Institutional and technological constraints for commercialization of honge bio fuel in Karnataka state: policy issues

Abstract

Environmental stability and energy security are essential for the overall development of India. Factors like ever increasing import bills, high consumption of petroleum, and price uncertainty in the international market have caused considerable concern and underline the necessity for stable and sustained economic growth. The domestic supply of crude oil is about 22% and demand for transport fuel is expected to grow from 10 MMT (2006) to12.848 MMT in (2011). It is imperative therefore to find a viable and sustainable alternative energy source to reduce dependence on import. The other issues that need immediate attention include, cutting down on harmful emission, providing energy security, environmental amelioration and providing gainful employment in the rural sector. Bio diesel made from oil extracted from the seeds of Honge tree (Pongamia pinnata) is a renewable, eco-friendly, oxygenated, potential biofuel that can be easily blended with diesel up to 20% and used without any engine modification, leading to increase in mileage and thermal efficiency. Organized cultivation of Honge will enable sustained growth by providing energy security, employment, and a clean and green environment. This research study has been undertaken to explore whether Karnataka has the potential or otherwise to take up Honge cultivation on a commercial scale and to see what are the constraints in its commercialization. The methodology adopted in this research study includes interviewing farmers, oil expellers and collection of data from secondary sources. The findings are that farmers are not willing / interested at present to raise Honge tree crop in block plantations and that food security is their greatest concern. They are willing to practice farm forestry on a larger scale and to raise Honge tree cropping on bunds, provided saplings of high yielding variety are available, and buy back guarantee of seeds is provided by the government functionaries. Many of the farmers are still not aware of the potential of Honge biodiesel. There exist no effective market mechanism/ policies in the field level to promote the use of bio-diesel. Creation of bio diesel market, with supply network, awareness campaign of use and advantages of bio diesel, capacity building of locals, establishment of demonstration plots, supply of genetically superior seedlings with assured buy back of seeds can turn around the rural economy in Karnataka. This will not only provide energy security, round the year employment, and additional income in rural areas, but will also be cutting down harmful emissions, thus achieving multiple objectives - that of energy security, employment, and environment amelioration. There is large genetic variation in seeding of Honge trees in a natural stand. Supply of genetically superior seedlings, holds the key for commercial Hong tree cropping on farmlands. Government transport sector can offer the support price for Honge oil so as to reap the twin benefits of increased mileage and reduced greenhouse emission. For promotion and use of the Bio diesel and to reduce harmful emissions, resource building green tax needs to be imposed on use of fossil diesel, while blended diesel is to be exempted. This will generate resources for self-financing of raising Honge plantations, striking a balance in environmental stability, productivity, equity and would prove that the government is fulfilling its social responsibility. To overcome the resource crunch and to induce market efficiency, public-private partnership is also to be encouraged for taking up large-scale Honge plantations in degraded forestlands for commercialization, research and development of Honge bio diesel.