Conservation Agriculture" assumes significance. Which of the following fall under the Conservation Agriculture ?

1.Avoiding the monoculture practices

2.Adopting minimum tillage

3.Avoiding the cultivation of plantation crops

4.Using crop residues to cover soil surface

5.Adopting spatial and temporal crop sequencing/crop rotations

Select the correct answer using the code given below :

A1, 3 and 4
B2, 3, 4 and 5
C2, 4 and 5
D1, 2, 3 and 5
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2020GS1 Prelims

What is the use of biochar in farming?

1.Biochar can be used as a part of the growing medium in vertical farming.

2.When biochar is a part of the growing medium, it promotes the growth of nitrogen-fixing microorganisms.

3.When biochar is a part of the growing medium, it enables the growing medium to retain water for longer time.

Which of the statements given above is/are correct?

A1 and 2 only
B2 only
C1 and 3 only
D1, 2 and 3
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2023GS1 Prelims

Which one of the following best describes the concept of 'Small Farmer Large Field'?

AResettlement of a large number of people, uprooted from their countries due to war, by giving them a large cultivable land which they cultivate collectively and share the produce
BMany marginal farmers in an area organize themselves into groups and synchronize and harmonize selected agricultural operations
CMany marginal farmers in an area together make a contract with a corporate body and surrender their land to the corporate body for a fixed term for which the corporate body makes a payment of agreed amount to the farmers
DA company extends loans, technical knowledge and material inputs to a number of small farmers in an area so that they produce the agricultural commodity required by the company for its manufacturing process and commercial production
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Practice MCQs

Economymedium

The Verra VM0042 methodology is primarily used to quantify changes in which of the following?

A.Soil organic carbon under agricultural land-use practices

B.Emissions from industrial point sources

C.Afforestation area extent using satellites

D.Renewable-energy generation credits

ASoil organic carbon under agricultural land-use practices
BEmissions from industrial point sources
CAfforestation area extent using satellites
DRenewable-energy generation credits
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Economyeasy

Which of the following practices were explicitly promoted under the farmer carbon programme described?

1.Direct Seeded Rice (DSR)

2.Reduced tillage

3.Crop residue management

4.Mono-cropping intensification Select the correct answer using the code given below:

A.1, 2 and 3 only

B.1 and 4 only

C.2 and 4 only

D.1, 2, 3 and 4

A1, 2 and 3 only
B1 and 4 only
C2 and 4 only
D1, 2, 3 and 4
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Economyeasy

In the soil-carbon payment model described, what role does Direct Benefit Transfer (DBT) play?

A.Channels digital payments directly to farmers' accounts

B.Certifies carbon credits for sale

C.Samples soil and conducts laboratory analysis

D.Issues regulatory permits for residue management

AChannels digital payments directly to farmers' accounts
BCertifies carbon credits for sale
CSamples soil and conducts laboratory analysis
DIssues regulatory permits for residue management
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Economymedium

Under the payment options reported, farmers could choose which of the following?

A.An assured upfront payment from the programme

B.75% of net carbon revenue after credits sold

C.Both A and B as mutually exclusive choices

D.Neither A nor B; only fixed government subsidy was available

AAn assured upfront payment from the programme
B75% of net carbon revenue after credits sold
CBoth A and B as mutually exclusive choices
DNeither A nor B; only fixed government subsidy was available
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Economyeasy

Which of the following is a reported co-benefit of adopting Direct Seeded Rice (DSR) versus conventional transplanting?

A.Reduced irrigation requirement

B.Higher stubble burning incidence

C.Increased time needed for field preparation

D.Guaranteed higher yield irrespective of inputs

AReduced irrigation requirement
BHigher stubble burning incidence
CIncreased time needed for field preparation
DGuaranteed higher yield irrespective of inputs
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