<p>With the offer of a fixed price and a massive increase in monetary assistance, the government on Wednesday unveiled a new initiative to step up cultivation of oil palm across the country in its bid to cut import dependence for supply of edible oil.</p>.<p>Under the Rs 11,040 crore National Mission on Edible Oils-Oil Palm, approved by the Union Cabinet, the government also enhanced the financial assistance for setting up seed gardens to ensure availability of planting material for oil palms.</p>.<p>Currently, India has only 3.70 lakh hectares of land under oil palm cultivation, and with the new mission, the government plans to increase it to 10 lakh hectares.</p>.<p>The NMEO-OP will focus on increasing oil palm acreage in north eastern states and Andaman & Nicobar islands – regions that have a favourable climate for cultivation of the plants.</p>.<p>“Oil palm produces 10 to 46 times more oil per hectare compared to other oilseeds,” Agriculture Minister Narendra Singh Tomar told reporters.</p>.<p>He said oil palm can yield four tonnes of oil per hectare and an increase in its production can go a long way in reducing dependence on imports to meet the edible oil demand in the country.</p>.<p>India imports nearly 60 per cent of its total edible oil demand and crude palm oil forms a large part of the total imports.</p>.<p>A key hurdle in oil palm cultivation is the long wait – five years or more – for the trees to mature and start producing fresh fruit bunches.</p>.<p>Tomar said the government has decided to give assured prices to oil palm growers – similar to the minimum support price – with a promise to farmers to make up for the losses if the market price fall below the assured price.</p>.<p>The Cabinet also approved a substantial increase in assistance for planting material from Rs 12,000 per hectare to Rs 29,000 per hectare. A special assistance at the rate of Rs 250 per plant is also being given for rejuvenation of old gardens through re-planting.</p>
<p>With the offer of a fixed price and a massive increase in monetary assistance, the government on Wednesday unveiled a new initiative to step up cultivation of oil palm across the country in its bid to cut import dependence for supply of edible oil.</p>.<p>Under the Rs 11,040 crore National Mission on Edible Oils-Oil Palm, approved by the Union Cabinet, the government also enhanced the financial assistance for setting up seed gardens to ensure availability of planting material for oil palms.</p>.<p>Currently, India has only 3.70 lakh hectares of land under oil palm cultivation, and with the new mission, the government plans to increase it to 10 lakh hectares.</p>.<p>The NMEO-OP will focus on increasing oil palm acreage in north eastern states and Andaman & Nicobar islands – regions that have a favourable climate for cultivation of the plants.</p>.<p>“Oil palm produces 10 to 46 times more oil per hectare compared to other oilseeds,” Agriculture Minister Narendra Singh Tomar told reporters.</p>.<p>He said oil palm can yield four tonnes of oil per hectare and an increase in its production can go a long way in reducing dependence on imports to meet the edible oil demand in the country.</p>.<p>India imports nearly 60 per cent of its total edible oil demand and crude palm oil forms a large part of the total imports.</p>.<p>A key hurdle in oil palm cultivation is the long wait – five years or more – for the trees to mature and start producing fresh fruit bunches.</p>.<p>Tomar said the government has decided to give assured prices to oil palm growers – similar to the minimum support price – with a promise to farmers to make up for the losses if the market price fall below the assured price.</p>.<p>The Cabinet also approved a substantial increase in assistance for planting material from Rs 12,000 per hectare to Rs 29,000 per hectare. A special assistance at the rate of Rs 250 per plant is also being given for rejuvenation of old gardens through re-planting.</p>
