BioE3 Policy: Boosting Bio-Based Chemicals and Enzymes in India

India is giving priority to bio-based chemicals and enzymes under the Department of Biotechnology’s BioE3 Policy.

• The India enzymes market is consolidated in nature with top players accounting for more than 75% of the market share.
• Companies such as Novozymes India, DuPont, DSM, Advance Enzyme Technologies, BASF SE, and Ultreze Enzymes Private Limited are key players in the Indian market.

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About Bio-based chemicals

• These are industrial chemicals produced using biological feedstocks like sugarcane, corn, starch, or biomass residues, often through fermentation or enzymatic processes.
• For Example:
  • Organic acids (such as lactic acid),
  • Bio-alcohols,
  • solvents, surfactants, and
  • Intermediates used in plastics, cosmetics, and pharmaceuticals.

Why does India need such chemicals?

• Strong Agricultural Base: India has a vast agricultural sector that provides abundant biomass and crop residues, which can serve as raw materials for bio-based chemicals and enzymes.
• Expertise in Fermentation Technologies: India has strong experience in fermentation processes due to its well-established pharmaceutical and vaccine industries, giving it a technological advantage in bio-manufacturing.
• Growing Manufacturing Capacity: An expanding industrial and manufacturing sector creates the necessary infrastructure to scale up production of bio-based chemicals and enzymes.
• Reducing Import Dependence: Promoting bio-based alternatives can lower reliance on imported petrochemicals. For instance, India imported nearly $479.8 million worth of acetic acid in 2023, highlighting the scope for domestic production.
• Economic and Strategic Benefits: Expanding this sector can create new markets for agricultural produce, increase farmer incomes, support sustainable industry, and position India as a global supplier of eco-friendly industrial inputs.

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Challenges in Developing Bio-Based Chemicals Sector

• Cost Competitiveness: Bio-based chemicals are often more expensive than petrochemical alternatives, especially in the early stages of scale-up.
  • This temporary cost disadvantage creates a major entry barrier and discourages private investment.
• Feedstock and Infrastructure Constraints: Reliable availability of biomass feedstocks and adequate supporting infrastructure are critical.
  • Inconsistent supply chains and limited processing facilities can hinder large-scale production.
• Market Adoption Challenges: Adoption depends on whether bio-based chemicals can easily replace existing petrochemical inputs in manufacturing systems.
  • Even when prices are comparable, downstream industries may hesitate to shift due to technological and supply-chain adjustments.

Way Forward

• Shared Biomanufacturing Infrastructure: Developing biofoundries, pilot plants, and demonstration facilities under initiatives like BioE3 can reduce capital risks and support scaling for private firms.
• Standards and Policy Support: Clear standards, certification mechanisms, and government procurement policies can create assured demand, strengthen investor confidence, and accelerate market adoption.

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