India

Punjab, Haryana Paddy Farmers to Earn India’s First Carbon Credit Payouts

Published: 14 September 2026 · 1 min read

What Happened

In a first for India, over 2,500 paddy farmers in Punjab and Haryana will receive carbon credit payments for adopting climate-friendly farming practices such as direct-seeded rice and low-tillage residue management. The programme covers around 30,000 acres and has generated over 50,000 carbon credits, which reward farmers for reducing emissions and storing carbon in the soil.

Key Takeaways

The initiative creates a new income stream for farmers while encouraging sustainable agriculture. Most participating farmers are expected to receive ₹3,000-₹15,000 each, and the model could be expanded to other crops and states as India pushes climate-smart farming.

Sources

Financial Express