Do You Know About Carbon Credits? Telangana Farmers Are Earning Money by Selling Them

 Do You Know About Carbon Credits? Telangana Farmers Are Earning Money by Selling Them

Paddy or rice (Oryza sativa), often criticized for high methane emissions and massive water use, now turning into a source of extra income for farmers. In Telangana, farmers are earning carbon credits while cultivating paddy more sustainably, thanks to Sow&Reap Agro, a climate-tech start-up.

Sow & Reap Agro Private Limited, founded in 2021 in Hyderabad, focuses on sustainable and regenerative agriculture. The startups collaborates with farmers to reduce greenhouse gas emissions and improve livelihoods through techniques like Alternate Wetting and Drying (AWD) for paddy cultivation. 

Recently, it became the first Indian company to earn Gold Standard carbon credits for these efforts. It has developed methodologies to cut water consumption significantly and reduce methane emissions in paddy fields. 

This not only helps the environment but also adds about ₹2,500 per hectare in extra income for farmers. The technique has also improved crop yields by helping plants develop stronger roots.

According to Suraj Teja, Founder and CEO of Sow&Reap Agro, around 35,000 farmers across nine districts of Telangana, covering nearly one lakh acres, are part of the programme. The project “VARRI”, using the AWD method in collaboration with Kosher Climate, has secured 37,405 carbon credits so far.

How It Works

Traditionally, paddy fields generate 12 tonnes of methane per hectare per year over two cropping cycles due to continuous water flooding. With AWD, farmers reduce water use by 60% and cut methane emissions by 6–7 tonnes per hectare annually.

What is carbon credits: Carbon credits are tradeable certificates representing emission reductions. One carbon credit = 1 ton of CO₂ (or equivalent) avoided, reduced, or removed.

What is gold standard carbon Credits (GSCCs): are a type of voluntary carbon credit that represents a verified reduction or removal of one metric ton of CO₂-equivalent greenhouse gases from the atmosphere. They are issued under the Gold Standard certification, which is an internationally recognized standard for carbon offset projects.

What is Gold Standard Certification: Established in 2003 by WWF and other NGOs, Gold Standard sets high environmental integrity and social impact standards.

Source: The Hindu News  July 2025