PANAJI
The Goa Energy Development Agency (GEDA)-led committee has unanimously recommended fixing the procurement price of used cooking oil at Rs 40 per litre for an initial period of six months, in a move aimed at regulating its collection, preventing unauthorised trade and ensuring that the discarded cooking oil is channelled towards biodiesel production.
The recommendation, if approved by the State government, will significantly bring down the prevailing market price of used cooking oil, which is currently being procured at approximately Rs 80 per litre.
The decision was taken at a review meeting held on October 26, chaired by the Managing Director of GEDA, where representatives of various stakeholders, including the Food and Drugs Administration (FDA), Travel and Tourism Association of Goa (TTAG), restaurant and caterers' associations, biodiesel manufacturers and other agencies, deliberated on finalising the procurement price.
“The committee unanimously agreed to recommend a purchase price of Rs 40 per litre for an initial six-month period. It was also decided to constitute a committee to audit the operations during this period. Based on the assessment and reconciliation of operations after six months, any revision in the price will be placed before the government for approval,” sources said.
The proposed price regulation comes against the backdrop of concerns raised by biodiesel manufacturers that the prevailing procurement rate of around Rs 80 per litre makes it commercially unviable to use or refine the collected oil into biodiesel.
During the meeting, the TTAG representative pointed out that reducing the procurement price from the existing market rate of approximately Rs 80 to Rs 40-Rs 45 per litre could face resistance from bulk used cooking oil generators, particularly hotels and restaurants.
However, it was clarified that procurement at inflated prices was defeating the very purpose of the used cooking oil management policy, as the oil was either being exported outside the country or potentially misused by certain agencies by bringing it back into the food chain, posing health risks to consumers.
The meeting also agreed to adopt the suggestions submitted by the FDA to strengthen implementation of the national Repurpose Used Cooking Oil (RUCO) policy in Goa, which aims to prevent the reuse of cooking oil beyond permissible safety limits and ensure its conversion into biodiesel.
Among the proposed measures is stricter enforcement of the Food Safety and Standards Authority of India (FSSAI) requirement that cooking oil exceeding 25 per cent Total Polar Compounds (TPC) must be discarded and diverted exclusively for biodiesel production. The FDA has also suggested risk-based inspections of commercial kitchens using portable TPC testing equipment, statutory fines for food business operators and unauthorised collection agents violating the regulations, and an online dashboard to track collection volumes.
Under the proposed supply chain mechanism, aggregators will be permitted to store used cooking oil and supply it only to refiners established in Goa with permission from the Directorate of New and Renewable Energy (DNRE) or GEDA. The refiners, in turn, will test the oil for quality and sell the biodiesel exclusively to the Kadamba Transport Corporation Limited (KTCL) at a rate notified by the Indian Oil Corporation or the Ministry of Petroleum and Natural Gas, which will be Rs 10 per litre below the prevailing diesel price in the State.
The committee also discussed the need to strengthen the local processing infrastructure, with suggestions for establishing a dedicated biodiesel manufacturing facility in Goa to reduce transportation costs and improve payments to local suppliers.
