Climate change is arguably the biggest existential crisis of our times. For a nation like India, with over 65% of its population dependent on agriculture, the challenge is particularly acute. But the flip side is that India’s vast rural landscape and farming networks also harbour tremendous potential to be part of the solution. One increasingly promising path for farmers is carbon farming — a method that can both help mitigate climate change and unlock new income streams.
In this article, we explore what carbon farming means in the Indian context, how it works, what the benefits (and challenges) are, and why this could be a game-changer for farmers across the country.
What is Carbon Farming?
At its core, carbon farming refers to agricultural or land-use practices that increase the capacity of soil and vegetation to absorb and store atmospheric carbon (mainly CO₂), thereby reducing greenhouse gas (GHG) concentrations in the atmosphere (National Indian Carbon Coalition).
Such practices can include:
- Agroforestry (integrating trees or shrubs with crops or pastures) (Dhyani et al., 2016).
- Conservation tillage / reduced tillage or no-till farming (Yadav et al., 2025).
- Biochar application (i.e. converting agricultural/biomass waste to stable carbon in soil) (National Indian Carbon Coalition).
- Improved crop and livestock management, residue management, cover cropping, and other regenerative practices (Meena et al., 2024; Boomitra; Globetrend).
When implemented properly, these measures help soils and plants store more carbon and reduce emissions, effectively turning farms into carbon sinks rather than carbon sources.
Figure 1: Carbon cycle in forest ecosystems (Washington Conservation Action)
Why Carbon Farming Matters for India?
- High sequestration potential
India’s diverse agricultural lands offer enormous potential for carbon capture. Recent studies highlighted that Indian agriculture, with its croplands, pastures and forest-adjacent lands, could play a critical role in capturing atmospheric CO₂ and enable farmers to monetize carbon credits (Ghosh and Sharma, 2024; Meena et al., 2024).
Moreover, agroforestry systems in India have shown significantly higher carbon sequestration compared to conventional farming. For instance, one study found that soil carbon stock in agro-horticulture systems reached 38.11 Mg C/ha, which was over 31% more than conventional cropping systems (Kumara et al., 2023).
2. Supporting India’s Climate Goals
According to recent government and research assessments, India has already created a carbon sink of approximately 1.97 billion tonnes of CO₂ between 2005 and 2019 through forests and land-use interventions, and aims to expand this to 2.5–3.0 billion tonnes CO₂ by 2030 (Vibhaw and Kapur, 2024; India State of Forest Report, 2021).
For India to meet its climate commitments and contribute meaningfully to global climate mitigation, agriculture and land-use sectors, via carbon farming and allied methods, will be critical components.
From Soil Carbon to Real Income: Carbon Credits and Carbon Markets
Carbon farming is about translating it into real, tangible income for farmers as much as it is about climate-goodwill.
What is a Carbon Credit?
A carbon credit typically represents one metric ton of CO₂-equivalent either removed from the atmosphere (through sequestration) or avoided (by reducing emissions). Farmers who adopt carbon-sequestration practices can earn such credits (Ghosh and Sharma, 2024).
These credits can then be sold to corporations or other entities that need to offset their emissions — offering farmers an additional revenue stream besides traditional crop yield.
Figure 2: How carbon credit offsetting works (AI generated)
Size and Potential of India’s Carbon Market
India’s voluntary carbon market was estimated to be worth over $1.2 billion (INR 120 Cr.) as of late 2024 (Next IAS, 2024).
However, despite this potential, agriculture and land-use sectors have so far contributed only modestly to total carbon credits in India. A recent estimate (August 2025) suggests that agriculture and forestry/land-use together account for just about 0.2% and 0.8%, respectively, of the total carbon credits issued, with the lion’s share generated by the renewable energy sector (Kesh et al., 2025; Reddy and Lingareddy, 2025).
Still, that very fact suggests a massive untapped potential: with proper frameworks and farmer participation, agriculture-driven carbon farming could scale up considerably to become a key pillar of India’s carbon market.
Real Farmer Gains: Examples from the Field
- According to practitioners in India, farmers who adopt regenerative farming practices can sequester 1 to 4 carbon credits per acre (Trivedi and Girish, 2022).
- Depending on the buyer and market rate, one carbon credit could fetch farmers roughly ₹780 per ton of CO₂; in some cases, especially with direct corporate buyers, prices can go up to ₹2,000 per credit (Trivedi and Girish, 2022).
- For a typical smallholding, this can amount to meaningful supplementary income.
One illustrative example: a recent project run by Boomitra, a carbon farming initiative in India, covers over 88,000 acres and includes more than 23,000 farmers. This project is expected to remove around 89,299 tonnes of CO₂ annually by enhancing soil organic carbon (Boomitra, 2025).
In effect, carbon farming, when implemented at scale, can transform farmland into carbon sinks, while giving farmers a financial stake in the global climate market.
Key Carbon Farming Practices with High Impact
Which methods are most effective in India? Research and on-ground experience suggest the following:
- Agroforestry and Tree Cover: Integrating trees into farm systems not only sequesters carbon in timber and soil but also improves soil moisture, biodiversity, and long-term soil health. Studies in Indian agroforestry have shown soil carbon stocks 25–35% higher than conventional systems (Dhyani et al., 2016; Kumara et al., 2023; Meena et al., 2024).
- Conservation Tillage / Reduced Tillage: Limiting the frequency or intensity of tillage helps reduce soil disturbance, thereby retaining soil carbon. In combination with cover crops and residue management, this enhances long-term carbon storage (Yadav et al., 2025; Anupama et al., 2025).
- Biochar Application: Converting crop-residue or biomass waste into biochar, a stable form of carbon, and adding it to soil can store carbon for decades to centuries, while also improving soil fertility and water retention (National Indian Carbon Coalition; Boomitra; Anupama et al., 2025).
- Improved Crop and Residue Management, Crop Rotations, Cover Cropping: These practices help minimize greenhouse-gas emissions and improve soil organic carbon over time (Meena et al., 2024; Yadav et al., 2025; Globetrend).
These carbon-friendly practices often go hand-in-hand with regenerative agriculture practices that restore soil health, boost yields, reduce dependence on chemical fertilizers, and raise resilience to climate extremes. Table 1 gives a comparison of such carbon farming practices and their benefits.
Table 1: Comparison of carbon farming practices and their benefits
| Carbon Farming Practice | Approx. Carbon Sequestration Potential | Additional Farmer Benefits | Difficulty Level |
| No-till/Reduced tillage | 0.3–1 tCO₂e/acre/year (Purakayastha et al., 2016; CEEW, 2021) | Saves fuel, improves soil structure | Low |
| Agroforestry | 1–4 tCO₂e/acre/year (CEEW, 2021; Keerthika and Parthiban, 2022; Dhyani et al., 2016; Catch Foundation, 2025) | Shade, fruit, fodder, biodiversity | Medium |
| Crop residue retention | 0.2–0.6 tCO₂e/acre/year (Pradhan et al., 2023) | Improves soil organic carbon, reduces burning | Low |
| Biochar application | 1–2 tCO₂e/acre/year (Venkatesh et al., 2018; Kumar and Bisht, 2025) | Long-term soil fertility | Medium–High |
| Cover Crops | 0.3–1 tCO₂e/acre/year (Kalyani et al., 2024; Singh et al., 2024; Das et al., 2022; Ghosh et al., 2024) | Moisture retention, weed control | Medium |
Figure 3: Steps in carbon credit generation (AI generated)
Policy and Market Landscape in India
The rise of carbon farming in India is tied closely to evolving carbon markets and supportive frameworks:
- In July 2024, India introduced the Carbon Credit Trading Scheme (CCTS), signaling a shift towards a more formalised carbon trading ecosystem. While initially focusing on industrial sectors, the scheme also lays groundwork for voluntary and offset mechanisms, creating potential opportunities for agriculture-based carbon credits (Press Information Bureau, Government of India, 2025; Kesh et al., 2025).
- The broader Green Credit Programme, launched under the national LiFE (Lifestyle for Environment) mission, also includes sustainable agriculture, tree plantations, and land restoration as eligible activities for “green credits,” which could incentivize carbon farming and related practices (Wikipedia).
- As private and voluntary carbon markets grow, there is increasing demand from companies and institutions for high-quality carbon credits, presenting an opportunity for farmers and rural landowners to participate (Ghosh and Sharma, 2024; Boomitra).
In short, the building blocks, from policy to markets, are falling into place for carbon farming in India.
Challenges Ahead: Inclusion, Equity, and Permanence
Despite the promise, carbon farming in India is still in early stages. Following is some of the important issues to address.
- Inclusivity and Equity: A recent study (Cariappa and Krishna, 2024) found that most existing carbon-farming projects in India are dominated by large landholders from non-marginalized castes, with very limited participation from smaller or marginalized farmers. Women’s participation was especially low (only ~4% in the surveyed projects). This study also noted that many carbon farmers have received “almost no monetary benefits”, pointing to systemic issues in benefit-sharing, measurement, and compensation mechanisms.
- Measurement, Reporting, Verification (MRV): Accurately measuring how much carbon gets sequestered, especially in soil, is scientifically and logistically challenging. Robust MRV frameworks and affordable verification methods are essential for the credibility and sustainability of carbon farming projects (Meena et al., 2024; Globetrend).
- Permanence and Risks: Carbon stored in soil or biochar can still be reversed (e.g., through land-use change, tillage, soil erosion, or poor practices). Maintaining long-term carbon sinks demands sustainable stewardship (Jat et al., 2022; Prabhakaran et al., 2024).
- Awareness and Accessibility: Many small and marginal farmers may not have awareness, technical knowledge, or access to programmes that enable carbon farming, posing barriers to large-scale adoption.
Addressing these challenges, through inclusive policy design, farmer support, training and transparent carbon credit frameworks, will be critical for carbon farming to realize its full potential in India.
Why Farmers Should Care — and Consider Carbon Farming?
- Diversified income streams: For smallholders and marginal farmers whose income depends on unpredictable crop yields and weather, carbon credits offer a relatively stable, and low-effort, supplemental income.
- Improved soil health and yields: Carbon farming practices often improve soil fertility, moisture retention, and resilience, giving better yields over time and reducing reliance on chemical inputs.
- Climate Resilience: In an era of increasingly erratic weather and climate impacts, healthier soils and diversified practices can help farms adapt.
- Contribution to Climate Goals: Farmers get to play a direct role in mitigating climate change, potentially transforming agriculture into a climate-positive sector for India.
- Emerging Market Demand: As corporations worldwide and increasingly in India commit to net-zero and ESG goals, demand for verified carbon credits is likely to rise sharply.
Looking Ahead: What Needs to Be Done
For carbon farming to unlock its full potential in India, three major thrust areas are critical:
- Scale up inclusive projects – Design carbon farming projects consciously to include small and marginal farmers, women, and under-represented communities. Ensure fair benefit-sharing and transparency.
- Strengthen Measurement, Reporting, and Verification (MRV) – Develop affordable, scalable MRV systems (e.g. satellite-based, sensor-based, simplified soil testing) so that carbon credits are credible and farmers aren’t bogged down by complex audits.
- Provide awareness, training and support – Agricultural extension services, NGOs, cooperatives and government agencies must educate farmers about carbon farming, its benefits, methods, risks, and how to participate.
Additionally, policy support, via mechanisms like the CCTS and Green Credit Programme, needs to deepen, acknowledging agriculture and land-use sectors as central to India’s net-zero and climate resilience goals.
Conclusion
Carbon farming is more than just a buzzword. It is a concrete, science-based, promising pathway that aligns environmental stewardship with farmer livelihoods. For a country like India, with its vast agricultural landscape and millions of smallholder farmers, carbon farming offers dual benefits – climate mitigation and income diversification.
Through agroforestry, no-till, biochar, regenerative practices and soil-building, Indian farms can become carbon sinks. As emerging carbon markets and supportive policies begin to take shape and as projects such as the one run by Boomitra show that there is a real opportunity for farmers to earn additional income, improve land health, and contribute meaningfully to the nation’s climate goals.
But for this promise to be realized widely and equitably, we must address inclusion gaps, build robust measurement frameworks, and raise awareness among farming communities.
In short, carbon farming could unlock India’s green wealth, for both the planet and the people. And for farmers ready to sow carbon, the harvest could be very rewarding indeed.
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