The scheme, which includes a two-day waiver for a religious festival, has helped little, prompting environmentalists to call for urgent action.
"The chief minister (of Delhi) needs to declare an emergency," said Bharati Chaturvedi, founder of the Chintan environmental advocacy group. "If this was the plague, he would have declared an emergency."
Every year, as India's winter season approaches, farmers in Delhi's neighbouring Punjab and Haryana states, where agriculture is a mainstay, burn off rice field stubble in preparation for the sowing season.
The smoke from fields mixes with vehicle exhaust and construction dust, making Delhi the world's most-polluted capital.
India's Supreme Court last week chided authorities for their failure to curb the pollution and asked the city government, its neighbouring states and the federal government to work together to help improve air quality.