A group of farmers in Anantapur, who are mostly dependent on rain for their crops, have found a new revenue source. They have reaped a golden harvest of carbon credit. In a six-month long pilot last year which covered 1,000 hectares, they earned €49 by selling carbon credits.

To earn credits, the farmers, who had been cultivating rice, had to shift to plantation crops. They were persuaded to start growing a mix of millet, pulses and horticultural produce. Rabobank, a Netherlands-based cooperative bank, in tandem with AF Ecology Centre helped the farmers, educating them on the key parameters involved to make orchards eligible for credits. The bank also ensured the farmers got 80 per cent of the proceeds.

Now, they have accumulated 2,189 credits, which are to be sold to corporates globally with the help of Rabo Bank. In all, the bank is helping 10,000 farmers covering about 10,000 hectares.

One CRU (carbon removal unit) offsets one tonne of greenhouse gases, allowing corporates to buy the units to compensate for the emissions or carbon footprint. Currently, one CRU earns €32. Microsoft reportedly offered a minimum support price of €20 in case the rate of the credits fell below that.

Watch: India’s carbon credit market: All you need to know

The centre, meanwhile, is working with over 35,000 farmers in Anantapur district and provides them with market linkages to help them discover better prices. It has developed about eight methods by incorporating millets, pulses and horticultural crops, ensuring food and nutrition security.

Crop changes

YV Malla Reddy, Director of AF Ecology Centre, told businessline thathow Anantapur was once full of millet fields but when people started consuming more rice the farmers switched to groundnut. “Groundnut used to dominate the agricultural scenario in the district but of late it has failed the farmers, making them look at other crops,” he said.

Pulses, millets and horticultural crops could help them come out of the financial crisis. Now that the farmers have demonstrated a workable carbon credit production process, the model is attracting investors who want to put in money in the horticultural plantations that can earn carbon credits.

The centre is also cutting risk by bringing in inter-cropping. “We choose a perennial (horticultural crops such as mango or sweet lime) crop and 17-18 types of annual crops (millets and pulses). The latter would compromise short root, deep root, and short duration and long duration, making it a well-diversified system ensuring good incomes,” said Reddy.

“If they work diligently for 4-5 years, they will have a good flow of revenues,” he said. The orchards are currently spread across 15 mandals in the district. The centre has employed a few unemployed youths for the enumeration of the plots. The seeds of change have been sown – now the farmers can reap the credits.

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