The demand for crop residue management equipment is set to increase across the country. This growth is primarily driven by the rising number of compressed biogas (CBG) plants that utilise agricultural feedstocks such as wheat stalks, rice straw, and cotton stalks. As the volume of feedstock increases, farmers and aggregators are increasingly adopting mechanisation for managing crop residues.
According to Narinder Mittal, the president and managing director of CNH India, only 2% of the crop management segment is currently mechanised. However, India aims to reach 75% mechanization levels. The establishment of CBG plants has significantly heightened the demand for agricultural residue management equipment, providing farmers with alternatives to stubble burning.
Shift in Scale
In the agricultural sector, CNH produces sugarcane harvesters, combines, balers, and compactors. They have been manufacturing small square balers in India since 2008. Farmers who previously purchased small balers are now upgrading to larger models, either independently or through various cooperatives. Feedstock aggregators are also facilitating this transition to bigger round balers, which are common in Western countries. According to Mittal, prices for balers start at ₹14 lakh, with larger models costing between ₹1.5 crore and ₹2 crore. Smaller balers are predominantly used in South India, while larger balers are particularly popular in Punjab and Haryana.
To address the increasing demand, CNH is expanding its range of balers. The company manufactures approximately 800 square balers annually, along with 40 big balers and 35-40 round balers. Their market share comprises about 60% in small balers, 80% in big balers, and 10% in round balers. The CNH plant in Chakan, Pune, will soon localise the production of fixed chamber balers, as larger round balers are favoured by CBG plants. CNH is actively working on localising the manufacturing of these round balers.
Scaling the Bio-CNG Ecosystem
As of 2025, there are 132 operational CBG plants in the country, an increase from 72 in 2024. An additional 175 CBG plants are currently under construction, with 425 more planned for the future.
India generates approximately 43.85 million metric tonnes of rice straw, 29.74 million metric tonnes of cotton stalks, 25.07 million metric tonnes of wheat stalks, and 41.56 million metric tonnes of sugarcane bagasse. The biogas market in the country is projected to reach $1.77 billion by 2025 and is estimated to grow at a compound annual growth rate (CAGR) of 10.20%, reaching $3.49 billion by 2032.