India Carbon Farming Market By Type (Hardware,Software,Services), By Application (Agriculture,Forestry), By Region, And Segment Forecasts, 2023 to 2031

The India Carbon Farming Market was valued at USD 74.62 million in 2023 and is projected to reach USD 190.14 million by the end of 2031, registering a CAGR of 12.58% during the forecast period of 2023-2031. Carbon farming is gaining significant traction in India as an essential strategy to mitigate climate change, improve soil health, and enhance agricultural productivity. The market's growth is driven by government initiatives, the increasing demand for carbon credits, and the adoption of sustainable agricultural practices across India's diverse agricultural landscapes.

India Carbon Farming Market Dynamics

Drivers

• Government Policies and Initiatives: The Indian government is actively promoting carbon farming as part of its broader strategy to achieve sustainable development and climate resilience. Various programs, subsidies, and policy frameworks, such as the National Action Plan on Climate Change (NAPCC) and the National Mission for Sustainable Agriculture (NMSA), encourage farmers to adopt sustainable practices that enhance carbon sequestration.

• Growing Demand for Carbon Credits: The demand for carbon credits is rising both domestically and internationally, driven by India’s commitment to reducing its carbon footprint. Farmers can generate additional income by selling carbon credits derived from their carbon farming activities, particularly in the voluntary carbon market.

• Adoption of Sustainable Agricultural Practices: There is a growing trend toward the adoption of sustainable agricultural practices in India, driven by the need to restore soil health, improve biodiversity, and increase agricultural resilience. Carbon farming practices such as agroforestry, no-till farming, and crop rotation are becoming integral to these efforts.

Restraints

• High Implementation Costs: The initial costs of adopting carbon farming practices, including investments in specialized equipment and the need for technical expertise, can be a barrier for small and marginal farmers in India.

• Challenges in Carbon Measurement and Verification: Accurately measuring and verifying carbon sequestration in diverse agricultural environments can be complex and costly, which may limit the widespread adoption of carbon farming practices.

Opportunities

• Expansion of Carbon Credit Markets: The continued growth of carbon credit markets, both within India and internationally, presents significant opportunities for the carbon farming market. Farmers can benefit from the increasing demand for carbon offsets across various sectors, including agriculture, energy, and manufacturing.

• Integration with Digital Farming Technologies: The integration of carbon farming with digital farming technologies, such as precision agriculture, IoT, and remote sensing, offers opportunities to optimize carbon sequestration practices and improve the accuracy of carbon measurements.

• Support for Regenerative and Organic Agriculture: The increasing consumer demand for regenerative and organic products provides opportunities for Indian farmers to adopt carbon farming practices that align with these market trends, enhancing their competitiveness in both domestic and international markets.

  
  

Market by Practice Insights

Agroforestry

Agroforestry emerged as the largest revenue contributor in 2023 and is expected to maintain its dominance during the forecast period. The integration of trees into agricultural systems is particularly relevant in India, where agroforestry practices can enhance carbon sequestration, improve biodiversity, and increase farm resilience, particularly in arid and semi-arid regions.

No-till Farming

The no-till farming segment is also significant, driven by the demand for practices that reduce soil disturbance, increase organic matter, and enhance carbon sequestration in soils. No-till farming is increasingly recognized as a sustainable practice in India’s agricultural landscape, particularly in regions with intensive crop production.

Crop Rotation and Cover Cropping

The crop rotation and cover cropping segment is expected to witness substantial growth, driven by its ability to improve soil health, enhance fertility, and sequester carbon. These practices are widely adopted in India as part of sustainable farming systems, particularly in regions with diverse cropping patterns.

Market by Application Insights

Agriculture

The agriculture segment accounted for the largest market share in 2023, with more than 70%. Carbon farming practices are widely used in India’s agricultural sector to improve soil health, increase crop yields, and sequester carbon in the soil, particularly in regions with high agricultural activity.

Forestry

The forestry segment is expected to grow, driven by the adoption of carbon farming practices in forest management, including reforestation and afforestation projects, which contribute significantly to carbon sequestration and climate mitigation, particularly in the Himalayan and Western Ghats regions.

Livestock Management

The livestock management segment is also growing, with carbon farming practices being used to improve pasture management, enhance soil fertility, and reduce methane emissions from livestock operations, particularly in regions with extensive livestock farming.

Market by Regional Insights

Northern India

Northern India holds a significant market share, driven by its extensive agricultural activities, particularly in states like Punjab, Haryana, and Uttar Pradesh. The adoption of carbon farming practices is supported by government incentives and the region’s focus on sustainable agriculture.

Southern India

Southern India is a major market for carbon farming, particularly in states like Karnataka, Tamil Nadu, and Andhra Pradesh, where there is a strong emphasis on organic farming and sustainable land management. The demand for carbon credits and sustainable farming practices drives market growth in this region.

Eastern and Western India

Eastern and Western India are expected to grow steadily, driven by increasing investments in sustainable agriculture and the adoption of carbon farming practices. Regions like West Bengal, Odisha, Maharashtra, and Gujarat are seeing a rise in initiatives aimed at improving soil health and sequestering carbon.

Competitive Scenario

Major players in the India Carbon Farming Market include Mahindra Agri Solutions, ITC Limited, Jain Irrigation Systems Ltd., NABARD (National Bank for Agriculture and Rural Development), Tata Trusts, Syngenta India, Bayer CropScience India, Corteva Agriscience India, GreenAgri, and the Foundation for Ecological Security (FES). These companies are focusing on product innovation, expanding service portfolios, and strategic collaborations to enhance their market presence.

Scope of Work – India Carbon Farming Market Report Metric Details

Key Market Developments

1. September 2023: Mahindra Agri Solutions announced the launch of a new carbon farming initiative in India that integrates advanced monitoring technologies to optimize carbon sequestration and improve soil health across participating farms.

2. June 2023: NABARD introduced a new initiative to promote agroforestry and regenerative agriculture practices in Southern India, targeting increased carbon sequestration and biodiversity enhancement.

3. March 2023: ITC Limited entered into a strategic partnership with an Indian agritech company to develop innovative carbon farming solutions integrated with precision agriculture practices, leveraging cutting-edge technology and expertise.

Frequently Asked Questions

Q1. What is the current market size of the India Carbon Farming Market?
A. The India carbon farming market size was estimated at USD 74.62 million in 2023 and is expected to reach USD 190.14 million by 2031, registering a CAGR of 12.58% during the forecast period of 2023-2031.

Q2. What are the major growth drivers of the India Carbon Farming Market?
A. The growth of the India Carbon Farming Market is mainly driven by government policies and initiatives, the growing demand for carbon credits, and the adoption of sustainable agricultural practices.

Q3. Which region holds the largest market share in the India Carbon Farming Market?
A. Northern India holds a significant market share, driven by its extensive agricultural activities and the adoption of carbon farming practices.

Q4. Which segment accounted for the largest market share in the India Carbon Farming Market?
A. The agroforestry segment accounted for the largest market share in 2023, driven by its effectiveness in sequestering carbon, enhancing biodiversity, and improving farm resilience.

Q5. Who are the key market players in the India Carbon Farming Market?
A. Key players include Mahindra Agri Solutions, ITC Limited, Jain Irrigation Systems Ltd., NABARD, Tata Trusts, Syngenta India, Bayer CropScience India, Corteva Agriscience India, GreenAgri, and the Foundation for Ecological Security (FES).