The Hindu Business Line : Biofuels and food security

Energy security has become an area of significance, engaging the attention of all countries. Bio-fuels have come into prominence as they are considered to be environmentally friendly with reduced gas emissions. Less dependence on fossil fuels is a goal which many nations have set for themselves. The US has fixed a target of reduction in petroleum consumption by 20 per cent in the next 10 years, largely by turning to ethanol and other alternative fuels. Bio-fuels are thus considered to be a viable option for achieving the targeted reduction by many countries.

the preferred choice

The preferred option of bio-fuel now is agricultural products. These include corn, soya bean, rape seed, wheat, sugar beet, sugar cane and palm oil. It is understandable that a country such as the US , predominantly dictated by the interests of the automobile industry and is self-sufficient in food, has settled for agro-based bio-fuels rather than thinking in terms of reduced consumption.

The use of corn for ethanol production and their demand for soya bean oil has increased world food prices by about 10 per cent, according to an IMF report.

The Hamburg-based oilseeds analysts Oil World has predicted a deficit of 17 to18 million tonnes in the output of major oil seeds during 2007-08 and a food crisis unless the use of agricultural products for bio-fuels is curbed or if the weather conditions are ideal and sharply higher crop yields are achieved in 2008.

More alarming is the forecast that food prices will increase by 20 to 40 per cent in the next decade. The projected scenario should kindle rethinking on bio-fuel front in countries such as India where vagaries of monsoon still affect the performance of agricultural sector.

India is in the process of importing wheat. It is also not well placed in edible oil production. Any attempt to divert land for bio-fuel depends upon the energy inputs, cost of production and environmental impact.

It may be argued that the country’s choice of jatropha is ideal as it can be cultivated in wastelands. The expectation is that 98 million acres of wasteland can be brought under jatropha cultivation to reduce 20 per cent of the country’s diesel consumption by 2011. Another argument in favour of jatropha by the proponents is that little attention and inputs are required. This needs to be gone into carefully to assess the economics as well as employment generation potential. A systematic study of the soil fertility also may be called for.

The desirable proposition

These are times when management ‘gurus’ talk of ‘out of the box’ solutions. Should we be obsessed with bio-energy copying the West and US which are self-sufficient in food production? In fact, the UK had a wheat surplus of 2 million tonnes in 2005, which if converted into bio-fuel (ethanol), would have reduced petroleum consumption by 2.5 per cent. It is also to be noted that a 95 litre fuel tank with pure ethanol will require 200 kg of corn — enough calories to feed a person for a year.

Should we not think in terms of scientific research to convert non-edible oils into edible oils? Will it not be a more desirable proposition? It may be a challenge to the scientific community, but it is worth pursuing when the threat of rising food prices is looming large before us!

(The author is a former Financial Commissioner, Railway Board.)

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