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 becoming a major pillar 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 briquettes price per kg has become a crucial factor affecting fuel procurement decisions, especially as industries pursue low-cost, environment-friendly options 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 pivotal role in reducing carbon emissions and promoting energy independence, particularly for rural industries and small-scale manufacturing units.
Understanding Biomass and Its Role in India’s Energy Sector
Biomass in India includes numerous organic sources available from crop residues and organic matter. With over half a billion tonnes of crop waste produced each year, the country holds immense potential for biomass utilisation in power generation and thermal energy. This resource can be converted into various forms of energy such as solid, liquid, and gaseous biofuels, thereby providing clean substitutes for conventional fossil fuels.
Industries needing consistent thermal output benefit greatly from biomass fuel—such as cement, textile, and food processing units. These sectors have increasingly turned to bio-coal briquettes as a green, low-cost substitute for traditional fuels. In addition to minimising pollution, the widespread use of biomass creates rural job opportunities and utilises waste effectively that would otherwise go to waste.
How Briquette Coal Is Made and Its Composition
Biomass briquette fuel is created by compacting dry biomass such as agricultural and forestry waste into dense fuel logs or 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 classified as biomass, biocoal, or hybrid briquettes. While standard briquettes rely fully on organic matter, bio coal briquettes often contain a small portion of carbonised material to increase heat output. Their heating value typically ranges from about 3500–5000 kcal per kilogram, depending on the feedstock type and compaction level.
Understanding the Cost of Briquettes per Kilogram in India
The cost of briquette fuel per kilogram in India is influenced by several core variables, including raw material availability, regional demand, transportation costs, and seasonal variations. In states with strong agro bases like Maharashtra, Punjab, and Haryana, the ready supply of biomass feedstock keeps manufacturing affordable. In contrast, cities and industrial belts where raw materials need to be transported from rural regions tend to experience higher pricing.
On average, the price of biomass briquettes ranges between ?6 and ?10 per kilogram, depending on calorific value and production efficiency. During harvest periods, when supply is abundant, prices tend to be more affordable. However, in rainy seasons or energy-demand surges, prices may increase because of shortages and logistical delays. Despite these variations, briquettes remain a cost-effective fuel compared to traditional coal, which can cost significantly more per unit of heat energy produced.
How Biomass Briquettes Differ from Traditional Coal
The replacement of coal by briquette coal biomass fuel offers multiple advantages in terms of environmental sustainability and operational efficiency. Briquettes generate minimal smoke and ash, which helps industries meet environmental regulations. Their uniform size ensures consistent combustion, reducing operational downtime. 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, air pollution, and environmental degradation. 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 bioenergy projects and briquette industries 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 recognised as an essential pillar of India’s green growth plan. The creation of structured biomass markets has further simplified procurement and pricing, enabling fair market participation.
Challenges Facing the Biomass Briquette Market
Despite its rapid progress, the biomass briquette sector faces several limitations. Inconsistent residue supply across seasons can lead to variability in supply. The inconsistent heating efficiency also hampers market reliability. In some regions, supply chain inefficiencies increase the overall cost of delivery, making coal a cheaper short-term alternative.
Furthermore, limited awareness about the long-term economic and environmental benefits remains a major limitation. Addressing these issues through enhanced production systems and policy support could help strengthen sectoral confidence and expansion.
Advantages of Using Biomass 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 briquetting technology, moisture control, and waste utilisation are expected to make production smoother and cost-effective. The establishment of decentralised briquette production units near agricultural zones can further stabilise supply throughout the year.
Conclusion
The nation’s biomass industry stands as a key pillar for achieving sustainable energy goals while addressing rural economic development. The increasing demand for bio coal and compressed bio briquettes reflects a nationwide transition toward cleaner and more affordable fuels. Although the biomass briquette cost may differ by area and timing, the long-term benefits of using biomass as an energy source far outweigh short-term fluctuations. With ongoing technological development and government backing, biomass energy is set to become one of the key pillars of India’s renewable energy future.