A simple demand side approach for estimating the monetary value of agricultural residues used as biofuels is proposed. Some of the important issues involved in the use of biomass feedstocks in coal-fired boilers are briefly discussed along with their implications for the maximum acceptable price estimates for the agricultural residues. Results of some typical calculations are analysed along with the estimates obtained on the basis of a supply side approach (based on production cost) developed earlier. The prevailing market prices of some agricultural residues used as feedstocks for briquetting are also indicated. The results obtained can be used as preliminary indicators for identifying niche areas for immediate/short-term utilization of agriculture residues in boilers for process heating and power generation.