Thursday, May 15, 2008

Hunger of Food versus Fuel

India is growing at 9% (GDP) per annum. The economy is expected to grow for a decade and is going to surpass many nations to become one of the largest economies in the world. This looks like a dream come true for a country where over “90 percent of people” live on less than $1 a day. Towards the dream of riches and development lie some big hurdles. India needs a secure and sustainable supply of energy resources to meet its growing demand. As oil is predicted to peak and run out in the near future, renewable sources of energy are being explored.

Bio-renewable fuels such as ethanol and biodiesel are tested alternatives to replace gasoline and diesel in order to decrease our dependency on fossil fuels. Biofuels can be theoretically used to replace all gasoline and diesel required for the transportation sector. These fuels are grown on agricultural land just like any other crop and therefore provide a sustainable option. However, a big shift from a fossil fuel based energy economy to an agriculture based energy economy can cause some serious troubles to poor people by affecting the food prices. Spiraling prices could lead to mass starvation, malnutrition and even deaths. Estimations have predicted that running a car on biofuels for a year will require the same amount of agricultural land as is needed to feed a poor person for a year. A decision has to be made. Should India continue its quest for energy independence by depriving its poor citizens from food which they need the most?

Poverty and Fuel

Poverty in India exists in different forms and it can not be simply understood by defining a poverty line. The country has a history of elections being fought on the sole issue of food prices. Many people spend more than 80% of their daily income on purchasing everyday food without saving anything for the future. Every now and then there is news of mass starvation and suicides by farmers in rural India. However news reports generally do not cover hunger and malnutrition faced by individuals at different places. It has been observed that people usually stop purchasing a food item if its price rises marginally due to interrupted supply. In such a deteriorated situation if price escalates on a continuous basis by using food for making fuel (or using agricultural land for producing fuel) then it will bring death and starvation to many poor citizens. Therefore, before making any energy policy for the country which might adopt a food crop or an agricultural land for making fuels, it should be critically analyzed.

In India, currently two types of biorenewable fuels are promoted which could utilize agricultural land for its production: “ethanol produced from sugarcane” and “biodiesel produced from Jatropha”. This article will analyze the effects of both these fuels on food production. Interestingly, any kind of renewable technology if developed properly can actually help in satisfying India’s rising demand for energy. Biofuels can be produced in such a way that it can avoid a direct confrontation with food crops.

Ethanol from Sugarcane

India looks keen in adopting the Brazilian model of ethanol production using sugarcane. Brazil is a leading country in terms of ethanol production by producing about 36% world’s total ethanol followed by US. United States uses corn for producing ethanol. Both these crops are grown on agricultural land and form a larger component of food. It has been observed that due to the use of corn for producing ethanol, corn prices in US have escalated in recent times.

At present production levels, India can barely meet its domestic demand of sugar which is used primarily as food. Brazil has developed its ethanol production using sugarcane by eliminating part of the Amazon forest, and neglecting its effect on environment. India does not possess such a luxury of increasing its agricultural land.

Sugar as a primary component in the food chain should be used as a food source prior to any other usage. There are two possible ways of producing ethanol from sugarcane: the first is by using molasses which comes out after making sugar, the other is sugarcane juice which can be directly used for making ethanol without producing any sugar. It is estimated that at reasonably higher prices of ethanol it will become economically profitable for companies to produce ethanol directly from sugarcane juice. This will certainly compete with the sugar production. In this case it is advisable to the government to intervene and stop any direct production of ethanol from sugarcane juice.

A new technological development which is underway could help in avoiding such a dilemma. Cellulosic ethanol technology is supposed to be an efficient and environmentally cleaner way of producing ethanol. However, conversion of cellulose and lignin to simple sugar molecules forms the biggest hurdle. A breakthrough in this technology development could solve the problem. Cellulosic ethanol looks promising as it can take any form of biomass which is abundant in nature in the form of agro-forest waste.

Biodiesel from Jatropha

India is leading the world in the development of Jatropha as a fuel crop. Jatropha’s seed produces oil which can be easily converted into biodiesel by chemical reactions. At present, India consumes more diesel than gasoline and therefore biodiesel offers some promises for energy independence. Jatropha is not used in food and it can be grown in any kind of waste land. For example, there are proposals to grow the crop around railway tracks. It is estimated that if cultivated and developed properly on 20% of the available wasteland of the country, Jatropha will form the third largest crop in terms of area after wheat and rice. It will produce about 20% of India’s diesel demand in 2011 and could also create about 30 millions jobs in rural sector.

With these figures there does not appear any problem in using Jatropha for producing fuel. However, in a moment it can be realized that it is extremely difficult to grow Jatropha solely on waste land. At higher prices of biodiesel it will be profitable to grow Jatropha also on arable land where it can be maintained easily. Food crops such as wheat and rice can not sustain a direct competition from fuel crop in the market. Prices of these crops will rise threatening a larger number of deaths due to hunger. Only government interventions can help in avoiding such a fierce competition between food and fuel. It needs to be ensured that no fuel crop will be grown on arable land.

Government in a democratic country holds responsibilities towards its citizens. Under immense pressure for development, the government also has to make sure that all sections are benefited from this development especially the lower class. In both these cases we have seen possible ways by which adopting a renewable fuel can have little or no impact on food production. India’s energy policy should take this in account before making any decision. While aspirations for energy independence are good on the surface, they should not be made at the cost of food necessary for the poor.

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