The problem
Loose residue is not a fuel.
A heap of cotton stalk or groundnut shell has energy in it, but almost no energy density. It burns fast and dirty, it cannot be stored compactly, and it is not worth the diesel to transport. So it gets burned in the field instead.
Meanwhile the same households buy or gather fuelwood, because that is the only dense heat available to them.
Densification
Pressure turns residue into fuel.
Under high compression the lignin in the biomass softens and acts as a natural binder, locking the particles into a solid block — no chemical binder needed.
The result carries far more energy per unit volume than the loose material, stacks and stores like firewood, and can be handled and sold by the sack.
Indoor air
The smoke is the point.
Household air pollution from solid cooking fuel is among the largest environmental health burdens in rural India, and it falls hardest on the women and children who spend hours at the stove.
Fuelwood smoulders at low temperature with poor air supply and releases a heavy load of particulates. A dense, dry, uniform briquette burns hotter and more completely, producing markedly less visible smoke in the same stove.
The exchange
Which is what buys us the feedstock.
Briquettes are not a side business. They are the mechanism that makes collection work: villages supply residue, and receive briquettes back at concessional rates.
No cash needs to change hands in either direction for the loop to close — which matters, because a cash-only collection model is exactly what has stopped residue aggregation from working before.
Note on carbon: briquettes are combusted, so their carbon returns to the atmosphere. That carbon is not claimable as removal. Only soil-applied biochar is counted.