PANAJI
Amid concerns raised by the Food and Drugs Administration (FDA) over the possible diversion of used cooking oil (UCO) for unauthorised use due to price fluctuations, biofuel company BiofuelCircle has proposed paying hotels, restaurants, casinos and other food establishments Rs 42 per kg for the oil under a transparent pricing mechanism linked to prevailing diesel prices.
In a proposal submitted to the Goa Energy Development Agency (GEDA), the company has sought to establish a technology-enabled collection and trading system, with BiofuelCircle functioning as the single authorised collection and trading entity for used cooking oil in the State.
The proposed pricing model links the procurement price of used cooking oil to the prevailing high-speed diesel (HSD) price in Goa. Under the formula, Rs 10 per litre is deducted from the HSD price to arrive at the proposed landed price of biodiesel, followed by a further deduction of Rs 36 to account for aggregation, logistics, storage, testing, transportation, conversion and other operational costs.
The company has stated that Goa generates significant quantities of used cooking oil from hotels, restaurants, casinos and food manufacturing units, but much of it remains outside an organised collection system. This, it said, poses environmental and public health risks through improper disposal or reuse.
The proposed digital platform would connect UCO generators, collection partners and biodiesel manufacturers, enabling traceability of collected oil, transparent price discovery and payments to suppliers.
BiofuelCircle has also projected savings of Rs 10 per litre compared with bulk HSD purchase prices, besides highlighting the potential for import substitution, carbon emission reduction and the development of a circular economy.
The proposal is aligned with the National Biofuel Policy, 2018, and the Food Safety and Standards Authority of India's Repurpose Used Cooking Oil (RUCO) initiative.
Meanwhile, the FDA, in its submission to GEDA, has called for a fixed price slab for used cooking oil, mandatory registration of all collectors and their agents, online tracking of collections, penalties for violations and incentives for food business operators (FBOs) complying with the policy.
The FDA has proposed that the price slab be determined based on prevailing biodiesel market rates and manufacturing costs. It said this would help prevent collectors from exploiting the existing system to divert used cooking oil into unauthorised channels.
