Cotton Farmers Seek Carbon Credit Projects

Chennai: The Confederation of Indian Textile Industry (CITI) has signed an MoU with the International Cotton Advisory Committee (ICAC) and technology company Merago Inc. to develop carbon credit projects based on regenerative agricultural practices. The initiative is designed to advance sustainable cotton production in India while enabling cotton farmers to earn additional income through carbon credit generation.

Under the partnership, ICAC will serve as the principal technical knowledge partner, providing agricultural expertise, technology, training, and technical support. Cotton farmers associated with CITI-Cotton Development Research Association (CITI CDRA) and its affiliated partners will adopt regenerative practices to improve soil health and increase carbon sequestration.

These practices will include producing biochar and compost from agricultural biomass and applying them to cotton fields. Merago will provide the digital technology platform for project implementation and oversee carbon asset management, while CITI CDRA will lead project execution and farmer engagement.

Carbon credits generated under the project will be developed, verified and transferred in accordance with Article 6 of the Paris Agreement, India's applicable laws and carbon market regulations. Verified emission reductions and removals will be recorded in the national carbon registry before their issuance, transfer or commercialisation.

Subject to regulatory approvals, a designated share of the verified carbon removals will be certified as transferable carbon credits for sale in domestic and international carbon markets. Merago will manage the commercialisation of carbon credits and distribute the proceeds among CITI, ICAC and participating farmers in line with the agreed revenue-sharing framework.