Buyofuel, Honda Trading sign agreement to build biofuel supply chain in India
Buyofuel, Honda Trading sign agreement to build biofuel supply chain in India
Honda Trading Corporation India, the Indian subsidiary of Honda Trading Corporation, has announced to have signed an MoU and a long-term commercial agreement with Indian biofuel company Buyo India Pvt. Ltd. (Buyofuel) for the supply of biofuels and their feedstocks.
Based on this agreement, Honda Trading and Buyofuel will establish a robust and stable supply system for the Indian domestic market, supported by thorough quality control and traceability. In September 2026, the companies sequentially began supplying ethanol feedstock (corn) to biofuel manufacturers.
In India, demand is expected to expand further in the future, driven by the government’s promotion of biofuel adoption.
However, challenges remain, including the development of an efficient system for collecting, storing, and transporting feedstock scattered in rural areas, and the reduction of logistics costs associated with a distribution structure that passes through multiple operators and locations. Furthermore, large amounts of agricultural residues in rural areas remain unutilized, and there is a need to create a mechanism for their effective use that will lead to increased income for small-scale farmers.
To address these challenges, this partnership will build an efficient and sustainable biofuel supply chain by combining Honda Trading India’s cultivated trading expertise and know-how in procurement, logistics, and business operations with Buyofuel’s digital platform, procurement network, and knowledge in the biofuel sector. Specifically, a stable supply of unutilized agricultural residues will be ensured by developing a logistics network that utilizes direct procurement from farmers and collection and relay points, and by managing supply and demand based on data.
Through this, the partnership aims to create revenue opportunities for farmers and enable stable and efficient feedstock procurement for biomass businesses.
Joji Murakami, President of Honda Trading Corporation India, stated, “In Buyofuel we found a partner with real depth of knowledge, a strong supplier network and a transparent way of working. We look forward to growing this business together over the long term.”
Through this initiative, both the companies will contribute to expanding the use of biofuels and promoting decarbonization in India.
The Honda Trading Group said that it will work to realize a decarbonized society and create new value through the promotion of Green Transformation (GX) by connecting India’s abundant biomass resources with our trading expertise.
