Economic Benefits and Costs of Jatropha Plantation in North-East India

Abstract

Energy security, emissions control and environmental concerns are some of the issues that drive India to search for bio-fuels in general and bio-diesel in particular as an alternative source of energy. The inception of National Biofuel Mission in 2003 has resulted in expansion of jatropha plantations in different states of the country. In North-East India, jatropha plantation was started in 2007, mostly at small farmers’ level with direct and indirect initiatives of the government and the private sector. However, adoption and expansion of jatropha plantation in the rural areas largely depend on profitability from such plantations at farmers’ level. The present study has assessed the profitability of jatropha plantation in four states of North-East India, viz. Arunachal Pradesh, Assam, Nagaland and Tripura, through cost-benefit analysis. The study has shown positive returns from the investment on jatropha plantation, making it an economically viable venture for the growers of the region. The investment on such plantation has shown a payback period of five years under the scenario of higher seed yield and accordingly requires adequate state funding support for operation and maintenance of such plantations at least during the initial years.