# CBG scaling hinges on efficient feedstock supply chain

2026-08-22T16:43:34+00:00 | Governance | Indian Opinion Desk

Corroboration: 1 independent outlet

Industry observers and government officials say the next major challenge for India's Compressed Biogas (CBG) sector is building an efficient supply chain for feedstock procurement, storage and management. The issue comes into focus after the Union Cabinet approved a Rs 23,731 crore revamped GOBARdhan scheme on August 9, aiming to nearly tenfold CBG production by 2036. Feedstocks such as press mud, paddy straw, cattle dung and agricultural residues each pose unique logistical hurdles. Press mud and cattle dung must be sourced close to plants due to high moisture and perishability, while paddy straw requires baling and rapid collection within a 15-day window before the next crop sowing. Storage must prevent fire hazards in summer and moisture damage during monsoons. Experts recommend an aggregator-based model to connect farmers with CBG plants, as farmers may avoid long-term contracts. They also advise designing plants to process multiple feedstocks for seasonal resilience. The Indian Biogas Association chairman said a 25-km radius is a viable sourcing distance to preserve environmental benefits.

## Indian Opinion Analysis

The GOBARdhan scheme's success depends on solving the logistics of waste-to-energy at scale, a problem that has stymied earlier biofuel targets. The real bottleneck is not demand but supply: CBG plants need predictable daily feedstock tonnes, while farm waste is seasonal, scattered and heavy to move. An aggregator model already works in sugarcane procurement via sugar mills, but applying it to paddy straw and dung at a national scale is untested. The Rs 23,731 crore outlay must cover not just plant subsidies but also collection hubs, balers and storage sheds. Watch for the detailed scheme guidelines on aggregator licensing and feedstock price support, expected in coming months.

## Coverage

- thehindu.com <https://www.thehindu.com/business/Industry/feedstock-sourcing-the-next-critical-lever-for-scaling-cbg-ecosystem/article71377520.ece>
  Straight reporting of industry and official views on supply chain challenges, with no framing favouring or criticising the government

This story was synthesised by AI from the source linked above.

Tags: compressed biogas, Gaurav Kedia, GOBARdhan scheme, Indian Biogas Association
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