Solution:

• Estimates indicate that up to 80% of rice residues are burnt by farmers in Punjab. Collection and storage of such a huge quantity of residue is neither practically feasible nor economical.
• Therefore need for providing a cost effective and farmer friendly option for the management of rice residue is both an urgent need as well as an opportunity for the sustainability of the intensive rice -wheat
cropping system in north-west India.
• Alternative measures have long been suggested by scientists and agriculturalists over the past decade to counter crop residue burning, but due to a lack of awareness and social consciousness among the farmers these measures have not been fully implemented.

• The options open for utilizing rice residue include livestock fodder, livestock bedding, insitu incorporation, composting, generating electricity, mushroom cultivation, paper and pulp board manufacturing ,roof thatching, biogas( anaerobic digestion). Hence options 1, 2 and 3 are correct.
• Black soldier fly degrade lignocelluloses in rice straw for biodiesel production. Hence option 4 is correct.

Hence Option D is the correct choice.