National Mission on Edible Oils-Oil Palm (NMEO-OP), a ₹11,040-crore project by the Union government to maximize cultivation and production, is expected to bring in remarkable growth prospects for the palm oil industry in the State.
While both farmers and refiners find the scheme extremely encouraging, it can also revitalise the estates run by Oil Palm India Limited and Plantation Corporation of Kerala. Since India is heavily dependent on imports when it comes to crude and refined palm oils, the industry stakeholders believe that the current development will be highly beneficial for the sector.
6.5 lakh ha more
The NMEO-OP proposes to extend cultivation of oil palm, considered a top oil crop, to an additional 6.5 lakh hectare so that the crude palm oil (CPO) production touches 11.20 lakh tonnes by the 2025-26 financial year. In the total financial outlay of ₹11,040 crore, the share of the Centre will be ₹8,844 crore while the State share of ₹2,196 crore includes the viability gap funding as well.
Wayanad, Palakkad
Reportedly, the State government was considering some projects to expand cultivation even before the scheme was announced. Potential sites for cultivation were identified in Wayanad and Palakkad districts while projects to rope in more farmers are also being discussed.
“COVID-19 had affected the industry like any other sector, but even before that the situation was not good. But now rubber farmers seem interested in switching to oil palm and the new scheme will attract more. I think all these new developments will definitely revive the sector by 2022,” says Vijayan Kunissery, former chairman, Oil Palm India Limited.
Oil Palm India Limited maintains a 3,500 ha plantation in the State while Plantation Corporation of Kerala has a 705-ha estate. While NMEO-OP offers a special assistance for the rejuvenation of old gardens, it is also expected generate more employment in the sector.
First State
“Kerala is the first State in India to start oil palm cultivation and later it spread to 12 more States. But our domestic production is very limited and we import huge quantities from countries like Indonesia and Malaysia. In Kerala, we have plantations, factories, seed farms and research facilities, but so far the Centre had opted to neglect the State. We need a strong strategy to attain self-reliance and if we can exploit all the possibilities, the State will be able to produce a considerable volume of oil. With adequate support from Centre we can produce oil required for at least four States,” says S. Jayamohan, trade union leader.
