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India’s Bio-Diesel dream - The great Jatropha Scam in offing!

"Think if India’s dream of bio-diesel and the scheme of extensive jatropha cultivation would just go flop. What the farmers, who have been motivated to go for jatropha cultivation on waste lands and have been indulged in it, will do? They must have spent and worked on it. These farmers would be pushed into loan trap or forced to commit suicide if there is no yield or less yield."

HNF Editorial : June 10, 2009

Think if India’s dream of bio-diesel and the scheme of extensive jatropha cultivation would just go flop. What the farmers, who have been motivated to go for jatropha cultivation on waste lands and have been indulged in it, will do? They must have spent and worked on it. These farmers would be pushed into loan trap or forced to commit suicide if there is no yield or less yield. However, mostly farmers of tribal and hilly communities are motivated to grow jatropha as the instant cash crop.

In many states, jatropha cultivation is promoted like an industry and the governments of such states have allocated huge tracts of land to private companies and business groups in the name of jatropha cultivation. Once the jatropha cultivation fails and the great oil dream shatters, will all the land allocated be brought back from the companies or business groups?

These are not just apprehensions but logical extension based upon the facts of Jatropha revolution in India as explored in the following two reports on India’s bio diesel dream.

Jatropha seeds yield little hope for India's oil dream
A report by Richard Orange, The National, May 11, 2009

Back in 2005, Professor RR Shah sent a team to Navsari Agricultural University’s most parched and desolate strip of land, a farm in the Vyasa district of India’s northern state of Gujarat. Their instructions: to set up a model farm for Jatropha, the hardy shrub with oil-rich seeds that were then emerging as one of the most promising alternatives to crude oil.

At the time, Jatropha’s promise seemed boundless. APJ Abdul Kalam, the president, even used his presidential address that year to extol its virtues. Jatropha can survive in the most arid wastelands, the story went, so vast barren swathes of India could be put to productive use. It is inedible so it would not cause a backlash by competing with food crops. The government announced a scheme to plant 13 million hectares, enough to generate nearly 500,000 barrels of Jatropha oil per day.

But as Prof Shah’s project in Vyasa nears its end this month, the dean of agribusiness at Navsari is sceptical. “There is no yield,” he says. “The literature said that with dry land, after four years’ growth, you can get a yield of 1kg per plant. For us, it is hardly 200g per plant.”

Navsari is not alone. As the findings come in from pilot schemes at 22 different agricultural colleges across India, the central claim of Jatropha’s evangelists, that it thrives in barren land, is looking threadbare.

And that is even before you study the difficulties Jatropha faces competing with crude oil at today’s prices. According to Dharmendra Parekh, the managing director of Aditya Aromatics, a Jatropha pioneer in Gujarat, oil from the shrub now costs more than 100 rupees (Dh7.5) per litre to produce, compared with 34 rupees per litre for normal diesel.

>>> Scroll down to read rest of the Story


Suman Jha, a researcher on Prof Shah’s team, shows me patches where he is growing the plant with fertiliser, intermingled with other crops and trees. Even here, it is a dull and unremarkable green shrub, but at least it is thriving, producing as much as 4kg per plant.

“This is not a wasteland crop,” Dr Jha says. “It needs fertiliser, water and good management. Yes, it grows on wasteland, but it doesn’t give you any yield.” Dr Jha says companies such as D1 Oils, the London-listed biofuels company, which has planted about 257,000 hectares of Jatropha, mainly in India, moved far too early.

“What we did with this crop is that we distributed it everywhere without having any patience, before finding out which genotypes are high-yielding. If we want, we can get a good amount of profit out if it, but we need to have patience.”

D1 is also having some nasty surprises on yield. It said in 2006 that it aimed to produce 2.7 tonnes of oil per hectare from areas planted with its new E1 variety, and 1.7 tonnes of oil from normal seed. That is equivalent to about 8 tonnes and 5 tonnes of seed per hectare respectively, or 3.5kg and 2kg a plant.

Pradip Bhar, who runs the company’s D1 Williamson Magor Bio Fuel joint venture in India’s north east, admits he has yet to achieve a fraction of that.

“Hitting 500g is the challenge,” he says. “Mortality is quite high. But if we can reach 500g in two years’ time, after that the bush will continue to grow. Our expectation is that after the fourth year we will hit 1kg. The 1.5kg mark we haven’t touched as yet.”

Those are the results from the fertile state of Assam. The yields in other, dryer states such as Jharkand and Orissa, he says, are much worse.

But he still believes D1 was right to forge ahead with early planting because it will be at least an eight-year wait before varieties with good yields on wastelands are developed. Even D1’s E1 variety is not yet available in sufficient quantities.

Mr Bhar intends to hold the area under cultivation steady at about 132,000 hectares this year. As his plantations account for more than half of D1 Oils’ Jatropha crop, the company’s goal of planting 1 million hectares by 2011 looks like a tough one. He is concentrating instead on ensuring his small contract farmers continue tending it for the two or three years needed before it becomes profitable.

This challenge is one of the reasons why Prof Shah doubts the 500,000 hectares of Jatropha the Indian government estimates has been planted so far. Only last month, he unsettled an annual meeting of the universities researching Jatropha and India’s National Oilseeds and Vegetable Oil Development Board by reporting that only 5,000 hectares was actually under plantation in Gujarat, half the official estimate.

>>> Scroll down to read rest of the Story


Jatropha seeds fuelling another scandal

(Report by Devinder Sharma, forwarded to members of a blog group)

The great bio-diesel dream is about to go bust. I am talking about India's oil dream from jatropha seeds. The dream was oiled on hype, and of course business interests. The Planning Commission triggered it, and like much of what it does, it actually relied on industrial projections without ascertaining whether bio-fuels could actually be produced on a scale to make any significant contribution to the country's ever growing fuel needs.

In April 2003, the Planning Commission had initiated a proposal calling for a major multi-dimensional programme seeking to replace 20 per cent of country's diesel requirement. In March 2004, the first instalment of Rs 800-crore for the National Programme on Jatropha was released to 'support cultivation of jatropha in 200,000 hectares'. Under the programme, a total allocation of Rs 1500 crore to cover 400,000 hectares was envisaged for the next five years.

A total of 13 million hectares had to be brought under jatropha plantations by 2013.

To know about the potential of jatropha plants as biofuel, I had travelled sometimes back to the Directorate of Oilseeds Research in Hyderabad, a premier research centre of the Indian Council for Agricultural Research. My colleague, Dr G V Ramanjaneyulu of the Centre for Sustainable Agriculture, also based in Hyderabad, accompanied me. Talking to scientists, what we learnt was simply shocking. They were researching on the potential of jatropha for a number of years, but had for some 6-7 years now abandoned the research project that gradually moved towards the undesired conclusion - Jatropha was not a plant suitable for India.

And yet, the Planning Commission launched a kind of a national mission on jatropha. I am not the least surprised knowing what India's Planning Commission is capable of doing. But what certainly I don't understand is what refrained the enlightened members of the Planning Commission to talk to DOR scientists before accepting the industry claims. If I and Dr Ramanjaneyulu could talk to the scientists concerned to know about its potential, why couldn't these members do the same? If the dream fails, as is becoming increasingly evident, shouldn't the Planning Commission be held accountable? And why not? After all, it is the tax-payers’ money that is being squandered, and someone should be held accountable.

And what about large tracts of land that the State Governments have transferred to the private companies at a throwaway price in the name of Jatropha cultivation? Isn't that another scandal under the oil seed blanket?

The Chief Ministers of the States which went out of the way to allocate lands (in the garb of wastelands) too should be held accountable. We cannot let the bigger fish go scot free.




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