The national policy on biofuels continues to promote the production and use of multiple biofuels, including biodiesel. To accelerate adoption, the government has introduced several supportive measures. These include setting indicative biodiesel blending targets, permitting direct biodiesel sales, and issuing the “Guidelines for Sale of Biodiesel for Blending with High-Speed Diesel for Transportation Purposes – 2019.” Additionally, reducing the GST rate on biodiesel procurement from 12% to 5% has further encouraged participation in the national blending programme.
Creating New Opportunities for Farmers
Through the Biodiesel Blending Programme, the policy opens new income opportunities for farmers by boosting demand for indigenous feedstock. Tree-Borne Oils (TBOs) such as Karanja, Neem, Mahua, and Pongamia can be cultivated on wastelands and require minimal inputs. These hardy crops thrive even in drought-prone areas, enabling farmers to make productive use of underutilised land.
Supporting Rural Livelihoods and Local Economies
Beyond cultivation, the policy promotes employment and rural economic activity by encouraging plantation, seed collection, and oil extraction. These activities help expand the rural value chain, creating sustainable job opportunities and generating additional revenue streams.
Powering Value Addition and Income Diversification
As reported by publicnow.com, India’s growing biodiesel ecosystem adds value to waste materials and low-value agricultural by-products. As a result, farmers can diversify their income sources and reduce dependence on single-crop earnings. This diversification not only strengthens rural resilience but also supports long-term livelihood stability.
