Agricultural development and village development are complementary to each other therefore for the development of a panchyat or a village the development in the field of agriculture is necessary. But the technique used for exploiting the natural resources for increasing the productivity is making the soils infertile and the use of pesticides is directly affecting the human health. Organic farming is the key for solving these problems. It is the organic farming only which can help the soil to regain its fertility. Bio- composting is a process in organic farming in which all type of organic wastes is transformed in to the manure by different processes. Panchayats can play a very vital role in creating awareness and implementing the bio- composting techniques in the villages. Panchayats can create awareness among the local farmers about this technique of bio-composting and benefits of this technique. Panchayats can help in providing funds to the farmers who will be adopting this technique. This technique will help the farmers to save the cost of fertilizers and manure and there is not much technical expertise needed. Bio- composting will help the Panchayats by saving the cost of treatment of organic waste which give an aesthetic appearance to the area. Bio - composting can be done on centralized basis in the village also which will be handled by the Panchayats and will help Panchayats to earn revenues and also help in development of the village.