Foundries Development Foundation exchanging a memorandum of understanding with Germany-based VDMA at the inauguration of Inter Foundry and Inter DieCast event in Coimbatore city on Thursday.
| Photo Credit: S. SIVA SARAVANAN

While the Union Government’s latest push for Compressed Biogas (CBG) provides a more stable framework for offtake, industry observers and senior government officials say the next major imperative is to establish an efficient supply chain for procuring, storing and managing feedstock. This will be critical to ensuring both the viability of CBG plants and the quality of their output.

Press mud, agricultural residues such as paddy and wheat straw, and animal manure are among the most commonly used feedstocks for CBG production. However, each has its own logistical challenges, particularly because of seasonal availability, transportation requirements and storage constraints.

With the aim of accelerating the growth of CBG in India, the Union Cabinet on August 9 approved a revamped GOBARdhan (Galvanising Organic Bio-Agro Resources Dhan) scheme with an outlay of ₹23,731 crore. The scheme, which will remain in place until 2036, seeks to increase CBG production nearly tenfold.

Speaking to The Hindu, Gaurav Kedia, Chairman of the Indian Biogas Association (IBA), emphasised that the type of feedstock and the proximity of a CBG plant to its source are crucial for ensuring a consistent supply. He also cautioned against long-distance transportation that could undermine the environmental benefits of CBG by increasing fossil-fuel consumption.

“Supply chain feasibility becomes important. We see [within] 25-km radius as a viable option,” Mr. Kedia said.

A senior government official similarly stressed that the quality of feedstock is critical, as it directly influences the quality of CBG produced and the long-term sustainability of a plant.

Press mud and cattle dung, according to Mr. Kedia, need to be sourced close to the plant because of their high moisture content and perishable nature. Paddy straw, by comparison, can be transported over longer distances, but it must first be baled and stored appropriately.

Cattle dung presents a further challenge because it is typically dispersed across a wide geographical area. Collecting and transporting sufficiently large quantities may therefore prove economically unviable. Press mud and paddy straw also pose seasonal supply challenges.

Press mud is the solid residue left after sugarcane processing. Since sugar mills generally operate for only four to five months a year, the material must be stored temporarily and transported to CBG plants in a timely manner.

Paddy straw, meanwhile, is available mainly during the harvesting periods of Kharif and Rabi crops. Collection must be completed within a short window—typically around 15 days—before farmers prepare their fields for the next crop. This makes rapid collection and field clearance essential.

Storage creates another set of challenges. Large quantities of agricultural residue must be stored in a manner that prevents fire hazards, particularly during the summer months. During the monsoon, the feedstock must also be protected from moisture, which can affect its quality and suitability for processing.

Another important component of the supply chain is farmer outreach. Mr. Kedia said an aggregator-based model could help bridge the gap between farmers and CBG plants.

“The prescribed model is to have an aggregator to supply the feedstock. Farmers may not want to enter into a legally binding contract like industries for social reasons, and this is where an aggregator pitches in to facilitate the outreach and supply [CBG plants] the feedstock,” he stated.

The senior government official said aggregators could also provide farmers with bio-slurry generated during the CBG production process, which can be used as an organic fertiliser.

Depending on the technology used, gas yield from cow dung is approximately 6%, while paddy straw and other agricultural residues can yield around 10% or more, they said, adding the resulting bio-slurry can subsequently be returned to farmers for use as an organic fertiliser, creating an additional link between CBG production and agricultural activity.

Industry observers and officials also recommend that CBG plants be designed to process multiple feedstocks rather than depend on a single source.

A diversified feedstock mix could make plants more resilient to seasonal fluctuations while improving their bargaining power in procurement, according to Mr Kedia.

The senior government official suggested that a plant having a complementarity of press mud and sugarcane could be an ideal set-up.

Published – August 22, 2026 07:38 pm IST

Singapore:

Boeing and Airbus struck deals to sell billions of dollars’ worth of planes at this week’s airshow in Singapore, but supply chain disruptions mean they may struggle to deliver them on time, analysts said.

Plane makers are already behind in their current orders due to parts shortages and lack of skilled labour, as the travel sector recovers from the havoc caused by the Covid-19 pandemic.

From engines and seatbelts to wiring and screws, a single plane needs millions of parts from suppliers across the world, making them vulnerable to supply chain hiccups.

Among the major deals announced at Asia’s biggest airshow, which ends Sunday, was an order by Thai Airways for 45 Boeing 787 Dreamliners, while Royal Brunei Airlines bought four of the popular model. 

Europe’s Airbus said it secured a commitment from Vietnamese carrier Vietjet Air to purchase 20 of its A330-900 aircraft, with the first delivery due in 2026. 

That might be optimistic.

Aviation analyst Shukor Yusof said Boeing and Airbus had already indicated that some of their popular models would be unavailable until 2030.

“The new orders will struggle to be delivered as continued shortages in labour and raw materials, problems in logistics as well as energy costs prevail,” said Shukor, founder of consultancy Endau Analytics. 

“Raising production rates will be very tough to achieve. You’re not making hand phones.”

The delays mean airlines cannot offer more seats and will be stuck with older, less fuel-efficient planes, which may dent their profits, Shukor said.

– ‘Major bottlenecks’ – 

Problems across the supply chain were caused largely by the pandemic when restrictions and border closures disrupted shipments of raw materials and led to layoffs of pilots, flight attendants, baggage handlers and aircraft mechanics. 

The war in Ukraine also interfered with oil supplies and triggered higher costs for goods and services worldwide. 

As Covid-19 eased, air travel returned with a vengeance on pent-up demand, leaving manufacturers, airlines, airports and suppliers struggling to keep up. 

The supply chain “has become a major bottleneck, a major issue, holding capacity coming back into the market, aircraft delivery delays,” said Brendan Sobie, an analyst with independent consultancy Sobie Aviation. 

Parts shortages have led to planes spending more time waiting for maintenance, while engine problems have forced aircraft to be grounded, he added.

Boeing said each 787 Dreamliner needed around 2.3 million parts, with some made by the company and others sourced from suppliers worldwide, according to its website. 

Airbus has thousands of direct and indirect suppliers from more than 100 countries from where it sources parts, components, systems and services, the company said on its website. 

International Air Transport Association director-general Willie Walsh told a seminar ahead of the airshow that supply chain issues were “likely to continue for a few more years”.

Labour shortages were another problem.

Boeing said last year the industry would need 649,000 pilots, 690,000 maintenance technicians and 938,000 cabin crew members over the next 20 years “to support the commercial fleet and meet long-term growth in air travel”. 

Shukor said some airlines that let go of pilots during the pandemic were finding it hard to hire them back, while manufacturers were struggling to find highly specialised aircraft mechanics and technicians, who need time to be trained and get licenced. 

Many were “no longer interested in coming back” to the industry because Covid proved their jobs were not secure, Shukor said. 

Michael Szucs, chief executive of Philippine carrier Cebu Pacific, said his airline had been forced to ground 10 planes which may increase to 16 this year due to problems in the Pratt & Whitney engines. 

The carrier was also affected by delays from Airbus. 

“We’ve got a shortfall in capacity either through aircraft grounded or aircraft not arriving on time,” Szucs told AFP at the airshow. 

“It’s just never been more difficult to keep the fleet flying.” 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)