How farmers can drive income and rural employment via multi-waste biogas plants
India’s agricultural-based rural economy is ready to undergo a revolution with the emergence of multi-waste biogas plants. Farmers have always battled with the vagaries of fluctuating prices for their produce and the ecological cost of crop-residue burning. The onset of biogas technology under the SATAT program enabled farmers to earn a regular income by supplying crop residue, animal dung, and agro-waste to biogas plants. This change gave farmers not just a regular income but also rural employment opportunities in rural areas and promoted environmental sustainability. Multi-waste biogas plants advance an economic agenda of turning wastes into valuable commodities, constituting the first step toward a stronger, greener, and more inclusive rural economy.
Generating a new sSource of income for farmers
Rural Indian farmers have long faced the problem of seasonal jobs. The prices of crops used to change dramatically, and hence the income would be uncertain, while any crop residues like stubble are wasted or worse, burnt, which can cause serious air pollution. It not only spoils the environment but also incurs economic losses.
Multi-waste biogas farms offer a solution to this. Farmers no longer have to burn crop residues and can now sell these by-products to biogas farms, earning a constant income from what would otherwise be disposed of. The farms also employ other farm waste, including animal dung and residual agro-waste, increasing the potential for farmers’ earnings even more.
What attracts farmers in particular is the long-term supply contract that allows biogas plants to benefit them. In contrast to seasonal crops, some of the income from the biogas supply contract is guaranteed, as farmers receive revenues directly throughout the year, with sufficient financial stability. This change will enable farmers to minimize their dependence on their conventional farming methods and diversify their revenue streams, becoming less sensitive to fluctuations in the crop market.
Access to low-cost organic fertilizer
Another important advantage of multi-waste biogas plants is the generation of digestate, a by-product used as an organic fertilizer of high quality. In contrast to chemical fertilizers, which progressively diminish the quality of the soil and need to be applied repeatedly, digestate increases the fertility and structure of the soil. It is an economic and environmentally sustainable alternative that increases crop productivity without the negative environmental contribution of chemical inputs.
Farmers who supply feedstock to biogas plants can access digestate at a lower cost, thus reducing their dependence on expensive synthetic fertilizers. This leads to sustainable farming practices because input costs are reduced and soil quality is improved with an advanced ecosystem health. The second input aspect is digestate contribution for the welfare and protection of soil biodiversity, as it becomes an essential product for the circular economy underpinning the biogas model.
Creating jobs and empowering rural communities
The expansion of biogas plants is not just productive for farmers, but it’s also for the rural community as a whole. The development of biogas plants generates a number of jobs. Local societies can be involved in tasks such as feedstock collection and transportation, running biogas plants, equipment maintenance, and supplying the generated CBG (Compressed Biogas) and fertilizers.
These industries are a key source of rural employment in the countryside, where employment opportunities are scarce. Through achieving sustainable livelihoods, multi-waste biogas plants lower rural unemployment and facilitate local community development. In return, this helps to ease rural-to-urban migration pressure so that more people stay in villages and help local economies. Additionally, the operation of these plants encourages entrepreneurship.
The role of biogas plants in India’s circular economy
The development and commercialization of multi-waste biogas plants fully fit the principle of a circular economy, where waste is converted into a valuable commodity. India’s focus on the production of Compressed Biogas (CBG) under programs such as the SATAT scheme is leading the way. CBG manufacturing from farm waste and organic waste not only mitigates environmental pollution but also makes the agricultural sector more robust through increased business opportunities for farmers and rural society.
In a circular economy, biogas plants act as drivers of local economic growth. They make waste-to-energy possible while generating sustainable jobs and enhancing farming practices. This strategy allows farmers to transition away from destructive approaches such as stubble burning while also supporting a cleaner and more durable environment.
The author is Managing Director of Oswal Energies Limited
Published on September 14, 2025
