The Hindu Business Line : Set up supply chain for jatropha: Report

Mumbai May 16 India's bio-diesel programme based on jatropha seeds is sustainable and has no threat to the food security. If seven million hectares can come under annual cultivation of jatropha, it has a potential to produce seven million tonnes of bio-diesel, which will be equal to 10 per cent of the country's diesel consumption by 2011-12.

These are some of the findings of the Rabobank-CII report `Bio-diesel: global trends; Indian opportunity' released here on Wednesday.

The report estimates that between seven and 40 million hectares is suitable for jatropha cultivation.

National policy

According to Ms Susan Hansen, Industry Analyst with Rabobank International and co-author of the report, there is need for a national policy on bio-diesel as current policies are neither long-term nor well defined.

Global experience has shown that most successful bio-diesel policies include mandatory blending and tax credits. Since the bio-diesel industry in the country is new, there is a need to create a large infrastructure and supply chain, which can cater to the growing demand, she said.

Mr S. Venkatraman, Director (Strategic Advisory), Rabo India Finance, also co-author of the report, said that the sector needs more R&D, so as to define benchmarks and best practices. More research needs to be undertaken to define these practices.

There is no established world commodity market for jatropha (such as the rapeseed market, for example) so a new supply chain from farmer to consumer should be set up. Guaranteed offtake is needed if farmers are to be convinced to grow the plant. Educating farmers on this matter is a must for the growth of the sector, he said.

Ms Hansen said that the bio-diesel industry is still in its infancy and will take at least 10 years to mature.

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