BII to support the future of farming in India

Agriculture is a major source of carbon emissions globally. In India, it accounts for 14 per cent of the country’s emissions – a staggering 400 million tonnes of C02 emissions annually. It is also one of the most vulnerable sectors to the impacts of climate change.

That’s why we have invested $10m in Grow Indigo, a pioneer in sustainable agriculture programmes for smallholder farmers.

Grow Indigo addresses this challenge through promoting carbon farming, which involves sustainable techniques like direct seeded rice and no-tillage farming. These practices can enhance soil health, reduce erosion, preserve biodiversity, improve water efficiency, and reduce manual labour, benefiting women farmers. They are also known as regenerative agricultural practices, critical to the decarbonisation of rice, wheat and maize production across India.

And what’s good for the planet is also good news for India’s smallholder farmers.

By encouraging the adoption of regenerative agricultural practices, Grow Indigo is creating new income streams for smallholder farmers through soil carbon credits and sustainable produce. These credits are sold to corporations, who seek to support sustainable agricultural sector while meeting their sustainability goals. The majority of carbon credit revenue goes directly to participating farmers, improving their livelihoods.

With four carbon farming projects in development and the first carbon credits expected to be issued soon, Grow Indigo aims to enrol millions of farmers within the next two years.

Srini Nagarajan, Managing Director and Head of Asia at BII, said: “Rice, wheat, and maize are staple foods in India, cultivated by numerous smallholder farmers who are vulnerable to the impacts of climate change. Through our innovative pools of capital, we are proud to support pioneering businesses like Grow Indigo that address adoption barriers by harnessing the potential of carbon markets.  This initiative not only reduces carbon emissions but also enhances farmers’ climate resilience and increases their incomes. This is aligned with the Government’s policies to support regenerative practices.”

Jennifer Kaul, Deputy Director, Investments, South Asia at the British Deputy High Commission in Mumbai, said: “India’s strong resolve in the adoption of regenerative agricultural practices is noteworthy. The agricultural sector plays a key role, both for food security and as a valuable export commodity. The UK government is committed to investments that support our climate and sustainability goals, not least in the agricultural sector. British International Investment’s support to Grow Indigo is a welcome step in this direction and reflects the deep partnership between our nations, which is underpinned by growth and sustainability.”

“Regenerative agriculture is the future of farming, not only for improving soil health, conserving water but also for creating improved livelihoods for millions of smallholder farmers,” said  Dr. Usha Barwale Zehr, Executive Director of Grow Indigo. “With this funding, we will accelerate farmer enrolment and scale carbon farming initiatives. Maintaining integrity of the sustainability outcomes, by way of carbon credits and Scope 3 emission reductions, is of utmost importance to us and will bring maximum value to farmers with our science-backed MRV offerings. We are thrilled to be partnering with BII to pursue these critical objectives for India’s sustainability objectives.”