Strategies and institutional mechanisms for large scale cultivation of Jatropha curcas under agroforestry in the context of the proposed biofuel polic

Strategies and institutional mechanisms for large scale cultivation of Jatropha curcas under agroforestry in the context of the proposed biofuel policy of India. by
Prodyut Bhattacharya and Bharati Joshi,\
Indian Institute of Forest Management, Bhopal, India.

Abstract :This paper analyses strategies and institutional mechanisms for taking up large scale Jatropha cultivation under various agro forestry combinations. It stresses the fact that such an initiative besides being in tune with the country's proposed biofuel policy, would also generate additional sources of income and employment for the country's rural populace. This would add to the ecological benefits derived in form of soil and water conservation and improved microclimate for crop production in areas where Jatropha would be planted.Published in ENVIS bulletin on Grassland Ecosystems and Agroforestry 1(2): pages 58-72



Background : India is the second most populous country of the world and meeting its energy requirements in a sustainable manner continues to be a major challenge. India produces only about 30% of its annual crude oil requirement of 105 MT, relying on imports to the tune of Rs. 90,000 crores for meeting the remaining requirement.Needless to say, the oil import bill has serious consequences for the Indian economy. In this scenario, giving biofuels a serious consideration as potential energy sources of the future is the most logical step. Already, in the developed countries of the world, such as the US, Australia, Germany and France, biodiesel is being extracted from plants like saffola, sunflower, soyabean, etc, which are essentially edible in India. Our country also provides favourable climatic conditions to harbour a vast resource of non-edible or wild-seed crops like Jatropha curcas (Ratanjot), Pongamia pinnata (Karanj) and Madhuca indica (Mahua). From the seeds of these species oil can be derived and developed as biodiesel depending on site-specific requirements. But commercial cultivation of these plants specifically for this use is yet to begin.The backdrop for brain storming on the agenda of biofuels has rightly been provided by the 10th Five-year Plan Document of the Government of India that views biofuels from the multi dimensional perspective of depleting fossil fuel resources, environmental health, National energy security and rural employment avenues.The document proposes to cultivate Jatropha on 5 million hecters of degraded waste lands of the country. Over 200 districts in 19 potential States of the country have been identified on the basis of waste lands availability, rural poverty ratio and agro climatic conditions for taking up Jatropha cultivation.A consultation workshop held at the Indian Institute of Science (IIS), Bangalore on 30 November 2002 set the ball rolling by initiating brain storming over the potential of biofuels among multiple stake holders. The deliberations of this consultation fed into the Draft National Biofuel Policy (SUTRA 2003) prepared for the All India Seminar on National Policy for Non-Edible Oils as Biofuels, held at the IIS during 1-2 February 2003. The draft policy rightly identifies the following key issues to justify the need to promote biofuels and to have a National Policy in this regard:
There is a long-standing need to increase India's self-sufficiency in oil for both fuel security and for reducing the country's oil import bill that cost us Rs. 96,000 crore in the year 2000.
It is high time to harness the potential offered by biofuels extracted from non edible oilseeds, such as Jatropha curcas and Pongamia pinnata.
Biofuel development venture can be decentralised and small industries can be located even in the rural areas, thus, increasing opportunities for rural income generation and employment.
With over 65% of the country's agriculture-dependent population residing in villages, there is vast potential for utilising the non edible oilseeds. cake (left after oil extraction) as organic manure cum insecticide.
Biofuels are free from the environmental concerns haunting fossil fuel combustion as they do not pollute the air. Rather, the biofuel producing plants sequester carbon from the atmosphere. That biofuel is an instrument of the Clean Development Mechanism (CDM) and will add a feather to India's cap, the country being a signatory to the Kyoto Protocol.
Focusing on one of the potential biodiesel yielding plants, i.e., Jatropha curcas here, it is a wild growing hardy plant well adapted to harsh conditions of soil and climate. It is adapted to a wide range of climates and soils and can grow on almost any type of soil, even on the poorest stony soils and rock crevices. Its water requirement is extremely low and it can withstand long periods of drought by shedding most of its leaves to reduce transpiration losses. It is easily propagated by seeds or cuttings and grows rapidly. It may be cut or lopped at any desired height and is suited as a hedge plant. In India, J. curcas is found in almost all the states and is generally grown as a live fence for protection of agricultural fields. The beans of Jatropha contain viscous, non-edible oil, which can be used for the production of high quality soap, as a raw material for cosmetic products, as fuel for cooking and lighting and as a substitute for diesel fuel. The soap manufacturing units in the country have been looking for an alternative to edible oil for the manufacture of soap, for the last 7-8 years. J. curcas seeds possess about 35% non-edible oil; they thus potentially provide the answer to overcome the scarcity of raw material needed for the cosmetics manufacturing units.The Government now proposes to take up the biofuel development program mainly in degraded areas of the country that almost invariably coincide with areas of abject poverty. As a result of this programme, it is estimated that around 50% of the wages in cash (i.e., Rs. 46,650 million) and rest in the form of food grains would trickle down to the poor.Land Options for Jatropha Cultivation : India has approximately 329 million hecters of land area of which the estimated land available and suitable for tree growing and where trees do not exist is estimated to be around 84 million hecters (Chambers et al. 1989) (Table 1).Cultivated lands, farm bunds and boundaries considered in the Table 1 above, that are almost entirely privately owned, are probably the ones least accessible for Jatropha cultivation. Much of this land is owned by large farmers who have the resources to intensively cultivate their farmlands. As such, unless they perceive significant economic gains in planting Jatropha, it would be practically impossible for them to alter the land use pattern. Studies indicate that such a diversion of land use tends to displace labour and substitute male for female employment (ILO 1988, Malmer 1987, FAO 1988). This leaves the farm bunds and boundaries of both categories of farmers to be targeted for planting Jatropha as that would supplement the existing livelihood strategy of the farmers.The degraded forest lands provide potential sites for promoting Jatropha cultivation by dovetailing the Biofuel promotion initiative with the existing JFM program. Of the 5 million hecters of degraded waste lands that the National Mission on Jatropha plans to cover during the 10th plan period, 2 million hecters would be degraded forest land to be revegetated by involving Joint Forest Management Committees and Social Forestry Programs (Economic Times 2002).Also, the currently available non-forest lands to the tune of 48 million hecters (Table 1) can be targeted for Jatropha cultivation. The planting area available on farm bunds and along railway tracks, canals and rivers would require lesser investments in terms of inputs for increasing productivity as they generally have good moisture and are more productive than revenue waste lands.Even if we target about 10% of the 84 million hecters area (Table 1) available for tree planting in the country for Jatropha plantation (as discrete trees, tree rows, block plantations, fencing and boundaries, etc.) we can look forward to cover around 8.4 million hecters area, as shown in Table 2.Plausible Crop Combinations and Systems for Jatropha Cultivation : According to the topography, soil profile and prevailing agro climatic conditions in an area, Jatropha can be combined with other suitable species comprising the agricultural, horticultural, pastoral and/or silvicultural components to result in an ecologically viable, economically profitable and socially acceptable agro forestry system. By evolving, promoting and adopting Jatropha based agro forestry systems it is possible to improve the socioeconomic conditions in rural areas and to transform the National energy scenario and the ecological landscape. Some of the plausible crop combinations for both waste lands and cultivable lands are discussed below.Wastelands : Jatropha can be grown successfully in most categories of culturable waste lands except water logged lands and marshes and deserts, and the potential crop combinations for these areas are as discussed below.Unutilised / Partially Utilised / Mismanaged Wastelands : Such waste lands include ravines and undulating uplands.
Ravines: Around 4 million hecters of waste lands in the country are categorised as gullies and ravines. In the ravine areas, Jatropha can be intercropped with medicinal plants like Asparagus racemosus (Shatawar) and Commiphora mukul (Gugul) at 2ft X 2ft spacing to serve the additional twin causes of ex situ conservation of medicinal plants and ravine area reclamation (Bhattacharya and Bhagat 2002). Also, the medicinal plants so produced can be used to meet the traditional health care needs of the local community. Another potential crop for such areas is Evolvulus alsinoides (Shankhpushpi) that is abundant in waste lands. Allelopathic studies have revealed that extracts and leachates of the whole herb of Shankhpushpi are effective in promoting the growth of Jatropha curcas and also hasten germination and initial seedling vigour (Oudhia 2001).
Undulating uplands : For slope stabilisation and improving soil productivity on undulating uplands, Jatropha can be combined with various grass and tree species resulting in the following models:Model (i) Contour Hedgerows of Jatropha with Glyricidia and Subabul : The contour hedgerow farming technology is based on a modification of the agro forestry system in which Nitrogen-fixing hedgerow species are planted along the contours with desired food crops and other useful species in the alleys. In the middle and lower slopes, Glyricidia and Leucaena leucocephala (for fodder) can be planted along the contours with Jatropha in the alleys.Model (ii) Jatropha intercropped with grasses, tubers and vegetables : On the denuded hill slopes, Jatropha can also be combined with grasses and legumes like Andropogon, Stylosanthes hamata, Guinea, Hybrid Napier, Brachiara humidicola, Congo signal (that help consolidate the soil), tuber crops like Manihot esculenta (Cassava) and Tapioca; and vegetables like Pumpkin and Moringa (5m X 5m) plantation.Various conservation structures like field trench-bunds, broad-based trenches and loose boulder plugs can also be combined with the models given above for effective soil erosion control and for improving soil productivity.
Wastelands based on Ecological Limitations : These can be categorised as shifting cultivation areas, degraded pastures / grazing lands, mining spoils and degraded forestlands.
Shifting Cultivation Areas In India : It is estimated that around 11 million hecters area is under shifting cultivation and this system is still an important source of livelihood for around 2 million tribals in the high rainfall regions. Paddy is the predominant crop in these lands; oilseeds are cultivated in the first year and paddy and millets in the second year in medium rainfall areas. In the low rainfall regions, paddy is never preferred; instead, varieties of millets are sown side by side with vegetable pulses. Depending on the local requirements for agricultural crops, fodder and fruits, the following Jatropha-based agro forestry combinations can be adopted, especially in the mid- and foot hills:Model (i) Jatropha mixed with fruit trees : Common edible fruit yielding trees having local preference and market demand, like mango, Aonla, cashew-nut, guava, sapota and pineapple can be planted at 4m X 4m spacing and interplanted at different storeys with Jatropha at 1m X 1m.Model (ii) Jatropha in mixed plantation with Teak / Neem / Karanj / Subabul : Teak (Tectona grandis), Neem (Azadirachta indica), Karanj (Pongamia pinnata) and Jatropha can be planted as a mixed plantation at the spacement of 4m X 4m, in alternate rows. Within the interspace, subabul (Leucaena leucocephala) can be planted at 1m X 1m. Subabul trees would yield fodder and fuel wood and also fix nitrogen; Neem and Karanj yield non-edible but commercially important oil. Thus, the overall plantation mixture is capable of combining soil improvement and erosion control benefits with long-term economic gains.Model (iii) Jatropha mixed with fodder trees and grasses : In order to ensure regular fodder supply for cattle from indigenous species and for erecting vegetative barriers to conserve soil, various species of grasses and fodder trees can be planted at 4m X 4m spacing and interplanted with Jatropha at the spacement of 1m X 1m. The potential grass species are Andropogon, Dinanath, Guinea, Hybrid Napier, Congo signal, Stylosanthes hamata and Vetiveria zizanioides.
Degraded Pastures / Grazing Lands : For rehabilitation of degraded pastures, a suitable silvipastoral system would consist of various species of grasses and fodder trees (like Leucaena leucocephala and Khejri) can be planted at 4m X 4m spacing and interplanted with Jatropha at the spacement of 1m X 1m. The potential grass species are Andropogon, Guinea, Hybrid Napier, Congo signal, Stylosanthes hamata and Vetiveria zizanioides. Alternatively, Jatropha can be planted only on the bunds / bund-cum-trench combination with other non-browsable plants like Agave sp., Prosopis juliflora, etc. acting as effective biofences.
Mined out Areas and Overburden Dumps : In India, it is estimated that around 6,83,671 hecters is under mining leases in 19 States, specially in Rajasthan, Bihar and Orissa. Jatropha presents itself as a potential crop for such mined area reclamation efforts. It can also be planted as part of watershed management programs, owing to its soil binding properties and capacity to gain a foothold even in a thin soil cover. In the mined out areas and over burdens, Jatropha can be cultivated with other hardy species known to grow successfully in such sites like - Pongamia pinnata (Karanj), Acacia auriculiformis, Prosopis juliflora, Gravillea robusta (Silver Oak) and Cassia siamea.
Degraded Forestlands : In highly degraded forest lands and other plain areas, Jatropha can be grown as a pure block plantation or with Nyctanthes arbortristis (Harsingar), Azadirachta indica (Neem) and Vitex negundo (Nirgudi). Earlier it was believed that Jatropha could be grown in closer spacing of 2m X 2m, but this resulted in mutual shading and consequent reduction in yield when the plants matured. Therefore, a wider spacing of 3m X 3m is suggested (BAIF 2003, ICFRE, undated).
Farm lands : While targeting private farmlands and bunds for plantation of Jatropha or any other nationally relevant species, it must be kept in mind that people's choice of species for planting is paramount. The plausible Jatropha based agroforestry combinations in these areas have been discussed below.On irrigated farmlands : In plain areas with good soil depth, receiving optimum rainfall and with facilities of irrigation, Jatropha can be planted as a block plantation at a spacement of 2.5m X 2.5m, mixed with one or more of the following species, grown at the spacing indicated against each species:
Gmelina arborea (Gamhar) 8mX8m
Dalbergia sissoo (Sheesham) 5m X 4m
Azadirachta indica (Neem) 7m X 5m
Tectona grandis (Teak) 4m X 4m
Emblica officinalis (Aonla) 5m X 3m
Eucalyptus camaldulensis 3.5m X 2m
Moringa oleifera (Munga) 3m X 3m
This would be a purely commercial model, aimed at yielding economic returns higher than the previous land-use.On drier farm lands : On primarily rain fed farm lands with poorer soil depth and productivity and located in areas receiving less than 200 mm annual rainfall, interplanting of Jatropha can be done with Mulberry (Morus alba) at 2m X 2m spacing in alternate rows. The foliage of mulberry trees can be used for rearing silkworms, providing an additional source of income to the farmers.Another alternative for such areas is interplanting of Jatropha with Ber (Zizyphus sp.) at 2m X 2m spacing in alternate rows. Ber trees are hardy, yield fruits which are locally consumed and marketed and are also popular hosts for Lac cultivation. Combined with the petroplant Jatropha, Ber and Lac constitute a profitable planting model.Other Potential Areas : There is great potential for promoting Jatropha plantation along railway tracks and canal-banks, on roadsides, and also on farm bunds. The potential crop combinations for these areas have been discussed below.Jatropha for Boundary and Roadside Plantations : Often the Jatropha plant is used to demarcate boundaries, because the plant is not browsed by animals and has a long life. In combination with other useful, oil yielding trees like Madhuca indica (Mahua), Pongamia pinnata (Karanj) and Azadirachta indica (Neem), Jatropha can be planted along railway lines, on roadsides and canal banks, at 5 m spacing. It is also possible to plant double rows of these plants with 1.5 m inter-row spacing, in the fashion of wind breaks or shelter-belts, specially in areas experiencing high velocity winds, to protect agricultural crops and the fertile top soil from wind inflicted damage and erosion, respectively.Because of its drought tolerance and its lateral roots near the surface the Jatropha plant is often used for anti erosion measures. This may be either in the form of plantation together with other species, or in the form of hedges to reduce wind speed and protect small earth dams or stone walls against runoff water. Together with Vetiver and Lemon grass, the Jatropha hedges can build up an effective filtering system that reduces the erosion of surface soil by runoff water. After only a short time terraces are formed.Jatropha for Biofencing : Jatropha is popular among farmers in the States of Madhya Pradesh, West Bengal, Orissa and Andhra Pradesh as a live fence for protecting homesteads, orchards and farms, as it is non-browseable and has a long life. Biofences of Jatropha can supply seeds and provide other economic and ecological benefits to the farmers. When planted in the trench-cum-bund combinations, Jatropha can prove to be an effective defence against cattle and other trespassers, specially in case of < 5-year-old plantations. Jatropha can be planted in combination with the following species suitable for biofencing and capable of yielding other direct and indirect benefits to the farmers:
Agave sisalana (for rope fiber + protection)
Euphorbia sp. (for protection)
Erythrina indica (for plant-based dye + protection)
Ipomoea sp. (for boundary)
Prosopis juliflora (for protection + fuelwood + charcoal)
Glyricidia (for boundary + Glyricidia as a Nitrogen fixing fodder species)
Institutional Options for Jatropha Promotion : There is ample scope and even necessity for involving diverse institutions in various stages of Jatropha production, promotion and rural livelihoods development. The list below helps us to identify the main kinds of institutions that can be involved in Jatropha production, promotion and rural livelihoods, development:
Community-level Institutions
Non Governmental Rural Development Organisations (NGOs)
Technical Institutes, Academic Institutions and Universities
Government Organisations/Departments
Banks and other Micro-finance Institutions
Planners and Policy-makers.
The potential roles and responsibilities of these different types of organisations have been discussed below.Community-Level Institutions : Unlike the traditional oil sector that involves huge investments and complicated institutional arrangements, development of biofuel from non-edible oilseeds of plants can be completely decentralised, with raw material (i.e. seed) production and processing done entirely by community based small and medium scale enterprises (SMEs). The existing institutions can be involved after adequate capacity enhancement and within the framework of a well-developed strategy, to establish Jatropha plantations, to extract and process its oil and form biodiesel and to market it.The community level institutions that can be plausible and worthy candidates to perform these tasks include Community Forestry Groups, Self Help Groups, Panchayats and Minor Forest Produce Societies, to name a few. The strengths of these groups and their suitability for taking up the biodiesel production challenge have been discussed below.Community Forestry Groups : These groups can be State-promoted or self-initiated. In the former category, presently there are more than 65,000 Joint Forest Management Committees (JFMCs) in over 40,000 villages of the country, protecting over 15 million hecters of Government owned forests (Bhattacharya and Prasad 2001). Apart from these, there are several instances of self-initiated forest protection groups (SIFPGs) and conservation efforts by local communities in different parts of the country, viz. Orissa, Jharkhand, Andhra Pradesh and from the Northeast. The JFMCs as well as the SIFPGs represent the right institutions to be supported, trained and promoted for taking up the following activities related to Jatropha-based biodiesel development:
Development of Jatropha planting stock in decentralised nurseries
Plantation of Jatropha on private and common lands
Scientific harvest of Jatropha seeds
Local processing of Jatropha.
Self Help Groups : Starting in the 1980s due to the path breaking efforts of a few NGOs, State Governments and banks, including National Bank for Agriculture and Rural Development (NABARD), the Self Help Group (SHG) movement has taken firm roots in many parts of the country.Though a detailed analysis of the strengths of an SHG-based rural development approach is beyond the mandate of this paper, it can be safely said that SHGs can be recognised as a socially viable unit for implementation of Jatropha based biodesel development programme. The potential roles that the SHGs can perform in such a program are as follows:
Development of Jatropha planting stock in individual / group nurseries
Providing microcredit services to interested members for establishing Jatropha-based SME
Establishing small processing units for Jatropha seed-oil extraction
Constructing and renting out Jatropha seed storage facilities
Local marketing of Jatropha oil and seed-cake through Federations.
Panchayats : Today, Panchayat as a rural local government institution in India forms a permanent part of the structure of governance of the country. The potential role of Panchayats in establishment of successful Jatropha production and utilisation systems is as follows:
Provide funds and logistics for establishment of decentralised Jatropha nurseries
Devote common lands under their control to Jatropha cultivation
Ensure equitable benefit sharing from Jatropha-based SMEs
Invest in establishment and maintenance of Jatropha processing units at Block and District levels
Facilitate marketing and distribution of Jatropha-based biodiesel.
Minor Forest Produce Societies : The NTFP collection and marketing chain of formally recognised institutions like State Minor Forest Produce Federation along with their district level and village level units can provide a ready-made community organisation and marketing channel for Jatropha seeds as well as oil. Moving a step further, this arrangement can also bring more benefits to the Jatropha entrepreneurs if the example of Madhya Pradesh (MP), the first State of the country to decide upon the transfer of NTFP ownership to the Gram Sabhas, the local level PRIs, is emulated.Tribal Co-operative Marketing Development Federation of India Limited (TRIFED) can also play an important role in procurement and sale of Jatropha seeds and oil with a view to pay remunerative prices to the tribal cultivators, on the basis of correct weighment and premium on quality.The co-operative federation model can be replicated for promoting Jatropha-based SME development in rural areas especially in the forested zones of the country. It has to be kept in mind that local processing of Jatropha seeds for oil extraction would be a necessary complement to local farming, if we want the communities to take advantage of the emerging biodiesel market and put more money in their pockets. Thus, decentralising the production of Jatropha seeds as well as oil is strongly suggested.Development of local processing capacity will invariably reduce Jatropha seed storage and transportation costs and allows better and profitable conversion. Also, there would be more effective utilisation of by-products like the Jatropha seed-cake and this internal circulation will also retain margins within the community. The formation of the following institutions can be envisaged.
Jatropha primary societies at the village or cluster levels. This would grow and collect Jatropha seeds and market the seed-cakes
Jatropha District Unions at the District level, that would process the seeds to extract oil, modify it to form biodiesel and supply back the seed-cakes to primary societies for marketing
Jatropha Federations at the State level, for packaging and marketing of Jatropha-based biodiesel at the National and International level
A National Mission on Jatropha to facilitate research, technology development and transfer, production, promotion and export of Jatropha-based biodiesel.
Non Governmental Rural Development Organisations : The non-governmental rural development organisations or NGOs are increasingly playing an important role in the delivery of various developmental services in different parts of the world, and India is no exception. It is envisaged that the rural development organisations can be entrusted with the following roles in the Jatropha-based diesel promotion programme in the country :
Community organisation into SHGs and other village level organisations, and strengthening of existing institutions.
Mass mobilisation of communities for taking up Jatropha cultivation.
Linking the community institutions with Jatropha-related developmental programmes of other agencies.
Providing hand-holding support to Jatropha nursery growers (e.g., women groups) and cultivators.
Creating awareness of the importance of microcredit within the Jatropha growers and local processing groups.
Functioning as a financial intermediary to make low-cost and risk loans available to Jatropha-entrepreneurs through leveraged bank-NGO-client credit lines.
Providing micro enterprise development support to the community for Jatropha based SME development in rural areas.
Making marketing information accessible to Jatropha growers and rural biodiesel manufacturers.
Technical Institutes, Academic Institutions and Universities : There is tremendous scope for involving technical and academic institutions of the country for meeting the software requirements with regard to Jatropha cultivation, management, processing, packaging and marketing. The specific areas where interventions from these organisations would be most needed include:
Research and technology development for Jatropha cultivation and its management as an agroforestry crop.
Mass mobilisation and extension / dissemination of cultivation packages among rural communities.
Research for development of other innovative products from Jatropha.
Development of alternative and appropriate technology for maximising Jatropha oil yield / expression.
Developing basic financial management and entrepreneurial skills and demand orientation among Jatropha SME owners in rural areas.
Imparting skills to the rural youth in networking for accessing market information and increasing their ability to identify opportunities for product diversification.
Increasing the rural entrepreneurs that ability to understand and address quality requirements in the oil industry.
In the above context, the agriculture and forestry departments of various Indian Universities, the Forest Research Institute (FRI), Dehradun and Indian Institute of Forest Management (IIFM) Bhopal can play a key role for strengthening the biological production process of Jatropha-based biodiesel. Technical institutes like the Indian Institutes of Technology (IITs) and the Indian Technical Institutes (ITIs) can help in various stages of machinery and technology development. They can also support establishment of decentralised workshops for maintenance and repair of oil extraction machinery and equipment. Management development institutions like the Indian Institutes of Management (IIMs), the Entrepreneurship Development Institute (EDI) in Ahmedabad, Indian Institute of Quality Management (IIQM), Jaipur and the Centre for Entrepreneurship Development in Madhya Pradesh (CEDMAP) can play a crucial role in various aspects human resource development in rural areas.Government Organisations / Departments : The role of the Government in promoting Jatropha fuelled rural development cannot be over emphasised. The departments envisioned to perform key roles in this respect include those looking after Agriculture and Watershed Development, Forest, Revenue, Panchayats and Rural Development, Women and Child Development, Employment and Training and Small Scale Industries. The ubiquitous presence, network expanse, fund availability, philanthropic outlook and ability to work at a larger scale are the unique properties with which the Government Departments and Agencies are bestowed.The intrinsic strengths of Government institutions can be put to use effectively and meticulously for promoting Jatropha cultivation, processing and marketing, as mentioned below:
Revenue and Forest Departments can estimate and allocate vacant and waste lands under their ownership for Jatropha cultivation.
The Departments related to Panchayat, Tribal Welfare, Rural Development and Women and Child Development can promote the involvement of the poor and the socio economically marginalised sections of the society in Jatropha based income generation ventures by planning for priority establishment of such SMEs in needy areas. These Departments should also take up the responsibility of ensuring equitable distribution of benefits from Jatropha based SMEs in rural areas.
The Departments concerned with Rural Employment and Training should focus on building capacities of the rural youth to take advantage of the Jatropha promotion wave, establish Jatropha based SMEs and earn profits in a sustainable manner. Sincere efforts should be made for linking the rural entrepreneurs, individuals as well as groups with knowledge networks and management and technical institutions.
Several resource-specific marketing and trade agencies like the State MFP Federations, TRIFED, State Forest Development Agencies and Large Area Multi-purpose Societies (LAMPs) have already been established in different parts of the country. Functioning in a well-co-ordinated manner, these agencies can assist the rural people to produce and market the Jatropha seeds and oil produced by them in National markets at remunerative prices. They can organise State and National level Jatropha (seed and oil)- buyer-seller meets and regularly publish a Directory of these buyers and sellers.
Banks and Non-Banking Financial Institutions (NBFIs) : The informal financial sources generally include funds available from family sources or local moneylenders. The prohibitive cost of loans disbursed by the local money lenders and increasing incidences of misappropriation of funds by Chit Funds and Bishis diminish the suitability of these credit options for any organised Jatropha cultivation and processing venture. Lately, few of the NGOs have also initiated savings and credit programs for their target groups, under the community based financial systems (CBFS) approach.The formal sources of finance can be further categorised as Banks and the Non Banking Financial Institutions (NBFIs). Traditionally, the formal sector Banking Institutions in India have been serving only the needs of the commercial sector and providing loans for middle and upper income groups. The Government has taken several initiatives to strengthen the institutional rural credit system. Apart from commercial banks, the other front runner banks engaged in disbursing credit in rural areas include NABARD, Rural Development Banks (RDBs), Land Development Banks and Co-operative Banks (CBs).Today, there are around 250-300 Indian NGOs engaged in micro-finance, each with 50-100 Self Help Groups (SHG) and around 20-30 NGOs have started forming SHG Federations. The Jatropha entrepreneurs can target microfinance wholesalers like NABARD, Rashtriya Mahila Kosh-New Delhi and the Friends of Women's World Banking in Ahmedabad. They should benefit from loans offered under various schemes by public sector banks as well as NBFIs as in spite of a change in the legislation and attitude of banks, they still cannot sufficiently meet the demand for rural credit to start micro-enterprise.Planners and Policy-Makers : Capitalising on the mandate provided by the 10th Plan document regarding Jatropha based promotion, as also the insights provided by the draft Biofuel policy would not be possible unless the field level interventions are well planned and are supported by an enabling policy environment. Favourable programme framework and policy environment would be required not only with reference to energy, but also in case of policies affecting land (forest, revenue and the commons), microcredit and microfinance, training and education of rural entrepreneurs. The overall thrust should be on:
Making Jatropha cultivation a low-risk venture with attractive returns.
Providing Jatropha-cultivators and SME owners with a lobbying power to influence legislation and services provided by identified institutions.
Promoting and recognising endeavours to build technical capacities of rural entrepreneurs.
Evolving a pricing and promotional strategy that would make biodiesel an attractive choice for the energy consumers.
On the basis of the above discussion, we can identify the following types of materials / resources (or the hardware), technical knowledge plus skills (or the software) and other support that would be required for achieving the National goals as mentioned in the draft Bio-fuel Policy:
(i) Ensured availability of hardware, i.e.,
High quality planting material of Jatropha and other cultivation inputs.
Affordable and alternative technology for harvest and post-harvest storage.
Processing and packaging technology for both seeds and oil.
(ii) Adequate provision of finance, i.e.,
Microfinance for villagers to take up Jatropha cultivation (includes funds for nursery development).
Low-cost loans for oil extraction in small and medium scale enterprises (SMEs).
Fund availability for packaging, marketing and promotion of Jatrophabased products.
Funds for research and technology development in Jatropha
(iii) Continued guidance and support for accessing software, i.e.,
Technical knowledge and skills in Jatropha cultivation and scientific harvest of seeds.
Technical knowledge of operating and maintaining oil extraction machinery.
Entrepreneurial skills and demand orientation for SME owners.
Ability to understand and address quality standards required by the oil industry.
Confidence and attitude to approach buyers for Jatropha oil and other byproducts.
Basic knowledge of marketing concepts.
Skills to network for accessing market information and ability to identify opportunities for product diversification.
(iv) Facilitating policy environment, i.e.,
Co-ordination and co-operation between various Government institutions, non profit organisations and private players under the umbrella of an All India Co-ordinated Project on Jatropha.
Jatropha-specific lending schemes for supporting investment in its cultivation by communities.
Tax relaxation, low-cost loan provision and other financial incentives for promoting Jatropha-based SME development.
Providing subsidy for popularisation of Jatropha-derived biodiesel and for making it a cheaper alternative to normal diesel.
Conclusion : Jatropha curcas holds immense untapped opportunities for farmers and rural entrepreneurs to make money and for the populace to replace diesel with home grown, environmental friendly biodiesel. The biodiesel revolution would go a long way in reducing the oil import bill of the country as more and more people substitute the fossil fuels with non-edible oil from plants like Jatropha to meet their household and commercial energy needs. Sufficient land is available for cultivating Jatropha to meet the 5 million hecters target as set in the 10th plan document, the challenge would be to suitably allocate and efficiently utilise this land.Studies are required that would focus as much on yield as on performance of biodiesel, and need to be properly documented. The main challenge of Jatropha promotion in rural areas would come from the communities for whom the scope of petro crop adoption would need to be attractively and profitably packaged along with a demystified plantation and processing technology. Site specific cultivation packages and agro forestry models for Jatropha would need to be developed and mass mobilisation / awareness campaigns designed and implemented to institutionalise the process and to achieve the desired scale of Jatropha plantation in the country.Appropriate strategies and policies would be needed to strengthen Jatropha-based rural livelihoods as they are in tune with the countrywide trend towards diversification of rural economy. Jatropha-based SMEs may consist of non-traditional activities, but unlike many traditional village industries that constituted only secondary and supplementary occupations, these activities can also be promoted and supported as main occupations to meet the country's energy and employment needs.Sincere and result-oriented efforts involving all stake holders in various stages of the planning process as well as implementation would be necessary to achieve the results listed above.References :
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