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Pakistan's eastern provinces are very badly affected by haze and smog caused by burning of rice straw and stubbles after reaping season. This practice causes emission of greenhouse gases and pollutant materials which not only has severe health consequences but also the main source of traffic disturbance and accidents due to poor visibility. A ban on burning of crop residue deems to be ineffective without alternative means and consultation of farmers. Previous studies were aimed to figure out causes, contributing factors and impacts of stubble burning, but largely ignored farmers choices and market environment. In this study, a survey-based farmers' preference order was obtained through hybrid AHP-TOPSIS model. The analysis traces out why most of the farmers prefer open field burning. The present study proposes a national residue management service (NRMS) platform based on preferences of the alternatives and considering market externalities. This research provides an appropriate mechanism and policy suggestions to policy makers and practitioners that may help in minimising the environmental impacts due to improper management of the crop residue.