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Oil Palm Scheme A Failure
calendar29-04-2013 | linkThe New Indian Express | Share This Post:

29/04/2013 (The New Indian Express) - There are few takers for oil palm cultivation in the State despite Government offer of huge subsidy for the cash crop having the potential of generating employment in rural areas.

While Oil Palm Development Programme (OPDP) achieved limited success in three districts of Rayagada, Ganjam and Mayurbhanj with plantation in 1719, 1389 and 1569 hectares respectively, the progress is disappointing in other 11 project districts.

In 2006-07, the State Government signed MoU with five agri business companies - Lakshmi Balaji Oil Pvt Ltd, Hyderbad; Godrej Agrovet Pvt Ltd, Mumbai; 3F Oil Palm Agrotech, Hyderbad; Ruchi Soya Industries Ltd, Indore and Vaidehi Palm Pvt Ltd, Kolkata - to promote oil palm cultivation in 11 districts.

During 2010-11, four additional districts of Cuttack, Nabarangpur, Bargarh and Bhadrak were included to take up plantation.

There was a stipulation in the MoU that these companies will establish oil extraction units in the allotted districts within three years.

While Balaji established an oil mill in Rayagada district, the other companies are yet to keep their commitments.

Lakshmi Balaji was entrusted Koraput, Rayagada and Nabarangpur districts for the programme while Godrej Agrovet was assigned Ganjam, Gajapati and Baragarh; 3F Oil Palm Dhenkanal, Jajpur and Cuttack; Ruchi Soya Industries Mayurbhanj, Balasore and Bhadrak; and Vaidehi Palms Nayagarh and Boudha districts.

A review of the programme by Agriculture Minister Debi Prasad Mishra here on Thursday revealed that the five companies have taken up plantation in an area of 9,438 hectares during 2011-12 and oil palm plants have survived in 9013 hectares of land.

The Centre sponsored OPDP aiming at making States self-sufficient in edible oil production failed in Odisha due to lack of State Government support, sources involved in the programme told this paper.

The programme launched in 1993 caught the imagination of the farmers as oil palm cultivation promised good return.

Initially, the farmers of nine districts took up the crop in 2014 hectares. But, when the plants started bearing fruits, the farmers found that there are no takers for their produce.

have to be processed within 24 hours of harvesting for optimum oil extraction. Out of frustration, some farmers destroyed the crop grown in an area of 1656 hectares, sources said.

The programme is taken up in the beneficiaries’ land and they are entitled to subsidy of 75 per cent for planting materials and 50 per cent on cost of maintenance during the gestation period of four years.

A plant bears  the fruit for 40 years under ideal condition.