They Didn’t Burn the Paddy Straw. They Grew a Packaging Business From It

Every winter, paddy straw becomes part of North India’s pollution problem. For IIT graduates Anand Bodh and Arpit Dhupar, the same agricultural residue became the raw material for a very different business — biodegradable packaging that can replace conventional thermocol.

The duo founded Dharaksha Ecosolutions in 2020 after looking for a practical way to use crop residue that farmers otherwise struggle to dispose of economically. The startup collects paddy straw from Punjab and Haryana and combines it with mycelium, the root-like network of fungi, to grow protective packaging material. The business now reportedly generates annual turnover of around ₹2.5 crore.

The process begins with collected straw being compressed into bales, chopped and steamed. Dharaksha then introduces its own specially developed mushroom strain, allowing the mycelium to grow through the agricultural waste and bind it into a solid structure. The material can then be moulded according to the shape of the product it needs to protect.

Unlike petroleum-based foam packaging, Dharaksha says its material decomposes naturally in soil in roughly 60 days while offering a shelf life of more than three years. The company also claims the packaging can withstand moisture and heat and offers fire-retardant and anti-static properties.

The founders initially put about ₹45 lakh of their own savings into the company. Dharaksha later attracted investors including Zerodha cofounder Nithin Kamath and former MakeMyTrip executive Anshuman Bapna. Earlier disclosures cited in the report said the startup had collected around 750 tonnes of straw from more than 250 acres during one season.

What makes Dharaksha’s model interesting is the inversion at its core: the material usually associated with smoke and disposal costs becomes the input for a commercial packaging product. Instead of manufacturing foam from fossil-based materials, Dharaksha is effectively growing packaging from farm waste.