Rice serves as a staple food for over half of the global population, and demand is escalating alongside the expanding population in South and Southeast Asia.
However, a substantial portion of rice cultivation still relies on conventional farming methods, resulting in significant methane emissions, a major contributor to climate change.
Methane is nearly 30 times more potent than carbon dioxide as a greenhouse gas, although it dissipates more rapidly. Additionally, rice farming requires a vast amount of freshwater, roughly 3,000 liters per kilogram of rice, or 20 million liters per hectare.
Technological Solutions for Sustainable Rice Farming
Mitti Labs aims to mitigate methane emissions and water waste in rice farming through its technology solutions.
Co-founded by Harvard Business School graduates Xavier Laguarta and Devdut Dalal, the company has recently secured $3 million in equity investment to reduce methane emissions by 50% and water consumption by 30%.
This will be achieved through the use of high-resolution satellite imagery and on-ground gas chambers.
India as the Primary Market
Headquartered in New York City with a subsidiary in Bengaluru, India, the startup launched in May of the previous year and has chosen India as its primary market.
India is the world’s second-largest rice producer, but the livelihoods of its rice farmers are facing imminent threats from climate change, which has resulted in a significant decrease in water levels and a rising amount of methane in the atmosphere.
Co-founders with Experience in Sustainability and Agriculture
Laguarta and Dalal conceived Mitti Labs last year after meeting during their MBA program at Harvard Business School.
Prior to establishing the startup, Laguarta had experience in sustainability consulting, while Dalal worked in the food and agricultural supply chain. They were joined by a third co-founder, CTO Nathan Torbick.
Focus on Sustainable Rice Farming
“In the agriculture sector, a lot has been done, and regenerative agriculture is a topic of global discussion. However, when you look at the number of people specifically addressing rice, it’s far smaller compared to most other crops,” Laguarta said in an interview.
Measuring Emissions and Selling Carbon Credits
Rice is responsible for roughly half of the greenhouse gas emissions from croplands, including 30% of agricultural methane emissions. However, farms can significantly reduce methane emissions from rice cultivation by improving water management or implementing alternate wetting and drying techniques.
In collaboration with the non-profit Syngenta Foundation and Dr. Reddy’s Foundation, as well as Spanish food processing company Ebro Foods, Mitti Labs has initiated five projects across India.
These projects assist farmers in adopting sustainable farming practices, avoiding stubble burning, and using water more efficiently. Covering 30,000 hectares, these rice projects are expected to reduce 120,000 metric tons of CO2e emissions, according to the startup.
Empowering Farmers and Improving Livelihoods
Mitti Labs aims to work with over 40,000 smallholder farmers to integrate and measure sustainable agricultural practices.
This will not only enhance the environmental impact of rice farming but also help farmers increase their annual incomes by up to 30%, as the startup will enable them to earn revenue from carbon credits sold on their behalf in the market.
Overcoming Challenges and Promoting Adoption
Convincing smallholder farmers to embrace new techniques can be challenging, as they are often hesitant to deviate from traditional practices. However, Dalal explained that Mitti Labs offers support and guidance to farmers, providing regular communication through its on-ground implementation partners.
“Our team collaborates with implementation partners, continuously refining the approach to farmers; what works in one village may not work in another. Therefore, the behavior change element must be highly targeted and fully aligned with the needs of local communities,” he said.
Technology-Driven Measurement and Monitoring
On the technology front, Mitti Labs employs a remote-sensing platform to measure climate impact using satellite imagery.
The startup purchases high-resolution imagery captured using synthetic aperture radars (SARs) from SAOCOM and Umbra, combining it with openly available satellite imagery to understand farmers’ practices.
SARs penetrate objects on Earth’s surface using different wavelengths to measure factors like water level, soil moisture, and plant growth.
In addition to satellite imagery, Mitti Labs utilizes greenhouse gas chambers on the ground to capture methane and nitrous oxide fluxes emitted in the field. The data from these chambers is incorporated into a software model and processed by third-party labs to calculate emissions.
Ensuring Credibility of Carbon Credits
In terms of carbon credits, Mitti Labs has collaborated with Cornell University, the International Rice Research Institute, and the U.S. Department of Agriculture for approximately 12 months, conducting experiments with satellite imagery and gas chamber data to test and refine their measurement practices.
This is intended to provide buyers in Europe and the U.S. with confidence in the carbon credits they purchase.
Currently, Mitti Labs collaborates with Gold Standard for issuing carbon credits, but Laguarta indicated that the startup may expand to Verra as it scales its operations.
Sharing Profits with Farmers
Converting carbon credits into tangible income takes time. Laguarta mentioned that Mitti Labs is currently in the due diligence phase with the projects it has launched.
The startup aims to distribute at least 70% of the profits generated from carbon projects to farmers who have transitioned to sustainable rice farming practices, creating an additional revenue stream for them.
The remaining amount will be shared among Mitti Labs’ partners and the startup itself, according to the co-founder.
Scaling Impact and Expanding Geographically
The success of its initial five projects will enable Mitti Labs to expand its reach. The startup already has 10 more projects in the pipeline and plans to extend geographically into Bangladesh, Thailand, and Vietnam.
Laguarta revealed that Mitti Labs has already identified “suitable local partners” in these new markets and is in discussions with project investors and carbon offset buyers to finance local projects.
The goal is to launch these projects by the end of 2024 or sometime in 2025. However, the startup intends to maintain its focus on India as its primary market.
Differentiation from Other Startups
Mitti Labs is not the sole startup promoting sustainable farming in India. RTP Global-backed Varaha is among the existing players in this field. However, Laguarta pointed out that most of these startups do not concentrate on a single crop.
“If you’re trying to do five different things, I think that’s a viable strategy for some. For us, the priority is to be the best in rice farming, and we believe there should be others who are the best at agroforestry, biochar, and other areas,” he said.
Initial Funding and Future Growth
Mitti Labs’ inaugural funding round was co-led by Lightspeed and Voyager, with early support from Harvard Innovation Labs.