Carbon credits, sustainable farming can boost Indian rice farmers' incomes

Carbon credits, sustainable farming can boost Indian rice farmers' incomes: Industry experts

New Delhi, October 24

During a panel discussion on sustainability and carbon credits in the rice supply chain, experts emphasised that investments in climate-friendly farming, advanced agricultural technologies and supportive policy incentives could make sustainable rice cultivation economically viable.

Kaushal Bisht, Director at Varaha, a carbon project developer, said the company runs a carbon programme for smallholder farmers covering around one million acres across Punjab, Haryana, Uttar Pradesh and Uttarakhand.

He said the company has raised around USD 100 million through equity and project financing, including USD 30 million from French asset manager Mirova to support sustainable farming equipment and practices.

"The scale has already arrived. It's about more and more folks in the industry aligning with it," Bisht said.

He also highlighted plans to establish two gasification units in Sangrur, Punjab, to convert around 60,000 tonnes of paddy straw into biochar, which can improve soil health and generate carbon credits.

Barun Kumar, Director of Operations at VKU Certification, highlighted a carbon credit project in Telangana involving approximately 20,000 farmers adopting alternate wetting and drying practices.

He said farmers could generate additional income through verified emissions reductions, with approximately three carbon credits potentially generated per hectare in one cultivation season.

"Without evidence, it's not possible to generate the carbon credit," Kumar said, emphasising the importance of monitoring and verification.

Sanjay Sethi, Executive Director and CEO of the Indian Chamber of Food and Agriculture, welcomed growing investment in carbon markets but cautioned against inadequate verification and the risk of farmers returning to conventional practices.

"Carbon credits have really gone up in terms of so much money coming in," he said, while calling for stronger safeguards to maintain market credibility.

Dr Swati Nayak, Scientist and India Country Manager at the International Rice Research Institute (IRRI), stressed the importance of redesigning agricultural incentives to encourage water conservation.

"Those incentives need to be also enabled," she said, explaining that farmers must see clear economic benefits from adopting sustainable technologies.

Deepak Pareek, Founder of HNYB Tech-Incubations, called for reforms in water-use incentives and better prices for sustainably produced rice.

"Start pricing the rice for sustainability," he said, urging businesses to reward farmers for adopting environmentally responsible practices.

Dr Saurabh Badoni of IRRI highlighted the need for climate-resilient rice varieties that maintain grain quality and export competitiveness amid rising temperatures.

Garima Joshi, Principal Analyst, Agri Sustainability at S&P Global, emphasised technology adoption, farmer awareness and redesigned incentives to address climate risks and market fluctuations.

The Bharat International Rice Conference 2026 is being held from October 23 to 25 in New Delhi, bringing together Indian exporters, international buyers and other stakeholders in the global rice trade.

— ANI