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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 clean energy portfolio. The rising adoption of bio mass briquettes and other forms of renewable fuel has created a vibrant marketplace for producers and industrial buyers. In recent years, the briquettes price per kg has become a significant factor affecting fuel procurement decisions, especially as industries look for low-cost, environment-friendly options to coal and other fossil fuels.

The rising awareness of clean fuel usage has driven 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 crucial role in cutting greenhouse gas output and promoting self-sufficiency in energy, particularly for village-based enterprises and small factories.

Defining Biomass and Its Importance in India’s Power Mix

India’s biomass resources comprises a wide array of natural residues 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 different usable fuels such as briquettes and pellets as well as bio-oil and biogas, thereby providing sustainable alternatives to coal and petroleum-based 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 clean-burning, cost-efficient replacement for traditional fuels. In addition to reducing emissions, the widespread use of biomass supports local livelihoods and utilises waste effectively that would otherwise go to waste.

How Briquette Coal Is Made and Its Composition

Biocoal briquettes is manufactured through high-pressure densification such as crop residues, wood shavings, and other biodegradable waste into compressed shapes of uniform size. The process eliminates moisture and enhances the calorific value, making it suitable for industrial boilers and furnaces. These briquettes are uniform in size, easy to transport, and generate minimal ash content, ensuring eco-friendly burning and less residue.

Depending on the raw input, 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 charcoal to enhance calorific value. Their heating value typically ranges from 3,500–5,000 kcal/kg on average, depending on the organic mix and manufacturing process.

Analysing Briquettes Price per Kg in India

The price of biomass briquettes per kg in India is influenced by several major determinants, 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 bio mass briquettes 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.

Comparing Biomass Briquettes and Traditional Coal

The substitution of coal with bio mass 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 maintain green standards. Their standardised form enhances boiler efficiency, reducing equipment maintenance and improving energy output. Moreover, briquettes are derived from sustainable sources, as the carbon dioxide released during combustion is offset through photosynthesis.

In contrast, traditional coal contributes heavily to greenhouse gas emissions, and long-term air quality decline. Its extraction and transportation processes 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 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 grants and funding initiatives.

Additionally, green energy credits and policy mandates have provided monetary benefits to eco-conscious industries. With the government’s focus on achieving net-zero emissions by 2070, biomass energy is recognised as an essential pillar of India’s sustainable energy roadmap. The creation of structured biomass markets has further simplified procurement and pricing, enabling fair market participation.

Challenges Facing the Biomass Briquette Market

Despite its promising growth, the biomass briquette sector faces several challenges. Fluctuating feedstock availability can lead to unstable output rates. The absence of uniform product standards also reduces buyer confidence. In some regions, supply chain inefficiencies 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 improved infrastructure, better quality control, and government-backed awareness campaigns could help build resilience in the coming years.

Economic and Ecological Value of Biofuel 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 machinery design and feedstock management 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.

Final Thoughts

India’s biomass sector represents a critical opportunity for balancing sustainability with inclusive progress. The increasing demand for briquette coal and biomass briquette fuel 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 consistent public and private sector engagement, biomass energy is set to become one of the key pillars of India’s renewable energy future.

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