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Grow Indigo Carbon Credit Payout to Farmers via DSR

15 September 20261 min read
AGRICULTURE & RURALGrow IndigoCarbon CreditPayout to Farmersvia DSR15 September 2026safalsetu.com

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

TermMeaning
Carbon creditTradable 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.

Test yourself

1. Which farming method generated many of the carbon credits for which Grow Indigo paid farmers?

Many credits came from Direct-Seeded Rice (DSR).

2. By roughly how much did DSR with SAVA-134 reduce methane emissions in the CSKHPKV-Savannah Seeds study?

The study found a cut of nearly 90%.

3. A carbon credit generally represents the reduction of how much CO₂-equivalent?

Generally one carbon credit equals 1 tonne of CO₂-equivalent.