Bio Energy Karnataka > For Farmers > Market System

Market System

At present, there is no fixed rate for the seeds of biofuel trees. The price of seeds are fixed in the market based on availability and demand. But, it is an undoubted fact that in days to come, a fixed market will be available for oil seeds, bio fuel and biofuel by-products.

Therefore, seed collection networks must be started in villages for this purpose. This collection network can work on the lines of the Milk Federation, functioning currently. By establishing oil extraction machines at cluster levels or Taluk levels, arrangements can be made for the oil from the biofuel seeds thus collected and the oilcakes to be returned first to the members of the same co-operative union. The farmers can mix this oil with diesel up to 10 to 20 percent and use in tractors, tillers and pump sets. The extra oil can be sent to industries for production of biodiesel. Middlemen can be kept away by collecting the biofuel seeds in the co-operative union fashion. there are intention of developing biofuel production machines through the Agricultural University and increase the employment opportunities and taking up of activities that can fetch more income.

This will help to have a fixed price and to store seeds in increases amounts. The following tasks may be planned to process the biofuel seeds collected in this way:
·          Selling the collected seeds to industries.
·          Establishing oil extraction units in rural levels itself.
·          The oil and oilcakes can be purchased and used by the members of the union of that village.
·          The extra oil can be purified and sold to systematic factories for  biodiesel production.

Establishing a market system
·          Arrangement for storing of products by farmers and distribution at village level.
·          System for providing definite and fixed price.
·          Establishing a market network in the same way as Milk Production Unions.

Establishing Production Units
·          Use of machineries for extracting oil from seeds at cottage level.
·          Establishing quality oil mills at village, cluster and Taluk levels.
·          Construction of biofuel production units at Taluk and District level.

List of organizations that purchase Biofuel
·          Bengaluru Mahanagara City Transport Corporation.
·          Karnataka State Road Transport Corporation.
·          Southern Railway.
·          Indian Oil Corporation.
·          Agricultural Science Centres.
·          International Airport, Bangalore.

Biofuel Seed Producers/Collectors Association

In recent years, more stress is being given for production of biofuel from seed collection from Honge, Neem, Jatropa, Hippe and other related plants, that grow in rural areas. There are more advantages and possibilities of higher income to farmers from the selling of these seeds. Therefore, a systematic arrangement is required for collection of oil seeds from biofuel plants and then selling them, through unions of interested farmers/agricultural families at village level.

Until now, the seed collection and sale was a personal programme, but now the need has arisen for implementation of a programme for mass collection and selling of seeds.

Through this system, there are several advantages like the farmers can get good fixed price, disposal of the seeds in the village and possibilities of complete sale of all products.

In this regard, a programme is being designed for forming a systematic market and providing the oil seeds in high demand to nearby oil extraction/ biodiesel manufacture centres.

At present, oil mills are established based on the quantity of production. Appropriate agreements will be made with Public Sector Industries like Railway Department, Transport Corporations etc. for market arrangements.

Farmers’ cooperative unions, private industries and other associations are coming forward for producing biofuel. They should be provided seeds in a systematic way and the role of farmers in increasing the production will be significant in the coming days.

Farmers have more benefit through this programme. The formation of these associations is valuable with regard to fetching a fixed amount of income.

Purpose of forming the associations:
·    Collection of seeds from plants grown in the holdings of farmers.
·    Mass sale of products grown by the farmers in the village.
·    Preventing the exploitation of farmers by middlemen and providing more profit to the farmer, who grew the crop.
·    Attaining similar prices to all the members.
·    Allowing for the sale of all products.
·    Oil extraction and sale at cottage level by interested farmers.
·    Starting of an own oil production unit by the association if more seeds are produced.
·    Selling the oil and oilcake separately and striving to obtain more income.
·    In future days, the village associations to be formed at Village Panchayat or Cluster level.
·    Formation of a system at village level, in the initial phase.

Membership and Formation:

·          All holders in the village will be eligible to become members of the association.
·          Ten members will be the office bearers of the association and will strive to implement the programmes.
·          The office bearers will include one president, one vice-president, one secretary, joint secretary and treasurer and will supervise the day-to-day programmes.
·          The office-bearswill hold a meeting every month and review the activities of the association.
·          Informing all the members about the activities of the association and about other things, regular and twice in a year on fixed days (June and December).


·          The members of the association shall collect the oil seeds and combine the products at a suitable time (once in a day) and arrange for selling.
·          The amount obtained from selling shall be distributed to the members and 2 percent shall be used for the activities of the association.
·          Protecting the price stability by maintaining contacts with other associations and oil production units.
·          The members of the association shall strive towards increasing the production
·          Growing the oil plants without harming the agricultural plants in any way (growing oil plants only along hedges, in barren lands, backyards, ravines, along fences etc.)
·          Encouraging the farmers to grow short-term crops such as Hemp, Castor as mixed crops.

Other activities:

1.     Maintaining contact with Agricultural department, Biofuel Park, Madenur, Oil Production Mills, and other supplementary departments.
2.     Providing information to farmers, motivating them to obtain and plant good variety of plants, conducting appropriate processing work for the seed harvesting time, collection and sale.
3.     Striving to obtain information and assistance at appropriate times from Biofuel Park, Madenur, Agricultural Research Centre and Agricultural Science centres.

Program implementation
There are opportunities for conducting afforestation activities using the grant of at least 20 percent for the afforestation works of National Rural Employment Assurance Scheme. The duties to be managed under this programme by the Village Panchayats, Taluk Panchayats, Zilla Panchayats and Forest Department are as follows:

Duties of the Village Panchayat
1.     Designing programmes for promotion within the scope of the Village within the scope of the village Panchayat with the help of voluntary organizations and take up promotion activities.
·          Arranging DVD Cinemas, dance-dramas, street skits, Art Campaigns etc., to create awareness for farmers.
·          Preparing and distribution of pamphlets by each Panchayat with regard to this.
·          Completing these programmes within the rainy season, without a chance for any complaints.
·          Including the programme in the Shelf of Project in the respective financial year with respect to this; also presentation of the programmes to be done in the particular financial year at Village meetings and requesting permission for the same.

2.     Forming a team comprising officers of village Panchayat-wise Revenue department, forest department, Agriculture department, Basin department, Horticulture department and maintaining good relationship with this team and participation in this programme.

3.     This programme has been arranged in the lands of farmers and those farmers interested in planting the saplings shall obtain the applications in pre-fixed format. The application shall be disbursed only by the Village Panchayat. Recording the accepted applications systematically in the account book. Priority shall be given on first come, first serve basis.

4.     The received applications have to be reviewed and a list of the numbers of saplings requested by the farmers has to be prepared and this should be distributed equally to officers of the social forest and regional forest sector in the month of April. The regional forest officer should review the possibility of the number of the saplings that may be planted in the farms of the farmers, and submit the list of saplings to the Panchayat secretary. Pits should be dug only for this number. It will be the responsibility of the Panchayat secretary to obtain the job card in the month of May for that particular number. During rainy season, saplings for this number of pits should be delivered to the farmers from the regional officer’s nursery and amount should be paid only through DD for the beneficiaries and the banks should be notified to transfer the specified amount to the account of respective job cards.

5.     Allowing one farmer to grow a maximum of 100 plants in an area of two and half acres. This means, giving 40 plants for one acre.

6.     Checking whether the farmers have dug a pit of 2 X 2 X 2 feet in their hedges.

7.     If the farmer does not have a job card (identity card given for registering in the village Panchayat) and registers in his name, he should be registered in the National Rural Employment Assurance Scheme and provide job card and open an account in his name.

8.     As soon as the 2X2X2 feet pit is dug and sapling is planted, Rs.25.00 per plant should be deposited to the account of the concerned farmer and proposing MES at village panchayat/Taluk Panchayat. Giving the MES order copy to the concerned farmer.

9.     Neatly managing and confirming all the records to be managed under the National Rural Employment Assurance Scheme.

10.   Managing by taking digital photos for documentation purpose at each phase. For managing such programmes under the Mahathma Gandhi National Rural Employment Assurance Scheme, MATEs should be assigned for an entire year as per the guidelines in force. It is more suitable to designate the MATEs from voluntary organizations. This will help the designated voluntary organizations to manage the supervision works easily.

11.   The distribution of Pongamia seeds provided from the Forest Department/or District Management should be recorded in the account book and get it confirmed by the Nodal officers.

Duties of the Taluk Panchayat Executive Officer
1. Check whether the Village Panchayats have submitted the request for biofuel saplings to the forest department and take necessary steps.
2. Ensure that biofuel programme has been arranged in the Village Panchayat Planning.
Identify voluntary organizations for each Panchayat, get an agreement done by them, check whether they are functioning accordingly. Providing a vehicle, a LCD projector and screen for each Panchayat for promotion purposes. Designing village-wise promotional programmes and monitoring whether the promotional activities are being performed accordingly.
4.     Check whether the voluntary organizations and the formed team of officers are carrying out the promotional tasks.
5.     Timely distribution of saplings to all the registered farmers.

·          Providing the saplings from the forest department Village-wise and monitoring the proper distribution.
·          Timely release of grants provided under the project.
6.     Checking whether the farmers have planted the saplings after digging pits.
7.     Checking and ensuring that the farmers who have completed the task have received the fixed coolie (grant).
8.     Checking whether all the registered farmers have been given the job cards and taking measures for distributing job cards to all.

Duties of the Zilla Panchayat
1.     Assigning district level officers selected from different departments as Nodal officers for each Taluk. For example, the Deputy Director of the Women’s Development and Children’s Welfare Department, Joint Director of the Industrial Department, District Officer of the Backward Class and Minority Department etc.
2.     The voluntary organization participating under this programme will have to function with great care. With regard to this, the voluntary organization and the executive officer of the concerned Taluk Panchayat will have to make an agreement as shown in appendix-3. Review this and take measures for making the agreement.
3.     Supervising the programmes taken up by all the Village Panchayats in the Taluk, measures taken by the Nodal officers, progress-review of the steps to be taken by the Forest Department and ensuring the timely use of grants.
4. Considering the request from Village Panchayats, providing license for growing additional biofuel saplings under the National Rural Employment Assurance (Under Material Component).
5. Direct the Village Panchayats to designate MATEs for the entire year for monitoring the biofuel saplings, document management and other activities within the Village Panchayat as per the guidelines in effect under the Mahathma Gandhi Rural Employment Assurance Scheme.
6. The appropriate compensation to be given to the voluntary organizations will be decided by the respective Zilla Panchayats. This must be decided according to the regulations in effect under the Mahathma Gandhi Rural Employment Assurance Scheme.

Measures to be taken up by the Forest Department
1. Monitoring the proper conduction of promotional works in the villages under the specific Village Panchayat.
2. Collecting information from the Village Panchayats about the registration of farmers and the request for saplings.
3. Obtaining the village-wise request for Pongamia saplings from the concerned Village Panchayat and accordingly, supplying the village-wise saplings to the respective villages and obtaining the signature from the concerned Village Panchayat Nodal officer and Village Panchayat Secretary.
4. Checking whether the farmers have dug the pits as per the rules and whether the saplings have been planted as scheduled and giving appropriate technical information, whenever required.
5. Taking care that the saplings do not get spoilt.

Duties of the Nodal officer
1. Checking whether the Village Panchayats have received the applications submitted by the farmers and whether the received applications have been documented systematically, based on priority.
2. Checking whether the team recruited for the planting the sapling is functioning properly and whether the saplings have been supplied to the farmers in a timely manner and providing guidance and taking up the coordination of various departments.
3. Obtaining details whether the farmers have planted the saplings after digging pits, whether the fixed grant has been paid to the farmer in a timely manner etc.
4. Ensuring that the Village Panchayats have arranged for the Biofuel task in their work plans and making them submit the request for saplings to the Forest Department.
5. If any defect or non-cooperation is found in the implementation of the programme, it should be immediately brought into the attention of the Chief Executive Officer of the Zilla Panchayat and should be corrected.

Duties of the Voluntary Organizations
1. Design programme for taking up promotional works in the villages under the particular Village Panchayat and accordingly take up promotional activities along with the team of Nodal Officers and LCD projector, during evenings or at places where many people gather.
2. In these promotional campaigns, the farmers should be made aware and convinced that they can plant Hittila Audala (Castor) seeds in between Honge and other biofuel seeds which have been planted and also on hedges.
3. Obtaining the applications in the specified form from farmers, for planting the saplings and giving it to the village Panchayat Secretary.
4.     Motivating the farmers to dig pits in their farm. As soon as the 2X2X2 pits are dug, performing a check of the same along with the Nodal officer/Village Panchayat Secretary and confirming the same.
5. Checking whether Pongamia saplings/other biofuel saplings have been supplied to the villages under the Village Panchayat.
6. Ensuring whether the farmers have been supplied with the saplings, as scheduled.
7. Confirming the planting of the saplings by the farmers and passing the confirmation to the Village Panchayat Secretary.
8. Supervising the maintenance of plants since the day of planting until the end of the first summer.
9. Maintain photos and documentation s at each stage.
10. Preparing vouchers for payment of the fixed compensation to the voluntary organization and submitting to the Taluk Panchayat Executive Officer for payment.

Details of the measures to be taken at various stages for implementation of the programme
1.     Discussing the Hasiru Honnu programme in the Village meetings and fixing the targets and informing the request of saplings to the forest Department (from Village Panchayats).

Month: In the month of October
2.     Inclusion of the Hasiru Honnu scheme in the Village Panchayat work plan and appointment of the Nodal officer by the Zilla Panchayats (at village Panchayats and Zilla Panchayats)

Month: In the months of November and December
3.     Identification of the voluntary organization and (as per appendix-3), making an agreement and arrangement of training at district level for voluntary organizations and implementation officers. (from Zilla Panchayats and Taluk Panchayats)

Month: In the months of January and February
4.  Promotional activities by the voluntary organizations and submission of the filled forms from the farmers to the Village Panchayat (as per appendix-3) (from Voluntary organizations/Taluk Panchayats)

Month: In the months of April and May
5.Village Panchayats should publish the list of beneficiaries and the beneficiaries should perform the task of digging pits in their farms for planting the saplings. (By the Village Panchayat/beneficiaries)

Month: In the month of May
6.Land survey by the nodal officers and supply of saplings by the Forest Department (by Nodal officer/Forest Departments)

Month: In the months of May/June/July
7.The task of planting saplings by the beneficiaries. (Review by voluntary organization/ forest department, documentation)

Month: In the months of June/July/august
8.Submission final progress report to the Zilla Panchayats (by the Taluk Panchayats)
Month: In the month of October

Programme supervision and Evaluation
The programme supervision and evaluation should be carried out as follows

1.Within the scope of the Village Panchayat – 100 percent supervision should be carried out by the Village Panchayat Secretary and concerned forest guards/regional forest officer.
2.At Taluk level- Taluk Panchayat executive officer, extension officer of the Panchayat and regional forest officer/assistant forest officer (regional and social sector) should carry out at least 10 percent of the supervision task.
3.At district level – At district levels, the Zilla Panchayat deputy secretary – development, deputy forest officer (regional and social forest sector) and Nodal officers identified by the Zilla Panchayat should carry out at least 5 percent of the supervision. At district level, the district commissioner and chief executive officer of the Zilla Panchayat should conduct the coordination committee meetings with the presidensy of the deputy secretary (development) and initiate the programme.
4.Complete evaluation should be done by the chief project officer of the Zilla Panchayat.
5.At state level – The biofuel task force, chief forest officer of the Forest Department (centre post), Director, National Rural Employment Assurance Scheme should regulary visit various places and review the progress and give suggestions and guidelines to the implementation officers/Zilla Panchayats.
Formation Taluk-wise coordination committees. Appointing Taluk level officers from various departments as Nodal officers for this committee and assigning them the responsibility of the programme supervision.

Biofuel District Supervisory Committee

The district Biofuel committee has been formed, with effect from 30.01.2012 with the presidency of the chief executive officer for reviewing the coordination with other departments for successful implementation of the programmes and activities through the Karnataka State Biofuel Development Board, suggestions to the Village Panchayats about the practical defects found in the programme implementation and awareness about biofuel, community engagement, guidance for the increased use of the N.R.E.G.A grant for rural famers etc. The members of this committee will be as follows.

S.No Name and designation of the officer Post
1 Chief executive officer, Zilla Panchayat Chairman
2 Deputy Forest Officer (Social) Member convener
3 Deputy Forest Officer (Regional) Member
4 Joint director, Agriculture department Member
5 Joint director (horticulture department) Member
6 Joint director, Silk Department Member
7 Honorary secretary, District Science Centre Member


Nodal officer/officers, K.S.B.D.B, Information and Demonstration Centre Member
9 Representatives of K.S.B.D.B/LEAD NGO Member
10 Overall Rural Fuel Programme Project Engineer and district biofuel Boar supervisor and coordinating officer Co-convener

As the Karnataka State Biofuel Development Board has issued order to the Overall Rural Fuel Programme Project Engineer who is supervising the Rural Fuel programme in the Zilla Panchayats of the state for managing the supervision of the district Biofuel Development Programme and act as the coordinating officer, all such engineers will have to manage the following activities as supervisor and convening officer of the district fuel development programme in addition to their current job of supervision of the proper/successful  implementation of the Rural Fuel Programme so that this programme does not suffer.

Taking steps to regulary arrange Biofuel district Supervisory committee meetings.

Taking measure for selection of representatives from the Village Forest Committee, representatives of various educational institutions and Tank Users’ Associations for the District Biofuel Committee.

Designing the medium and long-term biofuel plan  and preparing the annual action plan of the district, with assistance from the district Supervisory committee for the successful implementation of the Biofuel programme.

Conducting the supervision of implementation of Biofuel programmes like Hasiru Honnu, Baradu Bangara, Suvarna Bhoomi and other schemes and monthly submission of statistical progress report to the Zilla Panchayat Chief Executive Officer and Biofuel Development Board.

Supervision and guidance for the informative and promotional works of the voluntary organizations identified by the biofuel development Board in the district.

Maintaining close contact with the Biofuel Information and Demonstration Centres established in the district in association with the Biofuel Development Board and helping in arranging various trainings, demonstrations, workshops, exhibitions necessary for the development of biofuel industry in the district.

Taking up coordination works for planting and growing of biofuel saplings like Pongamia, Neem, Hippe, Simarouba etc. under the afforestation programme in the annual action plans of the Village Panchayats. Convincing the Village Panchayats to plant and grow biofuel seeds using as much grant as possible from the Rural Employment Assurance Scheme.

Biofuel Seed purchase centres have been set up in each district for the purchase of biofuel seeds; taking up coordination with regard to the provision of seeds from farmers to these centres and in using the bio oilcakes as manure.

Implementing the biofuel programme along with the programmes of the Department of Agriculture, Forest, Environment, Basin and other departments and providing necessary information to the chief planning officer and chief accounts officer of the Zilla Panchayat.

Taking steps to implement the programme as per the instructions and guidelines of the Biofuel Development Board.

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