A study commissioned by Federation of Indian Chambers of Commerce & Industry has highlighted major gaps in the supply of used cooking oil (UCO), raising concerns about its availability for biodiesel production in India.
The report shows that out of 72 registered biodiesel plants, nearly 40 percent do not have any formal link with UCO aggregators. Among the rest, 19 units are connected to just one aggregator, 10 have ties with two, and 14 are linked to between three and eleven aggregators. In addition, 17 biodiesel plants are themselves involved in collecting used cooking oil, The Hindu Businessline reported.
According to the study, this uneven distribution points to a weak collection network. It said a stable system would typically involve multiple aggregators operating in the same area to manage supply changes, seasonal variations, and quality differences. The current structure, it noted, reflects an underdeveloped system rather than an efficient one.
The report, titled “Transitioning the Chemical Industry: Used Cooking Oil as a Renewable Feedstock for Enabling India’s Material Transition,” has recommended making UCO collection mandatory to improve supply for biodiesel and other uses. However, it added that without clear direction on how the oil should be used, it is likely to continue flowing mainly into biodiesel due to existing policy support.
While stronger enforcement could improve collection, the study warned that without a clear system for allocating UCO across different sectors, its full value may not be realised or could be lost through exports.
Looking at global practices, the study noted that China has strengthened its collection systems to prevent the illegal reuse of waste cooking oil. Despite this, much of the collected oil is still used for biodiesel or exported, with limited use in other industries.
In the United States, used cooking oil—known as “yellow grease”—is collected through strict disposal rules for food businesses. Its use is largely guided by fuel-related incentives that support biodiesel and renewable diesel production.
The study also pointed to India’s dependence on imported crude oil, which has become more visible amid global tensions in West Asia. It said increasing the use of domestic resources like used cooking oil could help reduce reliance on imports and improve supply stability for key industries.
