Being transplanted in mere 200 hectares in 1993, oil palm remained the fastest growing crop in East Godavari district encouraging more and more farmers to convert their mango groves and cashew orchards to the palm groves, taking the total extent to 26,522 hectares now. Assured market and price fixation, low input costs coupled with monthly returns have been attracting the farmers to switch over to oil palm cultivation.
“Lands with groundwater facility are suitable to cultivate oil palm. Though the water requirement is quite low as compared to paddy and sugarcane, installation of drip irrigation is mandatory. We are extending subsidies to the farmers on drip irrigation system, tractor tillers and other equipment,” says Gopi Kumar, Assistant Director of Horticulture.
With regard to the extent of cultivation and yield, East Godavari stands second in the State after West Godavari and in terms of potential area for cultivation both the Godavari districts are estimated to be of having 1.25 lakh hectares each. On an average, about 1,500 hectares of land is being converted into oil palm groves every year in the district. “Besides low input costs, oil palm’s resistance to different climatic conditions such as heavy gales and cyclones is attracting a good number of farmers. We are happy that the market is assured and returns are considerable,” observes Pendyala Buchi Babu, president of the East Godavari District Oil Palm Farmers Association — the body enjoys a membership of 30,000 farmers. Oil palm is being cultivated in 30 mandals and most of the yield is being procured by the Ruchi Soya Industries that extracts crude and edible oil from the fruit. “The yield starts after three years of transplantation and there is no need to go for fresh transplantation for a period of 30 years. Once the harvest begins, the farmer can sell the produce every month. On an input cost of Rs. 35,000 per acre, the farmer gets 10 tonnes of fruit on an average and the present price is Rs. 8,500 per tonne,” explains D. Ravindra, senior manager (plantations) of the Ruchi group.
“The recent price fluctuations remained a cause for concern among the farmers and the government should come out with an assurance on the price,” points out Satti Rama Reddy, former president of the AP Oil Palm Farmers Association. “We are extending support to the farmers by way of providing them fertilizer in time. We have established 18 service centres in different locations to procure the fruit,” says P. Mallesam, corporate head of the Ruchi group, foreseeing a bright future for the crop.
