This study aims to examine the adverse environmental impact and potential causes of the dubious agricultural practice of agricultural crop residue (ACR) burning which prevails in the northwest region of India. It also evaluates the alternatives for sustainable management of ACR and investigates the associated policy as well as functional challenges against the widespread adoption of these alternatives. To achieve the research purpose, a field study was conducted at the Panipat district of Haryana. As a part of this three-month-long field study, the outlook of state and local administration responsible for regulating ACR burning practices was obtained through semi-structured interviews. Additionally, farmers' viewpoints were gathered through focus group interviews. The estimates of atmospheric emissions from ACR burning in Panipat were calculated using the United Nation (UN)'s Intergovernmental Panel on Climate Change (IPCC) guidelines. Strategies for mitigating the environmental impact of ACR burning are recommended.