India’s agricultural residue is a strategic asset, and it’s time to treat it that way
Words by Shruti Singh
Each year, the return of stubble burning casts a familiar haze across North India. While the debate often focuses on farmers or enforcement, the root issue lies elsewhere. Agricultural residue remains an overlooked resource — not because the potential isn’t there, but because the systems to turn it into high value products are still emerging. With the right coordination and investment, this challenge can become one of India’s great industrial opportunities — converting the waste straw into one of the world’s big commodities: paper.
Crop residues are a by-product of India’s success in food production, but in many regions, farmers operate within narrow harvest windows, face rising labour costs, and lack access to affordable machinery, on-farm storage, and consistent markets to sell straw residues into. When the next crop must be planted quickly and there’s no predictable buyer or processing facility, burning becomes the least risky and most practical option — even when farmers would prefer a better alternative. Without the infrastructure to support collection and utilization in paper manufacturing at scale, burning persists not by preferred choice, but by default.
This continues because the essential economic signals are missing. What’s required are three key ingredients: vocal commercial demand, accessible supply-chain infrastructure, and fair pricing that makes residue recovery worthwhile for farmers. While these systems aren’t yet in place at scale, the pieces are within reach. With targeted catalytic capital — through philanthropy, CSR, and blended finance — local cooperatives and farmer-led initiatives can build the pre-processing units, storage hubs, and transport networks needed to connect India’s fields to a new generation of low-carbon industries.
India’s agricultural residue is a strategic asset, and it’s time to treat it that way. The country produces almost 500 million tonnes of residue every year, with about 100 million tonnes burned. This is one of the world’s most abundant renewable sources of cellulosic fibre. It is exactly the feedstock that global industries need as they shift to low-carbon and circular materials. The textile sector, the packaging industry and emerging biomaterials are actively seeking low-carbon fibre alternatives that reduce emissions, protect forests, strengthen supply chain resilience, and meet rising consumer and regulatory expectations. India already produces more than 1.5 million tonnes of non-wood pulp — a strong foundation to scale production for global supply chains.
Global demand is rising. More than 1,000 international brands are working with Canopy to secure low-impact circular inputs. This is not an experimental trend but mainstream procurement backed by commercial commitments. With abundant residue, an established industrial base, and strong growth potential, India is uniquely positioned to lead this transformation.
Companies like Satia, Kuantum, and Trident use agricultural residue in printing and writing paper grades. Innovators such as Craste, Oryza, Barracuda, Yash Pakka, and Unbubble are creating new applications in moulded materials and packaging. Connecting global buyers to India’s crop surpluses changes the economics entirely. Residue becomes a raw material that can generate revenue for farmers, reduce rural waste-handling stress and anchor new clean-tech industries.
When markets value straw as a resource instead of treating it as waste, burning becomes increasingly unneccessary. With predictable procurement agreements and the right infrastructure in place, farmers gain a reliable alternative — and the entire system shifts. Using just 24 million tonnes of agricultural residue could yield over 10 million tonnes of pulp, which is a third more than India’s 2023 production capacity. Next-generation fibres made from these residues emit roughly four tonnes less CO₂ per tonne of product and use up to 50% less water and energy compared to conventional wood pulp.
To unlock this opportunity, India needs clear action. A national strategy for next-generation fibres can guide investment and establish long-term signals. States can support decentralised collection and pre-processing systems to cut logistics constraints. Blended finance can help early investors and farmer collectives manage risk. Public–private partnerships can coordinate procurement and stabilise prices so industries can scale confidently.
The gains align with national priorities. Cleaner air in northern states, stronger rural incomes, reduced pressure on climate-critical forests and progress toward biodiversity goals all flow from building a circular fibre economy. India also imports more than three billion dollars of pulp each year; developing a domestic circular system can strengthen industrial resilience and reduce this burden. The packaging sector is growing rapidly, and recycled paper capacity has expanded by more than 10 million tonnes in five years, proving the industry can absorb new fibre streams.
India has a rare opportunity to transform its most visible seasonal challenge into a defining industrial advantage. By recognizing agricultural residue as a strategic feedstock — and building the systems that give it value — the country can support farmers, scale domestic industry, and dramatically cut air pollution. A circular fibre economy built on straw and surplus can clear the skies for millions, reduce reliance on forests, and position India at the forefront of the global transition to low-carbon, sustainable materials.
The author is India Hub Director, Canopy. With a focus on protecting forests, species, and climate, Canopy works collaboratively with brands, producers, local NGOs, Indigenous leaders, and decision-makers to secure large-scale, and just conservation for the world’s climate-critical and biodiversity-rich forests.
