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.