Punjab and Haryana Hold First Regional Dialogue to Explore Circular, Low-Carbon Packaging from Crop Residue

Chandigarh, February 4, 2026: A first-of-its-kind regional convening on ‘Building Circular, Low-Carbon Supply Chains for Agri-Fibre Pulp & Paper Packaging in Punjab & Haryana’ was held yesterday at Hyatt Regency Chandigarh. The roundtable, which was co-presented by Asar, a social impact advisory focused on solution driven climate resilience and environmental nonprofit, Canopy, brought together officials from the Punjab and Haryana governments, representatives from the pulp and paper industry, farmer organisations, brands, and sustainability experts to initiate a shared understanding of how crop residue can be transformed into low-impact, low-carbon packaging materials.
 
This initial dialogue marked the beginning of a consultative process to explore the potential of paddy straw, wheat straw, and other crop residues as valuable industrial inputs.  Discussions focused on understanding current practices, identifying system gaps, and learning from experiences across the value chain, from farm to factory to market.
 
Punjab and Haryana together generate over 35 million tonnes of crop residue annually. While much of this biomass remains underutilised or burned, participants discussed how it could become a climate-positive resource that supports clean air, reduces carbon emissions, and creates additional income streams for farmers. The dialogue reframed farmers as key partners in circular supply chains, contributing not only to food security but also to sustainable raw materials for India’s growing packaging sector.

Gurmeet Singh Khuddian, Minister for Agriculture & Farmers’ Welfare in Punjab Government, said that the Punjab Government is continuously working to promote sustainable management of crop residue. He stated that such discussions and joint platforms help policymakers, industry, and farmers understand how crop residue can be better and more sustainably used in value-added industries while addressing environmental challenges and supporting farmers’ incomes.

He further said that India already has the capacity to produce pulp and paper based on agricultural residue, which demonstrates the technical and commercial potential of this sector. In the context of the growing demand for sustainable packaging from the e-commerce, FMCG, and retail sectors, agriculture-fibre-based paper and corrugated packaging solutions hold strong potential to drive regional economic growth, create new industries, and generate employment opportunities in rural areas, while aligning with environmental priorities.”
India already produces around 1.5 million tonnes of pulp and paper from agri-residues across 23 mills, demonstrating technical feasibility at scale. With rising demand from e-commerce, FMCG, and retail sectors for sustainable packaging, agri-fibre-based paper and corrugated solutions present a strong opportunity for regional economic growth aligned with environmental priorities.

Shyam Singh Rana, Minister for Agriculture and Farmers’ Welfare in the Haryana Government, said, “Haryana’s industrial base provides a strong foundation for circular manufacturing. This dialogue helps us understand how crop residue can be integrated into low-carbon packaging supply chains in a way that benefits both industry and the environment.”

The meeting emphasised the complementary strengths of both states. He shared, Haryana has abundant feedstock and strong policies for crop residue management, and our government is committed to crop residue management and is moving forward in this direction together with our farmers. Haryana also has advanced pulp and paper mill clusters in Yamuna Nagar and Panipat, along with emerging biofuel and industrial infrastructure.

Today, both Haryana and Punjab are progressing in the agricultural sector, and the challenges faced by both states are also similar. The governments of Haryana and Punjab, working together with farmers, can find solutions to the problem of stubble burning through crop residue management. These two states provide an opportunity to explore a regional circular bioeconomy model that connects farmers with processing industries and end markets. Crop residue management is emerging as a very large industry, and in the coming days we will achieve zero stubble burning”, he said.

The convening highlighted the complementary strengths of both states. Punjab brings abundant feedstock and strong ex-situ crop residue management policies, while Haryana offers advanced pulp and paper mill clusters in Yamuna Nagar and Panipat, along with emerging biofuel and industrial infrastructure. Together, the two states present an opportunity to explore a regional circular bio- economy model that links farmers with processing industries and end markets.
 
Vinuta Gopal, Chief Executive Officer, Asar, said, “Crop residue should be seen not as waste, but as a valuable resource. This first dialogue is about understanding how Punjab and Haryana can unlock this potential in ways that benefit farmers, reduce pressure on forests, and support India’s transition to low-carbon materials.”
 
Participants also acknowledged key challenges requiring deeper assessment, including underutilised residue collection and aggregation systems, limited participation of small and marginal farmers, weak linkages between collection and industrial use, and insufficient policy focus on packaging as a high-value application of crop residue.
 
Shruti Singh, Country Director, Canopy, said, “Forest based supply chains for paper, packaging, and textiles are entering a period of real climate risk. Crop residues offer India a practical, low-carbon alternative that works for the industry. By bringing governments, mills, farmers, innovators and brands into the same room, this dialogue is about understanding what it will take to scale agri-residue based circular supply chains in Punjab and Haryana. This region has the potential to lead India’s shift toward Next Gen materials.”
 
Participants agreed on the need for continued dialogue and the exploration of a Punjab–Haryana Working Group to assess infrastructure, policy, and investment needs. The convening helped build a shared understanding of key challenges and opportunities, marking an important first step in positioning crop residue as a resource for low-carbon packaging and farmers as partners in circular supply chains.