BIOFUELS AND ENERGY SECURITY OF INDIA

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BIOFUELS AND ENERGY SECURITY OF INDIA

• Ramprasad Sengupta
• Robin Singhal
• Centre for Economic Studies and Planning
• School of Social Sciences
• Jawaharlal Nehru University
• New Delhi - 110067
• Corresponding Author
• email rps0302_at_gmail.com
• October 2010

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Energy Policy Energy Security and Climate Change

• The Energy policy of India has given prime thrust
  on energy
• security while the notion of security builds in
  itself major
• concerns for
• Energy adequacy to support the growth process
• (2) Provision of safe and clean energy (Life line
  
• requirement) for all irrespective of their
  ability to
• pay, for removing energy poverty
• (3)Energy supply at competitive prices.

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• Control of Climate Change not the immediate
  policy objective. However, the concern for cost
  competitiveness and clean energy supply in the
  interest of security have got important fall out
  in terms of control of CO2 emissions as well for
  India.
• The recent commitment of Indian Government to its
  Parliament on the eve of Copenhagen Conference
  has been however made explicitly in terms of
  bringing down the CO2 intensity of GDP at some
  target level, but not in terms of absolute
  emission cuts.

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Integrated Energy Policy Document Definition of
security We are energy secure when we can
supply life line energy to all our citizens
irrespective of their ability to pay for it as
well as meet the effective demand for safe and
convenient energy at competitive prices, at all
times and with a prescribed confidence level
considering shocks and disturbances that can be
reasonably expected. . Major issues
Conservation, Fuel Substitution, Cleanliness,
Cost Effectiveness, Energy Distribution.
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Comparative Primary Energy Use across some Major Countries and Regions (Source World Bank (2009) World Development Indicators 2009) Comparative Primary Energy Use across some Major Countries and Regions (Source World Bank (2009) World Development Indicators 2009) Comparative Primary Energy Use across some Major Countries and Regions (Source World Bank (2009) World Development Indicators 2009) Comparative Primary Energy Use across some Major Countries and Regions (Source World Bank (2009) World Development Indicators 2009) Comparative Primary Energy Use across some Major Countries and Regions (Source World Bank (2009) World Development Indicators 2009) Comparative Primary Energy Use across some Major Countries and Regions (Source World Bank (2009) World Development Indicators 2009)
Countries Per Capita National Income (PPP) 2007 Energy per capita kgoe 2007 Energy Intensity of GDP (Kg/PPP) 2007 Share of Biomass in total Primary Energy 2007 () Electricity consumption per capita (in thousand KWhr) in 2007
India 2740 529 0.204 27.2 714
China 5420 1484 0.294 9.9 2488
USA 45840 7766 0.182 3.5 14314
High Income Countries 36340 5321 0.154 3.7 10283
World 9947 1819 0.185 9.6 2998

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Comparative Carbon Dioxide Emissions across some Major Countries and Regions Comparative Carbon Dioxide Emissions across some Major Countries and Regions Comparative Carbon Dioxide Emissions across some Major Countries and Regions Comparative Carbon Dioxide Emissions across some Major Countries and Regions Comparative Carbon Dioxide Emissions across some Major Countries and Regions
Countries Population (million) 2007 Per Capita National Income (PPP) 2007 Carbon Dioxide Emissions (million metric tonnes) 2006 Per capita Carbon Dioxide Emissios (Metric Tonne) 2006
India 1125 2740 1509.3 1.4
China 1318 5420 6099.1 4.7
USA 302 45840 5748.1 19.3
High Income Countries 1056 36340 13377.9 12.7
World 6610 9947 30154.7 4.4
Source World Bank (2009) World Development Indicators 2009 Source World Bank (2009) World Development Indicators 2009 Source World Bank (2009) World Development Indicators 2009 Source World Bank (2009) World Development Indicators 2009 Source World Bank (2009) World Development Indicators 2009
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TREND AND PATTERN OF ENERGY CONSUMPTION IN INDIA
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Transport
Industry
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Percentage Distribution of Households using major source of energy for Cooking 2004-05 Percentage Distribution of Households using major source of energy for Cooking 2004-05 Percentage Distribution of Households using major source of energy for Cooking 2004-05 Percentage Distribution of Households using major source of energy for Cooking 2004-05 Percentage Distribution of Households using major source of energy for Cooking 2004-05
All India Biomass LPG Kerosene Others
Rural 84.1 8.6 1.3 6
Urban 23.7 57 10 9.3
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Percentage Distribution of Households using major source of energy for Lighting 2004-05 Percentage Distribution of Households using major source of energy for Lighting 2004-05 Percentage Distribution of Households using major source of energy for Lighting 2004-05 Percentage Distribution of Households using major source of energy for Lighting 2004-05
All India Electricity Kerosene Others
Rural 54.9 44.4 0.7
Urban 92.3 7.1 0.6
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ENERGY SECURITY - THE ISSUE OF OIL SECURITY
FOR INDIA
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Domestic front

• In 2007-08, the total quantity of crude oil
  supplied was 1,55,790 thousand tonnes. The
  domestic production accounted for only 22 percent
  of total domestic consumption in 2007-08 (i.e.
  34118 thousand tonnes).
• In 2007, the total crude oil reserves were
  7,25,000 thousand tonnes.
• The Reserve to Production ratio for the year 2007
  was 21 years only. If we consider the total
  quantity of crude oil supplied to meet
  consumption instead of domestic production, the
  ratio reduces to 5 years only.
• The share of imports has been steadily rising and
  in 2031-32, the share of imports is projected to
  be 90 per cent.

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Source Authors calculation based on data from
GOI, 2010 and GOI, 2006
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Indias Import Dependence of Energy
Year Share of net import in total primary commercial energy supplies () Share of oil import in total net import of energy () Import as percentage of total oil supplies Global oil price index 1993100 Real global oil price index for India 1993100
1 2 3 6 4 5
1971 24.32 100 63 3.24 21.88
1980 24.85 98.6 61 56.11 172.17
1985 12.07 100 - 66.34 135
1990 17.24 86.6 39 78.38 106.55
1995 22.1 84.1 - 107.97 90.23
2000 30.43 84.5 64 246.82 152.62
2005 32.07 75.22 - 461.34 235.82
Source 1. Estimated by the author on the basis of crude oil price data collected from British Petroleum and Energy balances for non-OECD countries of the International Energy published by OECD Source 1. Estimated by the author on the basis of crude oil price data collected from British Petroleum and Energy balances for non-OECD countries of the International Energy published by OECD Source 1. Estimated by the author on the basis of crude oil price data collected from British Petroleum and Energy balances for non-OECD countries of the International Energy published by OECD Source 1. Estimated by the author on the basis of crude oil price data collected from British Petroleum and Energy balances for non-OECD countries of the International Energy published by OECD Source 1. Estimated by the author on the basis of crude oil price data collected from British Petroleum and Energy balances for non-OECD countries of the International Energy published by OECD Source 1. Estimated by the author on the basis of crude oil price data collected from British Petroleum and Energy balances for non-OECD countries of the International Energy published by OECD
2. Column 6 from Ministry of Petroleum and Natural Gas, cited in Subramanian et al (2005) 2. Column 6 from Ministry of Petroleum and Natural Gas, cited in Subramanian et al (2005) 2. Column 6 from Ministry of Petroleum and Natural Gas, cited in Subramanian et al (2005) 2. Column 6 from Ministry of Petroleum and Natural Gas, cited in Subramanian et al (2005) 2. Column 6 from Ministry of Petroleum and Natural Gas, cited in Subramanian et al (2005) 2. Column 6 from Ministry of Petroleum and Natural Gas, cited in Subramanian et al (2005)
Note Figure pertains to year 1981, Figure pertains to year 1991, total oil supplies refers to sum of production and import of crude oil in India for the respective years. Note Figure pertains to year 1981, Figure pertains to year 1991, total oil supplies refers to sum of production and import of crude oil in India for the respective years. Note Figure pertains to year 1981, Figure pertains to year 1991, total oil supplies refers to sum of production and import of crude oil in India for the respective years. Note Figure pertains to year 1981, Figure pertains to year 1991, total oil supplies refers to sum of production and import of crude oil in India for the respective years. Note Figure pertains to year 1981, Figure pertains to year 1991, total oil supplies refers to sum of production and import of crude oil in India for the respective years. Note Figure pertains to year 1981, Figure pertains to year 1991, total oil supplies refers to sum of production and import of crude oil in India for the respective years.
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International crude oil market

• The oil crises of 1970s and 1980s have shown the
  vulnerability of the process of economic growth
  in oil importing countries.
• In nominal terms, the price of crude oil has
  increased from a level of US 12 per barrel in
  1999 to US 100 per barrel in November 2007.
• In July 2008, it touched a record high of US 147
  per barrel. In December 2008, the crude oil was
  traded at US 38 per barrel. During 2009, the
  prices rebounded and it was traded at US 70 per
  barrel in August 2009.
• The Indian basket of crude oil which was priced
  at US 36 per barrel in May 2004 sharply rose to
  a level of US 132 per barrel in July 2008, an
  increase of 267 per cent in just 4 years.

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Global oil supply

• In 1956, Marion King Hubbert - an American
  geoscientist made a peak oil analysis to predict
  that the oil production in US Lower 48 states
  would peak in early 1970s.
• According to proponents of peak oil analysis, the
  worlds annual crude oil production will reach
  its global maxima (or its peak) when countries
  accounting for worlds 50 per cent of the total
  annual crude oil production start witnessing a
  decline in their annual production levels,
  (Tsoskounoglou, Ayerides and Tritopoulou, 2008).
• In 2005, out of the 50 largest oil producing
  countries 24 nations which account for 40 per
  cent of global production of crude oil registered
  a decline in their production levels by 4.34 per
  cent from the previous year.

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Recent peak oil studies and peak time predictions Recent peak oil studies and peak time predictions Recent peak oil studies and peak time predictions
  Ultimate Recoverable Reserves of crude oil (in billion barrels) Year of peak
Nel and Cooper, 2009 Nel and Cooper, 2009 Nel and Cooper, 2009
World 2682 2014
Maggio and Cacciola, 2009 Maggio and Cacciola, 2009 Maggio and Cacciola, 2009
I 2250 2009
II 2600 2015
III 3000 2021
Nashawi, Malallah and Al-Bisharah, 2010 Nashawi, Malallah and Al-Bisharah, 2010 Nashawi, Malallah and Al-Bisharah, 2010
World 2140 2014
OPEC 1321 2026
Non-OPEC 819 2006
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HUBBERTS MODEL FOR PEAK OIL ANALYSIS

• Q K/(1noe-at),
• no (K - Qo)/Qo
• Q is Cumulative oil production in period t
• K is ultimate recoverable reserves of crude oil
• t denotes the time period
• Qo denotes the level of cumulative oil production
  in the arbitrarily chosen time period To
• Note that the first derivative of the logistic
  function is a bell shaped curve which attains its
  maximum at the time of peak when half of ultimate
  recoverable reserves (K) has already been
  exploited (i.e. Q K/2) and thus represents the
  complete cycle of annual crude oil production as
  hypothesized by Hubbert.
• As a result, to model the cycle of crude oil
  production and determining the peak, he developed
  the following model
• dQ/dt P aQ (aQ 2)/K
• or P/Q a 1- (Q/K)

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India's annual crude oil production from 1970 -
2007, in thousand tonnes and in million barrels
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Model P/Q a (a/K)Q Model P/Q a (a/K)Q Model P/Q a (a/K)Q
Time period 1980-2007 1985-2007
a 0.151055 0.135404
a/K -1.44E-07 -1.22E-07
Ultimate recoverable reserves (K) 1.05E06 1.11E06
To 1980 1985
Time of peak 1995 1995
R-squared 0.842 0.841
Adjusted R-squared 0.836 0.834
Authors calculations Authors calculations Authors calculations
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Summary of results
Model I - 1980 - 2007 Model I - 1980 - 2007
Total Ultimate Recoverable Reserves of Crude oil (URR) 10,50,000 thousand tonnes
Year of peak 1995
Estimated peak years cumulative oil production 5,25,000 thousand tonnes
Actual cumulative oil production in 1995 5,32,478 thousand tonnes
Model I - 1985 - 2007
Total Ultimate Recoverable Reserves of Crude oil (URR) 11,10,000 thousand tonnes
Year of peak 1995
Estimated peak years cumulative oil production 5,55,000 thousand tonnes
Actual cumulative oil production in 1995 5,32,478 thousand tonnes
Source Authors calculation Source Authors calculation

• This peak in Indias crude oil production
  manifests itself in the continued Indias
  dependence on foreign supply of crude oil in the
  21st century.

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Implications

• A peaking global crude oil production implies
  that countries will either have to compete for
  the scarce resource in the international market
  by paying a higher price or will have to
  diversify their fuel mix in order to reduce their
  dependence on foreign supply of crude oil.
• Though there is lack of consensus about the
  actual time of peak and the level of global crude
  oil reserves, but it becomes necessary for the
  oil importing countries to take note of the
  growing uncertainty about the international crude
  oil market.
• In Indian context, as one of the important
  initiative in this regard would be to diversify
  the fuel mix for meeting energy demand of the
  transport sector.

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BIOFUELS AN ALTERNATIVE ENERGY SOURCE
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• There are several socio-economic and
  environmental benefits from biofuels which are
  the motivating factors behind policies promoting
  these fuels in both developed and developing
  countries.
• Economic saving foreign exchange by reducing
  import dependence for petroleum products,
  contributing to nations energy security
• Environmental addressing the problem of local
  air pollution and reducing CO2 emissions causing
  climate change as they are considered to be
  carbon neutral.
• Social employment opportunities, rural
  development.
• However, the production of feedstocks for these
  biofuels put additional pressure on resources
  such as land, water and others.
• It is important to ensure that policies, plans
  and strategies thus formulated encourage
  sustainable biofuels which ensure that the
  objective of energy security does not conflict
  with nations food security.

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Indian Biofuel Initiative

• In July 2002, a Committee on Development of
  Biofuels was set up under the Chairmanship of Dr.
  D.N. Tewari. The terms of reference of the
  committee were to suggest measures for
  encouraging the production and use of biofuels
  namely bioethanol and biodiesel (GOI, 2003).
• A National Policy on Biofuels was announced in
  December 2009. The policy is aimed at
  mainstreaming the use of biofuels bioethanol
  and biodiesel, for Indian transport sector. A
  target of 20 per cent blending of biofuels has
  been set for the country by 2017 (GOI, 2009).
• Further, the policy has approved the setting up
  of National Biofuel Coordination Committee under
  the Chairmanship of Prime Minister and Biofuel
  Steering Committee, in line with the
  recommendation of the Committee on Development of
  Biofuels (ibid).

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Continue..

• The Indian policy toward biofuels aims to resolve
  the food versus fuel conflict by promoting
  non-food feedstocks and cultivation of oilseeds
  using wasteland and
• The use of wasteland for cultivating non edible
  plant borne oilseeds such as jatropha curcas is
  encouraged for biodiesel production.
• In case of bioethanol production, sugarcane
  molasses - a byproduct from the process of
  producing sugar from sugarcane juice is being
  used.
• However, the Commission for Agricultural Costs
  and Prices recommends the use of excess sugarcane
  for direct bioethanol production from cane juice,
  in a situation where there is excess supply of
  sugarcane.

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National Biofuel Policy for India- key features

• 20 per cent blending for both bioethanol and
  biodiesel has been proposed, to be achieved by
  2017.
• A 10 percent ethanol blending for motor gasoline
  is supposed to be mandatory from October 2008.
  The pricing of bioethanol (produced from
  molasses) is still a contentious issue, acting as
  a deterrent in uptake of bioethanol for blending.
  Till date, biodiesel blending is not mandatory in
  India.
• The policy grants permission to sugar industry
  for producing ethanol directly from sugarcane
  juice, in case it does not affect the sugar
  production and availability of ethanol for
  industrial use.
• Minimum Purchase Price (MPP) will be announced
  for both - bioethanol and biodiesel. MPP for
  bioethanol will be based on its production cost
  and import parity price. MMP for biodiesel will
  be linked to retail diesel price.
• It appears from the policy document that even if
  edible oilseeds are to be used for biodiesel
  production, they are to be cultivated developing
  wastelands. Since this may invollve higher cost,
  the policy aims to support such plantations
  through a separate minimum support price
  mechanism other than the one currently in place
  for oilseeds used for edible oil production.

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• A concessional excise duty of 16 per cent is
  already being waived in case of bioethanol.
  Biodiesel is exempted from excise duty.
• Further, the policy promises concessions in
  Custom and Excise duty for imported plant and
  machinery for biofuel production,
  biofuel-compatible vehicle engines, and other
  applications which are not manufactured
  indigenously.
• In case need arises, import of biofuels will be
  allowed subject to the approval of National
  Biofuel Coordination Committee. No permission
  will be granted for importing Free Fatty Acid
  (FFA) oils.
• Foreign Direct Investment in plantations for
  biofuels is not allowed. FDI in biorefinery
  industry would be allowed upto 100 per cent, in
  case biofuel produced is for domestic use only.
• The policy aims to declare biofuel industry as a
  priority sector for lending purpose by financial
  institutions and banks in the country. National
  Bank of Agriculture and Rural Development
  (NABARD) will be the lending institution for
  farmers for plantations.

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Projections for Crude Oil, Diesel and Motor Gasoline demand for India, in 2011, 2021 and 2031 Projections for Crude Oil, Diesel and Motor Gasoline demand for India, in 2011, 2021 and 2031 Projections for Crude Oil, Diesel and Motor Gasoline demand for India, in 2011, 2021 and 2031 Projections for Crude Oil, Diesel and Motor Gasoline demand for India, in 2011, 2021 and 2031 Projections for Crude Oil, Diesel and Motor Gasoline demand for India, in 2011, 2021 and 2031 Projections for Crude Oil, Diesel and Motor Gasoline demand for India, in 2011, 2021 and 2031 Projections for Crude Oil, Diesel and Motor Gasoline demand for India, in 2011, 2021 and 2031 Projections for Crude Oil, Diesel and Motor Gasoline demand for India, in 2011, 2021 and 2031 Projections for Crude Oil, Diesel and Motor Gasoline demand for India, in 2011, 2021 and 2031 Projections for Crude Oil, Diesel and Motor Gasoline demand for India, in 2011, 2021 and 2031
Authors' calculations Authors' calculations Authors' calculations Authors' calculations Authors' calculations Planning Commission Planning Commission Planning Commission Planning Commission Planning Commission
 Year Crude Oil (Million tonnes of oil equivalent) Crude Oil (Million tonnes) Diesel (Million tonnes) 30 Petrol (Million Tonnes) 5 Year  Crude Oil (Million tonnes of oil equivalent) Crude Oil (Million tonnes) Diesel (Million tonnes) 30 Petrol (Million Tonnes) 5
2011 145 142 43 7 2011 166 162 49 8
2021 267 261 78 13 2021 278 272 82 14
2031 492 481 144 24 2031 486 476 143 24
Notes Crude Oil - 1.022 Million tonne of oil equivalent per tonne Notes Crude Oil - 1.022 Million tonne of oil equivalent per tonne Notes Crude Oil - 1.022 Million tonne of oil equivalent per tonne Notes Crude Oil - 1.022 Million tonne of oil equivalent per tonne Notes Crude Oil - 1.022 Million tonne of oil equivalent per tonne Notes Crude Oil - 1.022 Million tonne of oil equivalent per tonne Notes Crude Oil - 1.022 Million tonne of oil equivalent per tonne Notes Crude Oil - 1.022 Million tonne of oil equivalent per tonne Notes Crude Oil - 1.022 Million tonne of oil equivalent per tonne Notes Crude Oil - 1.022 Million tonne of oil equivalent per tonne
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Projections for Biodiesel Demand and Land requirement for biodiesel in India Projections for Biodiesel Demand and Land requirement for biodiesel in India Projections for Biodiesel Demand and Land requirement for biodiesel in India Projections for Biodiesel Demand and Land requirement for biodiesel in India Projections for Biodiesel Demand and Land requirement for biodiesel in India Projections for Biodiesel Demand and Land requirement for biodiesel in India Projections for Biodiesel Demand and Land requirement for biodiesel in India Projections for Biodiesel Demand and Land requirement for biodiesel in India Projections for Biodiesel Demand and Land requirement for biodiesel in India Projections for Biodiesel Demand and Land requirement for biodiesel in India
  Authors' Calculations     Authors' Calculations     Authors' Calculations     Authors' Calculations     Authors' Calculations   Planning Commission Planning Commission Planning Commission Planning Commission Planning Commission
 Year Diesel (Million Tonnes) 30 Biodiesel (Million Tonnes) 20 Biodiesel (Million Tonnes) 20 Land requirement for Biodiesel (Million hectares)  Year Diesel (Million Tonnes) 30 Biodiesel 20 (Million Tonnes) Biodiesel 20 (Million Tonnes) Land requirement for Biodiesel (Million hectares)
2011 42.59 8.52 8.52 3.49 2011 48.73 9.75 9.75 8.15
2021 78.43 15.69 15.69 6.42 2021 81.60 16.32 16.32 13.65
2031 144.31 28.86 28.86 11.82 2031 142.66 28.53 28.53 23.86
Per hectare yield of biodiesel Per hectare yield of biodiesel Per hectare yield of biodiesel 2.441 tonne 2.441 tonne Per hectare yield of biodiesel Per hectare yield of biodiesel Per hectare yield of biodiesel 1.196 tonne 1.196 tonne
Per hectare yield of jatropha seeds Per hectare yield of jatropha seeds Per hectare yield of jatropha seeds 10 000 kg 10 000 kg Per hectare yield of jatropha seeds Per hectare yield of jatropha seeds Per hectare yield of jatropha seeds 4555kg 4555kg
Quantity of jatropha seeds required for one litre of biodiesel Quantity of jatropha seeds required for one litre of biodiesel Quantity of jatropha seeds required for one litre of biodiesel 3.28 kg 3.28 kg Quantity of jatropha seeds required for one litre of biodiesel Quantity of jatropha seeds required for one litre of biodiesel Quantity of jatropha seeds required for one litre of biodiesel 3.28 kg 3.28 kg
One kg of biodiesel One kg of biodiesel One kg of biodiesel 1.2486 litres of biodiesel 1.2486 litres of biodiesel One kg of biodiesel One kg of biodiesel One kg of biodiesel 1.2486 litres of biodiesel 1.2486 litres of biodiesel
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Land use classification and estimates for India (in million hectares) Land use classification and estimates for India (in million hectares) Land use classification and estimates for India (in million hectares) Land use classification and estimates for India (in million hectares)
  1950-51 1990-91 2006-07
Forests 40.48 67.81 69.81
Not available for cultivation 47.52 40.48 42.63
Permanent pastures and other grazing land 6.68 11.4 10.36
Land under miscellaneous tree crops and groves 19.83 3.82 3.45
Culturable waste land 22.94 15 13.24
Fallow lands 28.12 23.37 25.72
Net sown area 118.75 143 140.3
Reporting area for land utilisation statistics 284.32 304.88 305.51
Total Geographical Area 328.73 328.73 328.73
Source Agricultural Statistics at a Glance Source Agricultural Statistics at a Glance Source Agricultural Statistics at a Glance Source Agricultural Statistics at a Glance
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• Wasteland is described as degraded land which
  can be brought under vegetation cover with
  reasonable effort, and which is currently
  under-utilized and/or land which is deteriorating
  for lack of appropriate water and soil management
  or on account of natural causes. Wastelands can
  result from inherent/imposed disabilities such as
  by location, environment, chemical and physical
  properties of the soil or financial or management
  constraints (GOI, 2005).
• The total wasteland is broadly classified into 13
  sub categories. However, it is essential to carry
  out a comprehensive assessment of the viable
  categories of wasteland for feedstock
  cultivation.

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Wastelands in India Wastelands in India Million hectares
1 Gullied and/or Ravenous land 1.90
2 Land with or without scrub 18.79
3 Waterlogged and Marshy land 0.97
4 Land affected by Salinity/Alkalinity 1.20
5 Shifting cultivation 1.88
6 Under-utilised/Degraded Notified Forest land 12.66
7 Degraded pastures/grazing land 1.93
8 Degraded land under plantation crops 0.21
9 Sands (riverine/coastal/desert) 3.40
10 Mining and Industrial Wasteland 0.20
11 Barren rocky area 5.77
12 Steep sloping areas 0.91
13 Snow covered and/or Glacial area 5.43
Total wastelands Total wastelands 55.27
Wastelands suitable for jatropha cultivation Wastelands suitable for jatropha cultivation 37.38
Notes The categories with asterisk sign above are suitable for jatropha cultivation in India. Notes The categories with asterisk sign above are suitable for jatropha cultivation in India. Notes The categories with asterisk sign above are suitable for jatropha cultivation in India.
Source Department of Land Resources, 2005 GOI, 2005 and TERI, 2005 cited in Biswas, Pohit and Kumar (2010) Source Department of Land Resources, 2005 GOI, 2005 and TERI, 2005 cited in Biswas, Pohit and Kumar (2010) Source Department of Land Resources, 2005 GOI, 2005 and TERI, 2005 cited in Biswas, Pohit and Kumar (2010)
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• In a market economy, the profitability and the
  ground rent from land use for alternative crops
  decide the pattern of land use in agriculture.
• In a regime of high oil price, the high Gross
  value of Output to Cost ratio and high ground
  rent for jatropha plantation crop may induce
  diversion of land use from food crops to such
  energy plantation.
• Hence, the concern for food security in a
  scenario of sustained oil price rise in real
  terms, decline in per capita domestic food grains
  availability and existence of substantive amount
  of poverty.

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• The setting up of bio refinery would further
  encourage diversion of land in any State where it
  is located.
• Pricing of jatropha seed on the basis of its
  energy potential parity with high speed petroleum
  diesel price, would ensure high return.
• Small cultivators with limited credit
  availability, may again be restrained from switch
  to such land use for jatropha if the credit
  requirement be substantive due to relative high
  cost of cultivation per acre.

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Indicators for feedstock Competitiveness

• Three important determinants of agricultural land
  use considered are
• Paid out cost (Cost A2) - It is a sum total of
  all actual expenses (in cash and kind) incurred
  by a farmer in production and rent paid for
  leased in land.
• Profit Margin - It is a measure of earnings
  accruing to a farmer per Rupee of expenditure
  incurred by him in farm operations. It is defined
  as the ratio of Gross Value of Output to Paid out
  cost.
• Ground Rent It is defined as the difference
  between Gross Value of Output for a crop and Cost
  C1 incurred by a farmer. Cost C1 is a sum total
  of all actual expenses (in cash and kind)
  incurred by the farmer in production, interest on
  value of owned fixed capital assets (excluding
  land) and imputed value of family labour.

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• The Directorate of Economics and Statistics under
  Ministry of Agriculture operates a scheme
  entitled Comprehensive Scheme for studying cost
  of cultivation of principal crops across the
  country.
• The three determinants of agricultural land use
  for principal crops considered here are based on
  the information obtained from the Report of the
  Commission for Agricultural Costs and Prices for
  the crops sown during 2009-2010 season. The
  reference year is 2005-06.
• Since cost of cultivating jatropha curcas is not
  covered under the above scheme, the estimates
  obtained from Tamil Nadu Agricultural University
  has been considered. The cost is calculated to be
  Rs 24656.25 per hectare for 2005-06 and assumed
  to be same across all Indian States.
• The relative competitiveness in terms of cost,
  profitability and land rental have been worked
  out for various competing crops in selected
  states as given in the following tables.

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Paid out cost (Cost A2) in Rs. per hectare for 2005-06 Paid out cost (Cost A2) in Rs. per hectare for 2005-06 Paid out cost (Cost A2) in Rs. per hectare for 2005-06 Paid out cost (Cost A2) in Rs. per hectare for 2005-06 Paid out cost (Cost A2) in Rs. per hectare for 2005-06 Paid out cost (Cost A2) in Rs. per hectare for 2005-06 Paid out cost (Cost A2) in Rs. per hectare for 2005-06 Paid out cost (Cost A2) in Rs. per hectare for 2005-06
Andhra Pradesh Haryana Maharashtra Tamil Nadu Uttar Pradesh Uttaranchal Karnataka
Sugarcane 35260.59 24833.04 58761.13 46445.81 16724.3 11761.06
Jowar 7284.26 9778.86 4819.92 4181.97
Maize 10636.19 10843.44 4857.52 4771.75 9508
Gram 7024.33 7595.31 6241.79
Cotton 15284.88 11885.97 14394.91 16911.34
Moong 5568.6 8128.22
Sunflower 6567.53 7197.15 5544.46
Urad 5304.72 8408.64 4218.11 2643.7
Paddy 16319.72 15988.37 17333.26 19924.21 10690.5 9611.17 17351.24
Groundnut 11706.85 14113.62 12545.47 8265.13
Tur 6406.92 4448.6 6915.27
Rapeseed Mustard 7887.07 7173.8
Wheat 13628.42 12588.82 10342.85
Bajra 4223.96 8087.68 3750.49
Soyabean 10652.03
Safflower 4598.45
Ragi 12495.61 7565.7 10187.53
Sesamum 6526.39
Masur 5699.82
Barley 10645.34
VFC Tobacco 43980.91
Jatropha 24656.25 24656.25 24656.25 24656.25 24656.25 24656.25 24656.25
The cost of cultivating jatropha curcas is assumed to be the same across all states. The cost of cultivating jatropha curcas is assumed to be the same across all states. The cost of cultivating jatropha curcas is assumed to be the same across all states. The cost of cultivating jatropha curcas is assumed to be the same across all states. The cost of cultivating jatropha curcas is assumed to be the same across all states. The cost of cultivating jatropha curcas is assumed to be the same across all states. The cost of cultivating jatropha curcas is assumed to be the same across all states. The cost of cultivating jatropha curcas is assumed to be the same across all states.
Authors calculation based on GOI, 2009 and GOI 2010. Authors calculation based on GOI, 2009 and GOI 2010. Authors calculation based on GOI, 2009 and GOI 2010. Authors calculation based on GOI, 2009 and GOI 2010. Authors calculation based on GOI, 2009 and GOI 2010. Authors calculation based on GOI, 2009 and GOI 2010. Authors calculation based on GOI, 2009 and GOI 2010. Authors calculation based on GOI, 2009 and GOI 2010.
55
Profit margin (Gross Value of Output to Paid out cost Ratio) for 2005-06 Profit margin (Gross Value of Output to Paid out cost Ratio) for 2005-06 Profit margin (Gross Value of Output to Paid out cost Ratio) for 2005-06 Profit margin (Gross Value of Output to Paid out cost Ratio) for 2005-06 Profit margin (Gross Value of Output to Paid out cost Ratio) for 2005-06 Profit margin (Gross Value of Output to Paid out cost Ratio) for 2005-06 Profit margin (Gross Value of Output to Paid out cost Ratio) for 2005-06 Profit margin (Gross Value of Output to Paid out cost Ratio) for 2005-06
Andhra Pradesh Haryana Maharashtra Tamil Nadu Uttar Pradesh Uttaranchal Karnataka
Sugarcane 2.31 2.73 1.39 2.15 4.00 4.87
Jowar 1.36 0.82 0.50 1.20
Maize 1.79 1.80 1.90 1.98 1.96
Gram 2.49 1.96 3.77
Cotton 1.59 1.92 1.23 1.32
Moong 2.58 0.96
Sunflower 1.56 1.48 1.35
Urad 4.98 1.11 2.40 2.42
Paddy 1.83 2.20 1.20 1.29 1.81 2.14 1.86
Groundnut 1.22 1.21 1.50 1.41
Tur 2.46 4.24 2.06
Rapeseed Mustard 2.96 2.76
Wheat 1.97 1.64 1.54
Bajra 1.42 1.06 2.07
Soyabean 1.25
Safflower 1.57
Ragi 0.60 1.40 0.71
Sesamum 1.99
Masur 3.12
Barley 1.68
VFC Tobacco 1.29
Jatropha 1 2.03 2.03 2.03 2.03 2.03 2.03 2.03
Jatropha 2 2.43 2.43 2.43 2.43 2.43 2.43 2.43
Jatropha 3 4.87 4.87 4.87 4.87 4.87 4.87 4.87
indicates simulated value at alternative prices of seed output - 1 for Rs 5/-, 2 for Rs 6/-, 3 for Rs 12/- per kg of seeds. indicates simulated value at alternative prices of seed output - 1 for Rs 5/-, 2 for Rs 6/-, 3 for Rs 12/- per kg of seeds. indicates simulated value at alternative prices of seed output - 1 for Rs 5/-, 2 for Rs 6/-, 3 for Rs 12/- per kg of seeds. indicates simulated value at alternative prices of seed output - 1 for Rs 5/-, 2 for Rs 6/-, 3 for Rs 12/- per kg of seeds. indicates simulated value at alternative prices of seed output - 1 for Rs 5/-, 2 for Rs 6/-, 3 for Rs 12/- per kg of seeds. indicates simulated value at alternative prices of seed output - 1 for Rs 5/-, 2 for Rs 6/-, 3 for Rs 12/- per kg of seeds. indicates simulated value at alternative prices of seed output - 1 for Rs 5/-, 2 for Rs 6/-, 3 for Rs 12/- per kg of seeds. indicates simulated value at alternative prices of seed output - 1 for Rs 5/-, 2 for Rs 6/-, 3 for Rs 12/- per kg of seeds.
Source Authors' calculations based on GOI, 2009 and GOI, 2010 Source Authors' calculations based on GOI, 2009 and GOI, 2010 Source Authors' calculations based on GOI, 2009 and GOI, 2010 Source Authors' calculations based on GOI, 2009 and GOI, 2010 Source Authors' calculations based on GOI, 2009 and GOI, 2010 Source Authors' calculations based on GOI, 2009 and GOI, 2010 Source Authors' calculations based on GOI, 2009 and GOI, 2010 Source Authors' calculations based on GOI, 2009 and GOI, 2010
56
Ground Rent (in Rs per hecatre) for 2005-06 Ground Rent (in Rs per hecatre) for 2005-06 Ground Rent (in Rs per hecatre) for 2005-06 Ground Rent (in Rs per hecatre) for 2005-06 Ground Rent (in Rs per hecatre) for 2005-06 Ground Rent (in Rs per hecatre) for 2005-06 Ground Rent (in Rs per hecatre) for 2005-06 Ground Rent (in Rs per hecatre) for 2005-06
  Andhra Pradesh Haryana Maharashtra Tamil Nadu Uttar Pradesh Uttaranchal Karnataka
Sugarcane 39339.09 37007.3 11898.77 41021.5 40669.22 41757.03  
Jowar 446.88   -4701.06 -3679.26     -694.07
Maize 5388.04     4337.8 -710.96 -581.24 7112.99
Gram 9405.26   4821.71   13830.32    
Cotton 3980.85 3516.79 20.63 129.07      
Moong 7535.2   -2231.92        
Sunflower 1755.26   2014.66       649.29
Urad 21122.91   -1036.15 3977.06 1996.3    
Paddy 10296.33 15371.16 -527.3 617.82 4153.9 4815.01 11222.7
Groundnut -963.15   -1316.27 2052.03     1294.33
Tur 6454.84       8515.97   5451.55
Rapeseed Mustard   9968.84     8801.22    
Wheat   8926.13     4152.25 131.23  
Bajra   -3100.7 -2582.44   -407.02    
Soyabean     749.63        
Safflower     578.54        
Ragi     -9965.42 -1594.08     -6010.98
Sesamum       4150.05      
Masur         8954.49    
Barley         1847.32    
VFC Tobacco 10465.33            
Jatropha 1 25343.75 25343.75 25343.75 25343.75 25343.75 25343.75 25343.75
Jatropha 2 35343.75 35343.75 35343.75 35343.75 35343.75 35343.75 35343.75
Jatropha 3 95343.75 95343.75 95343.75 95343.75 95343.75 95343.75 95343.75
indicates simulated value at alternative prices of seed output - 1 for Rs 5/-, 2 for Rs 6/-, 3 for Rs 12/- per kg of seeds. indicates simulated value at alternative prices of seed output - 1 for Rs 5/-, 2 for Rs 6/-, 3 for Rs 12/- per kg of seeds. indicates simulated value at alternative prices of seed output - 1 for Rs 5/-, 2 for Rs 6/-, 3 for Rs 12/- per kg of seeds. indicates simulated value at alternative prices of seed output - 1 for Rs 5/-, 2 for Rs 6/-, 3 for Rs 12/- per kg of seeds. indicates simulated value at alternative prices of seed output - 1 for Rs 5/-, 2 for Rs 6/-, 3 for Rs 12/- per kg of seeds. indicates simulated value at alternative prices of seed output - 1 for Rs 5/-, 2 for Rs 6/-, 3 for Rs 12/- per kg of seeds. indicates simulated value at alternative prices of seed output - 1 for Rs 5/-, 2 for Rs 6/-, 3 for Rs 12/- per kg of seeds. indicates simulated value at alternative prices of seed output - 1 for Rs 5/-, 2 for Rs 6/-, 3 for Rs 12/- per kg of seeds.
Source Authors' calculations based on GOI, 2009 and GOI, 2010 Source Authors' calculations based on GOI, 2009 and GOI, 2010 Source Authors' calculations based on GOI, 2009 and GOI, 2010 Source Authors' calculations based on GOI, 2009 and GOI, 2010 Source Authors' calculations based on GOI, 2009 and GOI, 2010 Source Authors' calculations based on GOI, 2009 and GOI, 2010 Source Authors' calculations based on GOI, 2009 and GOI, 2010 Source Authors' calculations based on GOI, 2009 and GOI, 2010
57
Critical Biodiesel and High Speed Diesel Price
Based on Jatropha Curcas Seed Oil
58

• Critical Biodiesel Price/High Speed Diesel is the
  minimum price of HSD/Biodiesel for which returns
  to a farmer are just sufficient to cover the
  opportunity cost of diverting land from
  cultivating a principal crop to jatropha
  cultivation.
• These are estimated based on the Techno economic
  data on bio-refinery prepared by IRADe for
  Technology Information Forecasting and Assessment
  Council (TIFAC) and those on jatropha cultivation
  prepared by the Tamil Nadu Agricultural
  University.
• The biorefinery cost of producing biodiesel from
  jatropha seed oil (excluding the cost of
  feedstock) is assumed to be Rs 9.50 per kg of
  biodiesel. The biodiesel yield is assumed to be 1
  kilogram from 3.28 kg of jatropha seeds.
• The critical biodiesel and HSD prices have been
  calculated considering that 1 kg of biodiesel is
  equal to 1.2486 litres of biodiesel and 1 litre
  of biodiesel is equal to 0.93117 litre of High
  Speed Diesel.

59
Biodiesel Comparison Biodiesel Comparison Biodiesel Comparison
Specification Biodiesel Petro- Diesel
Specific Gravity 0.88 0.85
Flash Point 192 oC 55 oC
Kinetic Viscosity 4.84 2.7
Carbon Residue 0.024 0.35
Centane Value 52 47.5
Sulphur 0 0.5
Calorific Value -Kcal 9470 10170
Source Tamil Nadu Agricultural University Source Tamil Nadu Agricultural University Source Tamil Nadu Agricultural University
60
Critical High Speed Diesel Price (HSD), US per barrel 2004-05 Critical High Speed Diesel Price (HSD), US per barrel 2004-05 Critical High Speed Diesel Price (HSD), US per barrel 2004-05 Critical High Speed Diesel Price (HSD), US per barrel 2004-05 Critical High Speed Diesel Price (HSD), US per barrel 2004-05 Critical High Speed Diesel Price (HSD), US per barrel 2004-05 Critical High Speed Diesel Price (HSD), US per barrel 2004-05 Critical High Speed Diesel Price (HSD), US per barrel 2004-05
Andhra Pradesh Haryana Maharashtra Tamil Nadu Uttar Pradesh Uttaranchal Karnataka
Sugarcane 81 102 97 83 83 87 106
Wheat 60 54 51
Bajra 49 49 50
Paddy 64 65 52 53 53 55
Rapeseed Mustard 59 57
Cotton 62 65 51 50 56
Ragi 51 46
Groundnut 55 47 57 51
Urad 57 48 53 52
Jowar 51 49 48 51
Sesamum 54 56
Barley 52
Masur 53
Gram 61 52 59
Tur 58 57 61 53
Maize 52 50 47 54
Moong 54 48
Soyabean 52
Sunflower 52 53 51
Safflower 53
VFC Tobacco 56            
Notes The exchange rate for 2004-05 is assumed to be Rs 42.25 per US Dollar. Notes The exchange rate for 2004-05 is assumed to be Rs 42.25 per US Dollar. Notes The exchange rate for 2004-05 is assumed to be Rs 42.25 per US Dollar. Notes The exchange rate for 2004-05 is assumed to be Rs 42.25 per US Dollar. Notes The exchange rate for 2004-05 is assumed to be Rs 42.25 per US Dollar. Notes The exchange rate for 2004-05 is assumed to be Rs 42.25 per US Dollar. Notes The exchange rate for 2004-05 is assumed to be Rs 42.25 per US Dollar. Notes The exchange rate for 2004-05 is assumed to be Rs 42.25 per US Dollar.
Source Authors estimates based on GOI, 2008 Source Authors estimates based on GOI, 2008 Source Authors estimates based on GOI, 2008 Source Authors estimates based on GOI, 2008 Source Authors estimates based on GOI, 2008 Source Authors estimates based on GOI, 2008 Source Authors estimates based on GOI, 2008 Source Authors estimates based on GOI, 2008
61
CRITICAL ETHANOL AND GASOLINE PRICES BASED ON
MOLASSES TO ETHANOL ROUTE
62

• Critical Bioethanol/Gasoline Prices is the
  threshold price level corresponding to a
  principal crop at which cultivation of sugarcane
  competes out the principal crop presently sown in
  terms of its ground rent earning.
• The Critical Bioethanol/Gasoline prices has been
  estimated under two technological scenarios
• When sugarcane molasses is used as feedstock for
  ethanol production.
• When sugarcane juice is used directly for
  producing ethanol.
• The cost of converting molasses into ethanol
  (excluding the cost of feedstock) for an
  Integrated Indian Sugar Plant is found to be Rs
  4.03 per litre.
• These cost estimates are based on Indian
  Governments Report of the Committee on
  Development of Biofuels. In addition, 12 per cent
  is considered to be the normal rate of return for
  equity.

63

• The per unit cost of molasses for competing
  sugarcane prices is calculated using the formula
  (Price of one tonne of molasses divided by Price
  of one tonne of sugarcane) Competing Price of
  Sugarcane (Rs per kilogram).
• The price of molasses considered is Rs 3600 per
  tonne (or 1000 kilogram) which is based on the
  economics of producing ethanol from molasses for
  a Private Indian Ethanol Plant.
• The yield of anhydrous ethanol per tonne of
  molasses is considered to 220 litres. The
  conversion factor from ethanol to motor gasoline
  is calculated to be 1 litre of Gasoline 1.5
  litre of ethanol.
• This is based on World Bank Policy Research
  Working Paper by Timilsina and Shrestha (2010)
  which calculates the gasoline equivalent price as
  US 0.3 per litre when price of one litre of
  ethanol is US 0.2 per litre for Brazil.

64
Critical price of gasoline (in US per barrel) for 2005-06 Critical price of gasoline (in US per barrel) for 2005-06 Critical price of gasoline (in US per barrel) for 2005-06 Critical price of gasoline (in US per barrel) for 2005-06 Critical price of gasoline (in US per barrel) for 2005-06 Critical price of gasoline (in US per barrel) for 2005-06 Critical price of gasoline (in US per barrel) for 2005-06
Andhra Pradesh Haryana Maharashtra Tamil Nadu Uttar Pradesh Uttaranchal
Jowar 129.53 90.50 69.30
Maize 136.26 76.26 54.49 44.00
Gram 141.72 100.60 73.33
Cotton 134.34 136.89 95.50 72.61
Moong 139.18 93.11
Sunflower 131.31 97.62
Urad 157.66 94.38 75.95 57.99
Paddy 142.93 156.00 94.92 73.03 60.79 52.17
VFC Tobacco 143.16
Groundnut 127.61 94.09 74.28
Tur 137.71 66.44
Wheat 145.61 60.79 45.08
Bajra 126.22 92.74 54.88
Rapeseed Mustard 147.29 66.81
Soyabean 96.28
Safflower 96.10
Ragi 84.91 71.11
Sesamum 76.10
Masur 67.01
Barley 57.80
65
Critical Ethanol and Gasoline Price Based on
Sugarcane Juice to Ethanol Route
66

• At present, there is no Ethanol Plant in India
  producing ethanol directly from sugarcane juice.
  The critical ethanol and gasoline prices thus
  calculated are based on Brazils economics of
  producing ethanol from sugarcane juice directly.
• The cost of producing ethanol (excluding the cost
  of feedstock) is considered to be US 0.2 per
  litre. These cost estimates are based on Almeida
  et al (2007). We have assumed the exchange rate
  for India to be Rs 45 per US Dollar.
• The ethanol yield from one tonne of sugarcane
  juice is assumed to be 85 litres. Based on the
  calculated competing sugarcane price (in Rs per
  kg), we have calculated the critical ethanol
  prices.
• The gasoline equivalent price has been calculated
  assuming 1 litre of gasoline as being equal to
  1.5 litre of ethanol, based on World Bank Policy
  Research Working Paper by Timilsina and Shrestha
  (2010).

67
Critical price of Gasoline (in US per barrel) Critical price of Gasoline (in US per barrel) Critical price of Gasoline (in US per barrel) Critical price of Gasoline (in US per barrel) Critical price of Gasoline (in US per barrel) Critical price of Gasoline (in US per barrel) Critical price of Gasoline (in US per barrel)
Andhra Pradesh Haryana Maharashtra Tamil Nadu Uttar Pradesh Uttaranchal
Jowar 86.36 96.96 84.19
Maize 90.84 89.49 75.71 66.68
Gram 94.48 104.16 91.64
Cotton 89.56 91.26 100.53 86.71
Moong 92.78 98.82
Sunflower 87.54 102.03
Urad 105.11 99.73 89.25 78.67
Paddy 95.29 104.00 100.11 87.03 81.04 73.54
VFC Tobacco 95.44
Groundnut 85.08 99.52 87.98
Tur 91.80 85.82
Wheat 97.07 81.04 67.59
Bajra 84.15 98.56 76.04
Rapeseed Mustard 98.20 86.13
Soyabean 101.08
Safflower 100.95
Ragi 92.98 85.57
Sesamum 89.36
Masur 86.30
Barley 78.51
68
Comparative Ground rent Analysis for Sugarcane
Cultivation in India
69

• We have calculated the revised ground rent
  earnings from sugarcane cultivation under three
  scenarios
• Case A when molasses is used for ethanol
  production in an Integrated Indian Sugar Plant.
• Case B when ethanol is produced from molasses by
  a Stand Alone Distillery in India.
• Case C when ethanol is produced directly from
  cane juice based on Brazils economics of
  producing ethanol.
• The price of ethanol for calculating value added
  to per unit of sugarcane for ethanol production
  is assumed to be Rs 21.50 per litre.
• The cost of producing ethanol (excluding the cost
  of feedstock) is considered to be
• Case A Rs 4.03 per litre of ethanol (based GOI,
  2003)
• Case B Rs 5.83 per litre of ethanol (based on
  GOI, 2003)
• Case C Rs 9 per litre of ethanol (based on
  Almeida et al, 2007)

70
Ground Rent (in Rs per hectare) for 2005-06 Ground Rent (in Rs per hectare) for 2005-06 Ground Rent (in Rs per hectare) for 2005-06 Ground Rent (in Rs per hectare) for 2005-06 Ground Rent (in Rs per hectare) for 2005-06 Ground Rent (in Rs per hectare) for 2005-06 Ground Rent (in Rs per hectare) for 2005-06
  Andhra Pradesh Haryana Maharashtra Tamil Nadu Uttar Pradesh Uttaranchal
Sugarcane 39339.09 37007.3 11898.77 41021.5 40669.22 41757.03
I When sugarcane molasses is used for ethanol production I When sugarcane molasses is used for ethanol production I When sugarcane molasses is used for ethanol production
a) Integrated Sugar Plant
Gross value of output (Rs per hectare) 81512.67 67699.96 81764.3 99920.19 66934.81 57280.77
yield (kg/hectare) 68749 58007 82489 94357 56893 49077
Initial Price (Rs per kg) 1.19 1.17 0.99 1.06 1.18 1.17
Value added to Sugarcane from ethanol production (Rs per kg) 0.04 0.04 0.04 0.04 0.04 0.04
Revised price of sugarcane (Rs per kg) 1.23 1.21 1.03 1.10 1.22 1.21
Revised GVO (Rs per hectare) 84403.60 70139.19 85233.01 103887.95 69327.19 59344.48
Cost C1 42173.58 30692.66 69865.53 58898.69 26265.59 15523.74
Revised Ground Rent (Rs per hectare) 42230.02 39446.53 15367.48 44989.26 43061.60 43820.74

b) Stand alone distillery
Gross value of output (Rs per hectare) 81512.67 67699.96 81764.3 99920.19 66934.81 57280.77
yield (kg/hectare) 68749 58007 82489 94357 56893 49077
Initial Price (Rs per kg) 1.19 1.17 0.99 1.06 1.18 1.17
Value added to Sugarcane from ethanol production (Rs per kg) 0.02 0.02 0.02 0.02 0.02 0.02
Revised price of Sugarcane (Rs per kg) 1.21 1.19 1.01 1.08 1.20 1.19
Revised GVO (Rs per hectare) 83043.71 68991.78 83601.33 102021.52 68201.82 58373.71
Cost C1 42173.58 30692.66 69865.53 58898.69 26265.59 15523.74
Revised Ground Rent (Rs per hectare) 40870.13 38299.12 13735.80 43122.83 41936.23 42849.97

II When sugacane juice is used for ethanol production II When sugacane juice is used for ethanol production II When sugacane juice is used for ethanol production
Gross value of output (Rs per hectare) 81512.67 67699.96 81764.3 99920.19 66934.81 57280.77
yield (kg/hectare) 68749 58007 82489 94357 56893 49077
Initial Price (Rs per kg) 1.19 1.17 0.99 1.06 1.18 1.17
Value added to Sugarcane from ethanol production (Rs per kg) 0.03 0.03 0.03 0.03 0.03 0.03
Revised price of Sugarcane (Rs per kg) 1.21 1.20 1.02 1.09 1.20 1.20
Revised GVO (Rs per hectare) 83461.70 69344.46 84102.86 102595.21 68547.73 58672.10
Cost C1 42173.58 30692.66 69865.53 58898.69 26265.59 15523.74
Revised Ground Rent (Rs per hectare) 41288.1242 38651.79845 14237.33315 43696.52095 42282.137 43148.363
71
Comparative Ground Rent for Sugarcane (in Rs per hectare) for 2005-06 Comparative Ground Rent for Sugarcane (in Rs per hectare) for 2005-06 Comparative Ground Rent for Sugarcane (in Rs per hectare) for 2005-06 Comparative Ground Rent for Sugarcane (in Rs per hectare) for 2005-06 Comparative Ground Rent for Sugarcane (in Rs per hectare) for 2005-06 Comparative Ground Rent for Sugarcane (in Rs per hectare) for 2005-06 Comparative Ground Rent for Sugarcane (in Rs per hectare) for 2005-06
  Andhra Pradesh Haryana Maharashtra Tamil Nadu Uttar Pradesh Uttaranchal
Sugarcane 39339.09 37007.3 11898.77 41021.5 40669.22 41757.03
I When sugarcane molasses is used for ethanol production I When sugarcane molasses is used for ethanol production I When sugarcane molasses is used for ethanol production I When sugarcane molasses is used for ethanol production I When sugarcane molasses is used for ethanol production I When sugarcane molasses is used for ethanol production I When sugarcane molasses is used for ethanol production
a) Integrated Sugar Plant
Revised Ground Rent 42230.02 39446.53 15367.48 44989.26 43061.60 43820.74
b) Stand alone distillery b) Stand alone distillery b) Stand alone distillery b) Stand alone distillery b) Stand alone distillery b) Stand alone distillery b) Stand alone distillery
Revised Ground Rent 40870.13 38299.12 13735.80 43122.83 41936.23 42849.97
II When sugarcane juice is used for ethanol production II When sugarcane juice is used for ethanol production II When sugarcane juice is used for ethanol production II When sugarcane juice is used for ethanol production II When sugarcane juice is used for ethanol production II When sugarcane juice is used for ethanol production II When sugarcane juice is used for ethanol production
Revised Ground Rent 41288.12 38651.80 14237.33 43696.52 42282.14 43148.36
72

• The End