Presently, oil palm is planted in about 1.71 lakh hectare.
With recent interventions, the oilseeds production in the country is likely to exceed 30 million tonnes [equivalent to about 8 million tonne edible oil] in 2010-11. But the country still has to import huge quantities of edible oils [in 2010-11: 8.82 million tonnes]. It is, therefore, necessary to increase domestic edible oil production by a big margin. Of the edible oil crops, only oil palm has the potential to do so in a short time. While annual oilseed crops give less than 1 tonne per hectare edible oil, oil palm gives 4 to 6 tonne oil per hectare. In addition, unlike annual oilseed crops that need to be sown every year, oil palm has a productive life of about 25 years.
The Centre has earmarked Rs. 300 crore for the special programme, to be released to states after they submit their detailed project reports. The proposed allocation for the 8 states is: Andhra Pradesh – Rs. 192 crore, Karnataka and Tamil Nadu – Rs. 33.6 crore each, Orissa – Rs. 17.76 crore, Mizoram – Rs. 14.8 crore, Gujarat – Rs. 4.8 crore, Maharashtra – Rs. 96 lakh and Chhattisgarh – Rs. 48 lakh. The area expansion programme is being implemented as part of the Rashtriya Krishi Vikas Yojna (RKVY). Priority is being given for expanding area under the purview of existing mills so as to increase the technical and economic viability of their operations.
In addition, ICAR will be given Rs. 2 crore to provide necessary research back up. The funds under the special programme will be utilised for giving incentives to growers for identified critical interventions viz; planting material, compensation for loss of income of the farmers during the gestation period, pump sets, drip irrigation systems, support for intercropping, vermin-compost pits, bore wells, water harvesting tanks, fertigation tanks, etc.
Oil palm plantations will require to be maintained during the entire gestation period of 4 years before they start bearing fruit. Support for this purpose would have to be provided to the growers. Further, oil palm growers would be encouraged to grow inter-crops during the gestation period of 4 years, till the oil palm starts yielding fruits, to partially compensate for loss of income. For this, about Rs. 150 crore will be required during the next 3 years. A detailed plan for this has also been prepared by the Ministry.