Clean cooking fuels such as kerosene and LPG, are not generally available in the rural areas. They use wood, crop-residues and animal dung, collectively known as biofuels or non-commercial energy to provide 90% of their cooking needs. They use kerosene mainly for lighting because public distribution system (PDS) provides only 3 litres per household per month; whereas the cooking needs would be about 15 to 20 litres, if all cooking is done with kerosene.
Recently we surveyed 5028 households in four districts and 30 villages in rural Tamilnadu all with population less than 5000. Women go long distances spending 20 person-hours on the average per month per household for collecting fuels. When asked why they do not use clean fuels 52% said mostly because it is unavailable. Some said they are unaffordable or that they are "scared to use them"! As many as 50% households are willing to pay up to Rs.10 per litre of kerosene out of which 20% could pay for Rs.13 per litre for about 5 litres per month per household! Altogether, the demand for kerosene works out to be 13.5 million litres per month at Rs.10 and above and 9 million litres at a price of Rs. 13 for the entire rural Tamil Nadu. Thus, the market is sizable for an entrepreneur to invest in kerosene supply through open market, especially if we add even larger markets in bigger villages, urban and semi urban areas. The bottlenecks need to be removed and a level playing field to be assured to the private sector. Thus, the issue is not subsidy but increased availability of kerosene through parallel market.
If some of these households can afford to purchase assets like television, radio, fans, sewing machines and many buy products such as soap, detergent, shampoo and tooth-pastes, why can’t the same shops provide them with kerosene (or LPG) at market price?
The government announced the policy for parallel market for kerosene which never functioned. Initially because the infrastructure available to the new entrants was not adequate to take delivery from domestic producers, to import fuels, to store and transport inflammable fuels and so on. Subsequently, the government also began to ask a number of questions and made it difficult for them to function. The markets for fuels need to be opened up and expanded. The present government which is committed to liberalisation needs to set up a working group which could analyse the barriers to parallel market and iron out all the problems confronting the suppliers – viz., national or international in private or in public sector.
Fortunately, this is a limited demand market. Once satisfied with certain amount, say 15 litres a month per household, it does not indefinitely increase with income as say for electricity where many more gadgets are purchased with more income. Since women are willing to pay Rs.10/- or more per litre, so the problem of adulteration with diesel can be avoided as it also costs the same. The corresponding "foreign exchange problem" is also not there, if women pay for it, especially when we have more than $ 35 billion of foreign exchange reserves. In any case, in the beginning, demand is likely to be small at say additional 1 million ton in the next two years with active policy described above.
Bio-fuels emit a large number of pollutants which lead to premature births and low birth weight of children, accute respiratory infections, chronic lung disease and associated heart disease, adverse pregnancy outcomes, lung cancer, heart disease and eye conditions. The sufferers are women, children (upto 5 years) and senior citizens who are usually confined to their homes If the health costs and the imputed labour costs to collect fuels are considered, they would certainly more than justify purchase of kerosene.
In the 21st century, if we want electricity, televisions and telephones in every village , why not make kerosene available at market price in at least one shop in every village? Why is that providing clean fuels is not a part of our long term vision with targets to report every year as is the case for other amenities?. In the new millennium of globalization and women’s liberation, is it not matter of shame that women use 19th century fuels to cook? Perhaps more girls would go to school and more women may find alternative ways to enrich their lives if clean and convenient fuels viz. kerosene and LPG are available.
For long, we have practised a policy of double standards – one for urban and one for rural areas. Women voters in the rural areas should voice their priorities. The cost to the nation is in terms of health and productivity loss of more than 70% of population.
The author is Acting Director of the Indira Gandhi Institute of Development Research, Goregaon East, Mumbai 400 065, India..