Indian Rice Industry Adopts Carbon Credits to Boost Farmer Income

Industry experts at the Bharat International Rice Conference 2026 in New Delhi detailed how carbon credits, water-saving technologies, and sustainable farming are increasing incomes for Indian rice farmers. Varaha manages a carbon program covering one million acres across Punjab, Haryana, Uttar Pradesh, and Uttarakhand. The company has raised 100 million USD, including 30 million USD from Mirova, to fund sustainable equipment and plans to build two gasification units in Sangrur, Punjab, to convert 60,000 tonnes of paddy straw into biochar.

Other initiatives include a project in Telangana where 20,000 farmers use alternate wetting and drying practices to generate carbon credits. While welcoming these investments, leaders from the Indian Chamber of Food and Agriculture and the International Rice Research Institute emphasized that long-term economic viability requires rigorous verification, redesigned agricultural incentives, and the development of climate-resilient rice varieties.