The promise of Jatropha
29-1-2008 | Other news
The biodiesel industry is booming worldwide, but not yet in India, despite the desire to develop a biodiesel industry. The main reason for this is that vegetable oils, the primary feedstock for biodiesel, are in short supply in India. Cultivating oil seed varieties on the scarce fertile agricultural land for transport fuel purposes could thus raise food security issues. The jatropha curcas tree and similar species are interesting feedstock alternatives.
The jatropha curcas tree and similar species are interesting feedstock alternatives. These species can, in theory, be grown on the vast areas of land in India that are unsuitable for food production, thus not competing with food production. Farming jatropha, used as an example in a recent Rabobank Food & Agri Research Industry Note, could create millions of jobs, generate (additional) income for the rural community and deliver sufficient oil to replace significant amounts of conventional diesel. Large-scale cultivation is still in a research and demonstration phase. It is therefore not yet clear what yields per hectare could be realised and how much water and other inputs would be required. In addition, much of the supply chain is non-existent, from the production and distribution of seedlings up to the crushers and biodiesel producers.
“One of the main barriers impeding the successful development of a jatropha-based biodiesel market in India is the lack of a comprehensive government policy which addresses all aspects of the supply chain,” said S. Venkatraman, Head of the FAR India team and co-writer of the report. In addition, farmers are not yet convinced that large scale jatropha farming can be rewarding enough because there is much uncertainty about the seed yields and there are no conclusive experiments with large scale cultivation on land unfit for food production in place yet.
“The fact that it takes four years before jatropha seedlings start to bear fruit does not make things easier,” Venkatraman continued. Financial support in the initial four years is highly needed and should cover the costs of high-quality planting material and other input such as labour costs, irrigation and other expenses until the plant starts to bear seeds. In this matter, forming farmer co-operatives could open up opportunities although this might require special financing schemes that take into account the relatively long period before investments pay back.
To sum it up, the key to breaking the market impasse is four fold:
- supporting government policies,
- financial support to farmers,
- R&D in seeds and management practices to maximising yields
- and infrastructure at all levels of the value chain for they are non-existing at the moment.
Crucial for the future of jatropha will be the outcome of R&D and small scale experiments, particularly with respect to yields, employment effects, water needs and environmental impact of large scale production.
If jatropha lives up to its promises Rabobank is convinced that it could become a serious energy provider for India.
