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 advances in achieving its renewable energy targets, bio-based energy sources are playing a important role in reducing carbon emissions and promoting energy independence, 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 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 crop residues, wood shavings, and other biodegradable 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 compact, easy to handle, and ensure clean combustion, ensuring cleaner combustion compared to traditional coal.
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 3500 to 5000 kcal/kg, depending on the feedstock type and compaction level.
Briquette Price Trends Across India
The price of biomass briquettes per kg in India is influenced by several core variables, including availability of residues and distance from production sites. In agricultural states such as Maharashtra, Punjab, Haryana, and Uttar Pradesh, 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 heat value and quality control. 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 an economical alternative to coal, which can cost significantly more per unit of heat energy produced.
How Biomass Briquettes Differ from Traditional Coal
The replacement of coal by biomass fuel offers multiple gains in terms of eco performance and production reliability. Briquettes emit fewer pollutants and toxic gases, which helps industries meet environmental regulations. Their even density promotes stable burning, 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, air pollution, and environmental degradation. Its mining and logistics are also energy-intensive and harmful to ecosystems. By replacing even a portion of coal usage in factories with bio-briquettes, India can move closer to net-zero goals while encouraging domestic biomass industries.
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 renewable energy, carbon reduction, and rural employment have motivated businesses to switch to bioenergy. The national renewable energy authorities has supported the development of biomass power plants and briquetting units 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 long-term decarbonisation goals, biomass energy is positioned as a key component of India’s long-term energy strategy. The creation of online biofuel exchanges and transparent trade systems has further improved efficiency and reach, biomass in india enabling smoother trade operations.
Barriers and Issues in the Biomass Briquette Industry
Despite its strong potential, the biomass briquette sector faces several barriers. Inconsistent residue supply across seasons can lead to unstable output rates. The absence of uniform product standards also reduces buyer confidence. 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 build resilience in the coming years.
Advantages of Using Biomass Briquettes
The adoption of bio mass briquettes provides both commercial and green advantages. For industries, using briquettes minimises expenses and regulatory risks. On a national scale, it supports local economies by creating demand for agricultural residues and offering new income streams for farmers. Environmentally, briquettes help combat climate change and improve air quality.
As the market expands and develops, innovations in briquetting technology, moisture control, and waste utilisation are expected to make production cheaper and faster. The establishment of decentralised briquette production units near agricultural zones can further cut logistic expenses and improve accessibility.
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 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.