Biodiesel promises an indigenous and renewable source of energy, even as the country is reeling under the impact of spiralling
oil prices and a large oil import bill. Oil-yielding plants like
jatropha (livestock do not eat this plant) are hardy and can grow even in poor soils.
Biodiesel not only reduces emissions from diesel vehicles, it also uses the most marginalized lands as the source of its energy. Reduced emissions should delay the onset of global warming, as well as help in boosting growth in a developing economy.The benefits are many, but so are the challenges. The biggest challenge before the biodiesel program is : Who will benefit from the biodiesel boom? Whose land will be used to grow the crops? Will farmers be sidelined and reduced to providing wage labor? And what sort of arrangement industry (biodiesel processing plants) will have with the farmers? Though there is a huge demand for jatropha seeds, no one is willing to sell at a price close to Rs 5/kg — the amount it should cost to make the price of biodiesel competitive. Trader who deal in jatropha seed, says they will sell to the forest deptt. only if they improve their rates, otherwise they will sell in the open market as there are many customers. The only winners in the jatropha business are the traders who sell the seeds at upto Rs 28/kg. Nobody seems to be bothered about the yield right now. Though the government claims that the plant will yield 3-4 kg, most people donot expect more than 1 kg per tree as the government has compromised on quality by improper seed selection. Another problem is that jatropha has grown in the wild so far, but in field plantations more and more diseases are developing. While it is true that jatropha grows anywhere, the yield required for commercial viability is not assured on all types of land. Investing to build a strong research and development base is essential.
While the government has shown commitment to the biodiesel sector, it does not seem to have done its homework. The opportunities are many - a renewable and environment friendly source of energy is something that a developing country like India needs. But to make the best use of this growing sector the government will have to frame policies that support the farmers. And the biodiesel programme should not be resticted to jatropha alone; other plants with biodiesel potential should also be included.