Supreme Court panel for increase in farmers’ income through carbon credits

The Supreme Court-appointed high-powered committee, constituted to resolve grievances of farmers, has expressed surprise over the government’s assessment of growers’ survival at Rs 27 per day.

Headed by Justice Nawab Singh (retd), with agriculture expert Devinder Sharma and economist RS Ghuman as its members, the committee today held discussions with officers of National Bank for Agriculture and Rural Development (NABARD) on ways of increasing farmers’ income and create a supportive ecosystem, especially for small and marginal farmers.

The committee pointed out that there’s urgent need to increase farmers’ income to lead them beyond the Minimum Support Price (MSP) regime. For this, a good option would be to monetise carbon credits earned by farmers and also to help them engage in non- agriculture activity, along with farming.

The NABARD has collaborated with the Ministry of Agriculture and Farmers’ Welfare (MoA&FW) for implementation of Voluntary Carbon Market (VCM) framework for Agriculture in India.

According to information, farmers can earn credits by indulging in sustainable agriculture like agroforestry and zero till farming. The carbon credits are monitored and verified by external agencies, which keep 25 per cent of the earnings as fees. The credits earned are traded in the VCM, generating income for farmers, who get remaining 75 per cent of the earnings.

As GS Rawat, Deputy Managing Director of the NABARD, highlighted the scheme, officers and other dignitaries suggested that pilot projects in carbon credit trading can be run in Kandi area of Punjab and Yamunanagar in Haryana, where agroforestry is done.

The NABARD suggested that farmers can look at opening seed shops or providing farm machinery on rent.

As the discussion moved towards the Farmer Producer Organisations (FPOs), members of the committee said the model needed to be revisited as there were many problems.

The NABARAD officials claimed that there were 7,400 FPOs and admitted that 40 per cent of these had problems, but it was a workable model as small and marginal farmers join hands to reach the economies of scale.

While highlighting the credit and developmental functions of NABARD for ameliorating a lot of small and marginal farmers, Rawat said they were looking at remodelling the Primary Agricultural Credit Societies (PACS) so that they undertake other businesses rather than just disbursing credit to members.

It was suggested that success of 105-year-old Lambra Kangri Multi Purpose Cooperative Service Society in Hoshiarpur should be studied and replicated.

The committee members insisted that the bank should look at framing a policy to reduce farmers’ debt and drive them away from suicidal thoughts.