Thursday, May 31, 2012

MUSTARD SEED PRODUCTION IN INDIA


Mustard Seeds Production in India

Mustard seeds are yellowish colored, small seeds that are used as a spice in many countries. These seeds are obtained from bush like mustard plant that belongs to the genus Brassica that also include vegetables like cabbage and turnips.
Production of Rape/Mustard in India
  • Rajasthan
  • Uttar Pradesh
  • Haryana
  • Punjab
  • Gujarat
  • Madhya Pradesh
  • Jammu and Kashmir
  • West Bengal
  • Punjab
  • Assam
  • Bihar
  • Himachal Pradesh
  • Orissa
  Rajasthan and Uttar Pradesh produce the major share of rape/mustard contributing to over 50% of the total Indian produce, which stands at an average of 5 million tons. It also has the maximum area under cultivation for this crop. In Rajasthan, the production of this crop is highly monsoon oriented. The districts in Rajasthan that produce mustard/rape are Jaipur, Bharatpur, Alwar and Ganganagar.
  It is the major Rabi crop that accounts for almost 65% of the total Rabi produce. Productivity of this crop has also increased over a period. The total area under cultivation in India for this crop has declined over a period of time.
  The production of rape/mustard oil cake in India was 3.4 million tons and of rape/mustard oil was around 1.5 million tons in 2003-04.
Rape/Mustard has been an important crop to India for a long period of time. At an average India produces around 5 million tones of rape/mustard annually. It stands at the 3rd position in the list of rape/mustard producing countries contributing around 11% of the world’s total production. Also it is the third largest producer of mustard/ rape oil in the world. Rajasthan is the leading mustard/rape producing state in India.
  Mustard oil is consumed wholly in the domestic market. The demand for the consumption of mustard/rape seed comes mainly from eastern and northern areas of the country. The arrival of this crop in the markets is in its peak period during March to May.  The major centers of consumption of its oil are Kolkata, Bihar, Jharkhand and the northeastern areas like Assam, Tripura, Sikkim etc. Two forms of mustard oil are traded in the Indian market namely Kacchi Ghani and Pakki Ghani (expeller oil). This industry constitutes the small-scale sector that markets the oil in loose form to about 80% and the rest contribution is made by the organized sector.

Wednesday, May 30, 2012

INDIAN MARKET OF MUSTARD OIL


Indian mustard oil market

India produces a wide range of oilseeds (soya, cotton, groundnut, sunflower, rape, sesame, copra, castor, and linseed). The total crop (excluding sesame, linseed, and castor) in 2010/11 was 34.7 million tonnes. Indigenous production of between 6 and 7 million tonnes of oil was augmented by 8.6 million tonnes of imported oil. Total consumption was 16.3 million tonnes of which 15.6 million tonnes was used for food purposes.
For soybean oil 1.71 million tonnes was produced locally, 0.9 million tonnes was imported, and 2.65 million tonnes was consumed. For palm oil 6.66 million tonnes was imported making India the largest importer of palm oil in 2010/11 and 7.13 million tonnes was consumed. Production and consumption of rapeseed oil (2.46 and 2.34 million tonnes), groundnut oil (1.43 and 1.39 million tonnes) and cottonseed oil (1.15 and 1.14 million tonnes) were as indicated..
Other countries in the Indian subcontinent (India, Pakistan, Bangladesh, and Sri Lanka) are also large importers and consumers of palm oil. Pakistan and Bangladesh imported 2.1 and 1.0 million tonnes of palm oil in 2010/11.
IIn general, Indian oilseed yields are much below those recorded elsewhere. This is a consequence of difficult climatic conditions, particularly in respect of the annual monsoon rains, which are sometimes too little and sometimes too much for optimum yields. Another factor is the poverty of many Indian farmers, who have to economise on irrigation facilities, fertiliser, pesticides, and seed quality.
Consumption for both food and industrial purposes in India was 13.4 kg/person/year in 2010/11. This figure is well below the world average (20.7 kg/person/year). However, the actual figure for food consumption will be higher by virtue of the consumption of oils such as rice bran and other oils not included in the USDA listing of vegetable oils.

INTERNATIONAL MARKET SCENARIO OF MUSTARD SEED


International market of Mustard seed

The origin of mustard is not known to the world but it is said that it grew wild in the northern hemisphere. It is also said that this plant got spread through birds, winds and biological dispersals. The ancient Greeks first started using mustard to add flavor to their food and also as drugs. Mustard was not extensively used until it was brought to Gaul by the Romans and after that it started gaining importance. French monasteries started the trading of mustard preparations.
With time, many regulations were made regarding the production of mustard and it started gaining popularity between the masses too. It became the primary spice of the early Europeans. When the spices started coming from America and Far East, mustard’s popularity registered a downfall. The house of Maille observed this downfall and the market for mustard was revived again. Mustard started gaining back its importance in Europe and especially in France. The city of Dijon is known as the mustard power of the world since then.
Mustard seed and rapeseed have great importance in many countries as spices. But, these seeds have important by-products too. Rapeseeds and mustard seeds are sources of rapeseed/mustard seed oil and oilcake. In the production process, around 37% oil is yielded and the rest is oil cake.
Mustard and rapeseed production is on a rising. World’s total production of rapeseed hovers around 40 million tones. Mustard seed production reached at a figure of 36.54 million tones in 2001-2002. European Union leads the list of rapeseed producing countries with around 13 million tons of production. The production of rapeseed oil is around 14 million tons.
As the leading producing countries rapeseed oil usually produce it to meet their own domestic demand, that’s why the world trade in this oil is very low as compared to the other edible oils. Canada is the largest exporter of the mustard and rapeseed seeds and seed oil. Australia follows Canada in the production of seeds. The major seed importing countries are Japan and Mexico and US leads the list of mustard and rapeseed oil importing countries.
Like production, consumption too has been increasing rapidly. There are countries like China, India, Canada, Japan, Mexico, US and European Union that consume mustard and rapeseed oil cake extensively.
Producing country:
  • China
  • Canada
  • India
  • Germany
  • France
  • Australia
  • Pakistan
  • Poland
  • Japan
  • Australia
  • Bangladesh
  • Belgium
  • Denmark
  • Mexico
  • Austria
  • Nepal
  • Russia
  • Bhutan
  • Finland
  • Myanmar
  • United Kingdom
European Union tops the production chart with around 13 million tons of production every year. The maximum area covered under mustard/rape cultivation is by China, which is also the second largest producer. Third position is held by India. Regarding the production of rape/mustard oil, China holds the first place followed by Germany, Canada and India.

Major trading centre
  • Winnipeg commodity exchange (Canada)
  • Marche A Terme International de France (Paris Futures Exchange) (France)
  • China
  • Australia
  • United Kingdom
  • Netherland

Saturday, May 26, 2012

GLOBAL MARKET OF PALM OIL


Global Pamloil market

Palm oil is the vegetable oil produced in largest amount having pushed soybean oil into second place in 2004/05. Palm is generally the cheapest commodity vegetable oil and also the cheapest oil to produce and to refine. By reason of its availability and (relatively) low cost, it is an important component of the increasing intake of oils and fats in the developing world. Without the large volume of exported palm oil from Malaysia and Indonesia, there would be a major problem in meeting world demand for vegetable oil.
The oil palm originated in West Africa and was taken to Malaysia (then Malaya) by the colonial rulers in the 1870s as an ornamental. It was 1917 before the oil palm was first planted as an oil crop. The variety Tenera (a hybrid of Dura and Pisifera) is now generally cultivated. The plant is grown in a nursery for 12-18 months before it is planted in the field where it bears fruit 30 months later and has an economic life of 20-30 years. A mature tree produces 10-15 bunches a year. These are 10-20 kg in weight and have 1000-2000 fruitlets. Each 10g fruitlet has a kernel (3-8% ), which is the source of palmkernel oil. When pressed, the fruitlets give palm oil with an oil extraction rate of ~20%. A normal plantation will yield ~ 4t of palm oil/ha/year. The best plantations have yields of 7-8 tonnes/hectare and there is evidence that some are even higher. Although there are peaks and troughs, harvesting occurs all the year round producing a continuous supply of oil. The fruit bunches and fruitlets cannot be stored and extraction must be carried out as soon as possible. Many plantations have their own mill. For example, in 2005, Malaysia had 395 mills with a further 25 in the planning or construction stages.
The oil is generally refined, bleached, and deodorised (RBD oil) and much of it is fractionated to give palm olein and palm stearin thereby extending the usefulness of this oil. During refining some valuable minor products are removed though these may be trapped in a side stream for separate use. Alternative refining procedures produce a red palm oil by retaining a larger proportion of the carotenes in the crude oil. Since the carotenes are biological precursors of vitamin A, the red oil can be used to reduce blindness, particularly in children on diets otherwise deficient in carotenes.
Production of palm oil in 2010/11 was almost 48 million tonnes coming mainly from Indonesia and Malaysia with smaller amounts from Thailand, Nigeria and Columbia and the balance from over 20 other countries. The Table contains information for the ten major consuming countries. It is clear how important imported palm oil is to the highly-populated Indian sub-continent (India, Pakistan and Bangladesh) with a combined annual consumption of at least 10.2 million tonnes.
Production in Malaysia has been an important element in the development of that country and in the world supply of dietary oils and fats in the last 30 years. Production in Malaysia has increased from only 1.3 million tonnes in 1975, through 4.1 million tonnes in 1985 and 7.8 million tonnes in 1995 to 18.2 million tonnes in 2010/11. Production in Indonesia rose from an even lower base to exceed Malaysian output in 2005/06. Malaysian and Indonesian experience in producing, trading, and financing palm oil is now being exported to other counties with favourable conditions for growing the oil palm. Present production levels are

·         Indonesia (23.6 million tons)
·         Malaysia (18.2 million tons)
·         Thailand (1.3 million tons)
·         Columbia (0.8 million tons)
·         Nigeria (0.8 million tons)
·         Other (3.2 million tons)
Malaysia and Indonesia are the dominant exporters of palm oil, exporting 90 and 70%, respectively, of the palm oil they produce. The lower proportion in Indonesia is a reflection of the population in these two countries of 230 million in Indonesia and only 27 million in Malaysia. On the basis of trade in oils and fats in 2010/11, Malaysia supplied 27.1% of world total as palm oil with Indonesia providing 27.2% as palm oil, so these two countries together supply over one half of total trade in vegetable oils. Beyond these figures there are also exports at lower levels of palmkernel oil and of coconut oil from these countries. Global trade in oilseeds is dominated by soybeans(detailed in appropriate sections).
The major importing countries/regions are India, China and EU-27. The USA has never been a significant consumer of palm oil and in the past denigrated the oil as a “saturated tropical oil”. Consumption has risen slightly in recent years as American food manufacturers revised their recipes to lower the level of trans unsaturated acids produced through partial hydrogenation of soybean oil. The large figure for “others” in the imports and consumption columns is an indication of the very large number of countries importing and consuming palm oil.
Palm oil is widely used in the food industry with, for example, palm olein used as a frying oil and palm stearin as hardstock in the production of spreads and cooking fats. A mid-fraction also produced during fractionation is used as a cocoa butter equivalent (CBE). Palm oil is being used increasingly for non-food purposes. In 2000/01 when production was 24.3 million tonnes, 3.5 million tonnes (15%) was used for industrial purposes. Ten years later in 2010/11 those figures rose to 47.9 and 12.1 million tonnes (25%). If or when palm biodiesel becomes a widely traded commodity, the proportion used for industrial purposes will rise still further.
Palm oil is a source of valuable minor components, particularly carotenes (especially α- and β-carotene) and tocols (especially the tocotrienols).
Palm oil is basically an edible oil and almost 90% of the world production is used in for this purpose. The rest 10% of production accounts to the industrial uses. It is used as a substitute for cocoa butter and butter flat. This oil has a unique feature of remaining stable in a good range of temperatures and is often use to fry foods. Also, palm wine is made from tapping and fermenting the palm oil and it is very popular in the western African region.
The combined world production effort of palm oil sums up to around 47.9 million tons with Indonesia topping the production charts with around half of the production being done there. Malaysia and Nigeria follow Indonesia at the second and third rank. The production figure of palm oil makes it the second largest vegetable edible oil produced around the globe after soy oil. The production trend of palm oil has been up in the past few years accompanied by the consumption trend as well. An estimate of the per capita consumption of palm oil in the world is 9 pounds per year with the total consumption figure of around 47.1 million tons. China is the maximum palm oil consuming country of the world. The major consuming countries of palm oil in the world with their respective consumption figures pertaining to the year 2010-11 are
  • China (5.8 million tons)
  • Indonesia (6.7 million tons)
  • European Union (5.0 million tons)
  • India (7.1 million tons)
  • Malaysia (2.6 million tons)
  • Pakistan (2.0 million tons)
  • Nigeria (1.2 million tons)
  • Bangladesh (1.0 million tons)
  • Thailand (1.0 million tons)
  • Egypt (0.6 million tons)
  • USA (1.0 million tons)
The trade figures of palm oil make it incomparable to other vegetable oil traded round the globe. Total world exportabout 37.6 million tons, Approximately 80% of the world palm oil production (24 million tons) gets exported to the importing countries and this fact makes it the leading exported vegetable oil. The largest exporter of this oil is its largest producer, Indonesia , followed by Malaysia with the exports of around 16.4 million tons and 16.3 million tons respectively. These countries contribute to over 90% of the palm oil exported in a year. The export trend has also risen during the past few years. The other exporters of this oil are Papua New Guinea, Colombia, Sri Lanka, Singapore, Jordan, Thailand, European Union and United Arab Emirates.
The import figures of palm oil hover around 35.6 million tons like the export figure. China leads the importing list given below that also states the import figures individually
  • China (5.7 million tons)
  • European Union (4.9 million tons)
  • India (6.7 million tons)
  • Pakistan (2.1 million tons)
  • Bangladesh (1.0 million tons)
  • USA (1.0 million tons)
  • Egypt (0.6 million tons)
  • Russia (0.5 million tons)
  • Turkey (0.4 million tons)
  • Malaysia (0.3 million tons)

Thursday, May 24, 2012

GLIMPSE OF INDIAN PALM OIL MARKET


Indian Palm oil market

Palm oil is a fatty edible vegetable oil, yellowish in color, derived from the flesh and the kernel of the fruit of the oil palm tree. The oil palm tree is a tropical, single stemmed tree having feather like leaves that gains a height of around 20 meters. The fruits of this tree, that are also the sources of the palm oil grow in bunches, are reddish in color, bigger than plums in size and have a single seeded kernel inside. The oil palm tree is native to the areas of coastal Africa and appears different from a coconut palm tree.
Palm oil is used in the manufacturing of soaps, ointments, cosmetics, detergents, and lubricants and also as cooking oil. Commercially palm oil is used in various forms such as crude palm oil, crude palmolien, refined bleached deodorized (RBD) palm oil, RBD palmolien and palm kernel oil.
India is basically a net importer of the palm oil. It never had a production history in context of this oil. But it does have a vast palm oil consumption and import background. 
India produces around 70000 tons of palm oil annually which stands at approximately 0.2% share in the worlds total production. Kerala is the largest palm producing state in India with 30% share in the total production figures of the country. Among the companies indulged in the production of palm oil, Godrej emerges as a leader with the same amount of production as Kerala.
Indian palm oil consumption hovers around 3.7 million tons, which is a much bigger quantity as compared to the production figure. The country ranks 4th regarding its consumption level. It is not capable of fulfilling the domestic consumption demand and that is why it has to rely on imports of the oil. The major demand of palm oil arises from the food and cooking oil industries.
After China and European union, India is the third largest importer of vegetable oils. Palm oil contributes to around 48% of the total edible oils that are imported in the country. The country’s imports of palm oil reach up to 3.7 million tons that is same as the consumption figure. This means that most of the country’s demand is heavily dependent upon the country’s import. Palm oil imports in the country are controlled with the help of high import duties imposed by the government. The countries from which palm oil is imported are Malaysia and Indonesia. The Indian palm oil market is largely organized and is in the hands large refining companies.
Market Influencing Factors
  • World demand and supply fluctuations of the competitive edible oils
  • Domestic demand and supply fluctuations of other oils and oilseeds
  • Seasonal cycles, as April to December is the peak production period
  • Import policies of the importing nations

The major crude palm oil markets in the world are
  • Bursa Malaysian Derivatives (BMD) – largest futures market for crude palm oil
  • Indonesia
Crude palm oil markets in India
  • Kandla (Gujarat)
  • Mumbai (Maharashtra)
  • Kakinada (Andhra Pradesh)
  • Chennai (Tamil Nadu)
  • Vijaywada (Andhra Pradesh)
  • Haldia (West Bengal)
  • Indore (Madhya Pradesh)
Crude palm oil is also traded at the Indian commodity exchanges like National Commodity & Derivatives Exchange ltd, Multi Commodity Exchange of India ltd and National Multi Commodity Exchange Ltd.

Wednesday, May 23, 2012

SCENARIO OF PALM OIL PRODUCTION


Palm oil Production

Palm oil is a fatty edible vegetable oil, yellowish in color, derived from the flesh and the kernel of the fruit of the oil palm tree. The oil palm tree is a tropical, single stemmed tree having feather like leaves that gains a height of around 20 meters. The fruits of this tree, that are also the sources of the palm oil grow in bunches, are reddish in color, bigger than plums in size and have a single seeded kernel inside. The oil palm tree is native to the areas of coastal Africa and appears different from a coconut palm tree.
Palm oil is used in the manufacturing of soaps, ointments, cosmetics, detergents, and lubricants and also as cooking oil. Commercially palm oil is used in various forms such as crude palm oil, crude palmolien, refined bleached deodorized (RBD) palm oil, RBD palmolien and palm kernel oil.
Oil palm tree starts from the western coast if Africa where it marked its origination. It is believed that it originated in the coastal area as it is considered to be of riparian species i.e. species that is not able to grow in shades but can tolerate flooding conditions. The western coast of Africa extends towards east from Sierra Leone to areas of Congo and this was the region where it was domesticated by the native people probably in Nigeria. With the help of the people who made agricultural shifts around 5000 years ago, the plantation spread throughout Africa. It also played an important role as a food plantation in the time of ‘Pharos’.
When the Europeans reached Africa to explore the continent in around the 15th century, they discovered palm tree and that was the time the rest of the world got introduced with it. The cultivation of palm spread throughout the world and in the 19th century palm oil began to trade. As late as in the 20th century, oil palm tree was introduced into Malaysia and palm oil started to get produced commercially in 1917. With time Malaysia developed as a dominant player in the world scenario and is currently the largest producer of palm oil in the world.
Oil palm trees are generally grown in the tropical (hot and humid) conditions. The plantation belongs to the riparian species that can survive in flood conditions and a high water table. It can be cultivated on a various types of soil but the basic factor that supports the growth is the drainage and water content present in the soil. The plantation requires a well-drained soil and if it is not provided like in the sandy or clayey soil, the yield of the crop is affected adversely. The propagation of the tree is done with the help of its seed after providing proper treatment as the germination can get affected if the seeds are not treated.
The tree produces a little or no fruit in the first three years. But after this time, the tree begins to produce fruits, which are harvested when they become ripen. Various tools are used to harvest the oil palm fruits such as chisel or hooked knives attached to long poles and some times, also by climbing on the tree directly. The fruits are obtained from the tree until it gets around 30 feet long as harvesting fruits from such a tall tree gets very difficult. That why the tree is injected with a herbicide to kill it or it is bulldozed down
Palm oil production in India
India holds a very small share of palm oil production in the world figures. It hardly contributes to the world production and is not able to satisfy its domestic consumption demand. It produces a mere 70000 tons of palm oil annually i.e. just 0.2% share in the total world’s produce. The state having the maximum production of palm oil in India is Kerala as it produces 20000 tons per year. Kerala, cultivating oil palm trees on around 12000 hectares of land, also hold the maximum acreage with 10000 hectares pertaining to a public sector enterprise namely Oil Palms India Ltd and the rest pertaining to the private sector. Godrej is the maximum oil palm plantation company in India producing over 20000 tons per year. India has been looking forward to increase its production a bit more to push it up to 3 lakh tons in the year 2015 to 2020.
Palm oil production in world
Palm oil is derived from the oil palm tree, which is cultivated in over 42 countries of the world and is largely used as an edible cooking oil. Palm oil production in the world accounts up to around 35 million tons, it being at the second place regarding the edible vegetable oil production. The major producer countries of palm oil in the world along with their production figures pertaining to the year 2010-2011 are
  • Malaysia (18.2 million tons)
  • Indonesia (23.6 million tons)
  • Nigeria (0.8 million tons)
  • Thailand (1.3 million tons)
  • Colombia (0.65 million tons)
  • Papua New Guinea (0.38 million tons)
  • Cote d’Ivoire (0.34 million tons)
  • Ecuador (0.3 million tons)
  • Costa Rica (0.24 million tons)
  • Congo (0.2 million tons)
Indonesia is the largest producer of palm oil in the world with approximately 45% contribution in the world’s production. Malaysia has been the closest competitor to the leader country in this production context. It contributes to approximately 40% in the world figures. The world production has increased with time and is still rising @ 7%. The same is the case with the area covered under the cultivation of oil palm tree. This crop is cultivated in around 28 million acres of land over the world.

Tuesday, May 22, 2012

CENTRAL GOVERNMENT ASSISTANT SCHEMES FOR PALMOIL CULTIVATION


Oil Palm Development Programme (OPDP)

           
 To promote oil palm cultivation in the country.
  Salient features : Oil Palm cultivation assumes significance for augmenting the indigenous availability of edible oil as it is the highest oil yielding perennial crop.
 Scheme components : Assistance for Planting Material, Assistance for Cultivation Costs, Drip Irrigation, Training, Extension and Publicity, Establishment & Provision for Staff for implementation the project, Development of Seed Gardens, Front line Demonstrations, Leaf Nutrients Analysis Laboratories, Testing of oil palm genotypes under varied environmental conditions, Assistance for diesel pumpsets. Area Expansion under Oil Palm and installation of Drip Irrigation System.
Eligibility : Implementation of the Oil Palm Development Programme (OPDP) is being carried out by Horticulture Departments/Agriculture Departments of the concerned State Governments.Since fresh fruit bunches (FFBs) of oil palm are to be processed within 24 hours, major oil palm growing states have allotted zones to the entrepreneurs for integrated development of oil palm including arrangements for procuring planting material, providing technical know-how, buy-back of FFBs and processing facilities. A Program Management Committee (PMC) has been set up in each state to supervise, advise and guide the implementing agency.
 Procedure to apply : Implementing agencies (State Governments) are required to send a proposal for undertaking activities under the program. This proposal is processed keeping in view the objective of the scheme and necessary funds are made available.
Persons to be contacted : The Joint Secretary, Technology Mission on Oilseeds & Pulses, Department of Agriculture & Cooperation, Krishi Bhavan, New Delhi. Date of Start/Duration 1992-93 
Implementation status : Crash in the price of palm oil due to excess availability of imported cheaper palm oil has created adverse price atmosphere for oil palm development in all oil palm growing states. Besides, lack of processing facilities has affected area expansion under oil palm particularly in the states of Tamil Nadu, Gujarat, Goa and Orissa. As a result the achievement of targets for area expansion during Ninth Five Year Plan has been poor.

Pattern of Financial Assistance under Oil Palm Development Programme (OPDP)


Financial assistance available under OPDP is as follows:

A) Assistance to Farmers:

I.Assistance for Planting Material: 75% of cost of seedlings with a ceiling of Rs.5,400/- per ha, for entire land holding of the farmer.In major oil palm growing states, namely, Andhra Pradesh, Karnataka and Tamil Nadu, different area zones have been allotted to companies, which are raising Oil Palm seedlings and supplying to farmers. In the states where zones have not been allotted, State Government raises oil palm seedlings for supply to farmers.

II. Assistance for Cultivation Cost: 50% of the cost of inputs during the gestation period of 4 years with a ceiling of Rs.15,500/- per ha admissible upto 6 ha for individual farmer. Illustrative phasing of cultivation assistance during gestation period is indicated below:
                                     Year                                   Maximum Cultivation Subsidy per ha in Rs.
                                      I Year                                                                       4600
                                       II Year                                                                    3300
                                        III Year                                                                  3500 
                                        IV Year                                                                  4100
                                                                Total 15500
            Norms of assistance indicated above were revised w.e.f. 08.02.2000 to keep parity with the increase in the cost of planting material and cultivation inputs.Comparative details of financial assistance under OPDP prior to 08.02.2000 and after 08.02.2000 are as under:
            Component Financial Assistance (in Rs)
Prior to 08.02.2000
Financial Assistance (in Rs)
Existing
(i) Assistance for Planting Material 3750 5,400 
ii) Assistance for Cultivation Cost 12500 15,500
    Drip Irrigation: Assistance for the Drip Irrigation  component of OPDP has been revised during 2000-01 as under :

The assistance for drip irrigation will be 50% of the cost for Small, Marginal, SC, ST and Women farmers and for other category of farmers the assistance will be 35% of total cost of the prevailing competitive market rate of the system upto the maximum as indicated in the table below:

A.SC/ST/Small/Marginal/Women Farmers (50% of total cost of system or following whichever is less
States Maximum Permissible Assistance (Rs. per Ha) Andhra Pradesh, Gujarat, Karnataka, Kerala, Maharashtra & Tamil Nadu 7,400 Orissa, Goa & West Bengal 8,600 Assam & Tripura 9,300
 B. Other category of Farmers (35% of total cost of system or following whichever is less
States Maximum Permissible Assistance (Rs. per Ha) Andhra Pradesh, Gujarat, Karnataka, Kerala, Maharashtra & Tamil Nadu 5,200 Orissa, Goa & West Bengal 6,000 Assam & Tripura 6,500
The assistance will be provided for a maximum of 4ha per beneficiary.

The State Government' s share for drip installation would be 10% for all states except the States of Assam & Tripura for which entire cost on installation of drip irrigation system in oil palm plantation would be met by Centre.

Assistance for the following components of OPDP has been continued as during Eighth Plan :

(i) Training
Some of the potential oil palm growers are being trained at National Research Centre for Oil Palm, Pedavegi (Andhra Pradesh), Central Plantation Crops Research Institute, Palode (Kerala) and established Oil Palm Plantations in Andhra Pradesh and Karnataka. The farmers are entitled for a daily allowance @ Rs.70/- per day for a maximum of 5 days (including the travel time). The farmers are also entitled for 2nd class to and fro rail fare by the shortest route from their native plance to the plance of training.

B) Assistance to State Governments

(i) Training
The officers and extension workers of the State Governments implementing OPDP are also being trained at National Research Centre for Oil Palm (NRC-OP), Pedavegi and Central Plantation Crop Research Institute (CPCRI), Palode. During 1994-95, 50 officers from Centre/State Governments/ Cooperatives/Private Companies were sent to Nigeria for a four week training on oil palm production and processing.

(ii) Extension and Publicity
Oil Palm being a new crop, extension and publicity are of great importance for awareness among farmers about oil palm cultivation. Under this component the State Governments bring out pamphlets, printed material, video films and publicity materials.

(iii) Establishment & Provision for Staff for implementation the project
Since the programme has been taken up recently on a large scale, staff is being provided for implementation of OPDP in identified States.

(iv) Seed Gardens
Seed Gardens at Rajamundry (Andhra Pradesh), Taraka (Karnataka) and Thodupuzha (Kerala) are being maintained by utilizing OPDP funds.

(v) Front Line Demonstration Project at Bheemanakolli in Karnataka
Being maintained by utilizing OPDP funds.

(vi) Leaf Nutrients Analysis Laboratories
Leaf Nutrients Analysis Laboratory in Karnataka is being maintained by utilizing OPDP funds.

B. Assistance to Ic

(i) Testing of different Oil Palm Genotypes under varied environmental conditions, training and leaf analysis laboratory : National Research Centre for Oil Palm (ICAR) is being provided assistance under OPDP for Testing of different Oil Palm Genotypes under varied environmental conditions, training and leaf analysis laboratory.

Besides above, following new components have been introduced w.e.f 08.02.2000:

(a) Assistance for diesel pumpsets: In view of shortage of power, it has been approved to provide an assistance of 50% of the cost subject to a maximum of Rs. 8,000 for installation of diesel pump sets, at least to those farmers who take up 5 ha. and more of oil palm plantation

(b) Development of Wasteland: 15% of the funds under OPDP will be earmarked for taking up special projects aimed at bringing under Oil Palm the wasteland or low productivity land, owned by farmers or Government land allotted to the farmers. These projects would involve integrated package of activities including procurement/production of planting material, development of land and water sources, cultivation of crop, arrangement for installation of processing facility etc.. Major assistance for planting material, cultivation and drip irrigation would be made available under OPDP on the pattern proposed. Projects would be implemented by State Governments, farmers co-operatives or voluntary organizations. Projects for wasteland development would be considered and approved at the Central Government level by a Screening Committee of the Central Government. 

Monday, May 21, 2012

PALM OIL PLANTATION AND ECONOMICS IN INDIA


OILPALM PLANTATION
 INTRODUCTION
Oil palm requires evenly distributed annual rainfall of 2000 mm without a defined dry season. Moist, deep and well drained medium textured soils rich in humus content are considered ideal. Gravelly and sandy soils, particularly the coastal sands are not ideal for oil palm cultivation
Temperature can be a limiting factor for oil palm production Best oil palm yields are obtained in places where a maximum average temperature of 29-33oC and minimum average temperature of 22-24oC are available. The crop requires 1800-2000 sunlight hours annually, more than 300 cal/cm2 / per day, constant sunlight of atleast 5 hours per day for better oil palm yield.
 NURSERY AND ITS MANAGEMENT
Nursery is raised by planting germinated sprouts initially in a pre-nursery bed or in polybags in a primary nursery and transplanting them at five leaf stage to a secondary nursery of large sized polybags. Raising seedlings in large polybags without a pre-nursery stage is also being practiced
 The potting mixture is made by mixing top soil, sand and well decomposed cattle manure in equal proportions. Smaller polybags of 250 guage and 23 x 13 cm size, preferably black are used for raising primary nurseries. A healthy germinated sprout is placed at the centre at 2.5 cm depth.  It is better to plant sprouts soon after the differentiation of radicle and plumule. The seedlings are to be watered daily. Application of a fertilizer mixture containing one part of ammonium sulphate, one part of super phosphate, one part of muriate of potash and two parts of magnesium sulphate is recommended at 15 g at one month stage, 45 g at three months stage and 60 g at six months stage per seedling. This has to be applied 6 - 8 cm away from seedlings during the first application, 10-12 cm away during second and 15-20 cm away during the third application in primary nursery.
  SINGLE STAGE POLY BAG NURSERY AND SECONDARY NURSERY
 At present the single stage polybag nursery is recommended in India. Since the plants are to remain in these polybags for more than one year, good quality polybags of 500 gauge and 40 x 45 cm size are to be used. On the lower half of the bag, perforations are made at an interval of 7.5 cm for drainage. A bag can carry 15 - 18 kg of nursery soil depending on the type of soil mixture used.
            The water requirement for different stages of growth of seedlings are as follows: 0 - 2 months at 4 mm/day, 2 - 4 months at 5 mm/day, 4 - 6 months at 7 mm/day and 6 - 8 months at 10 mm/day.  Application of 9 - 18 lit. of water per seedling per week according to the stage of growth and soil type.
FIELD PLANTING
Prepare the land for oil palm plantings at least 3 months before transplanting the seedlings to the main field. In soils with low permeability, drainage channels are to be constructed to prevent water stagnation in upper layer of soil.
AGE OF SEEDLINGS AT TRANSPLANTING
It
is advisable to plant well grown seedlings of 12 - 14 months old. At this stage, a well developed tenera seedling will have a height of 1-1.3 m from base and will have more than 13 functional leaves.
 SELECTION OF SEEDLINGS
All deformed, diseased and elongated seedlings are to be discarded. Differences in the height of healthy seedlings ranging from 90 to 159 cm tend to even up after 14 months of transplanting to maintain.
TIME OF TRANSPLANTING
Transplanting
to the main field has to be done during the onset of rainy season. In very impermeable soils and where there is chance for the seedlings to suffer severely during rainy season, proper drainage has to be ensured.
SPACING AND METHOD OF PLANTING
The optimum planting density for oil palm is the density of population that gives maximum production from unit area. Triangular system of planting with 9 x 9 x 9 m spacing accommodates 143 palms/ha. is being recommended.
 TRANSPORTING SEEDLINGS AND PREPARING PITS
Pits
of 60 cm3 are taken prior to planting and filled with surrounding top soil and allowed to settle. Rock phosphate is applied at 200 g per planting pit. Nitrogen is not usually applied in the planting pits as the application of fertilizers may damage the root system and affect survival of the plants if there is a dry period soon after planting. Nitrogen and potassium are usually applied 4 - 6 weeks after planting. In Mg deficient soils, magnesium is applied at 100 g as anhydrous MgSO4 or 200 g epsum salt per seedling.
REPLACEMENT AND GAP FILLING
 These palms are to be given special care so that they can catch up with the rest of the plantations. Early production of more female inflorescences in the initial 30 months, is an indication of high yielders and all those that fail to produce female bunches will remain as poor yielders.
FERTILIZER REQUIREMENT
Based
on the fertilizer experiments conducted under rainfed conditions in India, the following fertilizer schedule is recommended for oil palm.
             Fertilizer recommendation for oilpalm
          Age    Nutrients (gram/palm/year)
                                            N          P               K
          First year             400        200            400
          Second year         800      400              800
          Third year        1200              600             2700
METHOD OF FERTILIZER APPLICATION
The fertilizers are preferably applied in two equal split doses during May - June and September -October by uniformly spreading them within a 2 metre circle around the base of the palm and forking to incorporate them into the soil.  Mg deficiency can be corrected through the application of 500 g of MgSO4 /palm/year. Rock phosphate and muriate of potash are the best source for phosphorus and potassium respectively. During the initial years fertilizers may be applied within the area covered by the crown canopy. In the case of older palms, fertilizers are applied depending on the concentration of roots and are usually applied in the weeded circle.
WATER REQUIREMENT
 It is established that oil palm needs 120 - 150 mm of water to meet its monthly evapo-transpiration needs. In areas where perennial water source is available, basin irrigation is possible. But where the terrain is undulating and water is scarce during summer months, drip irrigation is recommended to keep four drippers per palm in the weeded palm circle to supply atleast 90 litres of water per palm per day during summer months which will vary according to the ETP values in a locality.
 WEED CONTROL
Herbicide
application has become common in recent years.  Herbicides such as 2, 4-D, 2, 4-5-T, halogenated aliphatic acids Dalapon and TCA are found to produce abnormalities in oil palm seedlings and are to be avoided. Herbicide mixtures of 2 kg a.i. of Paraquat with 3 - 4 kg Atrazine Monuron and Diuron per ha sprayed/ground applied twice a year has been found to give control of weeds.
 MAINTENANCE OF PATHS
In young plantation, the maintenance of paths is important for inspection and in later years for harvesting. This is carried out by timely weed control as done in the case of ring weeding.
 ABLATION
The
bunches produced initially will be very small and have low oil content. Removal of such inflorescences is called ablation or castration. Removal of all inflorescences during the initial three years is found to improve vegetative growth of young palms so that regular harvesting can commence after three and half years of planting.
PRUNING OF LEAVES
In
oil palm two leaves are produced per month. Therefore, it becomes necessary to prune excess leaves so as to gain access to bunches for harvest. Severe pruning will adversely affect both growth and yield of palm, cause abortion of female flowers and also reduce the size of the leaves. It was suggested that palms aged 4 - 7 years should retain 6 - 7 leaves per spiral (48 - 56), those aged 8 - 14 years 5 - 6 leaves per spiral (40 - 49) and those above 15 years should have 4 - 5 leaves per spiral (32 - 40).

Pruning
is preferably carried out at the end of the rainy season. It is also better to carry it out during the low crop season when labourers are also available.
 Insect pollination in oil palm
The
oil palm, hitherto though to be wind pollinated, has been now proved to be an a insect pollinated species. From West Africa, the original home of oil palm, eight species of pollinating weevils were reported. Occurence of Eldeidobius kamerunicus in the oil palm plantations of Kerala was introduced during 1985 from where it was introduced and got established in little Andamans during 1986.
            Introduction of weevil in India increased the fruit let from 36.8 percent to 56.1 percent resulting in 40 per cent increase in F/B ratio. The maximum attainable pollination potential was as much as to cent percent with 57 percent increase in FFB weight.
 HARVESTING
Proper
and timely harvesting of fruit bunches is an important operation which determines the quality of oil to a great extent. The yield is expressed as fresh fruit bunches (FFB) in kg per hectare per year or as oil per hectare per year. The bunches usually ripen in six months after anthesis. Unripe fruits contain high water and carbohydrate and very little oil. As the fruit ripens oil content increase to 80 - 85% in mesocarp. Over ripe fruit contains more free fatty acids (FFA) due to decomposition and thus increases the acidity. Usually the ripe fruits, attached to the bunches contain 0.2 to 0.9% FFA and when it comes out of extraction plant the FFA content is above 3%.Ripeness of the fruit is determined by the degree of detachment of the fruit from bunches, change in colour and change in texture of the fruit. Ripening of fruits start from top downwards, nigrescens fruits turning reddish orange and the virescens (green) to reddish brown. Fruits also get detached from tip downward in 11 - 20 days time. Ripeness is faster in young palms than in older palms for the bunches of equal weight. The criteria used in determining the degree of ripeness based on the fruit detachment are as follows:          
            Fallen fruits: 10 detached or easily removable fruits for young palms and 5 for adult palms.     
            Number of fruits detached after the bunch is cut; 5 or more fruits/kg of bunch weight, quantity of detachment per bunch; fruit detachment on 25% of visible surface of bunch.These criteria could be applied with flexibility.
 FREQUENCY OF HARVESTING
Harvesting rounds should be made as frequent as possible to avoid over ripening of bunches. A bunch which is almost ripe but not ready for harvest for a particular harvesting round should not be over-ripe by next round. In lean period of production, harvesting can be made less frequent and it should be more frequent in peak periods. Harvesting rounds of 7 - 14 days are generally practiced. Other factors determining frequency are, extraction capacity of the mill, transportation facilities, labour availability and skill of the workers. In India, harvesting is usually carried out with a chisel of 6 - 9 cm wide attached to a wooden pole or light hollow aluminium pipe, Bunches are cut without damaging the petiole the leaf that supports it. Use of narrow chisel is usually carried out till the palm reaches two meters above the ground. For taller palms upto 4 meters, a wider chisel of 14 cm is used.
Yield of Oilpalm
In well maintained garden the yield of oilpalm will be as furnished below :
          Age of oilpalm                             Yield (Ton/ha/year)
            3-4 years                                                         5
            4-5 years                                                         12
            5-6 years                                                         25
            6-25 years                                                       30
 ECONOMICS
A detailed account of the economics of oilpalm cultivation in India has been furnished. The data furnished therein is modified using current labour charges and oil price and the details on various investments and returns from one hectare adult plantation. This excludes the cost of land as we expect government owned land, leased land, or already owned property will be used for oilpalm cultivation. From the fourth year, the yield of bunches increases upto tenth year, and a stabilized bearing is attained thereafter. The investment during first year under irrigation will be almost three times of that under rainfed conditions mainly on account of the initial expenditure required to install the drip irrigation system. With irrigation the annual returns will exceed the annual expenses from the first harvest itself, i.e, during the fourth year after planting. By the end of sixth year the total returns will be more than total investments including all the expenditure for installing pumpset and the drip irrigation system. A minimum of 22 FFB per hectare can be expected from the tenth year onwards.
          TABLE 1 - COST OF PRODUCTION AND (Rs.) PER HECTARE
          S.No.                     Particulars                                                               Cost of production
            1          Labour cost for 200 Nos. @ Rs.80/- per day as casual labour          16,000
            2          Fertilizer cost                                                                                     2,500
            3          Plant Protection cost                                                                          400
          Total cost of production                                                                          28,900
          TABILE 2 : INCOME FROM OILPALM GARDEN DEPENDING UPON THE BUNCH PRODUCTION
          S.No.           No. of Bunches/ tree/year         FFByieldt/ha/yearGrossIncome Rs./ha/yearNet income
(Gross incomecost) Rs./ha/year
            1          10 bunches @ 10kg/tree/year            14.3     35,750             6,850
            2          12 bunches @ 15kg/tree/year            25.7     64,250             35,350
            3          12 bunches @  20kg/tree/year          34.3      85,750             56,850
          Cost of one tonne of FFB is Rs.2,500