The circular bioeconomy movement can change how we see waste

The Plate and the Planet is a monthly column by Dr. Madhura Rao, a food systems researcher and science communicator, exploring the connection between the food on our plates and the future of our planet.

India – one of the world’s largest food producers – loses an estimated 40 percent of its produce annually. This colossal waste not only squanders natural, technological, and human resources, but also costs the economy an estimated Rs 926.51 billion every year, adding to its existing strain. Unlike in developed countries, where the majority of food waste comes from consumers’ homes and supermarkets, food waste (or more accurately, food loss) in India primarily occurs before food reaches retailers or consumers. This is largely due to inefficiencies in post-harvest storage, transportation, and distribution. A lack of proper cold chain infrastructure leads to spoilage, especially for perishable items like fruits, vegetables, dairy, and meat. Inadequate warehousing and poor handling practices result in grain losses, and market oversupply causes vendors to discard large quantities of food. 

Addressing these inefficiencies should be the first priority, as investments in better storage, transportation, and market linkages can significantly reduce food loss at the source. However, even with improved infrastructure, some agricultural and food materials will inevitably end up as waste due to factors such as logistical challenges imposed by the country’s geography and a changing and increasingly unpredictable climate. The circular bio-economy movement, which emphasises reducing waste and repurposing resources into valuable products, offers a transformative pathway to turn these “inevitable” losses into economic and environmental gains.

What is a circular bio-economy? 

The circular bio-economy builds on the principles of a circular economy, which aims to minimise waste by sharing, reusing, repairing, and recycling materials for as long as possible; ensuring that only what is truly unusable is discarded. The concept was born in the 1970s and 80s, out of the necessity to change the unsustainable consumption patterns of the traditional ‘take-make-dispose’ model, also known as the ‘linear economy’. 

Creating a circular bio-economy involves applying this principle in the context of biological resources such as agricultural surpluses, wastewater, and forestry by-products. However, given the perishable nature of these resources, it is not possible to recycle them in the same way that one would materials like metals, glass, and electronic waste. While these materials can be recycled multiple times, creating a nearly perfect loop, biological materials are typically repurposed across different applications through creative and innovative processes before they eventually break down and return to the environment. 

In recent years, the circular bioeconomy movement has gained momentum worldwide as governments and industries seek sustainable alternatives to resource-intensive production models. The agrifood industry is an important focus, but there is also a growing interest in circularity principles from other sectors of the bio-economy. The textile industry, for instance, consumes vast amounts of water and synthetic chemicals, but circularity-inspired innovation such as developing bio-based fibres from agricultural residues, scaling up textile recycling, and using biodegradable dyes can reduce waste and environmental impact. Similarly, the biofuel and bioenergy sector, often seen as a greener alternative to fossil fuels, still relies on resource-intensive monocultures and has large land-use footprints. However, by embracing circularity principles, this sector can shift towards advanced biofuels derived from agricultural waste, algae, and organic by-products, reducing competition with food production while improving overall sustainability.

The European Union has placed the bioeconomy at the core of its sustainability policies, investing in bio-based industries, regenerative agriculture, and waste-to-energy solutions while emerging economies in Latin America and Africa are leveraging circular strategies to tackle post-harvest losses, food insecurity, and rural development challenges. Across Asia, governments and businesses are also adopting this model to address food and agricultural waste. In South Korea, for example, the government has successfully mandated food waste recycling, diverting over 95% of food waste from landfills by converting it into livestock feed, compost, and bioenergy. Meanwhile, China is converting agricultural waste into biofuels, strengthening recycling systems, and investing in circular innovations to reduce waste and maximise resource efficiency.

Also read: Is a world without farmers possible?

What does a circular food system look like? 

When the circular bio-economy philosophy is applied to food systems, surplus food and by-products are turned into valuable resources, making the best possible use of the nutritional and biochemical properties of food. This is popularly referred to as ‘upcycling’ and can be done in several ways. For example, spent grains from breweries, which would otherwise go to waste, can be repurposed into nutritious flour for baking bread, biscuits, and other baked goods. Similarly, fish processing by-products, such as bones and trimmings, can be converted into fishmeal and fish oil for animal feed and aquaculture, or repurposed into bioactive compounds used in pharmaceuticals and cosmetics.

Another example is integrated farming systems, where livestock like chickens are raised not only for eggs and meat but also to help manage food scraps, acting as natural waste processors. Their manure, in turn, serves as organic fertiliser, enriching soil health and reducing the need for synthetic alternatives. Also, mushroom cultivation presents a valuable opportunity in the circular bioeconomy, as mushrooms can be grown on agricultural by-products such as coffee grounds, spent grains, or fruit and vegetable pulp, transforming what would be waste into a nutritious food source. Once the mushrooms have been harvested, the remaining substrate can be used as compost to enrich soil.

Beyond food production, organic waste that can no longer be repurposed for consumption can still generate value through biogas production, converting food scraps into renewable energy while producing digestate, a nutrient-rich by-product that can be used as fertiliser. Similarly, surplus food and agricultural residues can be processed into biomaterials for sustainable packaging or edible coatings, replacing plastic and reducing reliance on fossil fuel-based materials.

Also read: How ancient recipes are reclaiming India’s plate

What’s holding India back?

Frugal innovation lies at the core of the circular economy, and India has long embraced this philosophy across industries and everyday life. Although many traditional agricultural and culinary practices align with circular principles, scaling up circular initiatives is riddled with systemic barriers.

One of the biggest obstacles is the lack of financial and infrastructural support for circular innovations. While large-scale agribusinesses benefit from subsidies and existing infrastructure, small and medium-sized enterprises and farmers working on circular initiatives struggle with high upfront costs and limited access to credit. Government policies still favour linear production models, with subsidies promoting water-intensive crops, chemical fertilisers, and large-scale monoculture farming, rather than supporting regenerative or circular approaches. Redirecting these subsidies towards sustainable agriculture, waste-to-value initiatives, and decentralised food processing could accelerate the transition.

Beyond financial barriers, circular farming remains difficult to scale due to weak knowledge-sharing networks and limited technical support. Many farmers engaged in circular agriculture are driven by a strong pro-environmental mindset. However, they often lack access to structured training or best practices, forcing them to rely on trial and error to implement circular methods. Circular farming is not unknown to farmers; they even admit that the information is “simple and easily available,” but concentrated in the hands of a few organisations that want to profit off of making it seem difficult. From Rajasthan to Madhya Pradesh, farmers are learning by doing. Unlike conventional farming, where techniques are passed down through generations, circular farming lacks a robust support system. Strengthening peer-learning networks, training programmes, and extension services could provide much-needed guidance for farmers and small-scale entrepreneurs looking to transition.

Another challenge is weak market linkages, meaning that food producers and buyers are not well connected to each other. This issue is compounded by supply chain inefficiencies such as delays and poor coordination in transferring produce, side-streams, and surpluses between different stages of production; further preventing circular food systems from scaling. Many farmers and small enterprises producing organic, low-waste, or upcycled food products lack access to stable markets or distribution networks, making it difficult to compete with cheaper, industrially produced alternatives.

In many Indian households, wasting less is an ingrained domestic habit. However, applying these principles at scale is not straightforward or cheap.

Strengthening farm-to-market linkages, investing in cold storage and transport infrastructure, and creating financial incentives for sustainable food businesses would help address this gap. The central government can play a role in this by redirecting subsidies toward sustainable food production and expanding financial support for circular initiatives. However, state governments are equally critical in implementing region-specific policies and infrastructure projects. Additionally, social enterprises, farmer cooperatives, and local food collectives can step in to create alternative distribution networks, offering market access to small producers and upcycled food ventures. Public-private partnerships could also facilitate investment in storage and logistics, ensuring that perishable food items reach the market with minimal losses.

Also read: Sowing trust through community-supported agriculture

In addition to these efforts, another major bottleneck must be overcome – the lack of a strategic regulatory or policy framework. Unlike in countries such as the Netherlands and China, where circular economy principles are embedded in national policies, India lacks clear guidelines, incentives, and enforcement mechanisms to promote sustainable food production and processing. Establishing goals at the national and state levels for using resources more efficiently, implementing environmental laws focused on improved waste management, and incentivising the purchase of sustainably made products could provide the necessary structure for businesses and farmers to adopt circular practices more widely.

Repurposing waste and by-products should become the norm rather than an added-value feature. Ideally, circular food production should not come at a higher cost, as in principle, using waste streams should be more cost-effective than relying on virgin raw materials.

Finally, limited consumer awareness and demand remain barriers to the adoption of products produced by applying circularity principles. In many Indian households, wasting less is an ingrained domestic habit. However, applying these principles at scale is not straightforward or cheap. Farmers and food producers must go against established supply chains, invest in alternative processing, and bear additional costs. As a result, products made using circular principles often come at a higher price due to the added costs of alternative processing, labour, and supply chain adjustments. However, consumers may not perceive the added value. Some may assume that food producers already minimise waste as a standard practice, while others may question why they should pay a premium for what is essentially ‘leftover’ or repurposed material. Unlike other, better-established sustainable foods such as organic, circular food lacks a clear consumer narrative, making it harder to justify its higher price point. Without strong messaging, eco-labelling, and consumer awareness campaigns, these products struggle to gain traction.

However, while consumer-focused measures in this regard would be a step in the right direction, the long-term goal should be for circularity to become an inherent part of the food system. Repurposing waste and by-products should become the norm rather than an added-value feature. Ideally, circular food production should not come at a higher cost, as in principle, using waste streams should be more cost-effective than relying on virgin raw materials. However, achieving this will require systemic changes, including better-designed supply chains, incentives for waste-to-value innovations, and policy support to level the playing field between circular and conventional production. Once these structural barriers are addressed, circular practices can be integrated seamlessly into food production, reducing costs and making sustainability the default rather than an exception.

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