Amritsar grower builds Rs.6-crore residue trade
Amritsar, Oct. 31 -- Four years ago, Amarjit Singh cultivated just 13 acres in Jagdev Kalan near Amritsar. Today, the matriculate farmer operates a multi-district crop residue trading network generating an annual turnover of Rs.6 crore, with net seasonal returns reaching Rs.70 lakh to Rs.80 lakh.
Starting in 2022, Amarjit scaled his field machinery into a fleet that now includes four balers, nine tractors, and eight heavy trailers, while expanding operations into commercial storage and multi-state distribution. "Earlier, we only cut paddy straw and prepared bales for factory workers to haul away," Amarjit said. "Now, we manage nine dedicated stockyards across Amritsar and Tarn Taran districts to store bales year-round."
Capitalising on rising industrial demand for clean fuel, Amarjit supplies biomass to power units and manufacturing plants in Pathankot, Jammu, Kathua, and Talwara, selling bales at an average rate of Rs.500 a quintal last season. Beyond his own baling operations, Amarjit trades residue by buying up straw dumps from smaller operators, with negotiations underway to acquire four additional stockyards. To formalise the growing business, he registered two trading firms, including one managed by his son Anmolpreet Singh, a business administration student at Guru Nanak Dev University. External suppliers now account for 75% of his firm's total trading volume.
The venture employs 70 workers from adjoining villages for field aggregation, loading, and yard logistics. However, Amarjit says that rising fuel, labour, and transport costs have compressed operating margins over the past two seasons.
Looking to move up the value chain, Amarjit plans to establish a Rs.12-crore biomass pellet manufacturing plant in Jagdev Kalan to supply industrial boilers in the Delhi-NCR region. The proposed facility would be the first pellet plant in Amritsar district. He also plans to expand his ex-situ operations beyond paddy to aggregate residue from maize, wheat, and sugarcane crops year-round....
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