SC seeks govt, OMCs' reply on biodiesel off-take plea by producers' body

The Supreme Court sought a response from the government and OMCs on a petition by biodiesel producers citing poor off-take, policy lapses and heavy losses despite set targets

The Supreme Court has sought a response from the Union government and oil marketing companies (OMCs) within three weeks on a petition filed by the Biodiesel Association of India (BDAI) over the limited off-take of biodiesel from producers.

 

According to the association, the biodiesel industry is facing a “severe crisis” due to repeated breaches of government assurances under the 2018 National Biofuel Policy, non-purchase by the OMCs and sudden price cuts.

 

The government had set a target of 5 per cent biodiesel blending by 2030 under the National Policy on Biofuels, which also included the 20 per cent ethanol blending target for petrol. However, India’s biodiesel blending rate has slipped to a mere 0.60 per cent in FY25, far behind the target and deadline, according to an India Ratings (Ind-Ra) report.

   

“We invested based on government promises. Today, thousands of families, crores of rupees, and India’s clean-fuel goals are at risk. We only seek fair enforcement of the policy and justice. Our appeal now is simply for proper implementation of the policy and to ensure the safety of our industry and families,” said Dharamvirsingh Gangasingh Rajpurohit, vice president of the Biodiesel Association of India. 

 

The association said entrepreneurs had set up more than 150 biodiesel plants across the country on the assurance of the Ministry of Petroleum and Natural Gas (MoPNG) that all biodiesel produced would be purchased.

 

OMCs, however, did not begin purchasing biodiesel despite repeated requests to the ministry and senior authorities, the association said. The OMCs also reduced the off-take price to Rs 80 per litre in 2025 from Rs 91–101 per litre in 2024, causing a loss of more than Rs 21 per litre for producers, it added.

 

The BDAI further noted that while ethanol orders were enforced and expanded, biodiesel orders were repeatedly deferred. At the same time, the industry has not been allowed domestic retail sales or exports, leaving producers dependent on a single buyer.