Biofuels and Food Crisis - National Policy?

 National Bio-Fuel Policy

 

The National Biofuel Policy was announced, with the object of raising the proportion of the use of Biofuels from 5 to 20 % in petrol and diesel fuels over the coming decade, using non-edible plant sources. According to the policy the transport fuels in India need to contain 20 per cent Biofuel by 2017. The main Biofuels envisaged are alcohol from plant wastes, chiefly sugarcane molasses, and biodiesel - oil produced from non-edible oilseed crops such as Jatropha which can be blended with diesel.

The policy supports increasing biodiesel plantations on community, government-owned and forest wastelands, but not on fertile, irrigated lands The policy also details incentives for growers of Biofuel crops, removing taxes and duties on biodiesel, setting a minimum support' price for buying biodiesel oilseeds from growers and a minimum purchase price of bio-ethanol, to ensure adequate returns to crop growers &oil makers.

 

A 2006 analysis by the UN Conference on Trade and Development (UNCTAD) concluded that India cannot rely on sugarcane molasses as a reliable feedstock for alcohol, given the crop's dependence on monsoon and vagaries of the domestic sugar industry. Similarly, difficulties in procuring oilseeds and lack of infrastructure could obstruct substantial biodiesel production by 2011-12 UNCTAD suggested that India might have to import both bio-ethanol and biodiesel to meet its targets

 

Diversion of Grains from Food to Fuel

 

As per the information available about 50% Diesel and Petrol is being used as transport fuels working out to be about 35 million tones per annum. But Biofuels will only substitute a little for fossil fuel use, yet lock-up huge land areas for crop cultivation, says Anumita Roychowdhury, associate director for research and advocacy at the Centre for Science and Environment, Delhi

                                                        

Dr.R.K.Pachauri, Chairperson of IPCC, said subsidies on Grain and Oil Seed, Biofuels, making farmers shift from growing food grains to Biofuel plantations, resulting in food shortages, driving food prices up high and leaving millions hungry. According to Dr.Pachauri, subsidies on grain based ethanol & palmoil based bio-diesel, had brought in distortions by converting food into fuel and by resorting to change of land use of forests for growing crops for Biofuels.  

 

It was reported that in Chhattisgarh state, 400 million Jatropha saplings were planted on more than 155,000 hectares of fallow land during the last 5 years or so and, until now, there does not seem to be any reported data on survival of saplings or seed production. while farmers in many areas are in a fix as the plants have not yet borne fruits

                                                        

.Grain based Ethanol Projects

 

To add fuel to the fire in AP State, the grain based mega ethanol project of M/s Sentini Bioproducts (P) ltd, in Krishna District of AP, will add to the shortages and high prices of food grains, by diversion of agricultural land and their produce.

 The Bio-Energy plant of M/S Natural Bio Energy Limited ( NBEL), near Kakinada port, for producing nearly 300 tones of Biodiesel per day, from imported crude palmoil from Malaysia and Indonesia. The company is reported to be planning to export 100,000 metric tones per annum, to European countries by sending a vessel every six weeks. This explains for shortage and high prices of edible oils in the country.

 

Unpublished World Bank Report

 

According to a confidential World Bank report obtained by the Guardian, UK some time back, it was reported that the Biofuels have forced global food prices up by 75%, far more than previously estimated. The findings of the report seem to contradict the US government's claims that plant-derived fuels contribute less than 3% to food-price rises, justifying the shift to plant-derived fuels 

 

Rethink on National Bio-Fuel Policy

 

The National Bio-fuel Policy of giving subsidies for Biofuel production, which is a Supply Side Management (SSM) Policy, increasing the demand for use of fuels for transportation, needs to be reviewed. The Govt of India should opt for Demand Side Management (DSM) Policies that reduce overall demand for fuels. The options for DSM measures are:

 

  a) Energy efficient Rail Transport Systems for Public Transport and Goods over long distances instead of massive development of National
      Road-Network,

 

 b) Intra-city Public Transport Systems for restraining the use of personal vehicles,  particularly SUVs/Cars run on subsidized Diesel, which

      is nothing but looting the Tax-Payers money and is as criminal as Avoiding Taxes. and

                                                           

 c) Energy Efficiency measures in transport sector having saving potential up to 20%   as per PCRA  

.
 Appeal

 

In the light of the position explained above, the "National Biofuel Policy" needs to be reviewed for ensuring "Energy Security" without compromising "Food Security" . Some of the points to be considered are  

 

   a) The diversion of food-grains for production of Ethanol and the feed stock  (imported or otherwise) of Edible Oils, for production of

         Bio-Diesel, be  prohibited.

  b) The conversion of forest lands, fertile lands etc for development of any type of Biofuel plantations should not be permitted..

  c) The export of Ethanol, Bio Diesel etc should not be permitted

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