128
6 India’s Bioeconomy and the Ambition over “Wastelands”
These low yields have compromised the economics of jatropha-biodiesel. Lower
oil content means that the industry needs to purchase more seeds to obtain the same
amount of oil, which means higher costs. Thus, although the government then set a
Minimum Purchase Price for OMCs sourcing biodiesel, the industry soon found this
price—set at INR 26.50/liter—unattractive (Confederation of Indian Industry 2010).
The Confederation of Indian Industry (2010) suggested that the price be raised to INR
36.36/liter—and, even so, it assessed that subsidies would be required if international
oil prices were below USD 95 a barrel.
Disappointing agronomic results have meant that most private companies who
made buy-back contracts with smallholders pulled out and abandoned their deals,
causing severe social impacts (see Ariza-Montobbio and Lele 2010). Interest in
jatropha cultivation decreased for some time, remaining only in a few private
endeavors to crush seeds locally and export jatropha oil for experimentation or
biodiesel—and eventually jet fuel—manufacturing abroad.
After a hiatus of a few years, a new wave of jatropha—and other non-edible
feedstocks—deployment returned to the agenda. This time, government and industry
have agreed that jatropha breeding needs a green revolution to fit India’s various
agro-climates and produce high-yielding hybrids, and that water and fertilizer inputs
are required after all. This retrofitted endeavor—nicknamed “Jatropha 2.0”—has
garnered large foreign players in agriculture biotechnology and trading such as the
US-based multinationals Bunge and Koch Industries, as well as domestic players such
as Bharat Renewable Energy Ltd., an offshoot of the state-controlled oil giant Bharat
Petroleum in association with private companies (Biofuels Digest 2010). Together
in a consortium, these industries announced new contracts with 100,000 farmers
to produce jatropha for making biodiesel, jet fuel, and petrochemical replacements
(Biofuels Digest 2011a).
Figure 6.2 summarizes this envisaged but not yet operational production and
consumption chain of biodiesel in India.
Fig. 6.2 (Envisaged) biodiesel production and consumption chain in India
6 India’s Bioeconomy and the Ambition over “Wastelands”
These low yields have compromised the economics of jatropha-biodiesel. Lower
oil content means that the industry needs to purchase more seeds to obtain the same
amount of oil, which means higher costs. Thus, although the government then set a
Minimum Purchase Price for OMCs sourcing biodiesel, the industry soon found this
price—set at INR 26.50/liter—unattractive (Confederation of Indian Industry 2010).
The Confederation of Indian Industry (2010) suggested that the price be raised to INR
36.36/liter—and, even so, it assessed that subsidies would be required if international
oil prices were below USD 95 a barrel.
Disappointing agronomic results have meant that most private companies who
made buy-back contracts with smallholders pulled out and abandoned their deals,
causing severe social impacts (see Ariza-Montobbio and Lele 2010). Interest in
jatropha cultivation decreased for some time, remaining only in a few private
endeavors to crush seeds locally and export jatropha oil for experimentation or
biodiesel—and eventually jet fuel—manufacturing abroad.
After a hiatus of a few years, a new wave of jatropha—and other non-edible
feedstocks—deployment returned to the agenda. This time, government and industry
have agreed that jatropha breeding needs a green revolution to fit India’s various
agro-climates and produce high-yielding hybrids, and that water and fertilizer inputs
are required after all. This retrofitted endeavor—nicknamed “Jatropha 2.0”—has
garnered large foreign players in agriculture biotechnology and trading such as the
US-based multinationals Bunge and Koch Industries, as well as domestic players such
as Bharat Renewable Energy Ltd., an offshoot of the state-controlled oil giant Bharat
Petroleum in association with private companies (Biofuels Digest 2010). Together
in a consortium, these industries announced new contracts with 100,000 farmers
to produce jatropha for making biodiesel, jet fuel, and petrochemical replacements
(Biofuels Digest 2011a).
Figure 6.2 summarizes this envisaged but not yet operational production and
consumption chain of biodiesel in India.
Fig. 6.2 (Envisaged) biodiesel production and consumption chain in India