Title : A study on sustainable feedstock utilization: Decentralized biofuels supply chain for rural development in India
Abstract:
India, as one of the fastest-growing economies in the world, faces a significant challenge in meeting its energy demands. Despite its natural resources, the country relies heavily on petroleum-based fuels for its transportation sector, with around 88% of fuel requirements imported. This dependency places a considerable financial strain on the national exchequer. In response, biofuel production has emerged as a central focus for Indian policymakers, aiming to reduce this reliance on imports while promoting sustainable energy alternatives.
The Indian government has set an ambitious target of achieving a 20% ethanol blend in gasoline by 2025. While this goal presents opportunities for expanding ethanol production, it raises concerns about the impact on farmers, particularly those with small landholdings vital to the biofuel supply chain. Many farmers face challenges due to stagnant crop prices and inflation, putting the future of farming at risk. In this context, a decentralized biofuel supply chain offers a promising solution, allowing smallholders to directly benefit from biofuel production and diversify their income sources, reducing their dependence on traditional crops.
Decentralized biofuel systems are particularly advantageous in India, where large-scale industrial biofuel production is often not feasible for smallholders. These systems enable farmers to participate in biofuel production using their land and resources, offering financial stability and fostering rural development. Beyond economic benefits, decentralized biofuel production also supports training and capacity building, empowering farmers with improved agricultural practices and creating employment opportunities for the local population. As 58% of India's population is engaged in agriculture and related activities, this initiative could help retain rural youth by providing local jobs, thereby curbing migration for employment.
The success of decentralized biofuel production hinges on supportive government policies. This study evaluates how these policies can facilitate the large-scale adoption of biofuels, particularly in decentralized systems. Additionally, it evaluates the impact of biofuel purchasing schemes and subsidies on promoting local production. By exploring these factors, the study aims to propose methodologies that will boost decentralized biofuel supply chains, ensuring their sustainability while contributing to India's broader economic and social development.
