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Our Correspondent

Madurai , Oct. 21

THE Madurai District Tiny And Small Scale Industries Association (Maditssia), while welcoming the new bio-diesel policy announced by the Minister for Petroleum and Natural Gas, has observed that as the source of its immediate supply in great volumes is remote, the Government should support bio-diesel industries and protect the farmers.

In a statement, the Maditssia President, Mr S. Aravind, has pointed out that the announcement while mentioning the purchase price of oil at Rs 25 per litre, has not mentioned about taxation. Cultivation of jatropha for extraction of bio-diesel requires support from the Government.

He has also pointed out that the Government has not explained the basis for fixing the price at Rs 25 a litre. The technical studies have said that it is possible to produce bio-diesel oil at below Rs 25 a litre.

The prize of oil seed is less than Rs 2 a kg. At this price, Jatropha cultivation would be a loosing preposition for the farmers. The cake produced after extracting oil from the Jatropha, cannot be used as cattle feed, as in other parts of the world where vegetable oil for bio-diesel production is produced from edible crops such as rape seed and soya.

Jatropha is a non-edible crop and its seeds are toxic. The sale realisation of cake is very important for optimising the cost of production of Jatropha Oil, he has mentioned.

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