BHUBANESWAR: Continuing its efforts to promote oil palm plantation, the Orissa Government on Tuesday signed a Memorandum of Understanding with a Hyderabad-based company for development of oil palm in two districts of the State.

According to the MoU, Foods Fats and Fertilizers of Hyderabad will raise oil palm plantations in about 2000 hectares in the farmers' fields in two potential districts such as Jajpur and Dhenkanal.

As per the agreement, the farmers will be given assistance of Rs. 7,500 per hectare for purchase of planting material as subsidy.

In addition to this, they will be provided a subsidy of Rs. 15,500 per hectare towards cost of cultivation spread over a period of four years.

The company will also set up an oil exploration plant in one of these districts.

Returns to ryots

The project will generate around 3 lakh mandays in four years and the farmers will get a return of at least Rs. 50,000 per hectare, according to the authorities.

In addition to this, farmers will also get a good return from the crops like paddy, pulses, vegetables and pineapple raised as intercrops in the first four years.

The State government had earlier signed three such MoUs with different private companies from Hyderabad, Mumbai and Indore for promoting oil palm cultivation in the State.

Lakshmi Balaji Oil Mills, Hyderabad, has been entrusted to promote oil palm in Rayagada and Koraput districts, while Mumbai-based Godrej Agrovet has been given the districts of Ganjam and Gajapati and Ruchi Soya Industries of Indore to promote oil palm in Balasore and Mayurbhanj.

Earlier moves

In fact, the State government started taking measures for oil palm development during 1992-93, and 2014 hectares were covered under oil plantations by 1999.

However, large tracts of these plantations were damaged by the super-cyclone in October 1999 bringing down the coverage area to 131 hectares.

As per the revised plans following the signing of the MoUs with the four companies, the authorities are planning to ensure increase the plantation area of oil palm to 5000 hectares in next five years.

Printer friendly page  
Send this article to Friends by E-Mail