TN farm budget: Carbon credits, Rs 600 cr soil push amid El Nino fears
Facing severe climate uncertainties, including the anticipated Super El Nino phenomenon, the Tamil Nadu government on Thursday rolled out a series of climate-resilient initiatives in its Agriculture budget 2026-27, featuring a carbon trading scheme for farmers and a multi-year soil restoration drive.
Presenting the budget, Tamil Nadu Minister for Agriculture and Farmers Welfare R Vinoth allocated Rs 60 lakh to launch demonstration projects across 2,000 acres and develop monitoring and verification protocols for carbon trading.
Under the scheme, farmers will be enabled to earn supplementary income through carbon credits by adopting existing sustainable cultivation methods, specifically emission-reducing practices such as Direct Seeded Rice (DSR) and Alternate Wetting and Drying (AWD) irrigation techniques.
These established cultivation practices are estimated to cut greenhouse gas emissions by approximately 50 per cent while promoting carbon sequestration in agricultural soils, the budget document highlighted.
To combat immediate climate threats, the government noted that severe climatic impacts are anticipated this year due to the 'Super El Nino', with 12 districts in Tamil Nadu predicted to face severe effects during the Kuruvai season.
Instead of creating new emergency protocols, the government is utilising the established 'District Agricultural Contingency Plan' prepared by the Tamil Nadu Agricultural University (TNAU), which has been dispatched to District Collectors to execute holistic mitigation measures.
As part of its long-term ecological agenda, the state unveiled the 'Tamil Nadu Soil Fertility Mission', a five-year plan with an estimated total outlay of Rs 600 crore. For the 2026-27 financial year, an outlay of Rs 122.51 crore across 10 distinct components has been sanctioned.
The mission aims to restore soil organic carbon, reclaim alkaline and saline soils, and reduce reliance on chemical fertilisers. Key components include an allocation of Rs 8 crore to provide a direct incentive of Rs 4,000 per acre to farmers practising organic farming across 20,000 acres, alongside establishing permanent vermicompost production units with a Rs 10 crore outlay.
To encourage continuous organic transition, the government is leveraging the existing national certification framework, the National Programme for Organic Production (NPOP). Newly registered organic farmers and those seeking renewal under the NPOP will be exempted from registration and renewal fees during their conversion period, while securing free scope certificates.
Additionally, the budget launched an Agroforestry scheme with a total outlay of Rs 17.70 crore from Union and State funds. The initiative aims to restore 12,500 acres of cultivable fallow land by planting high-value timber species such as Teak, Mahogany, Sandalwood, Malai Vembu, and Red Sanders at a density of 200 saplings per acre, creating permanent green cover and long-term assets for agricultural households.
