Chennai: The Confederation of Indian Textile Industry (CITI) has signed a Memorandum of Understanding (MoU) with the International Cotton Advisory Committee (ICAC) and the technology company Merago Inc. The partnership aims to develop carbon credit projects based on regenerative agriculture practices. This initiative will promote sustainable cotton production in India and provide cotton farmers with an opportunity to earn additional income through carbon credits.
Under the agreement, ICAC will serve as the project's lead technical partner, providing farmers with modern agricultural techniques, training, technical expertise, and necessary consultancy. Meanwhile, CITI–Cotton Development and Research Association (CITI-CDRA) and associated farmers will adopt regenerative agriculture practices to improve soil health and enhance carbon sequestration.
The project involves producing biochar and compost from agricultural residues (biomass) for use in cotton fields. These techniques will improve soil fertility and organic quality, increase carbon storage, and help reduce reliance on chemical fertilizers. Additionally, the initiative is considered significant for boosting long-term cotton productivity and making farming more sustainable.
Merago Inc. will provide the digital technology platform for project implementation and manage carbon assets. On the other hand, CITI-CDRA will lead the efforts to onboard farmers, provide training, and ensure effective implementation at the grassroots level.
The development, verification, and transfer of carbon credits generated under the project will be carried out in accordance with Article 6 of the Paris Agreement, applicable Indian laws, and regulatory provisions governing carbon markets. All records related to verified emission reductions and carbon removals will be registered in the national carbon registry. Upon receiving regulatory approvals, a designated portion of the verified carbon removal will be certified as transferable carbon credits for domestic and international carbon markets. Merago Inc. will manage the commercialization of these credits, while the proceeds will be distributed among CITI, ICAC, and the participating farmers in accordance with a pre-determined revenue-sharing arrangement.
Experts believe that this initiative could create a new income stream for farmers. Furthermore, it will promote climate-friendly agriculture in India, improve soil quality, and strengthen India's position in sustainable cotton production on a global scale. If this model proves successful, it could be implemented on a larger scale across other cotton-producing states in the future, thereby offering a greater number of farmers the opportunity to engage with carbon markets and earn additional income.
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