Building climate-smart livelihoods: ICRISAT and Odisha govt lead the way in farmer-centric carbon markets
New Delhi: In a first-of-its-kind initiative in India, the Government of Odisha, through its Directorate of Agriculture and Farmers’ Empowerment (DAFE), has partnered with ICRISAT to pilot a farmer-centric carbon market.
The initiative is testing regenerative farming practices under real field conditions, with a strong focus on paddy cultivation. It aims to establish scientifically validated carbon standards by precisely measuring greenhouse gas (GHG) emissions at the farm level.
Dr Himanshu Pathak, Director General of ICRISAT, emphasized the significance of the project, noting that its outcomes have the potential to unlock new income opportunities for farmers through carbon credits while advancing climate-resilient agricultural practices.
“Agriculture is often criticized for its GHG emissions, yet our agri-food systems—our very source of sustenance—suffer the worst of climate change. Carbon credits can reverse this trend, empowering farmers to be both climate-responsible and more profitable,” asserted Dr Pathak.
Carbon Farming in India
Carbon farming encompasses agricultural practices designed to capture and store atmospheric CO₂ in soil and plant biomass while reducing on-farm GHG emissions. Key practices include no-till or reduced-till, cover cropping, crop rotation, agroforestry, compost and biochar application, precision nutrient and water management.
In India, the Carbon Credit Trading Scheme is currently a voluntary market and has the potential to be the world’s largest carbon market by 2030.
“As the Government of India advances carbon trading, this project will prove invaluable in indentifying implementation challenges at the farm level. The strong farmer participation in this program demonstrates that the right tools and targeted policy support can boost the adoption of sustainable practices,” noted Dr Stanford Blade, Deputy Director General for Research and Innovation, ICRISAT.
Carbon Farming in Odisha
“In 2023, the Government of India notified the Carbon Credit Trading Scheme to establish a domestic carbon market. Odisha’s CSIFRA project, in partnership with ICRISAT, is closely aligned with this effort, supporting the Government’s Voluntary Carbon Market scheme tailored for the agriculture sector. The project aims to standardize the Measurement, Reporting, and Validation process and raise awareness among farmers, ultimately bringing financial benefits to them for the regenerative agricultural practices,” said Dr Arabinda Kumar Padhee, Principal Secretary, Department of Agriculture and Farmers’ Empowerment, Government of Odisha.
Building on a long-standing partnership to promote sustainable agri-food systems, including initiatives in rice-fallow cultivation, gravity-based irrigation, and millet processing, ICRISAT and the Government of Odisha have introduced carbon farming as a cost-effective and sustainable approach to enhance soil carbon sequestration and reduce greenhouse gas emissions in rice-growing ecologies.
Dr Mukund Patil, Senior Scientist at ICRISAT, explained that climate-smart methods such as crop residue management, Direct-Seeded Rice (DSR), Alternate Wetting and Drying (AWD), and integrated nutrient management are key to the transition. Practices like optimized nitrogen application and shifting from continuous flooding to AWD have already demonstrated significant reductions in emissions while supporting agroecological sustainability.
Engaging Farmers in the Carbon Market
In a series of awareness sessions, farmers and agriculture officials at the district and block levels were introduced to the fundamentals of carbon markets and the incentives they offer. Complex climate and carbon concepts were made accessible through visual demonstrations and explanatory videos.
The ICRISAT team—including Dr Pushpajeet Choudhari (Scientist – Soil Science), Mr Love Kumar Singh (Associate Manager – Carbon Farming), and Mr Munmun Dihudi (Scientific Officer)—shared field-level insights from the 2023–24 Rabi season, highlighting the impact of regenerative practices on rice yields, soil carbon levels, and greenhouse gas emissions.
Farmers also shared their success stories. Mr Guru Govind Padhan from Bargarh reported that green manuring improved his soil health and allowed him to reduce inorganic fertilizer use. Mr Ramesh Behera from Subarnapur observed lower fertilizer costs, fewer irrigation cycles in Direct-Seeded Rice (DSR) plots, and yields comparable to traditional transplanted paddy.
“In my field, water use dropped by 30% and yield increased by 5% after switching to DSR and AWD. I also earned extra income by selling crop residue instead of burning it,” reported Mr Santosh Budek, a farmer from Sambalpur.
More than 50 stakeholders participated in the sessions, with over 40% expressing willingness to adopt carbon farming practices. Participants recommended forming farmer cooperatives to ease market access and called on policymakers to integrate carbon farming into existing agricultural schemes.
Turning Gaps into Gateways
As a technical partner to the Government of India’s Voluntary Carbon Market, ICRISAT has been involved in developing the India-specific carbon standard protocols to be adopted for the Carbon Credit Trading Scheme targeting rice ecologies. To ensure effective implementation, robust field-level data collection using appropriate tools is essential, while making the process accessible and scalable for smallholder farmers. ICRISAT’s work on a digital MRV (Measurement, Reporting, and Validation) process will also enhance transparency, streamline certification, and bridge the gap between carbon credit producers and certifying bodies.
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