The Hindu : Tamil Nadu News : Jatropha to be cultivated on 1 lakh acres

Online edition of India's National Newspaper
Sunday, Apr 10, 2005

Tamil Nadu

Tamil Nadu

Jatropha to be cultivated on 1 lakh acres

By Our Special Correspondent

CHENNAI, APRIL 9. Jatropha cultivation is to be taken in a big way in the State under contract farming.

The State Bank of India and the Mohan Brewaries will jointly identify nearly one-lakh acres for the cultivation. All eligible farmers will be financed under contract farming for taking up the cultivation.

A memorandum of understanding (MOU) was signed here today between the bank and the company at a function.

Chief general manager of the bank P. Chaudhuri said the bank would finance up to 90 per cent of the cost of cultivation, which worked out to Rs. 10,760 per acre under dry land and Rs. 19,560 under irrigated condition.

The crop would also be insured against losses. The company would purchase harvested jatropha seeds at Rs. 5,000 per tonne or at the market price, whichever was higher. The sale proceeds to the farmers would be routed through the bank after deducting the loan component. The loan would be disbursed to the farmers in four annual instalments and the repayment will start after four years.

Managing director of the company N. Nandagopal said the crop would be a boon to farmers as it who could earn Rs. 10,000 under dry land and Rs. 18,000 under wetland conditions. The bio-diesel produced from the seeds would be Euro II standard making it environmental friendly.

The company was supporting jatropha cultivation in about 1,000 acres. It would set up a processing plant with a capacity of 3,000 tonnes of oil per annum as a pilot project near Chennai. It was planning to set up plants of one-lakh tonne capacity each in all districts at Rs. 100 crores.

On the absence of a clear government policyon marketing the bio-diesel, Mr. Nandagopal said bio-diesel manufacturers had written to the Centre seeking permission for direct marketing. He said the country could earn considerable foreign exchange as there was good export potential for the bio-diesel.

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