Buy-back arrangement to ensure good returns for farmers

For the first time, oil palm is to be cultivated in Tirupur district on a commercial basis thanks to a pioneer project been conceptualised by Department of Agriculture officials here.

To promote its production, a model farm is to be set up shortly and financial assistances to be given to the interested farmers across the 13 blocks in the district.

The introduction of oil palm cultivation will help increase the domestic palm oil production and thereby, save country’s foreign exchange reserves considering that the nation spends sizeable amounts to import palm oil from Malaysia and Indonesia every year to meet the consumer demands.

The palm oil, an edible vegetable oil, is derived from the mesocarp (reddish pulp) of the fruits of oil palm plant.

For the smooth implementation of the scheme and assure good economic returns for the farmers, the Department of Agriculture has entered into a collaboration with Ruchi Soya Industries Limited. As per the tie-up, seedlings will be distributed by the private firm free to the farmers and also will extend a buy-back arrangement with them so that the produce (oil palm fresh fruit) would be procured back from the agrarian community at attractive prices. The Agriculture department will be offsetting the company the cost incurred for the distribution of seedlings to the farmers from the corpus created under Rashtriya Krishi Vikas Yojana, a Centre-sponsored scheme. The model farm planned will be set up on an area of three acres at the State Seed Farm campus situated at Pongalur with 56 saplings planted in every acre. “The model farm will be utilised to propagate the cultivation techniques as most farmers in the region are alien to it since this is the first time the crop had been chosen for commercial farming in the district,” Joint Director of Agriculture Mohammed Kalimullah Sherif told The Hindu . Mr. Sherif said that each of the farmer would be entitled for financial assistances worth around Rs 1.3 lakh for a hectare that cover the costs of planting material, area expansion, pest management, drip irrigation and cultivation maintenance activities.


  • To promote its production, a model farm is to be set up shortly

  • The model farm planned will be set up on the State Seed Farm campus at Pongalur


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