š§ Will This Help Farmers Get Out of Poverty?
Indian farmers are struggling to make ends meet. But carbon trading could not just improve their income but also their crop yields. Here's how.
Two staples in the media: the struggles of our farmers and climate change.
But what if we told you that one stone could kill both these birds?Ā
Curious? ReadOn!
š± The Farming Problem
Most Indian farmers are struggling to make ends meet because they only earn around Rs. 10,218 on an average per month.
But this can soon change.Ā
Farmers can unlock an additional source of income right under their feet: their farm lands.
You see, farm lands can act as carbon sinks, which suck all the greenhouse gases from the air.
And this can help farmers earn carbon credits. Huh?
You know how you get reward points for using your credit card?
Carbon credits are like these reward points.
Except you get them if you have removed a certain amount of carbon from the atmosphere.
So, farmers could get a lot of carbon credits. And these credits could be sold ahead. To whom?
Companies which are polluting more than the government-mandated norms or who want to reduce their carbon footprint (Hereās a more detailed explainer on how this works).Ā
The global carbon trading market is going to be worth $200 billion by 2050! So, this is a huge opportunity for farmers.Ā
However, thereās a catch.Ā
š Farming is Not as Innocent As it Seems
The regular kind of farming doesnāt remove carbon from the environment.
In fact, it is responsible for 14% of Indiaās greenhouse gases.
If farmers want to gain carbon credits, they need to adopt sustainable agricultural practices like no-till farming, drip irrigation, planting cover crops and trees to prevent soil erosion.
Otherwise activities like tilling (digging the soil to plant the seed) and stubble burning only end up releasing more carbon in the environment.
So far, farmers have been reluctant to adopt these practices. Why?
To adopt sustainable practices,Ā they either need to buy new equipment (like no-till tractors) or simply change their habits and routine.
You see, it's easier to just keep doing things the old way.
But what these farmers have not realised is that these practices are only harming them.
Constant tilling of the soil and not planting trees and cover crops after harvest, degrades the quality of soil.
Plus, if farming continues to fuel climate change, it will only result in droughts, floods and heatwaves. Result? Low crop yields.
However, just educating farmers will not help change their habits.
They need a bigger incentive.
Thatās where carbon credits enter.
The carbon credit system wonāt just give farmers an extra income but also make agriculture sustainable.
If farmers religiously follow sustainable agricultural practices, they can get 1- 4 carbon credits per acre of land.
And one carbon credit can get them anywhere from Rs. 780 - Rs. 2,000!
But most farmers have no clue about carbon credits and carbon markets.
ā” Startups to the Rescue
A lot of startups and NGOs have taken up the initiative to develop carbon trading markets for farmers and help them navigate these markets.
Like Nurture.farm: the first Indian startup to sell carbon credits from the farm sector.
To earn these credits it helped farmers use the Pusa decomposer.Ā
Pusa decomposer helps get rid of farm stubble by simply decomposing and melting it away, which means no more stubble burning.
So, the whole of North India can breathe easy this winter.
It has also created a new watering technique that helped save thousands of litres of waters for farmers.
Another company working in the same space is Intellecap.
It has partnered with the Transform Rural India Foundation to create the first official carbon trading market in India.
š¤ What Else Can Be Done
Now, adopting sustainable agriculture wonāt be easy for farmers.
It would be like asking you to write with your left hand after youāve used your right hand all your life.
So, NGOs, startups and the government all need to join hands to first educate farmers.
Second, the government could also subsidise sustainable farming equipment to ensure easy adoption.
Third, most farmers in India own tiny farmlands. They may not be able to remove enough carbon to apply for credits. So, state governments could encourage several small farms to join hands and create one unit, which will then be big enough to gain carbon credits.Ā
š Indiaās New Carbon Trading Market
Right now, India does not have a full-fledged carbon trading market. So, the carbon credits gained by farmers are exported and bought by foreign companies.
But now, India is planning on banning these exports and launching its very own carbon credit market.
The governmentās entry into this space will make carbon trading accessible to many more farmers throughout India.
It will also help us achieve our goal of going net-zero by 2070.Ā
A win-win for everyone, no?
Today, we have two quick questions for you:
Is Carbon trading really the best way to boost farmers' income?
What other ways can we help farmers increase their income?
ā” In a line: Sustainable agriculture can not only help farmers increase their yields but also help them earn an additional income.
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