Supply Chain and Economic Analysis of Baler‐Based Paddy Residue Management in Punjab, India

ABSTRACT

Paddy residue burning has emerged as a major environmental challenge in north‐western India, highlighting the need for sustainable and economically viable residue management alternatives. In this context, baler technology has gained importance as an effective ex‐situ crop residue management practice that supports biomass utilization and reduces open‐field burning. The study aimed to evaluate the supply chain dynamics, economics, farmers' perceptions, and constraints associated with baler‐based paddy residue management. The study was conducted in the south‐western zone of Punjab during 2025–26. Primary data were collected from 10 paddy residue aggregators selected using the snowball sampling technique and 60 farmers selected through simple random sampling from the Bathinda and Mansa districts of Punjab. The study revealed that the average baling operation covered 2676.67 acres per season and handled approximately 70,400 quintals of paddy residue with an effective field capacity of 3.60 acres per hour. Economic analysis indicated that the total cost of baling was INR 150.69 per quintal, while the net return was INR 36.56 per quintal with a benefit‐cost ratio of 1.22 and a payback period of 1.37 years, indicating the economic viability of the technology. Transportation cost emerged as the major component of operational expenditure. Farmers showed a generally favorable perception towards baler technology, particularly regarding its economic and environmental benefits. Multiple linear regression analysis revealed that education (β = 1.4127), farm size (β = 1.1371), and extension contact (β = 17.3939) positively and significantly influenced farmers' perceptions, whereas age (β = −0.5790) had a significant negative effect. Major constraints faced by residue collectors included high initial investment, poor transportation infrastructure, low residue prices, and labor shortages. The study concludes that baler technology offers a sustainable and economically feasible solution for paddy residue management; however, improved policy support, institutional interventions, infrastructure development, and awareness programs are essential for its wider adoption and long‐term success.