India's 'miracle' biofuel crop: Too good to be true?

To its fans, jatropha is a miracle crop, an eco-friendly answer to India's growing energy needs, but some experts are starting to question whether the wonder-shrub is too good to be true.

The seeds of the wild plant, which grows abundantly across India, produce non-edible oil that can be blended with diesel, to make the biofuel that is part of government efforts to cut carbon emissions and combat climate change.

That, combined with the shrub's much vaunted ability to flourish on poorly irrigated land, should make it the perfect crop for wasteland in the drought-prone nation.

But new research shows jatropha, which has received huge government backing in recent years, yields less than experts had first predicted and is now being grown on fertile farmland - undermining two of its best-selling points.

"Jatropha is being talked of as a crop that will grow on marginal and uncultivated land, and which will not compete with mainstream cultivation," said Sharachchandra Lele, a senior fellow at ATREE, an Indian environmental research group promoting sustainable development.

"But this is not what is happening in practice. Some state governments are promoting its cultivation on regular agricultural land, where it will displace existing crops, including food crops," said Mr Lele.

"We are basically subsidising the urban elite's petrol consumption at the cost of rural livelihoods and food production."

The Indian government has aggressively promoted production of the crop, setting its sights on 11 million hectares of plantations nationwide by next year.

Government policy stipulates that by 2017 all petrol and diesel fuel must have 20 per cent biofuel content, one of many moves aimed at reducing greenhouse gas emissions blamed for climate change.