Supply chain network of Jatropha based biodiesel industry in North East India

India’s biofuel policy is mostly confined to Jatropha based biodiesel, as the demand for diesel in India is five times more than the demand for petrol. The policy seeks to increase the demand for biodiesel to 16.72 million tons by 2017 and encourages 20% blending of biodiesel with other fuels. This is a major challenge as Jatropha is a new perennial crop for the farmers, who see considerable risk and uncertainty in its production, profitability and employment generation. The present study tries to investigate the supply chain network and related problems of the biodiesel industry in North East India. The Jatropha based biodiesel supply chain includes stages like feedstock production, feedstock logistics (collection, storage, and transportation), biodiesel production, biodiesel distribution, and biodiesel end-use. The major challenge in feedstock production stage is to achieve a seed production level sufficient for ensuring a stable supply of biodiesel. Poor seed processing infrastructure is another bottleneck in the Jatropha value chain in NE India. Establishing market for Jatropha by-products is also crucial for sustainability of the industry. Collective efforts from public and private sectors are needed along with increase in the market price of biodiesel, which will motivate the farmers and infuse confidence to continue with Jatropha.

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