While the Union Government’s latest push for Compressed Biogas (CBG) provides a more stable framework for offtake, industry observers and senior government officials say the next major imperative is to establish an efficient supply chain for procuring, storing and managing feedstock. This will be critical to ensuring both the viability of CBG plants and the quality of their output.
Press mud, agricultural residues such as paddy and wheat straw, and animal manure are among the most commonly used feedstocks for CBG production. However, each has its own logistical challenges, particularly because of seasonal availability, transportation requirements and storage constraints.
With the aim of accelerating the growth of CBG in India, the Union Cabinet on August 9 approved a revamped GOBARdhan (Galvanising Organic Bio-Agro Resources Dhan) scheme with an outlay of ₹23,731 crore. The scheme, which will remain in place until 2036, seeks to increase CBG production nearly tenfold.
Speaking to The Hindu, Gaurav Kedia, Chairman of the Indian Biogas Association (IBA), emphasised that the type of feedstock and the proximity of a CBG plant to its source are crucial for ensuring a consistent supply. He also cautioned against long-distance transportation that could undermine the environmental benefits of CBG by increasing fossil-fuel consumption.
“Supply chain feasibility becomes important. We see [within] 25-km radius as a viable option,” Mr. Kedia said.
A senior government official similarly stressed that the quality of feedstock is critical, as it directly influences the quality of CBG produced and the long-term sustainability of a plant.
Press mud and cattle dung, according to Mr. Kedia, need to be sourced close to the plant because of their high moisture content and perishable nature. Paddy straw, by comparison, can be transported over longer distances, but it must first be baled and stored appropriately.
Cattle dung presents a further challenge because it is typically dispersed across a wide geographical area. Collecting and transporting sufficiently large quantities may therefore prove economically unviable. Press mud and paddy straw also pose seasonal supply challenges.
Press mud is the solid residue left after sugarcane processing. Since sugar mills generally operate for only four to five months a year, the material must be stored temporarily and transported to CBG plants in a timely manner.
Paddy straw, meanwhile, is available mainly during the harvesting periods of Kharif and Rabi crops. Collection must be completed within a short window—typically around 15 days—before farmers prepare their fields for the next crop. This makes rapid collection and field clearance essential.
Storage creates another set of challenges. Large quantities of agricultural residue must be stored in a manner that prevents fire hazards, particularly during the summer months. During the monsoon, the feedstock must also be protected from moisture, which can affect its quality and suitability for processing.
Another important component of the supply chain is farmer outreach. Mr. Kedia said an aggregator-based model could help bridge the gap between farmers and CBG plants.
“The prescribed model is to have an aggregator to supply the feedstock. Farmers may not want to enter into a legally binding contract like industries for social reasons, and this is where an aggregator pitches in to facilitate the outreach and supply [CBG plants] the feedstock,” he stated.
The senior government official said aggregators could also provide farmers with bio-slurry generated during the CBG production process, which can be used as an organic fertiliser.
Depending on the technology used, gas yield from cow dung is approximately 6%, while paddy straw and other agricultural residues can yield around 10% or more, they said, adding the resulting bio-slurry can subsequently be returned to farmers for use as an organic fertiliser, creating an additional link between CBG production and agricultural activity.
Industry observers and officials also recommend that CBG plants be designed to process multiple feedstocks rather than depend on a single source.
A diversified feedstock mix could make plants more resilient to seasonal fluctuations while improving their bargaining power in procurement, according to Mr Kedia.
The senior government official suggested that a plant having a complementarity of press mud and sugarcane could be an ideal set-up.
Published – August 22, 2026 07:38 pm IST
