Project title:  Implications of Biofuels on Food Security, Social Welfare and Environment in India 

Project leader:  Dr.S S Raju

Project team:      Dr P Shinoj, Dr P K Joshi and Dr P Kumar

Background:

Biofuels are renewable sources of energy derived from biological raw material. Two sources of biofuels-ethanol and bio-diesel are gaining world wide acceptance as one of the solutions for problems of environmental degradation, energy security, restricting imports, rural employment, agricultural economy, owing to reduced dependence on oil import, saving in foreign exchange and reduced vehicular pollution. However, there are strong apprehensions that as more and more land is brought under biofuel crops, food prices would increase substantially affecting poor consumers particularly those from low-income net food importing countries. Keeping in view of these facts, this study addresses the current state of affairs of biofuels at the global level and with special emphasis to the on-going efforts of biofuel expansion in India. It throws light on the various policies being pursued by India at the national and regional levels. It also studies the implications of biofuels on the agricultural sector in India with focus on changes in land utilization, food security, social welfare and environment.

Objectives:

1 ) To evaluate the potential economic benefits and socio-economic impacts of biofuels development in India, as well, its implications for the environment.
2) To analyse the effect of biofuels on changes in the prices of key commodities and productive factors.
3 ) To analyse the investment alternatives and development strategies for scaling up biofuels productions in the country.
4 ) To assess the existing and alternative biofuel technologies that can be used in India.  

Study area:

Country and states

Methodology :

• Review of different state level biofuel policies and national policy on biofuels

• NSSO household data on consumption and expenditure for different rounds

• Data on Prices, production, consumption, exports and imports for important commodities

• Multimarket Model will be developed & Simulated to arrive various scenarios

• Discussion with key stakeholders – farmers, research organisations, industry and policy makers 

Key findings:

Presently, India’s position in the global biofuel map is not very prominent. However, the country has ambitious plans to expand the biofuel sector, though cautiously. Due to non-availability of ethanol , pricing issue and taxation issue, the development of the sector has been rather slow and right now the blending targets of both ethanol and biodiesel look unfeasible at least in the time frame of the 2017. For the sector to pick up momentum, it is important to encourage the producers with adequate stimulus packages and proper price and procurement policies. 

Funding agency: IFPRI