Global environmental non-profit The Nature Conservancy (TNC) has launched a project to incentivise service providers who help farmers stop burning paddy stubble and adopt sustainable farming practices, under a ‘Pay for Results’ model .
The initiative, implemented through its subsidiary Nature Conservancy India Solutions (NCIS), directly rewards primary stakeholders—including machinery owners and entrepreneurs—for ensuring that farmers do not burn any crop residue .
How the ‘Pay for Results’ model works
According to Manoj Singh, Deputy Director for Climate at NCIS, the model is structured around verifiable outcomes rather than input-based subsidies. “Essentially, the model is ‘Pay for Results’, where service providers, who are primary stakeholders, will be incentivised for ensuring farmers don’t burn any crop,” Singh explained .
The approach addresses a critical gap in existing government schemes, which have largely focused on subsidising machinery rather than rewarding actual behavioural change. Under the scheme, service providers receive financial incentives based on independently verified data showing that farmers under their coverage have refrained from burning crop residue .
The project is now in its first year of implementation and is set to enter its second year of operations, according to Bhaskar Rattan, Field Operations Manager at NCIS .
Scope and impact so far
NCIS implements this initiative through its Promoting Regenerative and No-Burn Agriculture (PRANA) project, which has been operational in Punjab for four years .
Over the past four years, the project has covered 6.5 lakh farmers across 6,200 villages in 18 districts of Punjab. Approximately 300,000 farmers have transitioned to no-burn agriculture, and nearly 7 lakh hectares have been brought under sustainable practices, according to Heena Sharma, Senior MEL Specialist at NCIS .
The environmental impact has been significant. The project is estimated to have avoided the emission of 3.8 million tonnes of carbon dioxide through the elimination of crop residue burning. Additionally, the promotion of improved rice management practices—including Alternate Wetting and Drying (AWD) and Direct Seeding of Rice (DSR)—has helped save approximately 196 billion litres of water .
From subsidies to outcomes
Singh noted that while the government has tried to control residue burning through subsidies, this approach has not addressed the root causes. “There were other factors,” he said, explaining that NCIS decided to look at the problem from the farmers’ perspective and promote regenerative farming solutions that address operational and economic constraints .
These constraints include narrow sowing windows, limited access to machinery, and inadequate incentives—factors that drive the burning of paddy stubble despite farmers’ willingness to change .
Technology-enabled verification and farmer support
The project also developed a digital monitoring tool to verify compliance. “We also developed a digital monitoring tool where we verify whether this plot was burnt or not. That area was converted into normal practices and into direct seeding of rice. This resulted in an additional revenue of ₹7 crore across these 400 service producers,” Sharma revealed .
The tool ensures transparency and accountability in the ‘Pay for Results’ framework, providing independent verification of outcome achievement before incentives are disbursed .
NCIS worked with approximately 400 service providers during the last Kharif season, including one hundred providing direct seeding of rice services .
Regenerative rice management and water conservation
Beyond crop residue management, the project has expanded into improved rice management practices over the past two years. “Last year, NCIS covered around 78,000 hectares under these improved rice management practices, mostly alternate wetting and drying. This has helped save 196 billion litres of water, taking into account that on an average four irrigation cycles are saved,” Sharma said .
These practices are critical given that rice cultivation in India consumes 3,000–5,000 litres of water per kilogram of crop and generates nearly 4 million tonnes of methane emissions each year .
Collaborative approach and partnerships
The PRANA project operates through a network of implementation partners. According to Singh, the project has five partners—two for implementation, one for communication, one to monitor behavioural change, and another for remote sensing .
The model also includes initiatives like CRM Connect, a technology platform developed by TNC in partnership with IBM, which provides farmers with real-time intelligence on machinery availability, weather patterns, and best practices . Over 1,000 farmers currently use this web portal, covering approximately 2,200 hectares .
National recognition
The initiative has gained traction beyond Punjab. A national convening on ‘Scaling Regenerative Agriculture for Food Security and Climate Resilience in India’ was recently held by TNC in collaboration with the Confederation of Indian Industry (CII) .
Sushil Saigal, Interim Managing Director of NCIS, stated: “Four years of PRANA have shown that sustainable food systems are within reach – if we act together. This convening is an invitation to India’s policymakers, industries, scientists, financial institutions, and philanthropists to look at the evidence, engage with farmers who are living this transition, and commit to the investments and policies needed to take it to scale” .
Context: Government’s ongoing efforts
The government continues to implement its own measures to address crop residue burning, including a Central Sector Scheme on Crop Residue Management launched in 2018-19. Under this scheme, 50% financial assistance is provided to farmers for purchase of crop residue management machinery, and 80% to entrepreneurs and cooperatives for establishing Custom Hiring Centres .
Between 2018-19 and 2025-26, Rs. 4,237.47 crores have been released under this scheme, with over 3.53 lakh machines distributed and more than 43,535 Custom Hiring Centres established .
With coordinated efforts, the States of Punjab and Haryana have collectively recorded more than 90% reduction in fire incidences during the paddy harvesting season in 2025 compared to the same period in 2022 .
