Govt Plans to Tap Market to Curb Deadly Air Pollution

In order to accelerate the process of reducing fires that spread deadly, suffocating smog throughout major cities, farmers in India are being encouraged to sell their crop waste rather than burn it.

The air quality in many areas, including the nation's capital New Delhi, deteriorates to hazardous levels during the chilly months of November and December due to crop stubble burning, with smoke lingering over most of north India for weeks.

BiofuelCircle, a startup based in the western Indian city of Pune, is attempting to connect farmers with companies that can convert their waste into briquettes for use in power plants or ethanol for blending with liquid fuels. "The environmental issues caused by crop residue burning are primarily due to inefficiencies in the supply chain," as per Suhas Baxi, founder of BiofuelCircle. 

"To help reduce fuel imports and improve air quality, India wants to convert its 230 million tonnes of farm waste and massive piles of kitchen waste into energy. If there was enough demand and infrastructure, using the country's entire crop waste supply for bio-energy could generate up to $50 billion in annual revenue," he added.

However, progress has been slow. Due to the lack of a dependable supply chain- from timely procurement to storage, processing plants, and finally a market for the products- farmers will continue to burn most of their crop residue for the time being. According to Baxi, only 20-30% of farm waste is utilized, primarily for lower-value products such as briquettes blending with coal for industrial boilers.

"We don't have the capacity to absorb what the farmer has to offer," he explained. "There's a need for mechanization, and huge storage capacities. Supply chain investment is required, which will not only solve the problems at hand but will also create a larger opportunity." Though there has been some progress, the market for additional products such as biodiesel, sustainable aviation fuel, and compressed biogas is still in its infancy.

The ethanol percentage in retail gasoline has risen to around 10% from 1.4% in 2014, when Prime Minister Narendra Modi began his first term. Modi's government has also been supportive of reducing stubble burning, offering subsidies for crop residue collection machinery and mandating that coal plants use at least 5% biomass.