Punjab Struggles to meet demand for Baler Machines

This season, there's a significant demand for baler machines in Punjab due to their profitability. More than 6,800 farmers, custom hiring centers (CHCs), and village panchayats have applied for these machines with subsidies. The government aimed to provide 1,300 balers, but it's expected to fall short, with only 1,000 to 1,100 likely to be available.

The primary reason for the shortage is that there are only two export-oriented baler manufacturing units in India, located in Pune and Rajkot. These units cannot meet Punjab's high demand.

Profitability of baling paddy straw

Paddy straw is valuable as it sells for around ₹250-300 per quintal during the harvest season, rising to ₹500-600 per quintal in the off-season. Each acre of paddy produces about 25 quintals of straw, fetching farmers ₹6,000 to ₹15,000, making it nearly as profitable as selling the paddy itself.

In Punjab, around 1,000 entrepreneurs collect and sell paddy stubble, and approximately 1,000 more are expected to join this season. However, they face challenges like limited storage space and a lack of a streamlined system for selling the straw.

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Paddy straw has various uses, including as biomass fuel, and it's essential for reducing air pollution caused by stubble burning, which creates a smog hazard, particularly in North India.

Government subsidies and incentives

The government provides subsidies to individual farmers and CHCs, offering 50% and 80% subsidies, respectively, on the cost of the machines. These machines are part of efforts to manage paddy stubble both in-situ (mixing it into the soil) and ex-situ (removing it from the fields) to discourage burning.

The shortage of balers hampers businesses focused on collecting and selling paddy straw, affecting farmers and the environment. Despite the challenges, entrepreneurs are eager to expand their operations to address the growing demand for sustainable straw management in Punjab.

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