India

Summary of national biofuels policy and strategy - updated 26th September 2008

Biofuels substitution targets

Targets:  ethanol up to 5% rising to 10% (possibly mandatory) late 2008

              biodiesel 5 % rising to 20% in 2017

Note: 10% ethanol target will be postponed because of supply issues. E5 mandate in 17 out of 25 states.

National policy and trends in biofuels crop development

National policy is driven by wish to:

• reduce emissions;
• support rural communities, particularly in use of sugarcane;
• bring  unproductive land into cultivation for biofuel feed stocks.

India imports 70% of its oil supply, consuming 50 million tonnes of petrol and diesel a year.

In September 2006 the government announced mandatory 5% blending of ethanol with petrol subject to commercial viability. Food security is a national priority and India wishes to avoid use of cereal grains for ethanol production or edible oil for bio-diesel production. The national strategy seeks to use sugar molasses for ethanol production and non-edible oils for biodiesel. India is one of the world’s leading producers of sugarcane providing a basis for ethanol production. Bio-diesel feedstocks identified are Jatropha curcus and Pongamia pinnata. Biodiesel crops are to be targeted on ‘wasteland’ with an estimated 55 million hectares falling into this category in India.

India cannot meet short term targets from home production. Bilateral relations with Brazil are in development to encourage Indian investment in Brazilian sugar cane and export of Brazilian ethanol to India with total imports likely to be 1 million tonnes over the period 2008-2013.

Sources:

FO Licht's World Ethanol & Biofuels Report: www.agra-net.com

USDA Foreign Agricultural Service – Biofuels Annual 2007 - http://www.fas.usda.gov/gainfiles/200706/146291266.pdf