India is an agriculture-based economy and most of the crops are grown due to suitable weather conditions therefore, various crop residues having significant energy potential are available in abundance. Some of the agro-residues and agro-processing wastes are consumed during the processing of refined product particularly, for generating heat while some remains unconsumed, estimated to be more than 300 million ton/yr. Jaggery is one such activity where the requirement of heat is met by the bagasse, which is a by-product of the sugarcane itself. However, traditional jaggery making is an energy-intensive process that utilizes the bagasse to produce heat in an open-hearth furnace leading to huge emissions of harmful pollutants into the environment. These emissions need to be assessed and technical interventions are required to reduce the levels of pollutants that are being released from traditional plants leading to sustainable utilization of agro-residues. In this article, an attempt has been made to estimate the thermal efficiency and annual emissions of CO and PM2.5 from different jaggery making units viz. varying in the number of pans. Further, emission reduction potentials from traditional jaggery plants have been calculated and compared to the proposed modified plant having improved combustion characteristics. The result obtained, indicates that the emissions of CO and PM2.5 from the traditional jaggery making units could be reduced up to 91.23 -95.36% and 97.10 -98.47%, respectively.