[Online Quarterly Update] India Biodiesel market demand stood at 0.17 Million Tonnes in FY2021 and is forecast to reach 0.26 Million Tonnes by FY2030, growing at a healthy CAGR of 8.60% until 2030. Increasing crude oil import bills has made the Indian government switch to domestic fuel alternatives with Biodiesel, which is serving as the main game-changer. With the initiation of the National Policy on Biofuels in 2019, the demand for Biodiesel is set to witness an upward trend in the coming years. India’s initiative towards promoting cleaner fuels is all set to elevate the country’s overall Biodiesel demand. As India’s primary energy demand is all set to double in the next two decades, the use of cleaner fuel alternatives will continue to spur the sales of Biodiesel as a fuel. The transport sector, railways, and industries are the major Biodiesel end-users in India and offer vast potential to the biofuel market.
Biodiesel is mainly manufactured from the oil-bearing seeds of Jatropha Curcas plants which are cultivated by Indian farmers. However, due to a shortage of Jatropha seeds, other multiple feedstock technologies are being used to produce Biodiesel. For example, used cooking oils, animal fats and imported crude vegetable oils (such as Palm Oil) are also being used by several producers for manufacturing Biodiesel. Blended with conventional diesel and used as fuel in railways and other commercial vehicles, Biodiesel has a vast potential to act as a substitute for conventional fossil fuels to enhance the country’s energy demand. COVID-19 has impacted the biodiesel market adversely as the disruption in the supply chain was observed due to import-export restrictions imposed by the leading authorities to contain the novel coronavirus. However, post COVID-19 lockdown the market is expected to pick up the pace eventually.
The demand for biofuels is shifting towards emerging economies, which are working towards framing policies that favor the domestic biofuels market. India’s biofuel production accounts for only one percent of the global production and hence this market is still a niche in the country. As the Central Government is providing support to the domestic players to tap the potential for India’s Biodiesel market, many players are investing in this sector. The transportation sector is one of the major consumers of Biodiesel, followed by the energy and construction sector where it is used in operations. Strong Indian government support is also attracting international players to enter for biofuel business in India.
Years Considered for this Report:
Historical Years: FY2015 – FY2020
Base Year: FY2021
Estimated Year: FY2022
Forecast Period: FY2023– FY2030
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Objective of the Study:
• The primary objective of the study was to evaluate and forecast Biodiesel capacity, production, demand, inventory, and demand–supply gap in India.
• To categorize Biodiesel demand in India based on end use, grade, region, and sales channel.
• To study trade dynamics and company share in the India Biodiesel market.
• To identify major customers of Biodiesel in India.
• To evaluate and forecast Biodiesel pricing by grade in the India Biodiesel market.
• To identify and profile major companies operating in the India Biodiesel market.
• To identify major news, deals, and expansion plans in the India Biodiesel market.