Biomass & Briquette Market in India: Exploring Price Patterns and the Nation’s Increasing Move Toward Biofuel Solutions
The renewable energy domain in India is witnessing rapid evolution, with biomass playing a significant role in the nation’s clean energy portfolio. The rising adoption of bio-fuel briquettes and other forms of renewable fuel has created a vibrant marketplace for producers and industrial buyers. In recent years, the price per kg of briquettes has become a key factor shaping industrial energy preferences, especially as industries look for cost-effective and eco-friendly alternatives to coal and other fossil fuels.
The increasing focus on renewable power has accelerated the demand for compressed biomass briquettes—a compressed, carbon-neutral energy source derived from agricultural waste, sawdust, and other organic residues. As India advances in achieving its renewable energy targets, biomass-based fuels are playing a important role in reducing carbon emissions and promoting self-sufficiency in energy, particularly for rural industries and small-scale manufacturing units.
Defining Biomass and Its Importance in India’s Power Mix
Biomass potential in India includes numerous organic sources available from agriculture, forestry, and organic waste streams. With over half a billion tonnes of crop waste produced each year, the country holds immense potential for using biomass in industrial energy generation. This resource can be converted into different usable fuels such as briquettes, pellets, biochar, and biogas, thereby providing clean substitutes for conventional fossil fuels.
Biomass energy is particularly beneficial for industries that rely on continuous heat generation—such as cement, textile, and food processing units. These sectors have increasingly turned to bio mass briquettes as a green, low-cost substitute 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
Biomass briquette fuel is created by compacting dry biomass such as agricultural and forestry waste into compressed shapes of uniform size. The process improves heat efficiency through drying, making it suitable for large-scale industrial applications. These briquettes are compact, easy to handle, and ensure clean combustion, ensuring eco-friendly burning and less residue.
Depending on the source material, briquette coal can be divided into various types like biomass or carbonised blends. While pure biomass briquettes use only non-carbonised residue, bio coal briquettes often contain a small portion of carbon matter for higher combustion efficiency. Their heating value typically ranges from 3,500–5,000 kcal/kg on average, depending on the feedstock type and compaction level.
Briquette Price Trends Across India
The cost of briquette fuel per kilogram in India is influenced by several major determinants, including feedstock supply, logistics, and market trends. In agricultural states such as Maharashtra, Punjab, Haryana, and Uttar Pradesh, the abundance of crop residues like rice husk and sugarcane bagasse keeps manufacturing affordable. In contrast, cities and industrial belts 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 harvest periods, when supply is abundant, prices tend to be more affordable. However, in off-seasons or when transport challenges arise, prices may fluctuate upward from supply constraints. Despite these variations, briquettes remain cheaper than most fossil fuels, which can cost almost double per energy output.
Comparing Biomass Briquettes and Traditional Coal
The substitution of briquette coal coal with bio mass briquettes offers multiple advantages in terms of environmental sustainability and operational efficiency. Briquettes burn more cleanly, producing less sulphur dioxide and particulate matter, which helps industries comply with emission norms. Their even density promotes stable burning, reducing machine wear and boosting performance. Moreover, briquettes are eco-renewable and emission-balanced, as the carbon dioxide released during combustion is reabsorbed by new plant growth.
In contrast, conventional coal fuels add to major pollution, and long-term air quality decline. Its production and supply chain are also highly polluting and resource-draining. By replacing even a portion of industrial coal consumption with biomass briquettes, India can greatly reduce emissions while encouraging domestic biomass industries.
Government Support and Biomass Sector Expansion in India
Government initiatives have played a major role in advancing renewable biofuel markets. Policies promoting sustainability and job creation have motivated businesses to switch to bioenergy. The Ministry of New and Renewable Energy (MNRE) has supported the development of bioenergy projects and briquette industries through subsidies and financial assistance programs.
Additionally, carbon trading programs and RPO compliance rules have provided monetary benefits to eco-conscious industries. With the government’s focus on achieving net-zero emissions by 2070, biomass energy is positioned as a key component of India’s sustainable energy roadmap. The creation of online biofuel exchanges and transparent trade systems 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 barriers. Inconsistent residue supply across seasons can lead to inconsistent production levels. The absence of uniform product standards also hampers market reliability. In some regions, logistical bottlenecks and transportation costs increase the final price for end-users, making coal a temporary but less sustainable choice.
Furthermore, insufficient education on biomass advantages remains a major limitation. Addressing these issues through improved infrastructure, better quality control, and government-backed awareness campaigns could help stabilise the market and ensure sustainable growth.
Advantages of Using Biomass Briquettes
The adoption of biomass briquettes provides both economic and environmental gains. For industries, transitioning to biomass lowers operational expenditure and emission costs. On a broader economic front, 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 processing efficiency and drying techniques are expected to make production more efficient and affordable. The establishment of rural briquette hubs can further reduce transportation costs and ensure year-round availability.
Summary
The nation’s biomass industry stands as a key pillar for balancing sustainability with inclusive progress. The increasing demand for briquette coal and compressed bio briquettes reflects a nationwide transition toward cleaner and more affordable fuels. Although the briquettes price per kg may fluctuate geographically and seasonally, the long-term benefits of using biomass as an energy source far outweigh short-term fluctuations. With ongoing technological development and government backing, biomass will play a defining role in India’s clean energy era.