Lack of R&D may affect jatropha cultivation

BANGALORE: Although jatropha cultivation is being encouraged in India to reduce the dependence on high crude imports, there continues to exist some major barriers, including lack of R&D and farmer-level support besides the commercial viability and pricing issues which need to be addressed, according to a research note on jatropha issued by Rabobank.

The Dutch bank report suggests that there is a strong case for subsidising jatropha seed production as well as biodiesel production during the initial period. Citing industry sources, the report notes that the current price of Rs 26.5 per litre offered by the oil marketing companies for purchase of biodiesel is too low to make jatropha-based biodiesel production profitable.

While jatropha seeds cost Rs 10 per kg, the total cost of jatropha oil production works closer to Rs 40 per litre. The report says while the cost of jatropha seeds is expected to drop to a more reasonable level of Rs 6-8 per kg, the revenues derived from sale of by-products like glycerine is currently low and highly uncertain over the long-run that revenues from jatropha cultivation look difficult to predict.

Besides the pricing risk, the report notes that India currently lags behind other nations as regards biodiesel production due to a shortage

of suitable feedstock notably vegetable oils which the country faces a deficit. While there is a huge potential about jatropha cultivation in India, the problems stems from the lack of
information about the extent of land unfit for food cultivation.

Similarly, there is huge difference in view as regards yield levels with some estimates indicating around 1,000 to 3,000 trees being grown per hectare with oil extraction levels being between 30-40%, though the report says it will be easy to assume that yield levels will be around 1,600 trees with oil extraction being 30%.