A variety of business opportunities could arise in India, where increasing adoption of carbon farming is anticipated. One such example is the development of technologies needed for credit certification, such as those relating to the measurement, collection, and calculation of field data, including the amount of carbon in the soil.
Another area presenting business opportunities is the development of agricultural materials required for carbon farming, such as bio-pesticides and crops that can easily store carbon. Given these prospects, it is not surprising that companies involved in agrochemicals and seeds in India are entering this field.
Meanwhile, if the transition to carbon farming results in lower yields, that would signal a serious setback as it would essentially mean the farmers are not fulfilling their primary role of food production. Therefore, even under VM0042 (Methodology for Improved Agricultural Land Management), it is stipulated that certification will not be granted if a reduction of chemical fertiliser use results in a decrease in yields. This being the case, opportunities are also opening up for the development of technologies that help maintain yields even when fertilizer use is reduced, i.e., maintaining the same level of yield with less fertilizer.
Providing financial incentives other than carbon credits to farmers could also be a new business. One example in this area is the development of the entire value chain, connecting farmers who engage in carbon farming with consumers who appreciate and are willing to pay a premium for their efforts. Also, a sustainable finance scheme that offers preferential interest rates to farmers who are engaged in such projects could be explored. Business opportunities could also be found in connection with India's unique social challenges.
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