From Annadata to Urjadata: Farmers Driving India’s Clean Fuel Revolution with Compressed Bio Gas

Key Highlights:

• Farmers turning stubble into fuel.

• Extra income and rural jobs.

• Cleaner air, less pollution.

• Government support through SATAT.

• Industry partnerships ensure demand.

Union Minister Nitin Gadkari recently highlighted a new role for Indian farmers: “Farmers are no longer just food providers. They are becoming energy and fuel providers for the country.”

Every harvest season, millions of tons of crop residue, locally called parali, are burned to quickly clear fields. This burning creates smog, causes health issues, and attracts penalties in some states.

But instead of being a waste, the government has recognized crop residue as a hidden resource. Now, farmers can sell stubble, cow dung, and vegetable waste to biogas plants. These plants convert waste into biogas, which is further purified into Compressed Bio Gas (CBG), a clean, marketable fuel.

This means farmers earn an extra income, cities get clean fuel, and communities enjoy fresher air.

Also Read: Punjab Government Announces Rs 20,000 Per Acre Relief for Flood-Affected Farmers

How Stubble and Waste Are Turning into Fuel

Compressed Bio Gas (CBG) is made when organic waste breaks down without oxygen. The process produces methane-rich gas, which, after purification, becomes CBG.

• Over 90% methane content makes CBG almost identical to CNG.

• It can be used in vehicles, industries, and households as a clean alternative fuel.

Local networks and Farmer-Producer Organizations (FPOs) collect crop residue and supply it to government-supported and private biogas plants. Instead of burning parali, farmers can now turn waste into energy and earnings, creating a sustainable circular economy.

How Biogas Benefits Farmers

Switching from burning to supplying crop residue has multiple benefits:

• Extra Income: Selling stubble and organic waste ensures steady earnings.

• Cleaner Environment: No more stubble burning means reduced pollution.

• Avoiding Penalties: Farmers avoid fines linked to stubble burning.

• Fertiliser Return: Biogas plants provide slurry back as organic fertiliser.

• Rural Jobs: Collection, baling, and transport activities create employment.

This model transforms waste into wealth and energy, empowering farmers to go beyond food production.

Government Initiatives Driving the Shift

The Indian government is pushing CBG adoption under schemes like SATAT (Sustainable Alternative Towards Affordable Transportation). Key steps include:

• Buy-back guarantees: Oil companies commit to purchasing CBG.

• Collection support: Setting up residue centres and baling machines.

• Financial aid: Subsidies, soft loans, and funding for plant developers.

• Private sector push: Large companies investing in CBG plants.

This ensures farmers only need to supply feedstock, while industries handle investment and technology.

Real-World Examples of Farmers as Urjadata

Punjab’s Success Story

Punjab, where stubble burning is a major challenge, now has large-scale CBG plants.

• Example: A Sangrur-based plant collects parali from farmers and converts it into CBG, which is then supplied to the local city gas network.

Collaboration with Energy Giants

Oil companies like Indian Oil, Bharat Petroleum, and Hindustan Petroleum are partnering with private players like Reliance to set up CBG plants across India.

This collaboration builds farmer confidence, ensures market demand, and makes CBG a commercial reality.

Challenges and the Way Forward

The CBG ecosystem still faces hurdles like:

• High setup costs for large plants.

• Need for advanced technology and skilled labour.

However, initiatives like SATAT, subsidies, and guaranteed gas purchase are reducing risks. Partnerships between public and private companies are building a strong market for CBG.

The Bigger Picture: Farmers as Urjadata

The Urjadata (Energy Provider) concept is more than a slogan. It represents:

• Farmers earning new revenue streams.

• Villages are becoming clean energy hubs.

• India is moving closer to energy security and a green future.

This shift is gradual but promising. With government support, farmer participation, and industry investment, India’s farmers are set to transform from Annadata (food providers) to Urjadata (energy providers).

Also Read: New Holland to Open Second India Plant to Double Tractor Market Share

CMV360 Says

India’s farmers are moving beyond food production to become clean energy providers with Compressed Bio Gas. This transition ensures extra income, cleaner air, and rural job creation. With strong government policies, industry partnerships, and farmer participation, India is paving the way for sustainable energy and reducing dependency on fossil fuels, creating a greener, more secure future.