The price of Biodiesel in India (in spite of increase in price of crude oil) has not increased proportionately to
meet the increasing raw material costs, thus rendering Biodiesel production in the country commercially
unviable. The manufacturers of Biodiesel in India are facing tremendous pressure in running their plants
profitably. As a result, most Biodiesel plants are either closed or are operating at very low capacity.
Economically sustainable and stable price is a motivating factor which can build the confidence level of the
investors and thereby attract adequate capital to this sector. Achieving an economically viable pricing model
for Biodiesel and Crude Jatropha Oil will attract and sustain investments in the Biodiesel sector both from
domestic as well as international players. This will also provide clarity in the direction in which we wish to
move in the renewable energy portfolio and subsequent research and development.
To address these issues, a Core Committee was constituted in association with Confederation of Indian
Industry’s National committee on Biofuels under the chairmanship of Mr. Ajit K Gupta, Adviser Ministry of
New & Renewable Energy. The committee has finalized this report after an extensive process of deliberation
and consultation with various stakeholders. I am extremely thankful to all the members who contributed
directly and indirectly towards the successful completion of the project. The draft report was shared with
various experts and their comments have been taken into consideration while preparing the final report.
The report of the Committee provides a very comprehensive understanding about the pricing of Biodiesel in
India and recommendations to put the Biofuels economy on a sustainable higher growth path.