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Carbon credits to boost incomes of rice farmers in Haryana & Punjab
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Tuesday, 20 January, 2026, 08 : 00 AM [IST]
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Our Bureau, New Delhi
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Rice farmers in Haryana and Punjab are set to benefit from carbon credit earnings by FY26 as part of a growing push to promote climate-smart agriculture and reduce greenhouse gas emissions from paddy cultivation. The initiative is expected to reward farmers for adopting sustainable farming practices that significantly cut methane emissions, a major contributor to climate change.
Paddy cultivation, particularly through traditional flood irrigation methods, is known to generate high methane emissions. To address this, farmers in the two states are being encouraged to shift to water-efficient techniques such as Direct Seeded Rice (DSR), alternate wetting and drying (AWD), and improved residue management practices. These methods not only reduce emissions but also lower water usage and input costs.
Under the proposed framework, emission reductions achieved through these sustainable practices will be measured, verified, and converted into tradable carbon credits. These credits can then be sold to companies looking to offset their carbon footprint, providing farmers with an additional source of income beyond crop sales. Industry estimates suggest that participating farmers could earn several thousand rupees per acre annually, depending on the scale of adoption and prevailing carbon prices.
The programme is being supported through collaborations between state governments, agricultural institutions, and private climate-tech firms that specialise in carbon measurement and verification. Digital tools, satellite monitoring, and on-ground audits are expected to play a key role in ensuring transparency and accuracy in credit generation.
Experts believe the initiative could be a game-changer for India’s rice belt, aligning farm incomes with sustainability goals while addressing the growing challenge of groundwater depletion and environmental degradation. If implemented successfully, the model could be replicated across other rice-growing states, strengthening India’s position in the global voluntary carbon market.
With agriculture increasingly coming under the lens for its environmental impact, carbon credit monetisation offers a practical pathway to make farming both profitable and climate-resilient.
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