Biomass & Briquette Market in India: Exploring Price Patterns and the Nation’s Increasing Move Toward Biofuel Solutions
India’s renewable energy landscape is rapidly evolving, with biomass playing a significant role in the nation’s sustainable energy mix. The rising adoption of biomass briquettes and other forms of bio-based fuel has created a growing sector for producers, traders, and consumers alike. In recent years, the price per kg of briquettes has become a crucial factor shaping industrial energy preferences, especially as industries pursue cost-effective and eco-friendly alternatives to coal and other fossil fuels.
The growing emphasis on cleaner energy has accelerated the demand for briquette coal—a compressed, carbon-neutral energy source derived from farm residues, wood dust, and biodegradable materials. As India works toward its renewable energy targets, bio-based energy sources are playing a crucial role in cutting greenhouse gas output and promoting self-sufficiency in energy, particularly for village-based enterprises and small factories.
Defining Biomass and Its Importance in India’s Power Mix
India’s biomass resources refers to the vast range of organic materials available from agriculture, forestry, and organic waste streams. With over 500 million tonnes of agricultural residue generated annually, the country holds considerable potential for using biomass in industrial energy generation. This resource can be converted into multiple energy formats such as briquettes, pellets, biochar, and biogas, thereby providing sustainable alternatives to coal and petroleum-based fuels.
Biomass energy is particularly beneficial for industries that rely on continuous heat generation—such as manufacturing, textile, and agro-processing sectors. These sectors have increasingly turned to biomass briquettes as a clean-burning, cost-efficient replacement for traditional fuels. In addition to reducing emissions, the widespread use of biomass contributes to rural employment and utilises waste effectively that would otherwise go to waste.
How Briquette Coal Is Made and Its Composition
Biomass briquette fuel is produced by compressing dry organic matter such as agricultural and forestry waste into solid cylindrical or rectangular blocks. The process improves heat efficiency through drying, making it suitable for large-scale industrial applications. These briquettes are consistent in shape, portable, and produce very little ash, ensuring a more efficient and cleaner burn.
Depending on the source material, briquette coal can be divided into various types like biomass or carbonised blends. While biomass briquettes are made purely from organic waste, bio coal briquettes often contain a small portion of charcoal to enhance calorific value. Their heating value typically ranges from 3,500–5,000 kcal/kg on average, depending on the composition and density of the material used.
Analysing Briquettes Price per Kg in India
The price of biomass briquettes per kg in India is influenced by several major determinants, including feedstock supply, logistics, and market trends. In key biomass-producing regions such as Punjab and Maharashtra, the easy access to agro-waste keeps prices competitive. In contrast, non-agricultural zones where raw materials need to be shipped over long distances tend to experience price escalation.
On average, the price of biomass briquettes typically falls in the ?6–?10/kg range, depending on heat value and quality control. During times of biomass surplus, when supply is abundant, prices tend to remain steady. However, in monsoon months or during high-demand industrial periods, prices may rise due to limited feedstock availability and increased transportation costs. Despite these variations, briquettes remain a cost-effective fuel compared to traditional coal, which can cost much higher per thermal unit.
How Biomass Briquettes Differ from Traditional Coal
The replacement of coal by biomass fuel offers multiple advantages in terms of eco performance and production reliability. Briquettes emit fewer pollutants and toxic gases, which helps industries comply with emission norms. Their standardised form enhances boiler efficiency, reducing machine wear and boosting performance. Moreover, briquettes are renewable and carbon-neutral, as the carbon dioxide released during combustion is balanced naturally through vegetation cycles.
In contrast, conventional coal fuels add to major pollution, and long-term air quality decline. Its mining and logistics are also destructive to land and wildlife. By replacing even a portion of coal usage in factories with bio-briquettes, India can move closer to net-zero goals while promoting localised fuel production.
Policies and Growth Drivers for Biomass Energy in India
Government initiatives have played a major role in developing India’s biomass energy base. Policies promoting sustainability and job creation have encouraged industries to adopt biomass-based fuels. The MNRE and related departments has supported the development of biomass generation facilities through various incentive schemes.
Additionally, carbon credit mechanisms and renewable purchase obligations (RPOs) have provided economic motivation for clean-fuel users. With the government’s focus on a carbon-neutral India by 2070, biomass energy is set to become a cornerstone of India’s green growth plan. The creation of structured biomass markets has further simplified procurement and pricing, enabling buyers and sellers to connect more efficiently.
Challenges Facing the Biomass Briquette Market
Despite its promising growth, the biomass briquette sector faces several challenges. Seasonal variations in raw material supply can lead to inconsistent production levels. The inconsistent heating efficiency also hampers market reliability. In some regions, distance from raw material sources increase the overall cost of delivery, making coal a temporary but less sustainable choice.
Furthermore, insufficient education on biomass advantages remains a barrier to widespread adoption. Addressing these issues through improved infrastructure, better quality control, and government-backed awareness campaigns could help bio mass briquettes build resilience in the coming years.
Economic and Ecological Value of Biofuel Briquettes
The adoption of biomass briquettes provides both financial and ecological benefits. For industries, switching to briquettes reduces fuel expenses, maintenance costs, and environmental compliance penalties. On a broader economic front, it stimulates rural economies and promotes waste utilisation. Environmentally, briquettes reduce deforestation, curb greenhouse gas emissions, and minimise waste burning.
As the market grows steadily, innovations in machinery design and feedstock management are expected to make production smoother and cost-effective. The establishment of rural briquette hubs can further stabilise supply throughout the year.
Final Thoughts
India’s renewable fuel sector offers a major chance for meeting clean energy targets and supporting rural growth. The increasing demand for biomass fuel and bio mass briquettes reflects a country-wide movement toward sustainable energy use. Although the fuel briquette rate may vary across regions and seasons, the sustained advantages surpass temporary challenges. With consistent public and private sector engagement, India is on track to make biomass a cornerstone of its green energy future.