Carbon Credits: The New Goldmine for Indian Rice Farmers?
Experts at BIRC 2026 reveal how carbon credits and sustainable farming can boost income for Indian rice farmers in Punjab, Haryana, and Telangana.
The landscape of Indian agriculture is on the verge of a financial transformation. At the Bharat International Rice Conference (BIRC) 2026, held at the Bharat Mandapam in New Delhi from October 23-25, industry experts revealed that carbon credits for rice farmers, alongside water-saving technologies, could become powerful economic catalysts, turning sustainable farming into a lucrative income stream.
A Shift Toward Climate-Friendly Profits
During a critical panel on supply chain sustainability on October 24, experts argued that the future of farming lies in the intersection of ecology and economy. By investing in climate-friendly agricultural practices and leveraging supportive policy incentives, farmers can not only reduce their overall cultivation costs but also significantly enhance the viability of their farms.
Varaha's Million-Acre Ambition
One of the most ambitious projects discussed was led by Varaha. Kaushal Bisht, the Director at Varaha, disclosed that the company is currently managing carbon programs for smallholder farmers across a staggering one million acres. These operations span across four key states: Punjab, Haryana, Uttar Pradesh, and Uttarakhand.
Backed by USD 100 million in funding—which includes a USD 30 million contribution from Mirova—Varaha is scaling up its infrastructure. The company plans to establish two gasification units in Sangrur, Punjab. These units will produce biochar, a process that sequesters carbon and generates the credits that can be sold on the market.
The Telangana Model: Water Saving Equals Money
The potential for earnings is not limited to biochar. Barun Kumar, Director of Operations at VKU Certification, highlighted a promising project in Telangana. By adopting the Alternate Wetting and Drying (AWD) method, approximately 20,000 farmers could earn credits equivalent to three carbon credits per hectare every single season.
However, this new economy comes with a caveat: integrity. Kumar stressed that for these credits to hold value in the global market, strict monitoring and verification processes are non-negotiable.
The Challenge of Credibility and Incentives
While the financial prospects are exciting, some experts urged caution to ensure the system is not exploited. Sanjay Sethi, Executive Director and CEO of the Indian Chamber of Food and Agriculture, warned that the credibility of the carbon market depends entirely on rigorous verification. Without it, there is a risk that farmers might claim credits while secretly reverting to conventional, non-sustainable farming methods.
Adding to this, Dr. Swati Nayak from the International Rice Research Institute (IRRI) pointed out that existing agricultural incentives need a redesign. She emphasized that for water conservation to be adopted widely, the economic benefits must be tangible and directly felt by the farmers.
A Global Stage for Indian Rice
The BIRC 2026 event, organized by the Indian Rice Exporters' Federation (IREF), served as a massive platform for India's agricultural prowess, attracting buyers from over 150 countries. The scale of interest is reflected in the expected memorandums of understanding (MoUs), which are projected to exceed Rs 50,000 crore.
Leadership and Vision
The conference opened on October 23 with a call to action from former President Ram Nath Kovind, who praised India's global leadership in rice production and urged for deeper investments in innovation and the protection of natural resources.
Union Minister for Food Processing Industries, Chirag Paswan, echoed this sentiment, urging the industry to move beyond simply increasing production volume. He called for a strategic focus on:
- Value Addition: Enhancing the end-product to fetch higher prices.
- Traceability: Ensuring the journey of the grain is transparent.
- Research: Continuously improving the quality of Indian rice.