19/10/2015 (Hindu Business Line) - More than 60,000 oil palm farmers in the twin Godavari districts has been incurring huge losses from past several years. After investing on a large scale have on the crop, the slump in the minimum support price (MSP) over the years is taking a toll, they say, adding that increase in labour cost and farm inputs is adding to their woes.

Citing that the MSP had gone down from Rs.8,000 to Rs.5,500 this year, a group of farmers during an interaction with Union Minister Nirmala Sitharaman in Vijayawada on Friday, said that only timely support from the Centre and the State governments could help them recoup. In East Godavari district, palm oil cultivation is undertaken in Gokavaram, Gandepalli, Jaggampeta, Tuni, Rowthulapudi, Rangampeta and Bikkavolu areas. However, West Godavari district has more potential, where most of the big farmers have invested in oil palm. But, in 1998 and 2000 large number of farmers in twin districts destroyed their crops themselves owing to heavy loss. “Now, I think that same situation will repeat, if the government will not take steps to increase the support price up to Rs.9,500,” said Pendyala Bujjibabu, president of East Godavari District Palm Oil Farmers’ Association.

Pinnamaneni Venkateswara Rao, another farmer from Gokavaram mandal said that only increase in input subsidy would hardly solve the purpose. “Higher input subsidy helps in the first two years and then farmers wait for MSP, which gives them confidence. Moreover, the government has to increase the import duty on the crude and refined palm oil which is being imported from Malaysia,” he said.

Scientist from Palm Oil Research Centre Prasad Pedavegi said they had submitted a report to on average cost of oil palm cultivation in WG district,putting it at Rs. 8,145 per acre.