Over 2,500 smallholder farmers in Punjab and Haryana have begun receiving digital payments for implementing regenerative farming practices as part of a carbon market initiative. The programme, known as 'Aadi', was launched in 2019 with technical guidance from ICAR.
On September 17, 2026, India’s agricultural carbon market took a significant step forward as more than 2,500 smallholder farmers in Punjab and Haryana started receiving digital payments for adopting regenerative farming practices. This development marks the transition of the market from policy to farm level. The first payments were distributed at a programme organised at Punjab Agricultural University (PAU), Ludhiana, signifying a new link between sustainable agricultural practices and additional income for farmers.
The payments are part of 'Aadi', a Grow Indigo farmer carbon programme that was launched in 2019 with technical guidance from ICAR. Under this programme, farmers implemented practices such as Direct Seeded Rice (DSR), reduced tillage, and crop residue management between 2019 and 2022. The resulting greenhouse-gas reductions and increases in soil carbon were measured and independently verified before carbon credits were issued.
The programme covers more than two million acres and over 100,000 farmers across seven states and has issued agricultural carbon credits under the Verra VM0042 methodology. The initiative builds on a broader transition towards regenerative agriculture in Punjab and Haryana, including crop residue management, water conservation, and farming systems aimed at improving soil health and climate resilience.
ICAR institutions have contributed scientific and field expertise in areas including greenhouse-gas accounting, crop-simulation modelling, soil-sampling protocols, device validation, field-team training, and satellite and remote-sensing approaches. ICAR–Indian Agricultural Research Institute (IARI), New Delhi, has contributed to these processes, while Grow Indigo is also working with ICAR–Agricultural Technology Application Research Institute (ATARI), Zone 1, to promote regenerative agriculture.
Source:
Press Information Bureau
