Circular Economy in Agriculture

Context: The Government of India recently highlighted the progress of the “Waste-to-Wealth” mission, the GOBARdhan scheme has covered over 50% of India’s districts.

About Circular Economy in Agriculture:

What is it?

• A circular economy in agriculture is a regenerative system where waste is minimized and resources are kept in use for as long as possible. Instead of the traditional take-make-dispose model, it focuses on the 6 Rs (Reduce, Reuse, Recycle, Refurbish, Recover, and Repair) to transform crop residues, animal manure, and food waste into valuable inputs like bio-CNG, compost, and biochar.

Key Data & Facts:

• Waste Volume: India generates approximately 350 million tonnes of agricultural waste every year.
• Energy Potential: Agricultural residues have the potential to generate over 18,000 MW of power annually.
• Market Value: India’s circular economy is projected to reach a market value of trillion and create 10 million jobs by 2050.
• Food Waste: Globally, 1.3 billion tonnes of food are wasted; in India, 60% of food waste occurs at the household level.
• GOBARdhan Progress: As of January 2026, there are 979 operational biogas plants across India under the GOBARdhan scheme.

Importance of Circular Economy in Agriculture

• Soil Health Restoration: Reintegrating organic waste reduces the need for chemical fertilizers.

E.g. The use of biogas slurry under ICAR guidelines is helping farmers restore soil carbon levels depleted by intensive farming.

• Climate Mitigation: Capturing methane from decomposing waste reduces greenhouse gas emissions.

E.g. The Unified GOBARdhan Portal tracks compressed biogas (CBG) production, directly contributing to India’s Net Zero targets by preventing open decomposition.

• Enhanced Farm Income: Converting waste into wealth creates new revenue streams for farmers.

E.g. Farmers in Punjab and Haryana are now selling crop residue for ex-situ management instead of burning it, earning additional profit per acre.

• Water Security: Reusing treated wastewater reduces the pressure on dwindling groundwater reserves.

E.g. The Jal Shakti Mission encourages using treated domestic greywater for village orchards and kitchen gardens, preserving potable water for drinking.

• Resource Efficiency: It aligns with global sustainability goals like SDG 2 (Zero Hunger) and SDG 12 (Responsible Consumption).

E.g. The adoption of Biochar helps sequester carbon in the soil for centuries while simultaneously improving water retention in drought-prone regions.

Initiatives Taken So Far:

1. GOBARdhan Scheme: Converts cattle dung and food waste into Compressed Biogas (CBG) and organic manure.
2. Crop Residue Management (CRM): Provides subsidies for machines (like Happy Seeders) and establishes over 42,000 Custom Hiring Centres (CHCs).
3. Agriculture Infrastructure Fund (AIF): Sanctioned ₹66,310 crore for post-harvest assets, including 545 organic input production projects.
4. Animal Husbandry Infrastructure Development Fund (AHIDF): A ₹15,000 crore fund supporting meat/dairy processing and scientific management of animal by-products.
5. Jal Jeevan Mission & Swachh Bharat 2.0: Focuses on solid and liquid waste management in rural areas to ensure ODF Plus status for villages.

Challenges Associated with Circular Agriculture:

• High Initial Investment: Setting up biogas plants or purchasing residue machinery requires significant capital.

E.g. Despite AIF support, small and marginal farmers often struggle to provide the collateral needed for high-tech bio-CNG infrastructure.

• Logistical Bottlenecks: Collecting and transporting bulky biomass from fragmented landholdings is expensive.

E.g. In stubble-burning hotspots, the window between harvesting and sowing is so short (2-3 weeks) that ex-situ collection often cannot keep pace with the farmers’ needs.

• Technological Gaps: Efficient conversion of diverse types of engineered biochar or specific modular reactors is still in early stages.

E.g. While Small Modular Reactors (SMRs) are being discussed, their deployment for localized agricultural power is currently limited by technical expertise and regulatory frameworks.

• Behavioral Inertia: Deep-rooted practices like burning stubble for quick land clearing are hard to change.

E.g. Despite subsidies, many farmers in the Indo-Gangetic plain still prefer fire over machinery due to the perceived labor cost and time advantage.

• Market Linkages: There is often a lack of a ready market for waste-derived products like organic manure.

E.g. Organic fertilizers often struggle to compete with highly subsidized chemical urea, making it economically difficult for Waste-to-Wealth plants to remain viable.

Way Ahead:

• Incentivizing Carbon Credits: Integrate small-scale farmers into the carbon credit market for using biochar or biogas.
• Strengthening FPOs: Empower Farmer Producer Organizations to manage Custom Hiring Centres and bio-CNG clusters at the village level.
• R&D in Bio-Innovation: Invest in engineered biochar and microbes that can accelerate in-situ decomposition of stubble.
• Policy Parity: Ensure organic fertilizers receive similar policy support and distribution networks as chemical fertilizers under the Fertiliser Control Order.