Building the Foundations for Agri-Residue-Based Paper Packaging Supply Chains in Punjab and Haryana

Crop residue sits at the intersection of an environmental challenge and a material opportunity, but understanding how it can move into real supply chains requires on-the-ground dialogue with a variety of stakeholders.

To explore what this transition could look like in practice, Canopy convened a roundtable in Chandigarh, India, on February 3, 2026 focused on the states Punjab and Haryana. Co-designed with Asar, the dialogue brought together pulp and paper mills, farmer organisations, innovators, brands, financial experts, and officials from both state governments. 

We were joined by Shri Gurmeet Singh Khuddian, Cabinet Minister for Agriculture & Farmers Welfare, Animal Husbandry, Fisheries and Dairy Development, Government of Punjab, and Shri Shyam Singh Rana, Cabinet Minister for Agriculture & Farmers Welfare, Animal Husbandry & Dairying, and Fisheries, Government of Haryana. Their presence grounded the conversation in the realities and priorities of both states.

The intention for the day was simple: listen across the value chain, understand what is working, identify the gaps, and start shaping a shared understanding of what it would take for crop residue to meaningfully enter India’s paper and packaging supply chains.

Setting the Context

Punjab and Haryana together generate an estimated 35 million tonnes of crop residue every year. Much of this residue remains underused or is burned in the fields, even as mills and brands look for alternatives to forest-based fibre. Participants reflected on how this residue feedstocks could, under the right conditions, become part of a regional model that improves air quality, reduces pressure on forests, and creates new income opportunities for farmers.

Speaking to this opportunity, Shri Gurmeet Singh Khuddian shared that Punjab has been working on sustainable residue management and sees value in dialogues that help the state understand pathways into value-added industries. Shri Lal Chand Kataruchak, Minister for Food, Civil Supplies & Consumer Affairs and Forest & Wildlife Preservation, Government of Punjab, added that sustainable packaging will be essential for future supply chains and that understanding the role of crop residue is a necessary early step for industry and policy.

The Keynote: A Trade and Investment Lens

The keynote address by economist and former multilateral leader, Manmohan Prakash, placed this conversation in a wider economic and geopolitical context.

He spoke about the emerging implications of the EU–India Free Trade Agreement (FTA) and shifting expectations in major markets. For sectors like textiles and packaging, he noted, sustainability is becoming tied to competitiveness. Regions such as Punjab and Haryana — longstanding agricultural and industrial centres — could reposition themselves in global supply chains if they move with coordinated intent.

He also emphasised that the opportunity is not only about exports. India’s own consumption of textiles and packaging is rising sharply. Meeting this demand with domestic, low-carbon materials can strengthen manufacturing ecosystems, reduce import dependency, and support India’s climate commitments. Prakash invited the room to see crop residue as part of a larger industrial moment for India, rather than a niche environmental effort.

The Panel: What It Takes to Move from Intent to Practice

A panel discussion moderated by Shruti Singh, Country Director, Canopy, explored what it would actually take to build crop-residue-based packaging supply chains in the region. Each panelist approached the question of scaling crop-residue-based packaging from a different point in the system.

Vinuta Gopal (CEO, Asar) spoke about reframing residue from a nuisance to a resource — one that can support farmers, reduce pressure on forests, and anchor low-carbon supply chains. She emphasised designing solutions that genuinely work for small and marginal farmers.

Navin Singhania (Founder and CEO, Barracuda Technologies) drew on his experience with material innovation to highlight the realities of scaling. Technology exists, he said, but its success depends on stable feedstock, predictable offtake, and clear investment signals.

Jai Kumar Gaurav (Senior Advisor, Climate Change and Circular Economy, GIZ India) shared on-the-ground challenges from a farmer-organisation perspective, including how current collection systems operate, the constraints farmers face, and learnings from the CBG (Compressed bio gas) supply chains. 

Pavan Khaitan (Vice Chairman & Managing Director, Kuantum Papers Limited) offered a clear mill-side reality check: mills are ready to innovate, but solutions must align with actual crop patterns, water availability, and the behaviour of fibre on existing machines. He emphasised that long-term demand signals matter as much as technology. “We can innovate,” he noted, “but only if the system around us moves in step.”

Mr. Deepinder Dhillon (Startup Punjab & Invest Punjab) offered a startup and investment lens, stressing Punjab’s move toward a more innovation-driven economy that must grow sustainably. He pointed to new ventures already converting paddy straw into high-value products and noted that real scale will depend on aligning markets, policy, and industry around circular solutions.

The Next Gen Showcase and Visual Sense-Making

Canopy curated a small Next Gen materials showcase with packaging and paper samples made from wheat and paddy straw. Handling the materials helped participants shift the focus decisively from “Can this work?” to “What will it take to scale this responsibly?”

Throughout the day, visual sense-maker Indrajit Sinha illustrated the conversations in real time. His drawings captured connections, tensions, and pathways in a way that made the dialogue accessible and memorable.

Looking Ahead

The Chandigarh convening is an early step in a longer process. Canopy will be publishing an insights report synthesising the key questions, opportunities, and areas where further work is needed, including infrastructure, policy, and investment considerations. 

 

For readers who want to explore the broader landscape of Next Gen materials in India, we invite you to read our report, Unlocking India’s Next Gen Economy.

Pictured in header photo: ZOË CARON, Strategic Lead, Global Investments, SANAM WAZIR, Asar, VINUTA GOPAL, CEO & Director, Asar), SHRUTI SINGH, Country Director, India, SHYAM SINGH RANA, Hon’able minister of Agriculture and Farmers' Welfare Minister of Haryana, MANMOHAN PARKASH, Former Deputy Director General (South Asia), Asian Development Bank, VALERIE LANGER, Strategic Lead, Next Generation Solutions, KHUSHBU MAHESHWARI, Senior Corporate Campaigner, India