By: ICN Bureau
Last updated : December 04, 2025 5:51 pm
The National Policy of Biofuels through the Biodiesel Blending programme creates opportunities for farmers in augmenting indigenous feedstock supplies like Tree-Borne Oils
The National Policy on Biofuels promotes production and adoption of various biofuels, including biodiesel, in the country. Government has taken several measures for promotion of biodiesel production which inter-alia include prescribing indicative target of blending of biodiesel in diesel / direct sale of biodiesel under the National Policy on Biofuels, notifying of "Guidelines for sale of biodiesel for blending with high-speed diesel for transportation purposes-2019"', reduction of GST rate for procurement of biodiesel for blending programme from 12% to 5%, etc.
The National Policy of Biofuels through the Biodiesel Blending programme creates opportunities for farmers in augmenting indigenous feedstock supplies like Tree-Borne Oils (TBOs) such as Karanja, Neem, Mahua, and Pongamia from underutilized or wasteland plantations, which require minimal inputs and can grow in drought-prone areas. The policy also supports employment and rural economic activity by encouraging plantation, seed collection, and oil extraction operations.
Overall, the biodiesel ecosystem enables value addition to waste and low-value agricultural products, supports farmer diversification, improves rural livelihoods, and reduces reliance on single-crop income sources.
This information was given by the Minister of State in the Ministry of Petroleum and Natural Gas Suresh Gopi in a written reply in Lok Sabha.