Effect of biofuel cultivation on desertification and food crops

Abstract

Rising concerns over energy security and climate change has led to an increase in global demand for biofuels. When well managed, biofuels offer large new markets for higher prices for agricultural producers that could stimulate rural growth and farm incomes. Increase in production of biofuels has may create new livelihood opportunities on one hand, it may also undermine access to land and natural resources for rural people. Diverting of land for the cultivation of biofuel crops has led to the debate on how will the increase in biofuel demand increase land use competition between food and fuel crops and how will the agriculture sector meet biofuel demand without compromising food security and an increase in food prices. Would an increase in production of biofuels to meet the energy demands of India lead to poverty alleviation by addressing the employment opportunities of the people? Are biofuels effective in mitigating climate change? Alarms were raised when the resulting increased demand for fuel crops contributed to increased commodity prices with adverse effects on consumers and environmentally sensitive land that was cleared for planting palm oil. These excesses raised some valid concerns about the impact of biofuel production on local environments, livelihoods of the displaced people and the global greenhouse gas emissions. The impact of increased food prices, especially on the poor, has drawn considerable attention. This report explores the early impacts of the biofuels boom on access to land and on local livelihoods in a village in Karnataka and determines the compensation that should be offered to the farmer of a semi arid village in a contract for taking away his land for the cultivation of bio fuel crops by analyzing the positive and negative costs associated with the production of biofuels.