7th March, 2003
Ministry of Agriculture  


PILOT PROJECTS TO PROMOTE BIO-DIESEL USE

CONTRACT FARMING TO INCREASE OIL PALM CULTIVATION


The Union Agriculture Ministry will soon come out with an Action Plan to launch pilot projects in different areas of the country to promote use of bio-diesel as an alternative fuel. This was stated by the Agriculture Minister Shri Ajit Singh while addressing the meeting of the Parliamentary Consultative Committee of his Ministry here today. The Committee discussed the prospects of "Oilseeds, Oil-bearing Trees and Bio-fuels". Responding to the discussion on bio-fuels Shri Ajit Singh said his Ministry will work out various details including the technical and commercial linkages, cost of production of bio-diesel etc. and will convene a meeting of the concerned central and state government departments for early launching of pilot projects. The Minister said Jatropha and Karanja plants have been identified for large scale planting for extraction of bio-diesel.

Shri Ajit Singh expressed concern over the growing import of edible oils which has increased from 0.52 million tonnes in 1990-91 to 4.21 million tonnes in 2001-02. The Minister said the country accounts for 15% of world’s acreage under oil-seeds but the productivity is a constraint as oil-seed crops are still being largely taken up in non-irrigated areas. Shri Ajit Singh said that technology mission oil-seeds has however, increased the production of oilseeds from 10.83 million tonnes in 1985-86 to 24.75 million tonnes in 1998-99. The productivity has improved from 570 kilograms per hectare to 944 kilograms per hectare during the same period. Drought conditions in major oil-seed growing states during the last 3 years have affected the yields and the production in 2001-02 was 20.4 million tonnes. Shri Ajit Singh informed the Committee that oilseeds production during the current year is likely to be 15.4 million tonnes marking a decline of 25% on account of drought.

To meet the growing demand for edible oils, the Agriculture Minister said special thrust will be given on promoting non-traditional sources of vegetable oils and tree borne oilseeds. During the Tenth Plan period, integrated development of tree-borne oil-seeds will be given priority and different schemes will be initiated to attract direct investment, create pre-processing facilities for quality collection of seeds and create awareness about new technologies and value addition etc. Mahua, Neem, Simarauba, Cheura Wild-apricot etc. have been identified as potential sources of vegetable oils with domestic quality.

Shri Ajit Singh said Agriculture Ministry is exploring the contract farming avenues to promote Oil Palm cultivation which is a perennial source of edible oil, Mustard is also likely to be covered under contract farming, the Minister said.

Sh/Shri K.P. Singh Deo, Bhartruhari Mahatab, Chunni Lal Bhau Thakur, Haribhai Chaudhary, all Members of the Lok Sabha and G.K. Vasan, and M.J. Varkey Mattahil, Members of Rajya Sabha attended the Committee Meeting.