The department of horticulture, in line with the Union Government's policy of expansion of horticulture cultivation area to reduce dependence on import of oil palm, is promoting oil palm cultivation in the Visakhapatnam region. Farmers in the district are cultivating in 4,000 hectares while farmers in Vizianagaram and Srikakulam are cultivating in 7,000 and 3,000 hectares respectively. The State stands first in the country by cultivating in one lakh hectares.
Currently, palm oil is being imported from Indonesia and Malaysia in crude form which is refined at the refineries in Kakinada.
“Crop subsidies were being given by the State Government for the oil palm crop for four consecutive years to put up with the long gestation period of five years for reaping commercial benefits out of the crop. Once commercial production begins, the farmers are guaranteed a regular income for the next 25 years on the lines of coconut crop,” says Horticulture Assistant Director S. Ram Mohan.
‘Assured returns'
Returns are assured for farmers as the oil palm fruit which ripens in its fifth year is purchased by processing companies which have a buy-back agreement with the farmers. For the farmers in the Vizag region, a processing plant has been set up at Vaddadi village in Buchayyapeta mandal in the district.
The department of horticulture releases a subsidy of Rs.4,600 per hectare for first year, Rs.3,300 for second year, Rs.3,500 for third year and Rs.4,100 for the fourth year. The subsidy amount takes care of the maintenance cost of the crop.
The farmers produce eight tonnes of oil palm fruit per hectare and sell the same at Rs.6,200 per tonne. The farmer gets a profit of Rs.30,000 per hectare per year after deducting expenditure.
Under the Rastriya Krishi Vignan Yojana scheme, the government is planning to expand the area of cultivation under a special programme to augment the production of the oil by 2.5 to three lakh tonnes in the next five years. In the year 2011-12, the area of cultivation is being expanded by 60,000 hectares throughout the State.
The Union Government is promoting Oil Palm Development Programme under the centrally sponsored Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize (ISOPOM).
An oil palm farmer in Buchayyapeta mandal Appala Naidu regretted that the government has not covered the oil processing plants under the ISOPOM scheme as no subsidy or incentives were extended to those who set up the processing plants. Unless farmers have sufficient number of processing plants within the vicinity of the farming operation, crop cultivation is not viable and also cannot be expanded. Moreover, the crop needs to be sent to the processing plants within 24 hours of its harvesting. More than 24 hours of waiting for processing will affect the quality of the product.
Farmers and oil processing companies are demanding establishment of more processing plants and for that to become a reality, the government need to extend subsidies and loans for setting up the plants. Palm oil is used in soap making and in cosmetics industry apart from being an edible oil.
