Amazon, the world’s largest e-commerce company, has signed a historic $30 million deal (around ₹250 crore) with Indian rice farmers. Under this agreement, Amazon will purchase carbon credits from farmers. This means farmers will now be able to earn not only from selling crops, but also by reducing pollution.
What Is the Deal About?
Traditionally, rice farming involves keeping fields continuously flooded with water. This reduces oxygen in the soil and leads to the release of methane gas.
Methane is around 25 times more harmful than carbon dioxide in terms of global warming impact. Since India is the world’s second-largest rice producer, methane emissions from rice cultivation are a serious environmental concern.
To address this, Amazon has decided to support a new farming technique called AWD (Alternate Wetting and Drying).
Instead of keeping fields fully flooded all the time, the land is allowed to dry for short periods between irrigation cycles.
Major Benefits of AWD Technique
- Methane emissions can be reduced by up to 50%
- Water use can be reduced by nearly 30%
- Crop yield remains unaffected
13,000 Farmers Already Participating
This is not a small pilot project. More than 13,000 small farmers have already joined the initiative.
The technique is being implemented across nearly 35,000 hectares of farmland. The goal is to prevent the release of 685,000 tonnes of carbon dioxide equivalent emissions — roughly equal to removing 150,000 cars from the road for one year.
Not Just Amazon – A Global Alliance
This project is being implemented through the Good Rice Alliance.
The alliance includes major global names such as:
- Bayer
- Temasek
- Shell
- GenZero
This shows that major international companies are now directly engaging with Indian villages and farmers to buy carbon credits.
How Will Farmers Benefit?
Until now, carbon credits were mostly linked to large industries and forests. For the first time, small farmers are being connected to this market on a large scale.
When farmers adopt the AWD method and reduce methane emissions, they generate carbon credits. These credits are then purchased by companies like Amazon.
This gives farmers an additional source of income beyond rice sales.
According to estimates, farmers may earn an extra ₹3,000 to ₹4,000 per hectare — a meaningful amount for small landholders.
Why Is This Important for India?
Methane emissions from rice farming contribute nearly 18% of India’s total greenhouse gas emissions. If this model succeeds and expands nationwide, it could help:
- Achieve climate goals faster
- Reduce dependence on electricity and diesel for irrigation
- Protect falling groundwater levels
- Increase farmers’ income sustainably
What Are the Challenges?
Like any new technology, AWD also has challenges.
Farmers need training to understand the right timing for irrigation and drying cycles. Many farmers fear that giving less water may damage the crop.
That is why awareness programs, field demonstrations, and proper training will be essential for success.