CARBON CREDIT IN AGRICULTURE AND ITS FINANCING

Abstract

India is primarily an agricultural country. Agriculture plays a significant role in India's economy, employing a large portion of the population and contributing notably to its GDP.Agriculture is dependent on climate and due to pollution the envoirnment is geeting affected. There are a number of areas in the country which lack sufficient water and lacks other agricultural alied services. Thus it is the time to take some action to save the envoinment as well as the agriculture.In order to achieve this objective agriculture methods may be changed which can help the envornment to maintain its quality and at the same time production of food grain also get increased.Among number of food grains in India,Rice is a staple food.Rice production from traditional method produces green house gas in the envoirnment.By changing the method of rice production from traditional method to Direct Seeded Rice(DSR) may lead to reduction in green house gases and can give an opportunity to farmers to earn income by selling carbon credit.This carbon credit market in India is in nascent stage.Government of India is also in favour of creating Voluntary carbon credit market which can help the farmers to earn additional income and keep their envoirnment clean.