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6 India’s Bioeconomy and the Ambition over “Wastelands”
pinnata), the main crop of choice has been Jatropha curcas. This non-edible oil crop
has received much praise and a surge of attention, partly for being allegedly a good
“smallholder crop” suitable for “pro-poor development” (Brittaine and Lutaladio
2010).
Such an approach, while thriving on some grounds, is however ridden with contradictions. These contradictions and socio-environmental issues are often overlooked,
yet they remain at the heart of India’s increasingly ambitious bioeconomy plans
(see BIRAC 2019). Therefore, analyzing why certain strategies have prevailed at the
expense of others is critical. This chapter first describes the country’s biofuel production and consumption. It examines the Indian policy context, assesses the distributional outcomes and social impacts of biofuel expansion, and analyzes agency and
strategic uses of power in Indian biofuel governance. The chapter concludes by shedding light on why India has pursued its current biofuel development path and what
alternatives may exist.
6.1 Biofuels in India: How and Why
6.1.1 The Indian Setting: Energy and Agri-Food Contexts
6.1.1.1 Energy Context
Rapidly growing demand and increasing dependence on oil imports characterize
India’s energy context. Economic growth has been accompanied by steady annual
increases in both total and per capita energy consumption, with the latter experiencing
an average annual growth of 4% during the 2010s (Central Statistics Office 2019).
Most of this demand is met with coal-fired power (63%), followed by oil (31%).
Traditional biomass—fuelwood and waste used for cooking and heating—remains
an important energy source in rural India, but liquified petroleum gas (LPG) has been
gradually replacing it. Between the 2008–2009 and 2017–2018, LPG consumption
annually grew by as much as 6.7%, while the use of diesel oil (primarily in transport)
increased on average 4.6% every year (Central Statistics Office 2019, p. 64).
Oil is particularly key to India’s political economy because more than 86% of
it is imported (Central Statistics Office 2019, p. 100). Besides leaving the country
vulnerable to international political or economic volatility, this has long placed a
heavy burden on the government’s budget (Biswas et al. 2010). Although periods of
low international oil prices have occasionally lightened that burden, this fluctuation is
challenging—for instance, by 2019 India was spending 74% more on oil importation
than in 2015 (Aradhey 2019a).
6 India’s Bioeconomy and the Ambition over “Wastelands”
pinnata), the main crop of choice has been Jatropha curcas. This non-edible oil crop
has received much praise and a surge of attention, partly for being allegedly a good
“smallholder crop” suitable for “pro-poor development” (Brittaine and Lutaladio
2010).
Such an approach, while thriving on some grounds, is however ridden with contradictions. These contradictions and socio-environmental issues are often overlooked,
yet they remain at the heart of India’s increasingly ambitious bioeconomy plans
(see BIRAC 2019). Therefore, analyzing why certain strategies have prevailed at the
expense of others is critical. This chapter first describes the country’s biofuel production and consumption. It examines the Indian policy context, assesses the distributional outcomes and social impacts of biofuel expansion, and analyzes agency and
strategic uses of power in Indian biofuel governance. The chapter concludes by shedding light on why India has pursued its current biofuel development path and what
alternatives may exist.
6.1 Biofuels in India: How and Why
6.1.1 The Indian Setting: Energy and Agri-Food Contexts
6.1.1.1 Energy Context
Rapidly growing demand and increasing dependence on oil imports characterize
India’s energy context. Economic growth has been accompanied by steady annual
increases in both total and per capita energy consumption, with the latter experiencing
an average annual growth of 4% during the 2010s (Central Statistics Office 2019).
Most of this demand is met with coal-fired power (63%), followed by oil (31%).
Traditional biomass—fuelwood and waste used for cooking and heating—remains
an important energy source in rural India, but liquified petroleum gas (LPG) has been
gradually replacing it. Between the 2008–2009 and 2017–2018, LPG consumption
annually grew by as much as 6.7%, while the use of diesel oil (primarily in transport)
increased on average 4.6% every year (Central Statistics Office 2019, p. 64).
Oil is particularly key to India’s political economy because more than 86% of
it is imported (Central Statistics Office 2019, p. 100). Besides leaving the country
vulnerable to international political or economic volatility, this has long placed a
heavy burden on the government’s budget (Biswas et al. 2010). Although periods of
low international oil prices have occasionally lightened that burden, this fluctuation is
challenging—for instance, by 2019 India was spending 74% more on oil importation
than in 2015 (Aradhey 2019a).