Agriculture is the backbone of our economy, but some farming practices pose immense danger to the environment. India-based Varaha mitigates crop residue burning and rice field flooding through carbon credit generation approach. The company collaborates with smallholder farmers in different countries. Together they focus on promoting regenerative farming practices and reducing emissions.
Varaha, a Delhi-based startup, collaborates with over 100 partners worldwide to engage smallholder farmers in adopting sustainable and regenerative farming methods. This partnership aims to effectively measure the reduction of emissions and the sequestration of soil organic carbon.
The startup generates nature-based carbon credits that are sold primarily to European companies. The startup is working towards sequestering 1 billion Tonnes of carbon by 2030. Nature-based carbon credit approaches can effectively generate additional revenue while also reducing their impact on the environment. Their measurement, reporting and verification (MRV) method uses a combination of machine learning, remote sensing, and scientific research.
All this further helps them in accurately measuring sequestration and limiting GHG emissions from afforestation, biochar projects, and regenerative agriculture. These initiatives support farmers in improving productivity, increasing crop yields, conserving water, promoting biodiversity, and enhancing climate resilience.
Co-founder of Varaha, agriculture engineer Madhur Jain said, “We expect that in the next six to nine months, we will have some active conversations. The willingness to pay a premium exists mostly in the Western world today; hence, that has been our major focus. But we do see that shifting in the next four to five years and coming towards India as well.”
The startup has caught the attention of investors for being a developer of carbon credits. They generate these credits by collaborating with thousands of smallholder farmers who grow crops on a total land area of over 700,000 acres in India, Bangladesh, Nepal, and Kenya.
Importance of Carbon Capture in Agriculture Sector
Farmers commonly adhere to specific practices which can result in carbon emissions production over time. Madhur Jain explained, when farmers flood their farms to cultivate rice, the water layer creates a separation between the soil and the environment. This leads to the formation of methane-emitting bacteria.
Rice methane emissions currently account for 12% of total global emissions, making it a significant contributor to climate change. Farmers have the power to mitigate this impact by reducing water usage in rice cultivation.
Also See: How Many Carbon Credits per Acre of Trees?
How it Works?
India-based Varaha mitigates crop residue burning and rice field flooding through carbon-credits in which farmers receive 60% to 65% of its sales value. The startup retains a commission ranging between 20% and 25% depending on the category of the carbon credit, and its partners receive 10% to 15%.
“Varaha works with the NGO Verra, which runs a significant carbon crediting program, to get its data and measurement practices audited before generating credits,” added Mr. Jain.
According to the company, they had already contracted and sold more than 230,000 carbon credits through various projects with its main customers. Moreover, they have received interest from tech companies and financial institutions across the United States and United Kingdom.
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About Founder and Foundation
Agriculture engineer, Madhur Jain, used his 17 years of academic and profession experience with farmers in India, and co-founded Varaha in 2022 along with Ankita Garg (COO) and Vishal Kuchanur (CTO).
Years ago, Mr. Jain was working as the country director for India at the Precision Agriculture for Development with the Nobel Prize laureate Michael Kremer. It was then he realized a pressing need to incentivize farmers to limit their residue crop burning activities. Because little did, they know, this burning contributes to a dense smog blanket in winters.
At that time, there were no methods available to create carbon credits from agriculture. But once the methodologies started coming to the market, including Europe and the U.S., Varaha decided to start his venture.
Source: Varaha
