Andhra Pradesh - Vijayawada   

Oil palm to be cultivated in 1,500 acres

G.V. Ramana Rao

Farmers going in for it get a subsidy of 75 per cent

VIJAYAWADA: The Horticulture Department is extending 75 per cent subsidy to farmers to encourage them to cultivate oil palm additionally in 600 hectares (about 1,500 acres) in Krishna district this year. Oil palm is being cultivated in 2,908 hectares in the district with an average productivity of 10 tonnes per hectare. The State Government has allocated Rs. 52 lakhs for the expansion of area under oil palm as part of its annual action plan.

Assistant Director M.V. Madhusudhan says farmers who come forward to cultivate oil palm will be given Rs. 23,000 as subsidy for plant material and cultivation inputs. Each farmer will be given subsidy to cultivate oil palm in a maximum area of 15 hectares only.

They will be paid Rs. 7,500 for plant material and Rs. 2,900 for inputs in the first year. The farmers will receive a subsidy of Rs. 3,100 in the second year, Rs. 5,200 and Rs. 4,300 in the third and fourth years respectively.

The Government has been encouraging the cultivation of oil palm, because farmers are assured of marketing of their produce. The Horticulture Department has regulatory authority over the cultivation of the crop. Two companies - Godrej and Sikala - process fresh fruit bunches (FFBs) in oil palm gardens in Nuzvid and Vijayawada revenue divisions. The companies have designated collection centres for groups of four to five villages. The project managing committee has fixed purchase price for FFBs at Rs. 4,165 a tonne this quarter compared to Rs. 3,800, price for last quarter.

Inter-crops

Funds have been allocated in the action plan to encourage oil palm farmers to take up inter-crops like cocoa and pepper. Seedlings and grafts are provided to the farmers under the scheme. Some farmers have even planted Vanilla as intercrop, Mr. Madhusudhan says. The department will spend Rs. 65,200 to pay subsidy at the rate of Rs. 2.50 per seedling or graft, which actually costs Rs. 4. The target of the department is to encourage farmers to go for intercropping in 50 hectares (125 acres) during this financial year.

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