Grow Indigo Carbon Credit Payout to Farmers via DSR
Why in the news
A startup compensated farmers for carbon credits earned by changing how paddy is planted, without waiting for buyers to take up all the credits.
Key facts
- Company: Grow Indigo, an agri-tech startup.
- Payout: about 2,500 farmers, ₹3,000-₹15,000 each.
- Credits: over 57,000, paid from the firm’s own funds.
- Method behind many credits: Direct-Seeded Rice (DSR).
DSR and methane
Seeds are sown straight into the field, skipping the nursery and transplanting stage. A CSKHPKV and Savannah Seeds study on DSR with SAVA-134 reported:
- Methane emissions down by nearly 90%.
- Better water productivity and soil health.
- Higher carbon-credit potential.
Key terms
| Term | Meaning |
|---|---|
| Carbon credit | Tradable certificate for reducing or removing greenhouse gas, generally 1 tonne of CO₂-equivalent |
| Methane (CH₄) | Strong greenhouse gas released heavily from flooded rice fields |
Exam angle
- Practice: Direct-Seeded Rice instead of transplanting.
- Gas: methane.