12/05/2011 (Deccan Chronicle) - An increasing number of farmers in Kerala are shunning traditional paddy cultivation and are instead taking to oil palm cultivation as it is more profitable, thanks to the subsidies given to them and the prevailing high prices in the market.

“The farmers are finding oil palm cultivation profitable as the current price per ton of FFB (Fresh Fruit Bunch) is around Rs 5500. Another factor for a large number of people taking it up is that we are giving a healthy subsidy of Rs 23,000 since 2009 to every farmer under the Oil Palm Development Programme (OPDP),” said Mr Moham Kurien, project director of Oil Palm India Ltd, a joint-venture between the government of India and the state to promote oil palm cultivation.

Currently 5,200 farmers across nine districts are part of the OPD programme, said Mr Kurien, adding that the organisation also buys the products from the farmers ensuring “a good market and good price and avoiding risks”.

With the venture turning out to be profitable, a number of rice fields, particularly in the central Kerala region, have been converted into oil-palm estates.

“Many fields, particularly in the Puthur and Thevalapuram areas have been converted into oil palm estates. The farmers are finding its cultivation risk-free and low maintenance,” said Mr Padma Kumar, a local farmer who is now engaged in the cultivation.

Once the trees began to bear fruit, the farmers can reap rich profits and easily cover their initial investment from then on, said Mr Kumar, adding that he was now earning around `3 lakh a season compared to Rs 25,000-50,000 earlier.