Does Biochar Application Improve Paddy Productivity and Net Returns? An On‐Farm Evidence and Farmers' Perceptions in India

Transforming agricultural waste into biochar can potentially generate renewable energy, capture carbon, improve soil health, and mitigate climate change. However, its adoption is still minimal due to ambiguity in the realisation of associated benefits, as the evidence of its impact on crop yield based on on‐farm data is very limited. In this study, we analysed a comprehensive dataset of 962 households across three states of India, viz. Madhya Pradesh, Maharashtra, and Odisha. Findings show that the application of biochar had a positive and significant effect on crop yield enhancement (4.34%) and net return (29.34%), and a reduction in cost of cultivation (1.52%). However, the effect size is much smaller than that reported in experimental studies conducted in controlled conditions. Farmers who are more experienced in farming, have irrigation facilities, and diversify crops and enterprises perceive benefits from biochar. Improvement in soil fertility is the primary benefit farmers perceive from biochar, whereas the limited availability of biochar and lack of incentives are the major constraints in adoption. The study suggests strategies and policies for outscaling and creating enabling environments for biochar production in Indian agriculture.