Biomass & Briquette Market in India: Exploring Price Patterns and the Nation’s Increasing Move Toward Biofuel Solutions
India’s green energy sector is undergoing swift transformation, with biomass emerging as a key contributor in the nation’s eco-friendly power strategy. The rising adoption of biomass briquettes and other forms of renewable fuel has created a dynamic market 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 affordable, sustainable substitutes to coal and other fossil fuels.
The rising awareness of clean fuel usage 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 energy independence, particularly for village-based enterprises and small factories.
Understanding Biomass and Its Role in India’s Energy Sector
Biomass potential in India comprises a wide array of natural residues available from farmlands, forests, and biodegradable waste. With over 500 million tonnes of agricultural residue generated annually, the country holds huge potential for biomass-based power and heat production. This resource can be converted into different usable fuels such as briquettes, pellets, biochar, and biogas, thereby providing renewable options over coal and oil.
Biomass energy is particularly beneficial for industries that rely on continuous heat generation—such as cement plants, textile mills, and food factories. These sectors have increasingly turned to biomass briquettes as a sustainable and affordable option for traditional fuels. In addition to minimising pollution, the widespread use of biomass supports local livelihoods and utilises waste effectively that would otherwise go to waste.
Production and Composition of Briquette Coal
Briquette coal is manufactured through high-pressure densification such as crop residues, wood shavings, and other biodegradable waste 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 a more efficient and cleaner burn.
Depending on the feedstock, briquette coal can be categorised into biomass briquettes, bio coal, or mixed blends. While biomass briquettes are made purely from organic waste, carbonised briquettes often contain a small portion of carbon matter for higher combustion efficiency. Their heating value typically ranges from about 3500–5000 kcal per kilogram, depending on the organic mix and manufacturing process.
Briquette Price Trends Across India
The price of biomass briquettes per kg in India is influenced by several core variables, including feedstock supply, logistics, and market trends. In key biomass-producing regions such as Punjab and Maharashtra, the abundance of crop residues like rice husk and sugarcane bagasse keeps production costs relatively low. In contrast, urban and industrial areas 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 off-seasons or when transport challenges arise, prices may fluctuate upward from supply constraints. Despite these variations, briquettes remain an economical alternative to coal, which can cost almost double per energy output.
Biomass Briquettes vs Conventional Coal
The replacement of coal by biomass fuel 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 maintain green standards. Their even density promotes stable burning, 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, and long-term air quality decline. Its extraction and transportation processes are also energy-intensive and harmful to ecosystems. By replacing even a portion of coal demand through renewable substitutes, India can greatly reduce emissions while promoting localised fuel production.
Biomass in India: Policy Support and Market Growth
Government initiatives have significantly contributed in expanding the biomass sector. Policies promoting renewable energy, carbon reduction, and rural employment have encouraged industries to adopt biomass-based fuels. The Ministry of New and Renewable Energy (MNRE) has supported the development of biomass power plants and briquetting units through various incentive schemes.
Additionally, green energy credits and policy mandates have provided economic motivation for clean-fuel users. With the government’s focus on achieving net-zero emissions by 2070, biomass energy is set to become a cornerstone of India’s sustainable energy roadmap. The creation of organised marketplaces and digital trading platforms has further improved efficiency and reach, enabling buyers and sellers to connect more efficiently.
Obstacles Affecting India’s Biomass Briquette Sector
Despite its promising growth, the biomass briquette sector faces several barriers. Seasonal variations in raw material supply can lead to unstable output rates. The inconsistent heating efficiency 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, limited awareness about the long-term economic and environmental benefits remains a key challenge for expansion. Addressing these issues through upgraded logistics, standard guidelines, and public outreach 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 enhances farmer earnings through residue monetisation. Environmentally, briquettes help combat climate change and improve air quality.
As the market continues to mature, innovations in briquetting technology, moisture control, and waste utilisation are expected to make production cheaper and faster. The establishment of small-scale plants close to farms can further cut logistic expenses and improve accessibility.
Final Thoughts
India’s biomass sector represents a critical opportunity for balancing sustainability with inclusive progress. The increasing demand for biomass fuel 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 briquette coal short-term fluctuations. With continued investment, policy support, and innovation, biomass energy is set to become one of the key pillars of India’s renewable energy future.