Indian Biomass and Briquette Market: Examining Price Movements and the Expanding Transition to Biofuel Options
India’s renewable energy landscape is rapidly evolving, with biomass emerging as a key contributor in the nation’s sustainable energy mix. The rising adoption of bio-fuel briquettes and other forms of eco energy has created a dynamic market for manufacturers, suppliers, and users alike. In recent years, the briquettes price per kg has become a crucial factor shaping industrial energy preferences, especially as industries pursue affordable, sustainable substitutes to coal and other fossil fuels.
The growing emphasis on cleaner energy has accelerated the demand for biocoal briquettes—a densified, eco-friendly fuel derived from agricultural waste, sawdust, and other organic residues. 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 rural production sectors.
Understanding Biomass and Its Role in India’s Energy Sector
India’s biomass resources comprises a wide array of natural residues available from farmlands, forests, and biodegradable waste. 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 briquettes, pellets, biochar, and biogas, thereby providing renewable options over coal and oil.
Industries needing consistent thermal output benefit greatly from biomass fuel—such as cement plants, textile mills, and food factories. These sectors have increasingly turned to bio mass briquettes as a clean-burning, cost-efficient replacement for traditional fuels. In addition to minimising pollution, the widespread use of biomass contributes to rural employment and adds value to farm by-products that would otherwise go to waste.
Manufacturing and Material Structure of Briquette Coal
Briquette coal is manufactured through high-pressure densification such as farm residues, sawdust, and organic materials into compressed shapes of uniform size. The process improves heat efficiency through drying, making it suitable for high-demand industrial use. These briquettes are uniform in size, easy to transport, and generate minimal ash content, ensuring eco-friendly burning and less residue.
Depending on the feedstock, briquette coal can be categorised into biomass briquettes, bio coal, or mixed blends. While pure biomass briquettes use only non-carbonised residue, hybrid 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 feedstock type and compaction level.
Analysing Briquettes Price per Kg in India
The cost of briquette fuel per kilogram in India is influenced by several key factors, including raw material availability, regional demand, transportation costs, and seasonal variations. In key biomass-producing regions such as Punjab and Maharashtra, the abundance of crop residues like rice husk and sugarcane bagasse keeps manufacturing affordable. In contrast, non-agricultural zones where raw materials need to be transported from rural regions tend to experience increased costs.
On average, the price of biomass briquettes typically falls in the ?6–?10/kg range, depending on heat value and quality control. During peak agricultural seasons, when supply is abundant, prices tend to stabilise. However, in monsoon months or during high-demand industrial periods, prices may increase because of shortages and logistical delays. Despite these variations, briquettes remain an economical alternative to coal, which can cost much higher per thermal unit.
How Biomass Briquettes Differ from Traditional Coal
The shift from coal to biomass briquettes offers multiple gains in terms of clean energy transition and cost control. Briquettes burn more cleanly, producing less sulphur dioxide and particulate matter, 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 demand through renewable substitutes, India can significantly cut its carbon footprint while supporting rural fuel economies.
Government Support and Biomass Sector Expansion in India
Government initiatives have been instrumental in advancing renewable biofuel markets. Policies promoting renewable energy, carbon reduction, and rural employment have encouraged industries bio mass briquettes to adopt biomass-based fuels. The MNRE and related departments has supported the development of bioenergy projects and briquette industries through subsidies and financial assistance programs.
Additionally, green energy credits and policy mandates have provided financial incentives for companies using biomass fuels. With the government’s focus on a carbon-neutral India by 2070, biomass energy is recognised as an essential pillar of India’s long-term energy strategy. The creation of structured biomass markets has further enhanced transparency and accessibility, enabling smoother trade operations.
Obstacles Affecting India’s Biomass Briquette Sector
Despite its rapid progress, the biomass briquette sector faces several limitations. Fluctuating feedstock availability can lead to unstable output rates. The lack of standardisation in quality and calorific value also creates uncertainty for industrial users. In some regions, logistical bottlenecks and transportation costs increase the final price for end-users, making coal a cheaper short-term alternative.
Furthermore, limited awareness about the long-term economic and environmental benefits remains a barrier to widespread adoption. Addressing these issues through enhanced production systems and policy support could help strengthen sectoral confidence and expansion.
The Economic and Environmental Benefits of Bio Mass Briquettes
The adoption of biomass briquettes provides both financial and ecological benefits. For industries, transitioning to biomass lowers operational expenditure and emission costs. On a macroeconomic level, it enhances farmer earnings through residue monetisation. Environmentally, briquettes limit forest depletion, lower carbon impact, and control air pollution.
As the market continues to mature, innovations in machinery design and feedstock management 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.
Summary
The nation’s biomass industry stands as a key pillar for meeting clean energy targets and supporting rural growth. The increasing demand for biomass fuel and compressed bio briquettes reflects a shift toward renewable energy alternatives. Although the fuel briquette rate may vary across regions and seasons, the sustained advantages surpass temporary challenges. With consistent public and private sector engagement, biomass energy is set to become one of the key pillars of India’s renewable energy future.