A comprehensive approach that considers fuel, fodder and fertiliser relationships has been used to analyse the rural energy system of Karnataka. A linear programming model that incorporates these relationships has been used to simulate and study the effects of various policy options on the rural energy system in 2000 A.D. Increased efficiency of non-commercial fuel use and provision for improved and increased quantities of feeds to animals emerge as the most desirable options to meet the energy requirements that maximize the gains to rural Karnataka.