The Cabinet has given its nod to two new measures to increase oil palm area and production in India.
Under this, relaxation on land ceiling limit for oil palm cultivation has been provided under National Mission on Oilseeds and Oil Palm (NMOOP), along with assistance to more than 25 hectare of its plantation.
This relaxation is aimed to generate interests of private entrepreneurs, cooperative bodies and joint ventures, calling for their investment in oil palm plantation with NMOOP support. At present, there is no scope to provide assistance directly to private sectors for large scale plantation.
Palm oil contributes 70 percent of vegetable oil import and is one of the cheapest oil due to high productivity per hectare.
The farmers, particularly small and marginal, have shown reluctance in taking up oil palm plantation due to large investment towards the cost of planting material, digging of pits, planting, manuring, irrigation and maintenance of plantation for four years without any income.
To motivate farmers for oil palm plantation, the Cabinet has decided to revise norms of assistance under Mini Mission-II of NMOOP mainly for planting materials, maintenance cost, inter-cropping cost and bore-well.
The Department of Agriculture Cooperation and Farmers Welfare will prepare the Annual Action Plan of the State/Agencies, on revised cost norms, Bureaucracy Today has learnt.