GS3 · Agriculture, carbon markets

India’s first soil-carbon payments: ₹2.9 crore to 2,550 farmers in Punjab and Haryana

Battle IAS current affairs title card: India's first soil-carbon payments: ₹2.9 crore to 2,550 farmers in Punjab and Haryana (GS3 · Agriculture, carbon markets, 17 September 2026)
Asked by UPSCPrelims 2026, 2020, 20123 PYQs

UPSC has already asked about this. Read the story with these questions in mind.

See all 3 PYQs
Battle Brief

On 17 September 2026, at Punjab Agricultural University, Ludhiana, the ICAR Director General started direct payments of over ₹2.9 crore to 2,550 farmers of Punjab and Haryana for carbon stored in their soil. The money comes from carbon credits earned under ‘Aadi’, a Grow Indigo programme of 2019 with ICAR guidance, after the gains were measured and verified.

Fact File

Date
17 Sep 2026
Place
Punjab Agricultural University (PAU), Ludhiana
Paid
over ₹2.9 crore by DBT
Farmers
2,550 in Punjab and Haryana
Programme
‘Aadi’ of Grow Indigo, since 2019, ICAR guidance
Standard
Verra VM0042 methodology
Per farmer
about ₹3,000 to ₹15,000
In the news

Soil-carbon payments to farmers: what happened?

When a farmer stops burning straw or ploughs less, more carbon stays in the soil and less greenhouse gas goes into the air. If this gain is measured and verified, it can be sold as carbon credits. This is the first time Indian farmers have been paid for carbon stored in their soil.

  • Farmers adopted Direct Seeded Rice (DSR), reduced tillage and crop residue management between 2019 and 2022.
  • Greenhouse-gas cuts and soil-carbon gains were measured and independently verified before credits were issued.
  • The first issuance covered around 30,000 acres and more than 50,000 carbon credits.
  • Grow Indigo paid from its own funds before the credits were fully sold, so farmers did not have to wait.
  • Farmers could choose an assured upfront payment, or 75 per cent of net carbon revenue after sale.
Back Story

What did the fields save?

  • About 45 billion litres of water (enrolled fields, 2019 to 2022).
  • More than two lakh tonnes of crop residue kept out of fires.
  • An estimated 1,000 tonnes of PM2.5 emissions avoided.
Back Story

How big is the programme?

  • More than two million acres.
  • Over 100,000 farmers.
  • Seven states.
  • Farmers who joined after 2022 are in the next monitoring cycle and will be paid as their credits are issued.
By the numbers

What has happened to farm fires in Punjab?

Punjab farm fires (PIB, 17 Sep 2026)
ItemFigure
Farm-fire incidents, 2025 paddy season5,114, lowest under the present framework
Fall compared with 202193 per cent
Fall compared with 202290 per cent
Ransinh Kalan, Moga100 per cent burning-free on 1,310 acres for six years running
How it works

How does a farmer earn from soil carbon?

  1. Adopt DSR, reduced tillage, residue retention
  2. Field changes measured (soil samples, models, satellites)
  3. Independent verification
  4. Carbon credits issued (Verra VM0042)
  5. Farmer paid by share of credits from his field
Why examiners care

Why does soil-carbon payments to farmers matter?

AngleWhat to note
Farm incomeA new income of about ₹3,000 to ₹15,000 for each farmer for climate-friendly practice.
Air qualityLess stubble burning means less PM2.5 over north India.
WaterDSR needs less irrigation than transplanting paddy.
ScienceICAR and IARI supplied the soil-sampling and carbon-accounting methods.
GlobalBRICS agreed in Indore (June 2026) on a network for regenerative farming, coordinated first by ICAR-IIFSR, Modipuram.
Fault Lines

What are the challenges in soil-carbon payments to farmers?

  • Measuring and verifying soil carbon takes years; the first payment came for work done in 2019 to 2022.
  • Payments are small, so they may not cover the cost of changing practice on their own.
  • Credits are sold later at uncertain prices; the upfront option shields farmers from this.
  • A private programme; scaling it needs clear national rules for farm carbon credits.
Road Ahead

What should be done next on soil-carbon payments to farmers?

  • Pay farmers who joined after 2022 as their credits are issued.
  • Spread DSR and residue retention through KVKs and State bodies.
  • Use the BRICS network to share methods.
Exam Radar

What can Prelims ask on soil-carbon payments to farmers?

  • First soil-carbon payments in India: PAU, Ludhiana, 17 September 2026.
  • ‘Aadi’ programme: Grow Indigo, 2019, with ICAR guidance.
  • Credits issued under the Verra VM0042 methodology.
  • ICAR-IIFSR, Modipuram coordinates the BRICS regenerative farming network at first.
  • Punjab farm fires 2025: 5,114, the lowest under the present framework.
Answer Lab

How to write about soil-carbon payments to farmers in Mains

Practice question (10 marks, 150 words): Carbon markets can reward farmers for climate-friendly practices. Examine with reference to India’s first soil-carbon payments in 2026.

  • Intro: ₹2.9 crore to 2,550 farmers, 17 September 2026.
  • How: practices, measurement, verification, credits.
  • Gains: income, water, air, soil.
  • Limits: delay, small payments, price risk.
  • Way forward.
UPPCS Corner

What should UPPCS aspirants note?

  • ICAR-Indian Institute of Farming System Research (IIFSR) is at Modipuram, Meerut, UP; it will coordinate the BRICS network at first.

How to use this in Mains

GS-III Conservation, environmental pollution and degradation, EIA

  1. As per PIB (2026-09-17): first digital payments for regenerative farming released at PAU, Ludhiana: over ₹2.9 crore to more than 2,500 smallholders in Punjab and Haryana.
  2. Agri carbon markets link climate policy, stubble burning and farm incomes.
Quotable data point

DG ICAR initiated the DBT to 2,550 farmers.

PIB: Ministry of Agriculture: India's first soil carbon payments, 17 Sep 2026

Exam angle

UPSC

Mains: Can carbon payments wean Punjab–Haryana farmers off stubble burning?

Practice MCQs

Original practice questions (not PYQs).

Practice · UPSC

India's first soil-carbon payments to farmers were released at

Answer (b) & explanation

PIB, 17 Sep 2026.

Practice · UPSC

Consider: 1. Credits were issued under the Verra VM0042 methodology. 2. Farmers could choose 75 per cent of net carbon revenue after sale. Which is/are correct?

Answer (c) & explanation

PIB, 17 Sep 2026.

Quick questions

Questions students ask about this

What are soil carbon payments?

Payments to farmers for carbon stored in their soil through practices like reduced tillage and residue retention, sold as carbon credits.

Who received the first payments?

2,550 farmers from Punjab and Haryana, over ₹2.9 crore in all.

Which programme made the payments?

'Aadi', a Grow Indigo farmer carbon programme launched in 2019 with ICAR guidance.

How much did each farmer get?

About ₹3,000 to ₹15,000.

What did the programme save?

About 45 billion litres of water and over two lakh tonnes of residue kept out of fires (2019 to 2022).

Keep studying

Go deeper

Official source: PIB: Ministry of Agriculture: India's first soil carbon payments, 17 Sep 2026

facts from cited sources only; faculty review pending