National Biofuel Policy Boosts Biodiesel Production and Farmer Income: Government

New Delhi : The Government of India announced that the National Policy on Biofuels continues to play a pivotal role in promoting biodiesel production, strengthening rural livelihoods, and creating new income opportunities for farmers.

In a written reply to the Lok Sabha, Minister of State for Petroleum and Natural Gas Shri Suresh Gopi highlighted that a series of policy interventions have accelerated the adoption of biodiesel across the country.

Key Measures Driving Biodiesel Production

To expand domestic biodiesel output and encourage its use, the government has implemented several initiatives, including:

• Indicative biodiesel blending targets under the National Policy on Biofuels.

• Permission for direct sale of biodiesel for blending with high-speed diesel for transportation.

• Issuing the 2019 Guidelines for biodiesel sale for blending purposes.

• Reducing GST on biodiesel procurement for blending from 12% to 5%, making it more affordable for oil marketing companies.

Opportunities for Farmers: Tapping Indigenous Feedstock

The Biodiesel Blending Programme has opened new avenues for farmers by promoting cultivation and supply of Tree-Borne Oils (TBOs) such as:

• Karanja

• Neem

• Mahua

• Pongamia

These crops thrive on underutilized or wasteland areas, require minimal inputs, and grow well in drought-prone regions. This approach enhances income sources for farmers and reduces dependence on traditional single-crop systems.

Boosting Rural Economy and Employment

The policy framework supports:

• Plantation operations,

• Seed collection, and

• Oil extraction activities,

all of which generate employment and stimulate rural economic growth. The biodiesel value chain also enables effective utilization of waste and low-value agricultural products, adding further value to the rural economy.

A Step Toward Self-Reliance and Sustainability

By promoting biodiesel, the government aims to reduce:

• Dependence on imported fossil fuels,

• Environmental degradation from traditional fuels, and

• Wastage of agricultural by-products.

The policy also supports farmer diversification and sustainable rural livelihoods, contributing to India’s long-term energy and environmental goals.