While the advocates of biofuel as a viable option or supplement to conventional fuels feel that India must shift over to cheaper alternatives that are not in the grip of oil cartels, its opponents vehemently oppose any such move This year's Budget is notable for waiver of excise duty on biofuel diesel. Advocates of biofuel as a viable option or supplement to conventional fuels such as petrol, diesel and fossil fuels are happy with the development as they feel it is time for India, if not the world, to shift over to cheaper alternatives that are not in the grip of oil and kindred cartels. Escalating prices, shooting over $100 per barrel, and violent struggles for control of oil resources have severely impacted the world economy and peace in recent years. The spiralling inflation, especially the sharp increase in the prices of food items, is ascribed to this. By contrast, the easy availability of fuels obtained from plants and trees is an attractive option. An additional factor cited in its favour is that it is far less polluting. The biofuel lobby feels that India's growth is curbed by its huge oil import bill. Therefore, focussing on cheaper alternatives, which have less harmful emissions than oil and fossil fuels, makes sense. In 2003, the Planning Commission produced a report that detailed the huge possibilities for India in this sector. Currently, Brazil is the world leader, followed by the US and China, in that order. Other factors cited in favour of this emerging industry are that such fuels are produced indigenously, thereby generating work in rural areas; there are reduced transportation costs; these are renewable energy sources; and, being cleaner than conventional fuels, extend the life of base station generators and thus cut operational expenses. Ethanol is the most commonly known biofuel, with India said to be the fourth largest producer in the world, In Asia, it is reportedly second to China in producing ethanol. Known also as ethyl alcohol, it is derived from sugarcane, sorghum, molasses, potatoes, corn, wheat, wood, paper, straw, cotton and so on. Here, the Government has enforced blending five per cent ethanol in petrol. The jatropha plant is suited for making bio-diesel, with Chhattisgarh reported to have planted it over 160,000 acres. Its advantage over ethanol is that it grows on non-arable land. Winrock, an NGO, is pushing for its use. The argument cited is that its cultivation does not encroach upon farmland, and it grows easily. According to the NGO, to cite a Financial Times report by Amy Yee ('India may have solved cheap energy question', March 9), India could generate an estimated 10 per cent of its diesel demand -- 4m-5m tonnes of bio-diesel annually -- if a mere 10 per cent of the 60 m hectares or so non-arable land is consigned to for the purpose. Other States that have initiated farming of biofuel plants are Rajasthan, Uttarakhand, Andhra Pradesh and Karnataka, with the last two cultivating pongamia. However, critics see a downside to the development. A question being asked around the world is whether promotion of biofuel will be salutary in the long run. A rediff.com report, 'Will biofuels spark off starvation?' (July 4, 2007), says: "biofuels from crops are being heavily promoted by the US and Europe as a welcome solution to climate change. Their emissions are much lower than from fossil fuels. The other side of the story is that the shift to biofuels is causing a shortage of food for poor nations." The report alludes to findings by Grains, an NGO, that cultivation of food crops is giving way to the growth of biofuel plants. Another objection voiced by critics is that grains and other food items are being diverted to the generation of fuel. This is creating an artificial food shortage and hiking up the prices of essential item. The poor are most badly hit. Even the spurt in edible oil prices is blamed on this trend. India's poor, for example, consume a great deal of palm oil that is imported from Indonesia and Malaysia. These countries' deployment of palm oil for other purposes impacts India's imports and, consequently, prices. The US and Brazil apparently use corn-based and sugar-based ethanol in fuel, respectively. Europe favours local rapeseed and sunflower oil. The report avers that Europe is meeting its need for plant oils via imports from the tropical countries. Conservationist Sunita Narain of the Centre for Science and Environment notes in this context: "The rising price of oil (and its politics of ownership) is leading Governments to discuss the imperative of national energy security. Climate change is forcing the same issue by demanding alternatives to fossil fuel use. Now the answer from both fronts has been to subsidise the growing of biofuels -- ethanol from maize and sugarcane and bio-diesel from edible oil crops...". The trend is "diverting food to fuel and increasing volatility of the prices of oilseed and their substitutes". Clearly, use of biofuel is not without controversy.