Ethanol promotion and livelihood security

Assam Ethanol Production Promotion Policy-2021 launched by the State Government is in line with the National Biofuel Policy, 2018 of achieving the country's target of 20 per cent blending of ethanol with fossil fuels to reduce carbon emission and cut down cost. The requirement of raw material and its availability for ethanol plants in the state will bring opportunities but will not be without challenges. One of the objectives of the state policy is to increase the income of farmers through the production of raw feedstock or raw material for ethanol manufacturing. It is also hoped that employment opportunities will also be created in the plants and along the supply chain. Assam Bio-Refinery Private Limited (ABRPL), a joint venture of the Numaligarh Refinery Limited and two European companies, targeted to be commissioned in 2022-23 will be converting bamboo biomass into ethanol, acetic acid, and other biofuels. The National Small Industries Corporation, a Marketing Partner of the refinery, estimates that commissioning of the refinery will create 6,350 direct, indirect, contractual engagements of entrepreneurs. The refinery will be sourcing green bamboo from Assam, Nagaland, Arunachal Pradesh, and Meghalaya while processing units will be set up at different locations for chipping of raw bamboo to be supplied by the bamboo growers. ABRPL, while seeking Expression of Interest for supplying green bamboo on a long-term basis, stated that its bio-refinery at Numaligarh will require 5 lakh tonnes of green bamboo annually to produce six crore litres of bio-ethanol and other biofuels. According to the Forest Survey of India, 2019, Assam has 10,525 sq. km of bamboo bearing area, while the area under bamboo in Arunachal Pradesh is 14,981 sq. km, 5410 sq. km in Meghalaya and 4,284 sq. km in Nagaland. The Survey report states that a maximum number of green bamboo culms are found in Arunachal Pradesh, which is estimated to be 4869 million, followed by 3082 million in Assam. The annual availability of bamboo in Assam is estimated to be over 7.25 lakh tonnes. Apart from use in constructing traditional bamboo houses in rural areas by different communities, bamboo is also required by artisans for making handicraft products that include household bamboo, baskets, bamboo sieve, fishing and agriculture implements. Available bamboo has already requirement in existing use and upcoming industrial projects like incense stick manufacturing units. While bamboo supplies to two paper mills have been halted due to their closure, the state supplies bamboo to paper mills outside. An inventory of bamboo harvestable areas in the state including bamboo grown in household gardens, farm field boundaries and forest areas will be useful for entrepreneurs who may be keen to supply bamboo chips to the bio-refinery or investors keen to set up ethanol units under the ethanol production promotion policy. Assam Bamboo and Cane Policy, 2019 states that bamboo plantations can be carried out either in forest land or non-forest land. Aims and objectives of the bamboo policy also include enhancement of resources through promotion of bamboo and cane plantation in forest areas, wastelands as well as in private lands, improvement of productivity by use of improved planting stock and scientific management practices. It also seeks to promote bamboo-based industries at the cottage, small, medium, and large-scale levels for utilising the available resources at a sustainable level for generating assured income. Comprehensive data on the availability of bamboo and information on the availability of areas for plantation in forest and non-forest land will be critical to ensure achieving the objectives of the policies. Lessons must be learnt from the impact of the diversion of bio-resources for biofuel on food security and livelihood in different countries. Although bioethanol is primarily produced from molasses, a by-product of the sugar industry in India, the National Bio-fuel Coordination Committee allowed the production of ethanol from surplus rice and maize available with the Food Corporation of India for blending with petrol under an ethanol-blended programme. Official estimates show that about 2.22 quintals of rice or about 2.63 quintals of maize are required to produce 100 litres of ethanol. The policy also states that cultivators, farmers, landless labourers will be encouraged to undertake plantations that provide the feedstock for biodiesel and bio-ethanol and corporates will also be enabled to undertake plantations through contract farming. Such cultivation or plantation will be supported through a Minimum Support Price for the non-edible oil seeds used to produce biodiesel. For Assam, balancing the objectives of the ethanol production promotion policy and bamboo and cane policy is going to be a challenging task and will require meticulous planning beside convergence of initiatives under the two policies so that livelihoods of the existing population dependent on bamboo are not adversely affected by an excess supply of green bamboo for bio-ethanol production. Rampant replacement of traditional rice or maize growing areas for non-edible oilseeds may give rise to the problem of food insecurity and pose livelihood risks to traditional farmers in long term.