DR Chadha Committe Report

PROGRESS AND POTENTIAL OF
OIL PALM IN INDIA

(Report of the Committee Constituted to
Reassess Fresh/ Potential Areas of Oil Palm in India)
Submitted by
Dr. K.L Chadha, Chairman

to
Department of Agriculture & Co-operation

Govt. of India, New Delhi
July, 2006
i
Oil Palm Committee Report - 2006
PROGRESS AND POTENTIAL OF

OIL PALM IN INDIA
Correct Citation
Chadha, K.L. 2006. Progress and Potential of Oil Palm in India. Report of the
Committee to reassess fresh/potential areas of Oil Palm in India. Department
of Agriculture & Co-operation, Govt. of India, New Delhi. xxiv + 216 p.
Printed at
New Image Graphics
Vijayawada - 2 Ph : 0866 2435553
ii
CONTENTS
Chapters
Pages
PREFACE
ABBREVIATIONS
1.
INTRODUCTION
1-5
1.1
Importance of Oilseeds
1.2
Area, Production and Productivity
1.3
Demand and Supply
1.4
Major Oilseed Crops
1.5
Deficit and Imports
1.6
Importance of Palm Oil
1.7
Initiatives Taken for Promotion of Oil Palm
1.8
Problems Faced in Area Expansion
1.9
Reasons for Uprooting
1.10
Impact of Oil Palm Development Programme (OPDP)
1.11
Future Prospects of Oil Palm Cultivation
2.
IDENTIFICATION OF NEW AREAS
2.1
Early Plantations
2.2
Recommendations of Chadha Committee -1988
2.3
Areas Covered
2.3.1
Andhra Pradesh
2.3.2
Assam
10
2.3.3
Chhattisgarh
10
2.3.4
Goa
16
2.3.5
Gujarat
18
2.3.6
Karnataka
21
2.3.7
Kerala
26
2.3.8
Maharashtra
28
2.3.9
Mizoram
29
2.3.10
Orissa
31
2.3.11
Tamil Nadu
31
2.3.12
Tripura
36
2.3.13
West Bengal
38
7 - 45
2.4.
Areas Uprooted
39
2.5.
Future Area Expansion
39
iii

3
PLANTING MATERIAL
3.1
Importance and Type of Planting Material
47
3.2
Early Introduction of Seeds
47
3.3
47
3.4
Achievements Made
48
3.4.1
Import of Oil Palm sprouts
48
3.4.2
Establishment of seed gardens
51
3.4.3
Planting material produced and distributed
54
3.4.4
Planting material available
54
3.5.
3.6.
3.7
47 - 60
Requirements of Planting Material
55
3.5.1
55
Estimates (2006 - 2017)
Strategy to Meet Requirements
55
3.6.1
Augmenting production of existing seed gardens
55
3.6.2
Establishment of new seed gardens
56
3.6.3
Import of seeds
57
3.6.4
Micropropagation
57
Related Technical Issues
58
3.7.1
Selection of seed parents
58
3.7.2
Seed quality standards
59
3.7.3
Seed germination
59
3.7.4
Nursery management
59
3.7.5
Ideal seedlings for planting
60
3.7.6
Quarantine regulations
60
PRODUCTION AND PRODUCTIVITY
61 - 70
4.1
Production of Oil Palm
61
4.1.1
Production of FFB
61
4.1.2
Harvesting and handling
61
4.2
Yield Potential
62
4.3
Causes for Low Yields in Oil Palm
64
4.3.1
Climatic conditions
64
4.3.2
Quality of planting material
64
4.3.3
Age of the palms
66
4.3.4
Age of seedlings
66
4.3.5
Intercropping practices
66
4.3.6
Nutritional practices
67
4.3.7
Water availability
67
4.3.8
Pests and diseases
68
4.4
Productivity Incentives
68
iv
Contents
4.5
Mechanization
69
4.5.1
Production operations
69
4.5.2
Harvesting and handling operations
69
PROCESSING FACILITIES
71 - 94
5.1
Introduction
71
5.2
71
5.3
Establishment of Processing Units
71
5.3.1
A&N Islands
71
5.3.2
Andhra Pradesh
71
5.3.3
Assam
71
5.3.4
Chhattisgarh
73
5.3.5
Goa
73
5.3.6
Gujarat
73
5.3.7
Karnataka
73
5.3.8
Kerala
73
5.3.9
Maharashtra
74
5.3.10
Mizoram
74
5.3.11
Orissa
74
5.3.12
Tamil Nadu
74
5.3.13
Tripura
74
5.3.14
West Bengal
74
5.4
Processing Capacity
74
5.5
Capacity Utilization
76
5.6
Palm Oil/Palm Kernel Oil Produced
76
5.7
Oil Extraction Ratio (OER)
76
5.8
Oil Quality and Quality Control
86
5.9
Value Addition
87
5.10
Waste Utilization
87
5.11
Energy Management
89
5.12
Environmental Issues
89
5.13
Required Processing Capacity
90
6.
RESEARCH AND DEVELOPMENT
6.1
Introduction
95
6.2
Recommendations of Chadha Committee - 1988
95
6.3
Research
95
6.4
Demonstrations
96
95 - 100

6.5
Extension
97
6.5.1
Extension staff in different states
97
6.5.2
Staff with processing companies
98
6.5.3
Publications
98
6.5.4
Publicity
98
6.6
Training
98
6.7
Future Strategies
98
6.7.1
Research
98
6.7.2
Demonstration
100
7.
POLICY ISSUES
101 - 112
7. 1
Land Related Issues
101
7. 2
Price Mechanism
101
7. 3
Oil Palm Act
102
7. 4
Credit Support
103
7. 5
Price Stabilization Fund
103
7. 6
Import Policy
103
7. 7
Private Sector Participation
103
7. 8
Subsidies
104
7.8.1 Area expansion
104
7.8.2 Development of irrigation facilities
105
7.8.3 Promotional activities
106
7.8.4 Post harvest management
106
7.8.5 Crop insurance
107
7.8.6 Innovative components
108
7. 9
Organisational Changes
108
BUDGETARY PROVISION
8.1
Budget Allocation and Its Utilization (VIII, IX and X (upto - 2005-06) Plans)
8.1.1
Andhra Pradesh
8.1.2
Assam
8.1.3
Goa
8.1.4
Gujarat
8.1.5
Karnataka
8.1.6
Kerala
8.1.7
Mizoram
8.1.8
Orissa
8.1.9
Tamil Nadu
8.1.10 Tripura
8.1.11 ICAR, OPIL, AFC and TMOP
113 - 145
vi
113
113
113
113
113
113
113
113
113
113
113
115
Contents
8.1.12
Development of wasteland
115
8.2
Subsidies and Incentives
115
8.3
Future Pattern of Assistance
115
8.3.1
Component-wise assistance
115
8.3.2
Physical targets
115
8.3.3
Budget requirements
116
9.
SUMMARY AND RECOMMENDATIONS
147 - 159
9.1
Background
147
9.2
Reassessment of Potential Area
148
9.3
Planting Material
151
9.4
Production and Productivity
153
9.5
Processing Facilities
153
9.6
Research and Development
154
9.7
Policy Recommendations
155
9.8
Review of Incentives and Subsidies
156
9.9
Organizational Changes
158
9.10
General Recommendations
159
10
PROCEEDINGS OF MEETINGS
161 - 216
Committee Meeting New Delhi, 16th January, 2006
161
Working Group Meeting Hyderabad, 28th February, 2006
165
Working Group Meeting Panjim(Goa), 4th April , 2006
173
Working Group Meeting Bangalore, 5th April, 2006
179
St
Working Group Meeting Aizawl (Mizoram), 21
April, 2006
st
Working Group Meeting Ahmedabad, 31 May, 2006

th
Committee Meeting New Delhi, 20 July, 2006
201
205
215
vii
viii
Preface
PREFACE
needs of the crop. The erstwhile Central Plantation
Crops Research Institute (CPCRI) Research Centre at
Palode (Kerala) was merged with this Centre during
1999 with a Revolving Fund scheme for taking-up hybrid
seed production. As a part of its mandate, the NRCOP
has been continuing to provide active support for the
Oil Palm development in the country by way of
coordinating and monitoring the production and supply
of indigenous hybrid sprouts, strengthening the valuable
genetic resources, conducting basic and applied
research, imparting training to the development officers,
extension personnel and farmers on all aspects of Oil
Palm cultivation and bringing out publications in different
languages for the benefit of researchers, extension
personnel and farmers.
The Government of India constituted a Working

Group under the chairmanship of Dr. K.L. Chadha, the
then Horticulture Commissioner during 1986 to critically
assess the experience of Oil Palm cultivation in India,
briefly review Oil Palm technologies, identify suitable
areas for Oil Palm cultivation, identify the need and
sources for supply of planting material, assess the
processing facilities available and suggest ways and
means of financing Oil Palm development schemes.
The Working Group submitted its detailed report
in 1988 making many far-reaching recommendations
and identifying a total area of 5.75 lakh ha in 11 states
as potential for Oil Palm cultivation. This report was well
taken by various agencies and soon Oil Palm cultivation
under irrigation became a reality in many of the identified
states. Subsequently, several groups of experts reported
additional areas as suitable for Oil Palm cultivation
mostly at the initiative of state governments. In recent
years, some prospective entrepreneurs have also done
similar exercise in a few states like Gujarat,
Chhattisgarh, Mizoram and Orissa. However, there was
no consolidated appraisal of all these efforts.
Thus, during the last 15 years or so, the industry

has seen several ups and downs in the rate of area
expansion, yield potential, price fixation and
establishment of processing facilities in the states. The
Govt. of India supported the Oil Palm development
programmes with a number of subsidies and incentives
to achieve the desired momentum. Unfortunately, there
were also instances of uprooting of a number of Oil Palm
plantations in some states. The problems of the Oil Palm
farmers and entrepreneurs have been reviewed by the
Govt. of India through its various agencies, from time to
time, by organizing several meetings, interfaces,
seminars at Delhi, Pedavegi and in the respective states.
However, a clear picture about the actual potential of
Oil Palm cultivation in India and its future potential has
not emerged.
In order to give an impetus to this crop in the

country, the Technology Mission on Oilseeds and
Pulses was entrusted with Oil Palm development in the
country starting from VIII Five Year Plan. This
programme has been continued in IX and X Five Year
Plan periods.
To meet the targeted production in these plans,
efforts were made by the Government of India to meet
the requirement of planting material for this programme
both through identification of exotic sources and imports
and establishment of seed gardens for enhancing the
indigenous hybrid seed production. As a result, a
sizeable area came under Oil Palm, particularly in
Andhra Pradesh, Karnataka and Tamil Nadu supported
by suitable infrastructure for processing.
Since the country is passing through the last year

of the X Five Year Plan period and the Ministry of
Agriculture is to formulate strategies for the XI Five Year
Plan, the Government of India felt it relevant to get a
fresh exercise done to re-assess the fresh/potential
areas for Oil Palm cultivation so that Oil Palm cultivation
could be given the required emphasis.
Based on the report of the above Working Group,

the Indian Council of Agricultural Research (ICAR)
established a National Research Centre for Oil Palm
(NRCOP) with its headquarters at Pedavegi (West
Godavari district of Andhra Pradesh) during February,
1995 to take care of the research and development
Keeping this in view, the Government of India

once again entrusted me the responsibility of heading
a Committee constituted vide Office Order No. 3-18/
2005/TMOP dated 9 th November, 2005, with the
following members:
ix

Chairman
v)
To propose plan of action for Oil Palm cultivation

during the current and next Plan and to suggest
the funding including private sector funding for
development schemes with a view to quantitative
and qualitative improvement in Oil Palm cultivation
in the country.
vi)
To suggest measures for promotion of research

and development of Oil Palm.
Dr. K.L. Chadha,

Retd. Hort. Commissioner, Govt. of India &
Retd. DDG (Horticulture),
Indian Council of Agricultural Research
Members
Agriculture Production Commissioners of

Andhra Pradesh, Karnataka, Tamil Nadu,
Goa, Gujarat, Kerala, Orissa, Tripura,
Mizoram, Assam
The Committee was asked to submit the report

within three months from the date of holding its first
meeting (on 16.01.06). However, considering the visits
required to be made in different states for assessment
of area and holding group meetings, the term of the
Committee was extended up to 31st July, 2006.
Director, NRC for Oil Palm
Managing Director, Oil Palm India Ltd.
Director, Central Plantation Crops Res. Instt.
Managing Director, AP OILFED
Senior Scientists from RRL,

Thiruvananthapuram / IICT, Hyderabad
While the Committee held its first meeting at Delhi

on 16th January, 2006 it subsequently, held five meetings
of the Working Group at Hyderabad, Panjim, Bangalore,
Aizawl and Ahmedabad, the proceedings of which are
given in Chapter 10.
Member-Secretary
In the first meeting, it was decided to constitute a

Working Group of the following to visit various states
and discuss issues concerned with the mandate of the
Committee.
Joint Secretary, TMOP
The terms of reference of this Committee were as under:

i)
Critical assessment of problems and prospects of

Oil Palm cultivation in India.
ii)
To identify new areas for Oil Palm cultivation.
iii)
To identify the requirement of import of planting

material.
iv)
To assess the status and prospects of processing

facilities.
Chairman
Member Secretary
Director, NRC for Oil Palm, Pedavegi
APCs of concerned state
Processors from the region
Local entrepreneurs
Table 1: Details of meetings held

Meeting
Date
Venue
States invited
Remarks
Committee
16.01.2006
New Delhi
All members
8 members attended out of 17
Group meeting
28.02.2006
Hyderabad,
A.P.
Andhra Pradesh, Chhattisgarh

and Orissa
Chhattisgarh state did not attend
Group meeting
Group meeting
04.04.2006
05.04.2006
Panjim, Goa
Bangalore,
Karnataka
Goa, Gujarat and Maharashtra

Karnataka, Kerala and Tamil Nadu
Gujarat state did not attend

All states attended
Group meeting
21.04.2006
Aizawl,
Mizoram
Assam, Chhattisgarh, Mizoram,

Tripura and West Bengal
Assam, Tripura and West Bengal

states did not attend
Group meeting
31.05.2006
Ahmedabad,
Gujarat
Assam, Gujarat, Tripura and

West Bengal
Assam, Tripura and West Bengal

states did not attend
Committee
20.07.2006
New Delhi
All members
10 members out of 17
Preface
Some progressive farmers
Representatives of the Growers Associations
I take this opportunity to place on record my sincere

appreciation to all the members of the Committee for
their active participation in the deliberations. The efforts
made by the members of the Working Group in visiting
different states and helping in conducting the
proceedings are duly acknowledged.
The Working Group visited various states and

held meetings at different places as per details given in
Table 1. Only three members, namely Dr. K.L. Chadha,
Chairman of the committee; Dr. M. Kochu Babu, Director,
NRCOP and Shri P.K. Sharma, Director, TMOP
representing Member Secretary participated in state
visits and discussions. The host states were requested
to invite the entrepreneurs and representatives of the
farmer/grower associations besides policy makers and
officials dealing with Oil Palm.
My special thanks are due to Shri B. Nagaraja

Shetty, Honble Minister for Fisheries and Horticulture,
Karnataka and Shri H. Rammawi, Honble Minister for
Agriculture, Mizoram for their keen interest in the
development of Oil Palm and their active participation
in the meetings conducted in the respective state
headquarters.
The Committee provided opportunity to all the

participating members to share their experiences and
put forward their suggestions. Further, the reports of
area expansion prepared by various agencies like
NRCOP, State Govt., processors as well as proposals
put forward by farmer organisations were considered
keeping in view the agro-climatic conditions, availability
of water, extent of rainfall vis--vis availability of
processing facilities and cropping pattern.The present
report is based on the inputs received through
discussions and reports submitted by various agencies.
Any errors in the report are unintentional.
I wish to convey my sincere thanks to the TMOP

Division and National Oilseeds and Vegetable Oil
Development (NOVOD) Board for the various
arrangements made in connection with organizing visits
to various states and providing transport,
accommodation, meeting facilities and secretarial
assistance during the tenure of the committee. I would,
particularly, like to thank Shri P.K. Sharma, Director
(TMOP); Shri Sarwa Singh and Shri Rawal, Consultants;
Shri D.R. Gurumukhi and Dr. K. Ponnusamy of
Directorate of Oilseeds Development, Hyderabad for
assisting me in various ways during the finalization of
the report.
The draft report was prepared with the facilities

provided by the Department of Agriculture and
Cooperation, Govt. of India and the Director, NRC for
Oil Palm, Pedavegi.
I would like to profusely thank Dr. M. Kochu Babu,

Director, NRC for Oil Palm and his colleagues,
particularly, Dr. R.S.N. Pillai, Dr. P.K. Mandal, Dr. P.
Murugesan, Dr. K. Suresh, Er. Shinoj Subramannian,
Dr. P. Kalidas, Dr. R.K. Mathur, Dr. G.C. Satisha,
Ms. A. Bhanusri and Shri K.V.V.S. Narayana for their
unstinted support during finalization and printing of the
report. It would not have been possible to complete this
task but for the generous time given to this Committee
by Dr. Kochu Babu and other staff members of NRC for
Oil Palm. Thanks are also due to the State Govt.
ernments for hosting meetings and inviting all concerned
to give their input with regard to the potential of Oil Palm
cultivation and related issues.
A final meeting was conducted on 20th July, 2006

at Delhi to discuss and finalise the draft report, the
relevant chapters of which had already been circulated.
Information on proposed pattern of subsidies/ incentives
was also circulated among all states covered and
processing units to elicit views and comments on the
proposals. The proceedings of this meeting is given in
Chapter 10. The list of participants of the two committee
meetings held at Delhi is given in Annexure-I. The final
report is being submitted after incorporating the
suggestions received from the members during the
Committee meeting on July 20, 2006.
I am particularly thankful to all the processors,

particularly, Shri Sanjay Goenka and Shri P.T. Natarajan
of M/s. Foods, Fats and Fertilizers Ltd., Hyderabad;
Shri K.J. Prabhakar Rao of AP OILFED, Pedavegi;
Shri Sameer Raikar of M/s. Godrej Agrovet, Goa;
Shri V.R. Jayamani of M/s. Cauvery Palm Oil Limited,
I feel honoured to have been associated with both

the earlier and current committees as the Chairman and
I would like to place on record my gratitude to Smt.
Radha Singh, Secretary (A&C) for giving me this
opportunity and providing all necessary facilities to
complete the task of this Committee.
xi

Trichy; Shri A.S.Y. Narayana Murthy of M/s. Palmtech
India Limited, Peddapuram and many others for
providing useful information to the committee during its
tenure. Finally, I do whole-heartedly appreciate the
special interest evinced by the farmers and the
representatives of the Farmers Associations of various
states for their participation in the meetings and
discussions.
of the meetings. Targets in respect of area expansion,

planting material and creation of processing facilities
during 2006-07, Eleventh Five Year Plan (2007-12) and
Twelfth Five Year Plan (2012-2017) and budgetary
allocations for the last year of X Plan, XI Five Year
Plan and consequent committments in XII Plan have
also been included. A consolidated list of members who
participated in the meetings at Delhi and different states
is given in Annexure-II. It is hoped that when
implemented, the report will go a long way in improving
the production of Oil Palm in the country and will not
only contribute to the edible oil availability but will also
save lot of foreign exchange. It will also help in saving
our land resources merely because of the potential of
Oil Palm to yield several times higher oil per hectare
than the conventional oil seed crops.
The report has been divided into ten chapters to

cover the terms of reference of the committee. These
are i) Introduction ii) Identification of New Areas iii)
Planting Material iv) Production and Productivity v)
Processing Facilities vi) Research and Development
vii) Policy Issues viii) Budgetary Provisions ix)
Summary and Recommendations and x) Proceedings
Date: July 31, 2006.

(K. L. CHADHA)
Chairman,
Committee on Oil Palm,
Former Deputy Director General(Hort.),
ICAR & Horticulture Commissioner,
Department of Agriculture and Cooperation,
Ministry of Agriculture, Government of India,
New Delhi-110 001.
xii
Annexure- I
List of Members/representatives who attended the two Committee meetings

List of Members
Members/representatives attended meetings

1st meeting
Jan 16, 2006
2nd meeting
July 20, 2006
Dr. K.L. Chadha
Dr. K.L. Chadha
Members
2. Agriculture Production Commissioner,
Government of Andhra Pradesh
3.
Agriculture Production Commissioner

Government of Karnataka
Shri D. Venkateswara Rao

Principal Secretary (Hort)
4.

Government of Tamil Nadu
Shri P. Chandrasekhar,
Addl. Director of Agrl.
Shri D. Jayachandran
Jt. Director (Agri.)
5.

Government of Goa
6.

Government of Gujarat
Dr. B.R. Shah

Director Horticulture
7.

Government of Kerala
Shri M.N. Babu

Addl. Director (Agri)
8.

Government of Orissa
Shri H.S. Chahar

Pr. Secy. (Agri)
Shri H.S. Chahar

Pr. Secy. (Agri)
9.

Government of Tripura
10. Agriculture Production Commissioner

Government of Mizoram
Shri L. Tochhawng
Commr. & Secy. (Agri)
Shri L. Tochhawng
Commr. & Secy. (Agri)
11. Agriculture Production Commissioner

Government of Assam
12. Director, NRC for Oil Palm
Dr. M. Kochu Babu

Director
Dr. M. Kochu Babu

Director
13. Managing Director, Oil Palm Ind. Ltd.
14. Director, Central Plantation Crops

Research Institute (CPCRI)
Dr. George V. Thomas

Director
Chairman
1.
Dr. K.L. Chadha
xiii
15. Managing Director, Andhra Pradesh

Dr. T. Radha
Oil Seeds Growers Federation (AP OILFED) VC & MD
Dr. T. Radha
VC & MD
16. Sr. Scientist, Regional Research Laboratory, Dr. A. Sundaresan

Thiruvananthapuram
Scientist
Member Secretary
17. Joint Secretary (TMOP)
Shri S.L. Bhat
Shri P.K. Sharma,

Director (TMOP)
Shri C.P. Gupta

Asst. Director
Shri C.P. Gupta

Asst. Director
Shri Sagwa Singh

Consultant
Shri Sagwa Singh

Consultant
Shri K.C. Rawal

Consultant
Shri K.C. Rawal

Consultant
Special Invitee
TMOP, New Delhi
Others
Shri A.S.Y. Narayanamurthy Shri B. Pandey

General Manager,
Asst. Director (Hort)
Palmtech India Ltd.
Chhattisgarh
Shri D.R. Gurumukhi
Director, DOD
Hyderabad
Dr. K. Ponnusamy,
STA, DOD,
Hyderabad
xiv
Annexure-II
List of participants in the meetings/discussions of the working group

I.
1
2.
3.
4.
5.
6.
7.
8.
GOVERNMENT OF INDIA
Dr. K.L. Chadha, Chairman, Working Group & Former DDG(Hort.), ICAR & Horticulture Commissioner,
Ministry of Agriculture, New Delhi.
Shri S.M. Desalphine, Additional Secretary, Ministry of Agriculture, New Delhi.
Shri S.L. Bhatt, Joint Secretary, TMOP, New Delhi.
Shri. P.K. Sharma, Director, TMOP, New Delhi.
Shri D.R. Gurumukhi, Director, Directorate of Oilseeds Development, Hyderabad, A.P.
Dr. K. Ponnusamy, STA, Directorate of Oilseeds Development, Hyderabad, A.P.
Shri Sagwa Singh, Consultant, TMOP, New Delhi.
Shri K.C. Rawal, Consultant, TMOP, New Delhi.
II.
9.
10.
11.
12.
13.
14.
15.
ICAR/SAU/CSIR:
Dr. M. Kochu Babu, Director, NRC for Oil Palm, Pedavegi, A.P.
Dr. V.S. Korikantimath, Director, ICAR Research Complex for Goa, Ela, Old Goa.
Dr. George V. Thomas, Director, CPCRI, Kasaragod, Kerala.
Dr. P.M. Desai, Director of Research, Navsari Agricultural University, Navsari, Gujarat.
Dr. C. Arumughan, Sr. Scientist, Regional Research Laboratory of CSIR, Thiruvananthapuram, Kerala.
Dr. A. Sundaresan, Sr. Scientist, Regional Research Laboratory of CSIR, Thiruvananthapuram, Kerala.
Shri V.Y Gaonkar, Training Organizer, Krishi Vigyan Kendra, ICAR, Ela Road, Goa.
III.
16.
STATE GOVERNMENTS:
Shri B. Nagaraja Shetty, Honble Minister for Fisheries and Horticulture, Vidhan Soudha, Bangalore,
Karnataka.
Shri H. Rammawi, Honble Minister for Agriculture, Aizawl, Mizoram.
Shri H.S. Chahar, Principal Secretary (Agriculture), Bhubaneswar, Orissa.
Shri A. Ramaswamy, Principal Secretary (Agri. & Horticuluture), Bangalore, Karnataka.
Shri D. Venkateswara Rao, Principal Secretary (Horticulture), Bangalore, Karnataka.
Dr. Avinash Kumar, Additional Chief Secretary, Gandhinagar, Gujarat.
Mrs. Leena Nair, Agriculture Production Commissioner, Chennai, Tamil Nadu.
Shri L. Tochhawng, Commissioner & Secretary (Agri.&Hort), Aizawl, Mizoram.
Wing Cmdr. Lalnghinglova, Chairman MIPMB-cum-Member MIPEA, Directorate of Agriculture, Aizawl,
Mizoram.
Rev. Liandawla, Vice Chairman MIPEA, Directorate of Agriculture, Aizawl, Mizoram.
Shri S.C. Srivastava, Managing Director, Gujarat Agro Industries Corporation, Ahmedabad, Gujarat.
Shri S.T. Nadkarni, Chief Engineer, Water Resource Department, Junta House Annexe, Panaji, Goa.
Shri P.M. Asari, Deputy Secretary, Gandhinagar, Gujarat.
Shri R.G. Joshi, Director of Agriculture, Panaji, Goa.
Shri P.S. Sasi, Director of Agriculture, Vikas Bhavan, Thiruvananthapuram, Kerala.
Dr. B.R. Shah, Director of Horticulture, Gandhinagar, Gujarat.
Dr. R.A. Sherasiya, Director of Agriculture, Gandhinagar, Gujarat.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
xv

33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
IV.
66.
67.
Shri M. Trivedi, In-charge, Deptt. of Horticulture, Gandhinagar, Gujarat

Dr. G.K. Vasanth Kumar, Director of Horticulture, Bangalore, Karnataka.
Shri Ashok G. Somanache, Superintending Engineer (CADA), WRD, Gogal, Margoa, Goa.
Shri Ikram Ullah Mahmood, Additional Director of Horticulture (Oil Palm), Lalbagh, Bangalore, Karnataka.
Shri M.N. Babu, Addl. Director of Agriculture, Thiruvananthapuram, Kerala.
Shri S. Jagadishwar Reddy, Additional Director of Horticulture, Hyderabad, A.P.
Shri P. Chandrasekharan, Oil Palm Commissioner and Additional Director of Agriculture, Chennai,
Tamil Nadu.
Shri C. Lalzarliana, Project Director MIPEA, Directorate of Agriculture, Aizawl, Mizoram.
Shri R.M. Solanki, Joint Director of Horticulture, Baroda, Gujarat.
Shri R.B. Bali, Joint Director (Extension-1), Commissionerate of Agriculture, Pune, Maharastra.
Shri P. Bhattacharjee, Joint Director, Department of Agriculture, Aizawl, Mizoram.
Shri Sabyaruchi Rai, Joint Director, Directorate of Horticulture, Bhubaneswar, Orissa.
Shri D. Jayachandran, Jt. Director of Agriculture, Tamil Nadu.
Shri V.S. Sawaiya, Joint Director of Horticulture, Gandhinagar, Gujarat.
Shri B.D. Ahir, Dy. Director of Horticulture, Navasari, Gujarat.
Shri S.S. Ganvit, Dy. Director of Horticulture, Valsad, Gujarat.
Shri T.S. Ingrodia, Deputy Director Horticulture, Gandhinagar, Gujarat.
Shri Satish Tendulkar, Deputy Director of Agriculture, Vidyut Bhavan, 4th Floor, Panaji, Goa.
Shri H Thankhuma, Deputy Director, Directorate of Agriculture, Aizawl, Mizoram.
Shri B. Pandey, Assistant Director of Horticulture, Raipur, Chhattisgarh.
Shri K.G. Patel, Asstt. Director of Horticulture, Gandhinagar, Gujarat.
Shri S Bucha Reddy, Asstt. Director (Hort), Hyderabad, A.P.
Shri Mahesh, Asst. Director of Horticulture, Lalbagh, Bangalore, Karnataka.
Shri Sanjeev A. Mayekar, Agriculture Officer (Coconut), Dept. of Agriculture, Panaji, Goa.
Shri R.K. Parmar, Horticulture Officer, Gandhinagar, Gujarat.
Shri K.M. Panchotiya, Horticulture Officer, Gandhi Nagar, Gujarat.
Shri P.B. Adgale, District Superintending Agriculture Officer,Distt. Sindhdurg, Maharashtra.
Shri Lalengzami Haolai, Seed Analyst, Aizawl, Mizoram.
Shri F. Lalmunsiama, Secretary AMFU, Aizawl, Mizoram.
Shri Lalsangura Sailo, Subject Matter Specialist, Directorate of Agriculture, Aizawl, Mizoram.
Shri L.V. Zomuana, Agronomist, Directorate of Agriculture, Mizoram.
Shri Lalengzami Haolai, Seed Analyst, Directorate of Agriculture, Mizoram.
Shri C. Vanlalhruaia, Agricultural Extension Officer, Directorate of Agriculture, Mizoram.
PROCESSING INDUSTRY
M/s. Bhadravati Balaji Oil Palm Ltd:
Shri L.V. Narasimhan, Vice President, Karehalli, BH Road, Bhadravati Taluk, Karnataka.
Shri B.R.V. Ramana, Manager, Karehalli, BH Road, Bhadravati Taluk, Karnataka.
xvi
Annexure-II
68.
69.
70.
71.
72.
73.
74.
75.
76.
77.
78.
79.
80.
81.
82.
83.
84.
85.
86.
87.
88.
89.
90.
91.
92.
93.
94.
M/s Cauvery Palm Oil Limited:

Shri V.R. Jayamani, Chief Executive, Plot No.2, Gokulam Colony, Chandran Nagar, No.1 Toll gate,
Pitchander Kovil Post, Trichy-621 216, Tamil Nadu.
Shri R. Navaneethakrishnan, Technical Consultant, RO Narayanan Colony, Gandhiadigal street,
Kumbakonam 612 001, Tamil Nadu.
M/s. Foods, Fats & Fertilisers:
Shri Sanjay Goenka, Vice President, No.3-5-874/7-8, Hyderguda, Hyderabad, A.P.
Shri P.T. Natarajan, General Manager, No.3-5-874/7-8, Hyderguda, Hyderabad, A.P.
Shri P. Mallesham, DGM, Mysore, Karnataka.
Shri D.S. Chandrasekharappa, Manager, Koppal, Karnataka.
M/s. Godrej Agrovet Ltd:
Shri Nasim Ali, General Manager, H.No.24-E-6/4-1, Chankyapuri Colony, Eluru, A.P.
Shri B. Ravindra Rao, H.No.24-E-6/4-1, Chankyapuri Colony, Eluru, A.P.
Shri Sameer Raikar, Oil Palm Plantation Division, Gomal-Khadki, Post Vallpoi, Sattari, Goa.
Smt. P.C. Lalghahsangi, Development Executive, A/2 B-7, Circuit Road, Khatla, Aizawl, Mizoram.
Shri Satish Gaurav, Oil Palm Plantation Division, Gomal-Khadki, Post Vallpoi, Sattari, Goa.
Shri Ambarish Nadkarni, PMC Member, At-Patte, PO Sanguem Goa
Shri Devang Desai, Manager, Sachin, Distt. Surat, Gujarat.
M/s. Lakshmi Balaji Oil (P) Limited,
Shri K. Ramesh Babu, Chairman, Sangeet Nagar, No. 6-3-66/B/1, Sinahuguda, Hyderabad, A.P.
Shri D. Jagdishwar Rao, CEO, Sangeet Nagar, No. 6-3-66/B/1, Sinahuguda, Hyderabad, A.P.
M/s. Navabharat Agro Products Ltd:
Dr. Suryanarayana Athni, Managing Director, Uppalmetla, Jangareddygudem, A.P.
M/s. Palmtech India Limited:
Shri Anthony Chew, Executive Director, No,5-1-61, 1st Floor, Main Road, Surya Rao Pet, Kakinada, A.P.
Shri A.S.Y. Narayana Murthy, General Manager, No,5-1-61, 1st Floor, Main Road, Surya Rao Pet, Kakinada,
A.P.
Shri Peter, General Manager, 12-11-5, First Floor, Namalgundu, Seethapalmandi, P.O. Secundarabad,
A.P.
Shri N.R. Devesh, Deputy Manager, 428/1, upstairs, opp. Juoyes Qts.,Double Road, Kuvempurnagar,
Mysore.
Dr. P.M. Ganesh, 428/1, upstairs, opp. Juoyes quarters, Double Road, Kuvumpurnagar,Mysore-570023
M/s. Sical Palm Oil Limited:
Shri N Narasimha Reddy, Manager, Ampapuram, A.P.
M/s. Simhapuri Agro Products Pvt. Ltd:
Shri J.S. Reddy, Managing Director, 24, Gandhinagar, Vedayapalem, Nellore, A.P.
Shri Ravi Kumar D.P, Project Manager, No. 1659/30, Vidhanagar, Davangere, Karnataka.
Shri G. Virupakshappa, Project Manager, No.15/101, 6th Main, Nehru Cooperative Colony, Karnataka.
M/s. Sri Srinivasa Palm Oil Mill:
Shri Srinivasa, Gollapudi, Nuziveedu, A.P.
Shri Pandu Ranga Rao, Gollapudi, Nuziveedu, A.P.
xvii

V.
95.
96.
97.
98.
99.
VI.
100.
101.
102.
103.
104.
105.
106.
107.
108.
109.
110.
111.
FEDERATIONS/ASSOCIATIONS:
AP Oilseeds Growers Federation Limited:
Dr. T. Radha, I.A.S., Vice Chairman and MD, 9th Floor, Parishram Bhavan, Hyderabad, A.P.
Shri K.J. Prabhakar Rao, Divisional Officer, Eluru, A.P.
Shri Reghunatha Reddy, Deputy Manager (OPD), Hyderabad, A.P
A .P. Oil Palm Farmers Association:
Shri Parvatheneni Subba Rao, President, Revalle, Bapulapadu (M), A.P.
Tamil Nadu Oil Palm Growers Association:
Shri R. Sachithanandan, Secretary, 19C/2886, Srinivasan Pilai Road, Thanjavur, Tamil Nadu.
FARMERS
Shri L.A. Anbu, Mandarvalli, Torikere Taluk, Thikkamaglure, Karnataka.
Shri Deelip K. Desai, At. Varkhand, P.O. Ponda, Goa.
Shri Ishwarappa V. Hanchinal, P.O. Nagarhalli, Tq. Mundargi, Dist. Gadag, Karnataka.
Shri Ranganatha R Kathure, Bachigondam Halli, Dist. Bellary, Karnataka.
Shri G. Khaji Hussain Niagi, District President Oil Palm, Bellary (Dist.), Chittavadagi, Hospet, Karnataka.
Shri Lalhmingthanga, Kawnpui, Kolasib Dist., Mizoram.
Shri K.V. Papanna, Karakuchi village, Torikere Tal, Chikkamaglure Dist., Karnataka.
Dr. Sharad H. Patil, Wadas, Taluk-Ked, Dist., Sindhdurg, Maharashtra.
Shri M Murali Krishna, Kalvalapally (village), Chagallu(M), A.P.
Shri M Purnachandra Reddy, Khammam Dist. Satupally (Village), Sathupally (M), A.P.
Shri R.Thansiama Thingdawl, Kolasib Dist., Mizoram.
Shri Bajirao B Zende, At Post Hirlok, Taluk Kudal, Dist., Sindhdurg.
xviii
ABBREVIATIONS
ADB
AFC
AICRP
AP OILFED
APMP
ANIFPDC
ASD
BOD
CBE
CBS
CDC
CIRAD
CPCRI
CPO
CPOL
CSF
CSIR
DAC
DBT
DCKL
DDG
DIA
DIP Act
DNA
DRDA
DXP
EEC
EFB
EGS
FAO
FEDO
FELDA
FFA
FFB
FFFL
GDP
GOI
Asian Development Bank

Agricultural Finance Corporation
All India Coordinated Research Project
Andhra Pradesh Cooperative Oilseeds Growers Federation
Andhra Pradesh Microirrigation Project
Andaman and Nicobar Island Forest and Plantation Development Corporation
Agricultural Services and Development
Biological Oxygen Demand
Cocoa Butter Equivalents
Cocoa Butter Substitute
Commonwealth Development Corporation
Centre de Cooperation Internationale en Recherche Agronomique pour le Dveloppment

Central Plantation Crops Research Institute
Crude Palm Oil
Cauvery Palm Oil Limited
Central State Farm
Council of Scientific and Industrial Research
Department of Agriculture and Cooperation
Department of Biotechnology
Development Corporation of Konkan Limited
Deputy Director General
Designated Inspection Authority
Destructive Insects and Pests Act
Deoxyribo Nucleic Acid
District Rural Development Authority
Dura X Pisifera
European Economic Community
Empty Fruit Bunch
Employment Guarantee Scheme
Food and Agricultural Organisation
FACT Engineering and Design Organisation
Federal Land Development Agency
Free Fatty Acids
Fresh Fruit Bunch
Food, Fats and Fertilizers Limited
Gross Domestic Product
Government of India
xix

ICAR
IICT
IRHO
ISOPOM
JS
KER
KKV
LDL
MACS
MCCA
MIPEA
MOU
MPOB
MSP
NABARD
NAFED
NCAP
NCDC
NDDB
NGO
NHB
NIFOR
NOVOD
NRC
NRCOP
OER
OFI
OGL
O&M
OPD
OPDP
OPIL
OPRS
PCKL
PEQ
PHT
PKC
PKO
PMC
PNG
PPA
PPS
Indian Council of Agricultural Research

Indian Institute of Chemical Technology
Institut de Recherches pour Les Huiles et Oleagineux

Integrated Scheme on Oilseeds, Pulses, Oil Palm and Maize
Joint Secretary
Kernal Extraction Ratio
Konkan Krishi Vidyapeeth
Low Density Lipoprotein
Maharashtra Association for Cultivation of Sciences
Modern Crops Cultivators Association
Mizoram Intodelhna Project Executive Authority
Memorandum of Understanding
Malaysian Palm Oil Board
Minimum Support Price
National Bank for Agriculture and Rural Development
National Agricultural Cooperative Marketing Federation of India
National Centre for Agricultural Economics and Policy Research
National Cooperative Development Corporation
National Dairy Development Board
Non Governmental Organisation
National Horticulture Board
Nigerian Institute for Oil Palm Research
National Oilseeds and Vegetable Oil Development
National Research Centre
National Research Centre for Oil Palm
Oil Extraction Ratio
On Farm Investment
Open General Licence
Office and Maintenance
Oil Palm Demonstration
Oil Palm Development Programme
Oil Palm India Limited
Oil Palm Research Station
Plantation Corporation of Kerala Limited
Post Entry Quarantine
Post Harvest Technology
Palm Kernel Cake
Palm Kernel Oil
Project Management Committee
Papua New Guinea
Plant Protection Advisor
Palm Press Fibre
xx
Abbreviations
PQ
POME
PORIM
PORLA
RBD
R&D
RPO
RRLT
SA
SAU
SC
SFC
SICAL
SIRIM
ST
S&MF
TMOP
TMOP&M
TOT
TXT
UK
UNDP
Plant Quarantine
Palm Oil Mill Effluent
Palm Oil Research Institute of Malaysia
Palm Oil Registering and Licensing Authority
Refined Bleached Deodourised
Red Palm Oil
Regional Research Laboratory, Thiruvananthapuram
South America
State Agricultural University
Scheduled Caste
State Farms Corporation
South India Corporation (Agencies) Limited
Standard and Industrial Research Institute of Malaysia
Scheduled Tribe
Small and Marginal Farmers
Technology Mission on Oilseeds and Pulses
Technology Mission on Oilseeds, Pulses & Maize
Transfer of Technology
Tenera x Tenera
United Kingdom
United Nations Development Programme
WRD
Water Resource Department
WTO
World Trade Organization
xxi
xxii
xxiii
xxiv
1. INTRODUCTION
iii) The area and production of oilseeds have not
increased consistently and have been showing ups and
down from year to year. There was a significant
decrease in area and production of oilseeds in India
during 2002-03 particularly due to severe drought and
crash of prices in the international market. WTO related
issues have also affected the stability of oil production
in the country.
1.1 Importance of Oilseeds

i)
In Indian agricultural economy, oilseeds are next
only to food-grains in area coverage, production and
value. Apart from their use as a cooking medium and
being rich source of energy in human diet, oils also serve
as important raw material for various industrial products
like paints, varnish, lubricants, hair oil, soap, textile
auxiliaries, pharmaceuticals and cosmetics.
iv) With a view to increase the production of oilseeds,

reduce imports and achieve self-sufficiency in edible
oils, the Govt. of India launched a Technology Mission
on Oilseeds and Pulses (TMOP) in 1986. As a result
of its efforts, the production of oilseeds in the country
increased from 10.83 million MT in 1985-86 to 26.70
million MT during 2005-06, registering an increase of
146% in production during the corresponding period.
1.2 Area, Production and Productivity

i)
World area and production of oilseeds which was
141.98 million ha and 223.20 million MT in 1995-96,
reached 199.25 million ha and 391.02 million MT during
2005-06 (Table 1.1). There was a significant increase
in world oilseeds production of nearly 10.35 million MT
between 2004-05 and 2005-06. The current world
production of oilseeds and vegetable oils is reported to
be sufficient to meet the global demand. However,
increasing demand for use of oils in bio-diesel may put
the stocks under pressure.
v) Even though the productivity of annual oil seed

crops has risen from as low as 226 kg/ha in linseed
and the highest i.e., 764 kg/ha in rapeseed-mustard
during 1985-86, it ranged between 253 kg/ha in linseed
and 1364 kg/ha in groundnut during 2003-04 (a normal
year).
ii)
India, which is the third largest producer of
oilseeds in the world, covered an area of 25.96 million
ha in 1995-96 which increased to 27.26 million ha by
2005-06. In comparison, the production rose from 22.11
million MT in 1995-96 to 26.70 million MT in 2005-06.
1.3 Demand and Supply

i)
In India, increase in population as well as increase
in income levels due to overall development
Table 1.1: Area, production and productivity of oilseeds in world vis--vis India
Year
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
Area (million ha)

World
India
141.98
25.96
138.28
26.34
143-45
26.12
151.80
26.23
159.35
24.28
157.92
22.77
152.96
22.64
155.09
21.49
196.20
23.44
203.61
27.00
199.25
27.26
Production (million MT)

World
India
223.20
22.11
224.17
24.38
239.37
21.32
262.12
24.75
269.43
20.72
269.25
18.44
276.10
20.66
279.03
14.84
334.89
25.29
380.67
24.34
391.02
26.70
Productivity (MT/ha)
World
India
1.572
0.851
1.621
0.926
1.669
0.816
1.727
0.944
1.691
0.853
1.705
0.810
1.805
0.913
1.799
0.691
1.710
1.079
1.870
0.885
1.960
0.979
The figures between 1995-96 to 2002-03 are based on eight oilseed crops, namely, groundnut, soybean, rapeseedmustard, sunflower, sesamum, safflower, castor and linseed, while those from 2003-04 onwards are for ten oilseed crops
including cottonseed and coconut.

programmes launched in the country have resulted in
significant rise in the consumption and demand of oil.
As a result, the production of edible and non-edible oils,
per capita annual consumption of vegetable oils and
the magnitude of imbalance has been increasing
steadily. Oil consumption being income elastic is,
therefore, projected to grow @ 6 percent per annum
leading to an acute gap between demand and supply.
1.4 Major Oilseed Crops

i)
There are ten major oilseed crops cultivated
globally namely, castor, coconut, cottonseed, groundnut,
linseed, rapeseed mustard, sesamum, soybean,
sunflower and Oil Palm. Of these, in India nine oilseeds
are cultivated, which account for on an average nearly
80% of the total vegetable oil production and 85% of
the total edible oil production in the country.
ii) The per capita consumption of edible oils in India

has increased from 6.0 kg in 1985-86 to 10.92 kg in
2005-06. When compared with the per capita
consumption of vegetable oils in the developing
countries (20 kg) and world average of 15 kg, the per
capita consumption in India is far below. The per capita
consumption is increasing rapidly and by 2009-10 it is
estimated to be 13.9 kg/capita/year (NCAP, New Delhi)
with a total oil demand of 17.4 million MT. This cannot
be increased with the present level of production of oil
seeds, which produce only 6.8 million MT from an area
of 27 million ha.
ii) The increasing demand of oil in India can be met

by further increasing the area, production and
productivity of existing oilseeds crops, introducing and
exploiting new high yielding oilseed crops and importing
of oil from other countries.
iii) While elasticity of area availability for oilseed
cultivation in India is limited, there is scope for improving
productivity through release of high yielding varieties
and adoption of technology on which Govt. of India is
already giving the desired emphasis.
iv) During the last two decades, efforts have also been
made to introduce and exploit a number of new oil
bearing tree crops like, Oil Palm, jojoba (Simmondsia
chinensis) etc. However, only Oil Palm has shown
promise for commercial cultivation. India has been
mainly depending upon imports of oil from other
countries to meet its oil requirements.
iii) The consumption pattern of different edible oils in

India in the year 2005-06 is given in Table1.2. The total
consumption of palm oil in India is the highest amongst
all the edible oils followed by soybean, rapeseedmustard and groundnut oil. The reasons for more
consumption of palm oil in the country are price
advantage, acceptability and nutritional quality of the
palm oil as studies have indicated that palm oil is rich
in beta carotene (pro-Vitamin A), Vitamin E, (tocopherol
and tocotrienol), and has high calorific value which play
a vital role in nutritional security.
1.5 Deficit and Imports

i)
As against the annual requirement of 11 million
MT of edible oil, the availability has been 6.8 million
MT during 2005-06, thus, leaving a deficit of 4.2 million
MT. Balance quantity of edible oil is imported annually
by spending about Rs. 10,000 crores in valuable foreign
exchange.
Table 1.2 : Consumption pattern (Estimate) of

vegetable oils
Name of oil
2005-06
(million MT)
Palm oil
3.70
Soybean oil
2.20
Rapeseed-mustard oil
1.90
Groundnut oil
0.95
Cotton oil
0.75
Rice bran oil
0.60
Sunflower oil
0.55
Coconut oil
0.50
Sesame oil
0.20
Castor oil
0.15
Others
0.35
Total
11.85
Population
1085 (million)
Per capita
10.92 (kg)
ii) During the year 2004-05, 4.54 million MT of edible

oil valued at Rs.10,756 crores was imported. The gap
is likely to widen further and the expenditure on imports
likely to increase unless effective measures are adopted
to achieve the targetted production of 29.40 million MT
of oilseeds by 2006-07 to make India self-reliant in
vegetable oils. The details of import of vegetable oils
along with value during the last five years is given in
Table 1.3.
1.6 Importance of Palm Oil

i)
Palm oil has a good acceptance as a cooking
media because of its good digestibility. Reports based
on nutritional studies have indicated that palm oil is a
wholesome source of energy. It thus presents definite
advantages in comparison with those of groundnut,
Introduction
Table 1.3: Import of vegetable oils in India
Year
2001-02
2002-03
2003-04
2004-05
Quantity
(million MT)
4.32
4.36
5.29
4.54
ii) In order to take up Oil Palm cultivation on a massive

scale, an Oil Palm Development Programme (OPDP)
was launched during 1991-92 and the programme was
brought under the purview of the Technology Mission
on Oilseeds and Pulses (TMOP) under the Department
of Agriculture and Cooperation during the VIII five year
plan (1992-97) with a target of 80,000 ha. The project
also included setting up of one frontline demonstration
at Bhimanakolli (Karnataka); three seed gardens, one
each in Andhra Pradesh (Rajahmundry), Karnataka
(Taraka) and Kerala (Thodupuzha). The OPDP was
continued during the IX plan to bring an additional area
of 80,000 ha under Oil Palm.
iii) The Govt. of India approved the continuation of
OPDP programme during the X plan broadly on the lines
similar to those during VIII and IX five year Plans but
with suitable modifications in the light of the experience
gained and impediments observed during
implementation of the scheme. Accordingly, an area
target of 50,000 ha under Oil Palm cultivation was fixed
and the scheme of OPDP with a financial outlay of
Rs.500 crore was merged with Integrated Scheme on
Oilseeds, Pulses, Oil Palm and Maize (ISOPOM).
During the X Plan, against a target of 50,000 ha, an
area of 27,141 ha has already been covered in the first
four years of the plan itself.
iv) As against the total area of 8.01 lakh ha identified
earlier, an area of 87,211 ha was covered under Oil
Palm cultivation. However, due to various reasons an
area of 30,000 ha was uprooted and at present a net
area of 57,211 ha is in existence under OPDP.
Value
(Rs. in crores)
6,464.97
8,779.64
11,683.24
10,755.85
soybean, sunflower, rapeseed-mustard and rice bran

oils. Palm oil also offers distinct possibilities for making
speciality fats for margarines, bread spreads and cocoa
butter substitutes. It is a good raw material for making
soap and fatty acids and can be considered an
alternative to tallow. Over and above, it can yield 4 to 6
MT oil/ha/year.
ii) A number of countries in South East Asia & Pacific,
Central and South America and Africa have taken up
Oil Palm cultivation on a large scale. Keeping the above
advantages of palm oil in view, a Committee was
constituted in the year 1986 under the chairmanship of
Dr. K.L. Chadha, the then Horticulture Commissioner,
Department of Agriculture & Cooperation (DAC) to
suggest possibilities of its commercial cultivation in India.
The committee, which submitted its report in 1988
identified an area of 5.75 lakh ha as potential area in
different states of the country. Several other
recommendations were also made by the committee to
promote Oil Palm cultivation.
1.7 Initiatives Taken for Promotion of Oil Palm
1.8 Problems Faced in Area Expansion
i)
As a consequence of the recommendations, the
Department of Biotechnology, Govt. of India in
collaboration with the state Govt. of Andhra Pradesh,
Karnataka and Maharashtra established three
demonstration units of 1000 ha each during 1990-91 to
demonstrate the feasibility of growing Oil Palm under
irrigated conditions. These plantations were raised with
tenera seeds of which 80 percent were imported from
Costa Rica and the remaining 20 percent obtained from
indigenous source at Palode. In Andhra Pradesh and
Karnataka, the demonstration was taken up on farmers
fields, while in Maharashtra it was taken up by
Development Corporation of Konkan Ltd. (DCKL) by
obtaining the land on lease from farmers. Under this
project, the actual area covered was 1,050 ha in Andhra
Pradesh, 1,120 ha in Karnataka and 1,000 ha in
Maharashtra. This demonstration project was designed
to demonstrate the possibilities of successful cultivation
of Oil Palm to farmers and plantation companies.
i)
While there has been lot of enthusiasm in
accepting Oil Palm as a potential oil yielding crop, there
was considerable setback in the programme after 199899 due to wide spread adverse weather conditions that
prevailed in four successive years in a number of major
Oil Palm producing states. Gradual reduction in import
duties of edible oils from 65% (1994) to 15% in July
1998 and liberalization of import of vegetable oils by
bringing them under Open General Licence (OGL)
resulted in unbridled import of cheap vegetable oils in
the country. Edible oil import increased from 1.39 lakh
MT in 1993-94 to 45.4 lakh MT (>32 times) valued at
Rs.10,756 crore during 2004-05.
ii) Huge imports of cheap edible oils depressed the
domestic prices of oilseeds/vegetable oils including palm
oil. The price of Crude Palm Oil (CPO) which was ruling
at about Rs.35,000 per MT in 1995-96 and Rs.33,000
per MT in March, 1998 declined to Rs.13,000 to

Rs.15,000 per MT in November 1999. This coupled
with adverse weather conditions in consecutive years,
caused substantial erosion in the resource base of the
farmers, which dampened their enthusiasm and affected
adversely the production of oilseeds in the country.
1.10 Impact of Oil Palm Development

Programme (OPDP)
i)
Even though the area expansion programme under
oil palm did not take place as per the potential envisaged
and schemes of the Govt., the efforts during VIII and IX
Plans have made the following impact :
iii) Some of the major factors impeding the area

expansion under Oil Palm and production of palm oil in
the country are as under:
Oil Palm, considered to be a new crop for India

established very well under irrigated conditions.
Reluctance of farmers to take up a new crop having

a gestation period of 3-4 years and requiring high
initial investment and assured irrigation.
Low productivity due to poor irrigation

infrastructure and management.
Areas identified by the earlier committee based

on agro-climatic conditions and other parameters
proved suitable for Oil Palm cultivation.
Shortage of power and limited/delayed availability

of new electric connections.
Oil Palm plants came to bearing in the third year

and bearing stabilised in about 8 years as in
countries like Malaysia.
Non-enactment of Oil Palm Act by some of the

states like Karnataka, Gujarat and Orissa.
Though the yields obtained were generally low,

there were instances of well managed plantations
yielding up to 40 MT of FFB/ha.
Failure of NABARDs refinance scheme in

providing timely loans to farmers.
Lack of comprehensive insurance coverage for

major risk factors.
A price fixation mechanism brought confidence

amongst the growers about an assured market for
the crop.
The price offered ranged from Rs.2,000 to

Rs.4,000 per MT FFB, which gave reasonable
returns per ha to growers.
Fluctuation in the price of Fresh Fruit Bunches

(FFB).
Lack of processing facilities in some of the states/

Factory Zones coinciding with the availability of
FFB.
Establishment of NRC for Oil Palm provided the

required technologies and training facility for
scientific production of Oil Palm.
Oil Palm industry being a subject of negative

campaign for competing with other vegetable oils
and fat producers.
Setting up of six seed gardens in the country

resulted in the production potential of over 2 million
plants per year.
There was a positive response to our efforts for

import of planting material from exotic sources
namely Costa Rica, Papua New Guinea, Ivory
Coast etc.
As many as 18 processing units have been

established in various states providing adequate
facilities for processing the FFB by various
entrepreneurs.
The Oil Extraction Ratio (OER) obtained by various

mills has been nearly on par with that obtained in
other Oil Palm growing countries.
1.9 Reasons for Uprooting

i)
Several factors have also resulted in the uprooting
of large areas of Oil Palm in different states. These
include :
Delay in allotment of Factory Zones to new

entrepreneurs.
Withdrawal of some of the entrepreneurs from the

programme.
Depletion of ground water and inability to provide

irrigation.
Natural disasters like drought, cyclones etc.
Rise in returns for the competitive crops like

arecanut, sugarcane, paddy etc.
ii) The above factors have helped in establishing Oil

Palm as a potential oil yielding crop in seven states with
two other states trying to take up the crop in the XI
Plan.
Introduction
1.11 Future Prospects of Oil Palm

Cultivation
ii) Keeping the above impact, constraints and

opportunities in view, the Govt. of India constituted the
present committee under the chairmanship of Dr. K.L.
Chadha, Retd. DDG (Hort), ICAR to reassess the fresh/
potential areas of Oil Palm in the country.
i)
Despite set backs by uprooting and other factors,
there is lot of strength in favour of Oil Palm cultivation
in years to come due to the following advantages :
The Govt. of India offers considerable support in

the form of incentives and subsidies.
A hardy crop with a few pests and diseases.

Facilitates inter-cropping thereby giving additional
income in pre-bearing years.
No pilferage as the raw fruit is not edible and also
cannot be sold in the open market.
Harvests at fortnightly intervals and lifting at farmgate results in regular income almost all the year
round.
More income per ha than most conventional crops
and steady income for approximately 30 years.
No marketing problems.
Technical training and extension support available
at NRC for Oil Palm.
Its cultivation will result in import substitution and
conservation of foreign exchange.
iii) It is hoped that, if the action plan/strategy and

recommendations made in this respect for future
expansion of Oil Palm area is implemented, these will
go a long way in revolutionizing the production of Oil
Palm in the country, which will not only contribute to the
edible oil availability in the country but will also save lot
of foreign exchange out go from the country besides
playing a prominent role both in meeting the health and
environment concerns which will figure prominently in
the 21st century. It will particularly help in saving our
limited land resources merely because of the potential
of Oil Palm to yield approximately five times more oil
per ha than the conventional oilseed crops.
2. IDENTIFICATION OF NEW AREAS

2.1. Early Plantations
i)
Oil Palm was introduced as a commercial crop
during 1971 when the Plantation Corporation of Kerala
Limited (PCKL) established its first large-scale plantation
between 1971 and 1975 and 1,052 ha were planted.
During 1973, a project for raising 2,400 ha of Oil Palm
plantation in Little Andamans (Andaman and Nicobar
islands) was also sanctioned. The implementation of
this project as well as the management of 160 ha of Oil
Palm plantations raised by the Forest Department during
1975-76 was entrusted to the Andaman and Nicobar
Islands Forest and Plantation Development Corporation
(ANIFPDC). The Corporation raised a plantation over
an area of 1,593 ha against the approved project of
2,400 ha.
ii)
In 1977, Oil Palm India Limited (OPIL) was
established as a subsidiary of the Plantation Corporation
of Kerala Limited. During 1977-78, the plantations
raised by the PCKL were taken over by OPIL. Planting
was taken up in three phases covering an area of 1,879
ha, 1,426 ha and 400 ha respectively up to 1984. Since
no more land was made available for planting Oil Palm,
the OPIL project was restricted to a total area of 3,705
ha.
2.2. Recommendations of Chadha

Committee -1988
i)
The Govt. of India appointed a committee in 1986
to find out the potentiality of Oil Palm cultivation in the
country. The committee after detailed deliberations
recommended an area of 5.75 lakh hectares as suitable
for Oil Palm cultivation in nine states as given in Table
2.1 and submitted a detailed report giving
comprehensive recommendations. Major observations
and recommendations of the committee are reproduced
below:
in the lands available with the Department of

Oilseeds at Vadapathimangalam and Thanjavur
districts, in the first instance.
Kerala, particularly Southern Kerala, was reported
ideally suited for Oil Palm cultivation inspite of the
dry period for 3 months. Due to the non-availability
of land, it was recommended to grow Oil Palm as
a small holders crop around existing OPIL
plantations and also in the central land belt
between backwaters and high mountain areas to
an extent of 5,000 ha.
In South Konkan Coastal region of Maharashtra,
Oil Palm cultivation could be taken up in an area
of about 10,000 ha utilizing the available and
proposed irrigation projects.
In Orissa state, about 10,000 ha of land was
identified for Oil Palm cultivation in areas allotted
for Tribal Development and in Ramiala Irrigation
Project.
In West Bengal, Oil Palm can be cultivated in about
10,000 ha of land was identified for Oil Palm
cultivation in three districts, namely, Darjeeling,
Jalpaiguri and Cooch Behar, where the climatic
and soil conditions are suitable.
Tripura was found to have very limited scope for
Oil Palm cultivation. An area of 5,000 ha in small
blocks of 200-500 ha each was identified for Oil
Palm cultivation.
Assam was found to have very limited scope for
Oil Palm cultivation upto 10,000ha but only in small
pockets. The successful cultivation of this crop was
recommended to be demonstrated before going
into large-scale cultivation due to the temperature
being low and sunshine hours being limited.
ii) A strategy for covering 2.5 lakh ha of area under

Oil Palm cultivation by 2000 AD was suggested. It was
recommended that sizable pilot plantings-cumdemonstrations covering at least 1,000 ha each should
be laid out in each of the 3 major states suited for Oil
Palm cultivation namely Andhra Pradesh, Karnataka
and Maharashtra starting from 1989. In other states,
where areas available were less and which do not meet
the climatic requirements fully, the size of demonstration
was recommended to be limited to 200 ha. Based on
the performance of these demonstrations, further area
expansion could be taken up from 1994 onwards in a
phased manner. The possibilities of raising Oil Palm in
states like Goa and Gujarat and also in North-Eastern
Region may be explored for future development of Oil
Palm.
In Andhra Pradesh, an area of about 2.5 lakh ha

was identified in 3 districts namely Krishna, East
Godavari and West Godavari.
In Karnataka State, an area of 2.5 lakh ha was
identified under the 5 major irrigation projects,
namely, Thungabhadra, Upper Krishna,
Malaprabha and Ghataprabha, Cauvery Basin and
Bhadra.
In Tamil Nadu, an area of 25,000 ha in Thanjavur
and Tiruchirapalli districts under Cauvery irrigation
Project was identified for Oil Palm cultivation. It is
worthwhile to have trial cum demonstration plots

iii) It is expected that when 2.5 lakh ha under Oil Palm
comes to full bearing by 2009 AD, it will yield 1 million
MT of palm oil and 0.1 million MT kernel oil per year at
the rate of 3 MT oil/ha/year, during fifth and sixth year
and 4 MT from seventh year onwards. This can also be
doubled in another decade if the entire area of 5.75
lakh ha is brought under Oil Palm.
iii) Since the performance of area expansion

programmes was not as anticipated and only 93,513
ha area was covered, the present committee was
constituted to reassess the scope of Oil Palm cultivation
in India. The committee held discussions with state Govt.
officials, entrepreneurs, farmers and farmer
organizations and reviewed the situation. The progress
made in area coverage so far and reassessment of area
in different states along with general observations of
the committee are given in this section state-wise.
iv) Subsequently, various working groups constituted

by the Ministry of Agriculture, Govt. of India or by State
Govt. identified additional areas between 1988-91 to
the tune of 2.26 lakh hectares raising the total area
identified to 8.01 lakh hectares in 11 states as given in
Table 2.1.
2.3.1. Andhra Pradesh

i)
Oil Palm cultivation as a small farmers crop under
irrigation was taken up in West Godavari district over
an area of 165.07 ha during 1988-89 under District Rural
Development Authority (DRDA) programme by 87
farmers in twenty villages. A large planting was also
made at Lakshmipuram in West Godavari district by M/s
Navabharath Enterprises in 1988 covering 24 ha area
and subsequently 126 ha by 1991. These plantations
served as a demonstration for all those interested in
Oil Palm cultivation. The planting material used was
indigenous tenera.
2.3. Areas Covered

i)
Systematic Oil Palm planting programme was
taken up during 1988-89. Three large demonstrations
were laid out in the states of Andhra Pradesh, Karnataka
and Maharashtra under the aegis of the Department of
Biotechnology (DBT) to assess the potentialities of the
crop. In Andhra Pradesh and Karnataka, the Oil Palm
plantations were taken up by the farmers, while in
Maharashtra, it was raised as a corporate crop under
irrigated conditions.
ii) Simultaneously, DBT sponsored a demonstration

project for the state to cover an area of 1000 ha during
1988-91. The state covered the area in three districts
viz., East Godavari (300 ha), West Godavari(400 ha)
and Krishna(450 ha) with a total coverage of 1,050 ha
involving 666 beneficiaries. Eighty percent of the
planting material used in the project was tenera procured
ii) Following these demonstrations, a massive Oil

Palm Development Programme (OPDP) was formulated
by Technology Mission on Oilseeds and Pulses
(TMO&P), Ministry of Agriculture, Govt. of India to bring
more area under Oil Palm.
Table 2.1: Potential areas for Oil Palm cultivation in India

States
Andhra Pradesh
Assam
Gujarat
Goa
Karnataka
Kerala
Maharashtra
Orissa
Tamil Nadu
Tripura
West Bengal
Total
Area Identified (ha)

1986-87*
1988-91**
2,50,000
1,50,000
10,000
61,350
10,000
2,50,000
5,000
10,000
10,000
25,000
5,000
5,000
10,000
5,75,000
2,26,350
*Chadha committee 1988; ** Other committees; No area identified
Total (ha)
4,00,000
10,000
61,350
10,000
2,50,000
5,000
10,000
10,000
30,000
5,000
10,000
8,01,350
Identification of New Areas

from Costa Rica while 20 percent was indigenous
tenera. The purpose was to demonstrate the feasibility
of Oil palm cultivation under irrigated conditions. These
plantations started bearing in 1993-94 and served their
purpose very well and created a positive impact on
farmers about potential of Oil Palm development in
Andhra Pradesh. In comparison to the potential of 4
lakh ha area under Oil Palm in the state, the area
covered up to 2005-06 was only 53, 370 ha. The year
wise coverage of area is given in Table 2.2.
iii) The initial yield levels were reasonably good

particularly in respect of DBT and Navabharath
plantations. Along with these plantations, the state also
established a processing unit at Pedavegi with 1 MT/hr
capacity during 1992 in the cooperative sector.
Establishment of this first mill when the DBT plantations
started yielding added to the confidence among the
farmers about marketing of their produce.
iv) Andhra Pradesh was the first state to formulate
and promulgate an Oil Palm Act in 1993. The Act
provided regulation for cultivation of Oil Palm,
processing and matters connected therewith. It also
proved to be an important factor to motivate the growers
in Oil Palm cultivation.
Table 2.2: Year wise area coverage under Oil

Palm in Andhra Pradesh
Year
Area coverage (ha)
Prior to OPDP
2,393
1992-93
740
1993-94
3,062
1994-95
3,700
1995-96
6,700
1996-97
4,416
1997-98
3,795
1998-99
3,205
1999-00
2,465
2000-01
1,207
2001-02
1,428
2002-03
1,944
2003-04
2,778
2004-05
5,977
2005-06
9,560
Total
53,370
v) A National Research Centre for Oil Palm was

established by the Indian Council of Agricultural
Research at Pedavegi in West Godavari district for
carrying out research on all aspects of Oil Palm.
vi) Three seed gardens were set up in the state, one
at NRC for Oil Palm, Pedavegi, another at Rajahmundry
under the Dept. of Horticulture and the third one by a
private unit, M/s Navabharath Enterprises at
Lakshmipuram.
vii) In Andhra Pradesh, the earlier committees
identified four lakh ha in ten districts for growing Oil Palm.
However only an area of 53,370 ha was covered during
these 18 years (Table 2.3). Of this, an area of 8,000 ha
was further reduced as a result of uprooting of palms
mainly due to drought, delay in establishment of
processing facilities, reduction in the price of CPO,
identification of unsuitable areas etc. In the recent years,
Table 2.3: Details of potential area identified and covered in Andhra Pradesh (ha)
District
Potential area
identified earlier
Area
covered
Reassessed potential
area (2006)
East Godavari
Guntur
Khammam
Krishna
Nalgonda
Nellore
Prakasam
Srikakulam
Visakhapatnam
Vizianagaram
West Godavari
1,00,000
20,000
20,000
50,000
30,000
10,000
40,000
10,000
20,000
1,00,000
12,139
1,323
3,414
4,576
3,304
1,114
989
1,973
2,831
21,707
1,00,000
20,000
50,000
30,000
30,000
40,000
10,000
20,000
1,00,000
Total
4,00,000
53,370
4,00,000
No area identified

the Oil Palm scenario gradually stabilized because of
increase in price of Crude Palm Oil (CPO). The farmers
have an increasing appreciation for the Oil Palm crop
because of the various advantages of the crop like
assured marketing, proper price fixation, less labour
requirement etc.
implementing these recommendations. The state even

did not respond to the request of the present committee
either to attend meetings of the working group on 21st
April, 2006 at Aizawl or on 31st May, 2006 at Ahmedabad
or to send any information about the potential of taking
up Oil Palm cultivation in the state. The Committee
therefore does not recommend any area coverage under
Oil Palm in the state.
viii) Of the total area covered in ten districts, West

Godavari district tops in area coverage (21,707 ha)
followed by East Godavari (12,139 ha) and Krishna
(4,576 ha) districts. Khammam, Nellore and
Vizianagaram were other districts which covered an
area between 2000-3500 ha.
2.3.3 Chhattisgarh
i) The state was carried out from the erstwhile state of
Madhya Pradesh which was not included as a potential
Oil Palm growing state in 1988 report. However, since
its formation, the state has shown keenness in taking
up Oil Palm cultivation and has also identified certain
potential areas which were reviewed. The observations
of the committee on the suitability of the areas are given
as under.
ix)The present committee discussed the potential of

various districts/mandals in Andhra Predesh for
expanding Oil Palm cultivation. Table 2.4 lists the nine
districts with mandals identified in each district
x) The state authorities did not want to continue with
Oil Palm area expansion programme in the districts of
Guntur and Prakasam as in these districts rainfall is
very scanty and Oil Palm is entirely dependent on bore
well irrigation. Further, since most of the area is open
without much tall growing vegetation, the evaporative
demand of Oil Palm will be much higher. Hence, it will
be very difficult to maintain the desired atmospheric
humidity of 50% and above. Experience with existing
plantations revealed that mostly male inflorescences are
produced and no processing units were established
resulting in uprooting of almost all palms in these two
districts. Farmers also did not find Oil Palm remunerative
in these areas. So, as suggested by the State Govt.
these districts have been dropped from area expansion
programme. For future Oil Palm development
programme, Nalgonda district was proposed with a
potential area of 30,000 ha and has been included.
ii) The state lies between 17 046 to 240 5 N latitude

and 80015 to 84020 E longitude. Total area of the state
stretches across 1,35,000 km2 (of which 59,000 sq.km
is covered under forests). The climatic conditions of
Chhattisgarh vary from region to region. The two agro
climatic regions proposed for cultivation of Oil Palm by
the state are Chhattisgarh plains and Bastar plateau.
The districts selected and the temperature and rainfall
in these two agro climatic zones are given in Table2.6.
iii) Each agro-climatic zone is having a different type
of soil. In general, black soils, red soils, sandy loam,
loamy sands are found within the state. Along the river
beds, typical loamy soils are seen with good drainage
conditions. Soil depth is not a constraint for raising Oil
Palm in such areas.
iv) The state has many rivers. Mahanadi, Indrawati,
Sheonath, Rinand Hasdeo, Kelo, Mand, Eib, Pairi Sabari
and Apra are some of the perennial rivers meandering
through the state. Water is present in these rivers
throughout the year. However, all these put together
irrigate only 18% of the cultivated land of the state. The
underground water potential has not been tapped in
any region. This could be due to continuous cultivation
of traditional crops like paddy and poor economic
condition and lack of awareness on cultivation of
commercial crops among the farmers. The main sources
of irrigation are canals, which provide three fourth of
all irrigation. Eight percent of irrigation is done by tube
wells, six percent by tanks and four to five percent by
wells. As the rainfall in Chhattisgarh is distributed only
during the months of June to September/ October,
supplemental irrigation facilities are required.
xi) As far as the remaining eight districts are

concerned, no change in the area identified by the
earlier committee was made. As a result, the committee
maintains its earlier recommended total potential area
of 4.0 lakh ha in the state for Oil Palm cultivation as
listed in Table 2.3 and Fig. 2.1.
xii) As for the targets of coverage of area are proposed,
the committee agrees with the projection of the state to
cover 15,000 ha during 2006-07, 1,03,750 ha during XI
plan and 1,55,400 ha during XII plan as per details given
in Table 2.5. The total area coverage by end of XII Plan
is projected as 3,19,520 ha.
2.3.2 Assam
i)
The earlier committee had identified 10,000 ha
area in Assam state as potential for Oil Palm cultivation.
However no initiative was shown by the state in
v)
10
Even though Chhattisgarh has proposed area to

Table 2.4: Details of mandals identified for Oil Palm cultivation in various districts of Andhra Pradesh
S.No.
District
East Godavari
Khammam
Krishna
Nalgonda
Nellore
Srikakulam
Visakhapatnam
Vizianagaram
West Godavari
Mandals identified
Addatheegala, Ainavilli, Anaparthi, Atreyapuram, Bikkavolu, Devipatnam,
Eleswaram, Ganagavaram, Gandepalli, Gokavaram, Gollaprolu, Inavalli,
Jaggamapeta, Kadium, Kirlampudi, Korukonda, Kotananduru, Kothapeta,
Mandapeta, Peddapauram, Pitapuram, Prathipadu, Rajahmundry,
Rajavomangi, Rampachodavaram, Rangampeta, Ravulapalem, Samarlakota,
Sankavaram, Sitanagaram, Tomdangi, Tuni, U.Kothapalli, Y.Ramavaram.
Aswapuram, Aswaraopeta, Bayyaram, Bhadrachalam, Bonakalu,
Burgampahad, Chandrugonda, Cherla, Chintakani, Dammapeta, Enkuru,
Garla, Julurupadu, Kalluru, Kamepalli, Karepalli,
Khammam(rural),Khammam(urban), Konijerla, Kothagudem, Kunavaram,
Kusumanchi, Madhira, Mudigonda, Mulakalapalli, Nelakondapalli, Palvancha,
Penuballi, Sathupalli, Talladu, Tekulapalli, Thirumalayapalem, V.R.Puram,
Velerupadu, Vemsoot, Venkatapuram, Wyra, Yellendu, Yerrupalem.
Agripalli, Bapulapadu, Chandrulapadu, Chatrai, G. Konduru, Gannavaram,
Ibrahimpatnam, Jaggayyapeta, Kanchincherala, Kankipadu, Musnoor,
Mylavaram, Nandigama, Nuziveedu, Penamaluru, Penuganchiprolu,
Reddygudem, Totlavalluru, Ungutur, Varsavid, Veerullapadu, Vijayawada,
Vuyyuru
Garidepally, Halia (Anumula), Huzurnagar, Kodad, Mellacheruvu,
Miryalaguda, Mothe , Munagala, Nadigudem, Neredcherla, Nidamanur,
Penphad.,Tipparthy, Tripuravaram, Vemulapally
Bylayyapalli, Chillakuru, Dakklli, Guduru, Indukurupeta, Kaluvoy, Kota,
Manubolu, Nellore, Ozlli, Rapuru, Sydapuram, Vakadu, Venkatachalam,
Venkatagiri
Amudalavalasa, Athapatnam, Bhamiru, Burja, Etcharla, G.Sigadam, Gara,
Hiramandalam, Jalamuru, Laveru, Miliyaputti, Narasannapeta, Othuru,
Palakonda, Polaki, Ponduru, R.Amudalavalasa, Rajam, Ranasthalam,
Sarubujji, Sarvakota, Shanthakaviti, Sompeta, Srikakulam (Rural), Tekkali,
Vangara, Veeraghattam
Achuthapuram, Anandapuram, Bheemunipatnam, Butchaiyyapeta,
Cheedikada, Chintapally, Chodavaram, Devarapalli, Golugunta, K. Kotapadu,
Kasimkota, Kotauratla, Koyyuru, Madugula, Makavarapalem, Munagapaka,
narsipatnam, Natahvaram, Padmanabham, Payakaraopeta, Ravikamatham,
Rolugunta, S.Rayavaram, Sabbavaram, Yelamanchili
Badangi, Balajipeta, Bobbili, Checourupalli,Dattirajeru, Gajapathinagaram,
Gantyada, Garugabilli, Gumma Lakshmipuram, Gurla, Jami, Jiyyammavalasa,
Komarada, Kottavalasa, Kurupara, L.Kota, Makkuva, Marakamudidam,
Mentada, Nellimarla, Pachipenta, Parvathipuram, Pusapati Rega,
Ramchandrapuram, S.Kota, Saluru, Sitanagaram, Therlam, Vepadu,
Vizianagaram
Achanta, Bheemadolu, Butayagudem, Chagallu, Chinthalapudi, Denduluru,
Deverapally, Dwaraka Tirumala, Elemanchili, Eluru, Gopalapuram,
Jangareddygudem, Jeelugumilli, Kamavarapukota, Kovvuru,
Koyalagudem,Lingapalem, Mogaltur, Nallajerala, Narsapur, Nidadavolu,
Palakollu, Pedapadu, Penugonda, Peravali, Poduru, Polavaram, T.
Narasapuram, Tadepalliguem, Tallapudi, Undrajavaram, Unguturu
11
12
East Godavari
Guntur
Khammam
Krishna
Nalgonda
Nellore
Prakasam
Srikakulam
Visakhapatnam
Vizianagaram
West Godavari
TOTAL
District
Potential area
identified earlier
(ha)
1,00,000
20,000
20,000
50,000
0
30,000
10,000
40,000
10,000
20,000
1,00,000
4,00,000
Reassessed
potential area
2006 (ha)
1,00,000
0
20,000
50,000
30,000
30,000
0
40,000
10,000
20,000
1,00,000
4,00,000
Fig. 2.1. Potential Areas for Oil Palm Cultivation in Andhra Pradesh
Area
covered
(ha)
12,139
1,323
3,414
4,576
0
3,304
1,114
989
1,973
2,831
21,707
53,370

Table 2.5 : Future area expansion in Andhra Pradesh (ha)
a. X (2006-07) and XI Plans
District
X Plan
XI Plan
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
Total
East Godavari
2,600
2,600
2,900
3,200
3,500
3,800
16,000
Khammam
1100
1,100
750
850
1,000
1,200
4,900
750
750
800
850
1,000
1,200
4600
2,400
2,400
2,400
2,400
2,400
12,000
Nellore
250
250
300
350
450
500
1,850
Srikakulam
600
600
650
700
850
1,000
3,800
Visakhapatnam
900
900
1,100
1,200
1,500
1,700
6,400
Vizianagaram
1,700
1,700
1,500
1,600
1,700
1,800
8,300
West Godavari
7,100
7,100
8,500
9,500
10,000
10,800
45,900
15,000
17,400
18,900
20,650
22,400
24,400
1,03,750
Total
Total
(2006-07-to 2016-17)
Krishna
Nalgonda
Total
b. XII Plan
District
XII Plan
2012-13
2013-14
2014-15
2015-16
2016-17
East Godavari
4,200
4,500
4,700
5,000
5,000
23,400
42,000
Khammam
1,400
1,600
1,800
2,000
2,000
8,800
14,800
Krishna
1,300
1,500
1,700
1,900
1,900
8,300
13,650
Nalgonda
2,400
2,400
2,400
2,400
2,400
12,000
24,000
600
800
1,000
1,300
1,300
5,000
7,100
Srikakulam
1,200
1,300
1,400
1,500
1,500
6,900
11,300
Visakhapatnam
1,800
2,000
2,300
2,500
2,500
11,100
18,400
Vizianagaram
2,000
2,200
2,500
2,800
2,800
12,300
22,300
West Godavari
11,500
12,500
13,600
15,000
15,000
67,600
1,20,600
Total
26,400
28,800
31,400
34,400
34,400
1,55,400
2,74,150
Nellore
Table 2.6: Agro-climatic zones and districts proposed for Oil Palm cultivation in Chhattisgarh
Agroclimatic zones
Districts
Bastar plateau
Dantewada Jagdalpur, and

remaining parts of Kanker district
Bilaspur, Durg, Korba, Mahasamund,
Raipur, Narharpur and Kanker blocks
of Kanker district, parts of Raigarh
district
Jashpurnagar, Korea, Sarguja and
Dharamjaigarh tehsil of Raigarh
district
Chhattisgarh plains
Northern hills
13
Temperature(0C)
Max
Min
31.15
18.08
Rainfall(mm)/month
Max
Min
127.09
7.05
32.55
21.15
115.72
5.39
30.16
17.40
117.73
3.05
the extent of 40,000 ha, the committee has the following

observations:
The minimum temperature in some of the areas
identified is reported quite lower than the optimum
range for Oil Palm.
Lot of constraints of availability of irrigation in the
state have been identified.
Some earlier demonstrations laid out by the state
department have not given very encouraging
performance.
Lot of mortality of young plants has been reported
in the first few years (probably due to low
temperature or water scarcity)
vi) In view of the above, the committee recommends

that:
Chhattisgarh state should go slow in area expansion
under Oil Palm.
No Oil Palm programmes are recommended in the
northern zone which does not seem to be suitable
on the basis of agro-climatic data provided to the
committee.
It recommends that large demonstrations covering
about 1,000 ha each in the two zones be first laid
out as was done by DBT in Andhra Pradesh,
Karnataka and Maharashtra.
Such demonstrations should be laid out in a cluster

approach in areas ideally suited for Oil Palm with
an assured ground water availability.
The provisional area of 40,000 ha identified is,
however approved subject to the successful
demonstration of Oil Palm as indicated above
(Table 2.7. and Fig.2.2).
The committee approves the area expansion targets
of 7,750 ha only during XI plan period as indicated
in Table 2.8.
Keeping in view the success of Oil Palm in these
areas , the targets for the next five years i.e., from
2012-13 to 2016-17 could be fixed at 20,000 ha at
a rate of 4,000 ha each year.
Table 2.8: Area suggested to be covered in
Chhattisgarh
Year
Area suggested to
be covered (ha)
1,000
1,000
1,000
2,000
2,750
7,750
2007-08
2008-09
2009-10
2010-11
2011-12
Total (XI plan)
Table 2.7: Details of districts and mandals identified for Oil Palm cultivation in Chattisgarh
District
Blocks
Area under
assured
irrigation (ha)
Proposed area
under Oil Palm
(ha)
Bilaspur
Akaltara, Gorella, Masturi, Marwahi,

Kota, Takhatpur
Chindgarh, Dantewada, Geedam,
Katekalyan, Kauakonda,
Sukuma
Balod, Dhamdha, Dondi, Gurur
Baderaipur, Bakaward, Bastar,
Jagadalpur, Kondagoan, Phsargoan,
Tokapal
Kartala, Katghara, Pali
Bhanu Pratapur,Charama, Kanker,
Sarona
Basna, Pithora, Saraipali
Charghora, Lelunga
Baloda Bazar, Churra, Guriyabandh,
Kasdol, Mainpur, Palari
1,32,821
4,000
28,704
4,000
1,82,166
38,376
5,000
6,000
48,744
31,670
4,000
5,000
53,930
43,693
2,34,820
3,000
4,000
5,000
7,94,924
40,000
Dantewada
Durg
Jagadalpur
Korba
Kanker
Mahasamund
Raigarh
Raipur
Total
14
Potential area Reassessed Area

identified
potential area covered
earlier (ha)
2006 (ha)
(ha)
Bastar
6,000
1.25
Bilaspur
4,000
0
Dantewada
4,000
3.14
Durg
5,000
0
Kanker
5,000
0
Korba
4,000
0
Mahasamund
3,000
0
Raigarh
4,000
0
Raipur
5,000
0
Total
Nil
40,000
4.39
District
Fig. 2.2: Potential Areas for Oil Palm Cultivation in Chhattisgarh
15

2.3.4 Goa
gardens are also facing difficulty in harvesting as plants

have grown taller.
i)
Goa state was not covered for Oil Palm cultivation
by the Chadha Committee during 1988. However, a
group headed by Dr. P. Rethinam suggested the
suitability of about 10,000 ha area in North Goa and
South Goa districts for Oil Palm cultivation. Against this,
an area of 894 ha only was planted so far. Of this, 71
ha was uprooted/lost and 380 ha has come to yielding.
Possibility of increasing area under Oil Palm in Goa
was discussed in the working group meeting held at
Panaji, Goa on 4 th April 2006 and the following
observations were made:
iv) The productivity in Goa was reported to be low as

a result of poor management, low irrigation, inadequate
organic matter, poor water holding capacity of soil, poor
nutrient availability besides non availability of timely
labour. The need of the state is to increase productivity
of existing plantations and identify new areas that have
adequate water availability for irrigation.
v) The potential area for Oil Palm was reassessed
by a committee consisting of Zonal Agricultural Officers
and Directorate of Agriculture. Accordingly an area of
500 ha has been identified in Ambelim, Asolda, Assolna,
Collem, Jamgal, Kotembi, Kuncolim, Valkinima, Velim
and Xelvon mainly owned by community tenants.
Similarly another 500 ha area has been identified in
the Tillari Irrigation Project which is estimated to cover
an area of 16,900 ha by 2006-07 to 2009-10.
ii) The major Oil Palm growing taluks are Sanguem,

Satteri and Quepem. There are no Oil Palm plantations
so far in Canacona and Marmagoa taluks. The seed
sprouts of tenera hybrid were imported from Costa Rica
by M/s Godrej Agrovet and were distributed under a
guarenteed buy back contract. A mill was installed in
May, 2001 by this company with 2.5 MT/hr capacity. The
state has also enforced Goa Oil Palm (Regulation,
protection and processing) Act 1998
vi) In view of the meagre availability of suitable land

in this small state and inadequate irrigation facilities,
the state authorities were not keen for identification of
additional areas and also projected a target of only 1,177
ha to be covered in future. Keeping in view the reasons
put forward the committee agrees to scale down the
future targets (Table 2.9; Fig. 2.3) and the year wise
area expansion targets for the next 11 years are as given
in Table 2.10.
iii) Initially the response of Oil Palm farmers was quite

satisfactory. However delay in establishment of the palm
oil mill and poor production resulted in farmers shying
away from Oil Palm cultivation. Due to these factors an
area of 71 ha was uprooted/abandoned. Existing
Table 2.9: Details of potential area identified and covered in Goa (ha)
District
North Goa
South Goa
Total
Potential area
identified earlier
Area covered
Area uprooted
10,000
894
71
area ( 2006)
1,000
1,000
2,000
Table 2.10 : Future area expansion in Goa (ha)

District
X Plan
2006-07
North Goa
20
South Goa
30
Total
50
XI Plan
2009-10
2010-11
50
50
50
50
100
100
2007-08
50
50
100
2008-09
50
50
100
2013-14
50
60
110
XII Plan
2014-15
2015-16
70
70
60
60
130
130
2011-12
50
50
100
Total
250
250
500
Total
327
300
627
Total (2006-07
to 2016-17)
597
580
1177
b. XII Plan
District
North Goa
South Goa
Total
2012-13
50
50
100
16
2016-17
87
70
157
17
North Goa
South Goa
Total
District
10,000
Potential area
identified earlier
(ha)
Reassessed
potential area
2006 (ha)
1,000
1,000
2,000
894
Area
covered
(ha)
Fig. 2.3: Potential Areas for Oil Palm Cultivation in Goa

15-22 0 C and maximum temperature ranges between
40-42 0 and 42-440 C. The rainy season is between June
and September. In south Gujarat, the average rainfall
ranges between 1,000 to 1,500 mm, whereas in middle
Gujarat it is between 800 to 1,000 mm. The soils are
deep black, clay, sandy loam and medium black in the
identified area.
viii) The targets for area coverage for the state in the
last year of the X Plan, XI Plan and XII Plan are very
modest at 50, 500 and 627 ha respectively. The entire
area of 2,000 ha has been targeted to be covered by
the end of XII Plan.
2.3.5 Gujarat
iii) The irrigation potential of the state has increased

due to commencement of Sardar Sarovar Narmada
project. Many new areas have come under the
command area of various irrigation projects. The major
command areas in the state are Kakarapar,
Damanganga, Sardar Sarovar Narmada and Kadana
irrigation projects.
i)
The state of Gujarat was not covered by the
Chadha Committee in its report submitted during 1988
for Oil Palm cultivation. However, Oil Palm was
introduced in the state on experimental basis at Fruit
Research Station, Gujarat Agricultural University,
Valsad in the year 1989. An expert committee led by
Dr. P. Rethinam in 1991 identified an area of 61,350 ha
as suitable for Oil Palm cultivation in this state. After
successful trials, Oil Palm Development Programme was
taken up in the state with the central assistance during
1992-93 along with approved Oil Palm development
components. An area of 725 ha also has been covered
under Oil Palm in the state during 1993-2006 and the
details are given in Table 2.11.
iv) Details of district and mandal wise areas identified

for Oil Palm cultivation in the various agroclimatic zones
are given in Table 2.12.
v) The committee discussed the prospects of Oil Palm
cultivation in the state in the meeting of its Working
Group held at Ahmedabad on 31st May, 2006 and makes
the following observations/recommendations:
ii) The most suitable area for Oil Palm cultivation has
been identified under south Gujarat and middle Gujarat
agroclimatic zones in the state. The minimum
temperature in these zones ranges between 12-15 and
Table 2.11: Year wise area covered under Oil Palm
in Gujarat.
Year
Oil Palm seems to be highly suitable in south

Gujarat districts i.e., Valsad, Surat, and Navsari.
Diversification to Oil Palm is possible by the

replacement of sugarcane, paddy, cotton, tobacco
and other existing crops and also by bringing waste
lands under Oil Palm.
With the commencement of Sardar Sarovar

Narmada project in the districts of Anand, Bharuch,
Kheda, Narmada, Panchmahal and Vadodara
more area can be brought under irrigation. Looking
to the potential, new districts like Vadodara, Anand,
Kheda and Panchmahal can be brought under Oil
Palm cultivation.
Lot of enthusiasm was displayed by the state

authorities and keenness shown by the processors
in taking up cultivation of Oil Palm.
As per the discussions held, growers showed

interest to take up Oil Palm cultivation because
Oil Palm gives regular income throughout the year,
requires less care for pests and diseases and after
care, has assured market as compared to other
horticultural crops, absence of transport problem,
assured timely payment and less cost of cultivation.
It is reported that M/s Godrej Agrovet Ltd., and M/
s Foods, Fats and Fertilizers have been alloted an
area of 12,000 ha each for Oil Palm development
in the state.
Area covered(ha)
1993-94
40.44
1994-95
231.91
1995-96
27.94
1996-97
1997-98
143.87
1998-99
8.08
1999-00
2000-01
20.32
2001-02
21.71
2002-03
192.74
2003-04
8.31
2004-05
2.34
2005-06
27.54
Total
725.20
18

vi) In view of the above, the committee recommends
the area identification target of 90,000 ha in Gujarat
state as given in Table 2.13 and Fig. 2.4. The area
coverage targets for X (2006-07), XI and XII plans have

been kept as 100 ha , 11,000 ha and 12,900 ha
respectively. (Table 2.14).
Table 2.12: Details of agroclimatic zones, districts and mandals identified for
Oil Palm cultivation in Gujarat
Agro climatic
zone
District
Mandal
Middle Gujarat
Anand
Anand, Anklav, Borsad Khambhat,

Petlad, SojitraTarapur, Umreth
Godhara, Halol, Kalol Lunavada, Shehra
Nadiad, Thasara
Dabhoi, Karjan, Nasvadi, Padra,
Pav-Jetpur, Sankheda, Savli,
Sinorr, Vadodara, Vagodia
Amod, Ankleshwer, Bharuch, Hansot,
Jambusar, Vagra, Valia, Zagadia,
Nandod
Navsari All
Bardoli, Choryasi, Kamrej, Mahuva,
Mandavi, Mangre, Olpad, Palsana,
SongadhValod, Vyara
Pardi, Umargam, Valsad
Godhara
Kheda
Vadodara
South Gujarat
Bharuch
Narmada
Navsari
Surat
Valsad
Area under
assured
irrigation (ha)
1,74,200
Total
Possible area to
be covered under
Oil Palm (ha)
15,000
16,000
18,841
49,250
4,500
4,500
5,600
73,961
7,000
2,500
58,000
1,60,000
2,000
15,000
18,400
33,400
18,000
5,86,152
90,000
Table 2.13: Details of potential area identified and covered in Gujarat (ha)
District
Potential area
identified earlier
Area covered
Anand
Bharuch
Bhavnagar
Godhara Panchmahel
Kheda
Narmada
Navasari
Surat
Vadodara
Valsad
8,000
8,350
5,000
1,000
2,000
2,000
5,000
10,000
5,000
15,000
8.46
90.29
246.32
380.13
Total
61,350
725.20
No area identified
19
Reassessed
potential
area (2006)
15,000
7,000
4,500
4,500
2,000
15,000
18,400
5,600
18,000
90,000
Potential area
identified earlier
(ha)
Anand
8,000
Bharuch
8,350
Bhavnagar
5,000
Godhara Panchmahel
1,000
Kheda
2,000
Narmada
2,000
Navasari
5,000
Surat
10,000
Vadodara
5,000
Valsad
15,000
Total
61,350
District
Reassessed
potential area
2006 (ha)
15,000
7,000
0
4,500
4,500
2,000
15,000
18,400
5,600
18,000
90,000
Area
covered
(ha)
0
8.46
0
0
0
0
90.29
246.32
0
380.13
725.20
Fig. 2.4: Potential Areas for Oil Palm Cultivation in Gujarat
20

Table 2.14 : Future area expansion in Gujarat (ha)
a. X (2006-07) and XI plans
District
X Plan
XI Plan
2006-07
2007-08
2008-09 2009-10
2010-11
Navasari
25
400
500
500
1,000
Surat
25
300
500
500
1,000
Valsad
50
300
1,000
1,000
1,000
Total
100
1,000
b. XII Plan
District
Anand
Bharuch
Navasari
Surat
Vadodara
Valsad
Total
2,000
2,000
XII Plan
2014-15 2015-16
2012-13
2013-14
200
200
660
660
200
660
200
200
660
660
200
660
200
200
660
660
200
660
2,580
2,580
2,580
3,000
2011-12
1,000
1,000
1,000
Total
3,400
3,300
4,300
3,000
11,000
2016-17
Total
Total (2006-07
to 2016-17)
200
200
660
660
200
660
200
200
660
660
200
660
1,000
1,000
3,300
3,300
1,000
3,300
1,000
1,000
6,725
6,625
1,000
7,650
2,580
2,580
12,900
24,000
Table 2.15: Area identified for Oil Palm cultivation

in Karnataka
2.3.6 Karnataka
i)
The Department of Horticulture in Karnataka laid
out 55 demonstration plots of 0.5 ha each with 50 palms/
plot in various horticultural farms in different agroclimatic zones during 1987-88. The indigenous tenera
seeds were procured as a planting material from two
nurseries located at Mangalore and Sirsi.
Command
area
Districts
Bhadra
Davangere, Haveri,
Shimoga and parts
of Chickmaglur
25,000
ii) The Chadha Committee-1988 recommended a

1000 ha plantation to be sponsored by the Department
of Biotechnology in collaboration with the State Dept.
of Horticulture. Under this programme, an area of 865
ha was planted during 1990-91 and 249 ha during 199192 covering a total area of 1,114 ha under Oil Palm in
Bhadra Command area. Plantings were taken up in 4
taluks viz., Shimoga, Bhadravathi, Honnali and Tarakere.
Like in Andhra Pradesh, 80 percent sprouts were
obtained from Costa Rica and 20 percent was
indigenous material from Palode. In all, 900 farmers
were covered under the programme. A critical study of
the performance of these demonstration plots has
shown that Oil Palm can be cultivated successfully in
the state of Karnataka.
Cauvery
Chamarajnagar, Coorg
Hassan, Mandya
and Mysore
25,000
iii) The Chadha Committee-1988 had identified 2.5

lakh ha as potential area for Oil Palm cultivation in 5
irrigation command areas of Karnataka state as given
in Table 2.15.
iv) During November 1991, the state also approved

establishment of an Oil Palm processing unit in the Govt.
sector by Karnataka State Industries Development
Corporation with M/s Karnataka Oswal Oil Palm Ltd., in
Malaprabha Belgaum and parts of

& Ghatta
Uttar kannada
prabha
40,000
Thunga
Bhadra
Bellery, Gadag,
Raichur and parts
of Koppal
60,000
Upper
Krishna
Bijapur, Gulbarga
and parts of Bagalkot
10000
Total
21
Area
identified (ha)
2,50,000

vii) However, between the years 1997 to 2002, there
was a setback to the area expansion because of fall in
prices of FFB (due to reduction of import duty for CPO),
and remunerative prices of competing crops like
arecanut. Hence, the farmers preferred arecanut as
compared to Oil Palm in this state. Some processing
companies withdrew from the project, realizing that it
was difficult to continue. This gave rise to uprooting of
plants in some different districts, mostly as a negative
reaction.
Shimoga district. M/s Karnataka Oswal Oil Palm Ltd.,

established a 10 MT/hr capacity mill in Karehalli village
of Bhadravathi taluk, Shimoga district during 1996 and
a 1 MT/hr capacity small mill for immediate requirement.
v) There was an overwhelming response by the
farmers of Shimoga district to the new crop. In order to
ensure returns to farmers during the pre-bearing period
of 4 years, intercropping was introduced successfully.
It was also found that the feeder root zone of the Oil
Palm lies close to the surface of the soil. Therefore deep
ploughing of the soil will be detrimental to the feeder
roots and affect productivity.
viii) During the last two years i.e. from 2004 onwards,
the situation has improved considerably and Oil Palm
FFBs have been fetching better price. Therefore, the
farmers have been showing interest to take up area
expansion under Oil Palm and also to improve
productivity in their plantations.
vi) Encouraged by the positive trend, the Govt. of India

set a target of 20,000 ha to be brought under Oil Palm
during VIII Plan period. During VII, VIII and IX Plan period
(1990-91 to 2001-02) an area of 8,966 ha was brought
under Oil Palm. Details of year wise and zone wise area
coverage under Oil Palm is given in Table 2.16.
Year
VII plan
1990-91
1991-92
Sub total
VIII Plan
1992-93
1993-94
1994-95
1995-96
1996-97
Sub Total
IX Plan
1997-98
1998-99
1999-00
2000-01
2001-02
Sub Total
X Plan
2002-03
2003-04
2004-05
2005-06
Sub total
Grand Total
ix) Against an estimated area of 2.5 lakh ha, only

12,398 ha has been covered so far in the state. (Table
2.17). However, much of this area was uprooted due to
Table 2.16: Year wise and zone wise area developed in Karnataka (ha)
Belguam Davangere
Hospet
Koppal
Mysore
Shimoga
-
334
168
170
672
520
718
628
1866
49
49
14
13
40
67
788
194
200
394
394
Total
865
249
1,114
1114
355
317
672
100
575
857
1532
400
215
518
250
306
1,689
400
215
1,472
2,066
2,278
6,431
42
12
25
58
137
23
92
169
126
410
484
239
11
91
825
598
239
115
194
275
1,421
54
26
68
200
348
2,351
102
224
59
202
587
1,669
179
181
678
550
1,588
3,945
6
42
400
448
3,251
335
452
1,053
1,592
3,432
12,398
22

reasons given above and only 4,464 ha area is now
existing in the state. Of this, 1,314 ha area is more than
4 years old and is now yielding.
water level had been going down leading to drying of

borewells. The situation, however, improved during
2004-05 due to good rains.
x) The estimation of area by the earlier committee

was made considering that 10-15% new area with
irrigation facilities will be put under this crop. However,
due to erratic rainfall in the past few years, the ground
xi) Details of zone wise districts with specific location

are given in Table 2.18 and brief justification for Oil Palm
area expansion in various districts is as under:
Table 2.17: Area identified and covered under Oil Palm in Karnataka (ha)
Zone
Total area
identified earlier
Area covered
Belguam
Davangere
Hospet
Koppal
Mysore
Shimoga
UKP
area (2006)
388
794
2,304
1,691
3,968
3,253
-
Total
2,50,000
12,398
2,50,000
Table 2.18: Potential areas identified for Oil Palm cultivation in Karnataka
Zone
Districts
Taluks with specific location
Belgaum
Belgaum
Davangere
Uttar kannada
Davangere
Hospet
Haveri
Bellary
Athani; Belgaum; Bylhongal; Chikodi; Gokak;

Hukkeri; Khanapur; Raibagh; Ramdurga; Sowdatti
Joida ; Karwar; Yellapur
Chanagirei
Davangere: Harihara river basin, Harapanahalli
(Bhadra canal tail end) Honnalli: Honnalli river basin
Hirekerur ; Ranebennur
Bellary : Hagari river belt
Hospet : On the right bank, Tungabhadra river belt, Daroji tank area
H.B. Halli : T.B. dam back water villages
Huvinahadagali : Right bank of Thungabhadra river belt
Siruguppa, Hagari river belt (both sides of the river)
Mundargi : Dumbal, Mundargi hobli, Mundavada hobli,
Koppal : Allavaddi hobli , Ginigare hobli, Kappala hobli, Kinnala hobli
Deodurga : Jarabundi, Jalahalli
Lingsagur : Kattlatti, Kellareddy circle, Mattmari, Mudhugal circle,
Veradobbi circle
Raichur
Arkalgud : Doddamage, Niduvagilu, Ramnathpura, Ranganathpur,
Chamarajnagar : Chandravadi, Duggatti, Maralli circle, Yelandur
Sakleshpur : Heguru, Sakleshpura
Madikeri : Kargunda, Kondangeri, Nakoplu, Vadduru
Somavarpet : Hebbala, Sanivarsanthe, Shuntikoppa,
Virajpet : Ammathi, Badrapura, Ballale, Belluru, Kannur, Kiriguru,
Ponampet, Srimangala, P. Shettigare, Sidhapur, Thithimathi,
Koppal
Gadag
Koppal
Raichur
Mysore
Chamarajnagar
Hassan
Kodagu
23

Zone
Districts
Taluks with specific location
Mandya
K.R. Pet : Hosadallu, Maduvinkode

Mandya : Gajjinakare, Kilara, Mandya, Maddur Maddur,
Malavalli : Antharasanthe, Kirugavalu, Malavallie
Pandavapura : Haruve, Kupya
Srirangapatna : Koddigalu
H.D. Kote : Gadhige, Mullar, Madhiyur
Hunsur : Bilikare, Hunsur, Madvinkare, Thatekare,
K.R. Nagara : Chunchanakatte, Mirle,
Mysore : Bannur, Kupya Ranganathapuram, Sumla T.Narasipura,
Nanjangud : Gandhigram, Kalmally, Mathgalli, Suttur, Ullali,
Periyapatna : Bettadhapur,
Koppa : Agalaganchi, Hanchikudige Hegarkudige, Hirehadlu, Koppa,
Kothagodu, Kuduregundi, Neggur, Seethur,
N.R. Pura : Balehonnur, Muthinakoppa, N.R. Pura
Tarikere : Adhikere Bavikare, Dornal,Karakuchi, Kenchikoppa, Lakkvalli,
Lingdahalli,Mandaralli, Nandi, Rangenahalli,
Hosnagar : Honcha, Malale, Kallikapura, Sampekatte, Varamballi,
Yellgudde Koppa
Sagar : Anandapura, Byrapura, Gouthamapura, Havinahalli, Joga,
Kargal, Keladi, Kagodu, Lingdalli, Masuru, Shervanthi, Thaleguppa,
Thyagatti,
Shimoga : B. Beeranahalli, Bullapur, Gajanur, Hollebevenahalli,
Hosalli, Kadekal, Pillangere,
Shikaripura : Anjanapura, Arishinagere, Bhadrapura, Hosur, Kalmane,
Muddenahalli, Nallinikoppa, Punadahalli, Salur
Theerthalli : Bukkalapura, Hiresara, Jattinakoppa, Melagi,
Totadhakoppa
Bagalkote : Devnahalli, Saganagadhi, Thulsigere
Basavanabagevadi ; Indi ; Muddebihal ; Singhgi
Jewargi : Kobal, Konehipperagi.
Shahpur : Gogi, Madarike,
Shorapur
Mysore
Shimoga
Chikmagalur
Shimoga
UKP
Bagalkote
Bijapur
Gulbarga
In the upper Krishna command area comprising

districts of Bijapur, Gulbarga and Bagalkote, Oil
Palm planting programme was not taken up earlier.
Activities in this region have been taken up only
w.e.f. December, 2003 since when M/s.
Bhadravathi Balaji Oil Palm Limited has been
allotted area expansion activities. Large extent of
area though under irrigation was reported to be
uncultivated and could be diverted to Oil Palm
cultivation.
In Bellary district, the water table is reported to be
high behind Malvi Dam. Thus borewell recharging
has good scope in this belt.
The Koppal district has good potential for Oil Palm
development due to forth coming Herehalla dam.
Compared to this, the state machinery finds it
difficult to convince the farmers to take up Oil Palm

in the paddy growing areas.
Gadag district was also reported to be a potential
area for Oil Palm.
In Belgaum district, farmers concentrate mainly on
sugarcane, banana and grape under irrigated
condition. There is scope for converting some area
under sugarcane to Oil Palm.
In Shimoga district, several farmers uprooted Oil
Palm to grow arecanut. However after the earlier
change over, the farmers once again are not averse
to Oil Palm cultivation.
xii) In view of the above, the committee feels that the

projected potential area of 2.5 lakh ha as identified in
1988 remains unchanged (Fig. 2.5 and Table 2.17).
24
25
Belguam
Davangere
Hospet
Koppal
Mysore
Shimoga
UKP
Total
Zone
2,50,000
Potential area
identified earlier
(ha)
Fig. 2.5: Potential Areas for Oil Palm Cultivation in Karnataka
2,50,000
Reassessed
potential area
2006 (ha)
Area
covered
(ha)
388
794
2,304
1,691
3,968
3,253
0
12,398

Further the suggested targets for area coverage as
given by the state Govt. can be accepted and are fixed
at 3,750 ha, 20,450 ha and 28,100 ha for X Plan (200607), XI Plan and XII Plan respectively with a total area
coverage in the next 11 years projected as 52, 300 ha
(Table 2.19).
ii) Even though Kerala, particularly its southern part

is climatically well suited for Oil Palm despite a dry period
of 3 months, the state showed constraint in assigning
more land for Oil Palm cultivation due to high population
pressure in the state. Release of forest land was also
not possible due to Forest Conservation Act and the
Table 2.19: Future area expansion in Karnataka

Zone
X Plan
2006-07
Belguam
600
Davangere
300
Hospet
150
Koppal
500
Mysore
1,000
Shimoga
700
UKP
500
Total
3,750
2007-08
600
200
150
500
900
800
800
3,950
2008-09
600
200
200
500
800
700
1,000
4,000
XI Plan
2009-10
2010-11
600
600
200
200
200
200
500
500
700
600
600
500
1,200
1,500
4,000
4,100
2011-12
600
200
200
500
500
400
2,000
4,400
Total
3,000
1,000
950
2,500
3,500
3,000
6,500
20,450
b. XII Plan
Zone
Belguam
Davangere
Hospet
Koppal
Mysore
Shimoga
UKP
Total
2012-13
600
200
200
500
500
400
2,500
4,900
2013-14
600
200
200
500
400
300
3,000
5,200
2014-15
600
200
200
500
300
200
3,500
5,500
XII Plan
2015-16
600
200
200
500
300
200
4,000
6,000
2016-17
600
200
200
500
300
200
4,500
6,500
Total
3000
1000
1000
2500
1800
1300
17,500
28,100
Total (2006-07
to 2016-17)
6,600
2,300
2,100
5,500
6,300
5,000
24,500
52,300
states anxiety to maintain its forest wealth. The state

also did not want to lose its area under paddy cultivation
to crops like Oil Palm. As a result, only a modest target
of 5,000 ha of area of small holder plantations around
the existing plantations of OPIL was kept by Chadha
Committee-1988. Against this target, the additional area
of 1,756 ha as given in Table 2.20 was brought under
Oil Palm plantations since1992.
2.3.7 Kerala
i)
Before the submission of the Chadha Committee
report, Plantation Corporation of Kerala Limited (PCKL)
had already made large scale planting of Oil Palm
starting as early as 1971-1973. In 1977, Oil Palm India
Limited (OPIL) was established as a subsidiary of this
corporation which took over the plantations raised by
the Corporation. In 1983 it became an independent
company as a joint venture of Govt. of Kerala and Govt.
of India with a share capital participation in the ratio of
51:49 respectively. Planting was taken up in an area of
3,705 ha at three estates namely Yeroor Group of Estate
(2,080ha), Chithara Estate (945 ha) and Kulathupuzha
group of Estates (680ha)
iii) In addition, OPIL also raised an Oil Palm seed

garden in 40 ha area. Thus Kerala state covered an
area of 1,796.65 ha against a target of 5,000 ha. The
total area under Oil Palm in the state now stands at
5,501.65 ha including earlier OPIL plantations of 3,705
ha. The current total production of FFB from the bearing
area is 38,500MT.
26
27
Alappuzha
Idukky
Kottayam
Kollam
Pathanamthitta
Thiruvanathapuram
Trissur
Wayanad
TOTAL
District
5000
Potential area
identified earlier
(ha)
4,166
11
705
27
5,500
11
705
27
6,500
Area
covered
(ha)
102
119
370
5,166
Reassessed
potential area
2006 (ha)
102
119
370
Fig. 2.6: Potential Areas for Oil Palm Cultivation in Kerala

Table 2.20: Additional area brought under
Oil Palm cultivation in Kerala
Year
Area planted (ha)
OPDP
OPIL
PCKL MCCA
1992-2000
20.86(R)
705
160
2000-2001
81.60
122
2001-2002
58.79
2002-2003
115.70
2003-2004
161.09
2004-2005
143.89
2005-2006
187.72
Total
769.65
122
705
160
2.3.8 Maharashtra
i)
Maharashtra state had the distinction of introducing
Oil Palm plants (dura) at Maharashtra Association for
Cultivation of Sciences (MACS), Pune during 1947-54.
Besides this, a few plants were available along the
irrigation canal at Neeral and Ganeshkhand Fruit
Gardens, Pune. Dura palms were also planted at
Agricultural School, Manjri, Pune and at KKV Farm in
Dulpha.
ii) The Chadha Committee Report in 1988 had
indicated that it was possible to cover 5,000-10,000 ha
of area under Oil Palm in the South Konkan Coastal
region of Maharashtra. A demonstration plot covering
1000 ha was also established under Oil Palm at Mulde
in Konkan region under the aegis of the DBT and an All
India Coordinated Research Project (AICRP) centre on
Oil Palm was also established at Agricultural Research
Station, Mulde under the aegis of Indian Council of
Agricultural Research(ICAR).
R Replanted
iv) The state has sought funds for covering only 850
ha area during the last year of the X plan (2006-07),
which is endorsed by the Committee. However, OPIL
submitted details of an area of 1,08,545 ha in fourteen
districts of Kerala having potential for taking up Oil Palm
cultivation (Table 2.21; Fig. 2.6). However, in view of the
reasons given by the state, no Oil Palm development is
proposed in the XI and XII Plans. In view of this the
reassessed potential area of the state is fixed as
6,500 ha.
iii) While the demonstration trial taken up on a large

scale failed, the experience of scientific cultivation of
Oil Palm showed success. The reasons for failure were
shortage of irrigation, competing crops like mango,
cashewnut (not requiring much water), no ready market
due to absence of a mill etc. Beneficiaries had to
transport the bunches to long distances and support
price was often less than other zones where processing
units were in existance. Further Oil Palm is also covered
under Employment Guarantee Scheme. But the
cultivators are interested in coconut and cashewnut
because of 100% subsidy. Returns are not adequate
from Oil Palm.
Table 2.21: Details of potential areas for taking up

Oil Palm cultivation in Kerala (ha)
(proposed by OPIL)
District
Area under
Suitable
plantation &
areas for
commercial crops Oil Palm
Alappuzha
12,640
13,006
Ernakulam
75,572
9,466
Idukky
1,88,976
2,323
Kannur
98,391
7,267
Kasaragod
85,900
14,366
Kollam
56,201
1,009
Kottayam
1,28,282
5,389
Kozhikode
47,124
2,097
Malappuram
71,734
10,825
Palakkad
55,188
29,116
Pathanamthitta
57,504
3,131
Thiruvananthapuram
39,971
845
Trissur
33,756
8,282
Wyanad
1,37,106
1,423
Total
10,68,345
iv) Major areas covered were Kundal and Kankavali

taluks. The longitude and latitude of the place is 73o 42
and 16o 2. This coastal region has an annual rainfall of
3000 mm received during June -September. Minimum
temperature ranges from 12-24o C and maximum from
26-38o C. The soils are well drained with 10-14 percent
slope. Soils are lateritic, sandy loam and acidic and have
poor water holding capacity.
v) The major consideration for growing Oil Palm in
this region has been high rainfall during June to
September. However during the remaining 8 months of
the year, there is practically no rainfall and the plants
are subjected to severe stress. Added to this, Oil Palm
has to compete with crops like mango, cashewnut and
sugarcane. No processing facility has also been created
in the state. Many farmers thus were of the opinion that
Oil Palm cultivation in this region is not very economical.
vi) In view of the above, the Committee recommends
the following:
1,08,545
28
The demonstration plot of 1,000 ha be

rehabilitated. This plantation should be allotted to
the processor of the nearest state, i.e., Goa.
Besides a one MT/hr capacity unit should be
considered for installation in the region.
While the earlier potential area identified was quite
less, the state did not show much initiative either
in maintaining the existing plantations or in
expanding the area and providing processing
facilities to the growers. Hence, the Committee
does not find any merit in including this state in
future OPDP programme.
Since the state is not keen on area expansion, the
research outcome of the AICRP Cenre at Mulde
may not be useful. Hence the centre may be closed
and given to any other state having large potential
area.
Aizawl, Lawngtlai, Sahia and Champhai districts were

also reported to have potential for Oil Palm cultivation.
iii) The present Committee discussed the proposal
of identification of areas for Oil Palm cultivation in the
state. On the basis of areas identified by NRC for Oil
Palm and potential processors, an area of 61,000 ha is
recommended for Oil Palm cultivation (Table 2.22;
Fig 2.7). The Govt. of Mizoram has already signed MOU
with three companies and alloted districts as given in
Table 2.23.
Table 2.22 : Area identified and covered under Oil
Palm in Mizoram (ha)
District
Area
Reassessed
covered
potential area (2006)
Aizawl
9,000
Champhai
2,150
Kolasib
500
11,350
Lawngtlai
7,000
Lunglei
500
10,000
Mamit
10,500
Saiha
2,000
Serchhip
9,000
Total
1,000
61,000
2.3.9 Mizoram
i)
Area identification for Oil Palm in the state of
Mizoram was not covered in the earlier report submitted
in 1988. However, a committee of technical experts from
NRC for Oil Palm, which studied the suitability of agroclimatic conditions and water availability for Oil Palm
observed that climate and soil conditions in southern
Mizoram with low elevation and gentle slope were quite
suitable for Oil Palm cultivation. Temperature ranges
from 10-340 C with annual rainfall of 1800-2500 mm.
Perennial source of water is available in the identified
areas.
ii)
Accordingly the Govt. of India sanctioned
programme of Oil Palm cultivation during 2004-05 in
the state with an area coverage target of 1,000 ha and
an area of 500 ha each in the Kolasib and Lunglei
districts was brought under Oil Palm during 2005-06. In
addition to these two districts, Mammit, Serchhip,
Table 2.23: Districts allotted to different

companies for Oil Palm development
Name of the company
Districts allotted
Godrej Agrovet Ltd.,
Kolasib, Mamit, Lunglei
Foods, Fats and Fertilizers Ltd.,
Aizawl, Serchhip, Saiha
Palm tech India Ltd.,
Lawngtlai
FFF requested allotment of Lunglei district in lieu of Aizawl district
because of the nearness of the district along with Lawngtlai
district. The state is advised to consider the proposal in case it
is conducive to better development of Oil Palm.
Table 2.24 : Future area expansion in Mizoram (ha)

a. X (2006-07) and XI plans
District
X Plan
XI Plan
2006-07
2007-08
2008-09
2009-10
2010-11
Aizawl
1,000
1,000
1,000
Champhai
500
500
500
Kolasib
350
1,000
1,000
1,000
1,000
Lawngtlai
500
500
500
Lunglei
1,000
1,000
1,000
Mamit
1,500
1,000
1,000
1,000
Saiha
500
500
500
Serchhip
1,000
1,000
1,000
1,000
Total
350
3,500
6,500
6,500
6,500
29
2011-12
1,000
650
1,000
500
1,000
1,000
500
1,000
6,650
Total
4,000
2,150
5,000
2,000
4,000
5,500
2,000
5,000
29,650
30
Aizawl
Champhai
Kolasib
Lawngtlai
Lunglei
Mamit
Saiha
Serchhip
Total
District
Reassessed
potential area
2006 (ha)
9,000
2,150
10,850
7,000
9,500
10,500
2,000
10,000
61,000
Fig. 2.7: Potential Areas for Oil Palm Cultivation in Mizoram
Area
covered
(ha)
0
0
500
0
500
0
0
0
1,000

Hyderabad on 28th February, 2006. It was brought out
that Orissa is in the process of again identifying the
beneficiaries in the districts of Ganjam, Rayagada and
Koraput which are considered to be very potential areas
for Oil Palm. All the farmers who once uprooted have
given their consent to take up Oil Palm cultivation again
iv) Besides this, the Govt. of Mizoram has also

enacted an Oil Palm Act. As a result of these initiatives
area coverage under Oil Palm is expected to increase
in the coming years and the tentative target areas for
Oil Palm cultivation with year wise phasing are given in
Table 2.24.
b. XII Plan
District
Aizawl
Champhai
Kolasib
Lawngtlai
Lunglei
Mamit
Saiha
Serchhip
Total
XII Plan
2014-15
2015-16
1,000
1,000
2016-17
1,000
Total
5,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
5,000
5,000
5,000
5,000
1,000
1,000
1,000
5,000
Total (2006-07
to 2016-17)
9,000
2,150
10,850
7,000
9,500
10,500
2,000
9,000
6,000
6,000
6,000
30,000
60,000
2012-13
1,000
2013-14
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
6,000
6,000
2.3.10 Orissa
during the year 2006-07 on their land. It is expected

that an area of 1,500 ha in the districts of Gajapati,
Ganjam, Rayagada and Koraput will be available during
this year. And also as per the survey conducted by
private entrepreneurs, an area of 25,000 ha has been
identified as having potential for Oil Palm cultivation and
is proposed to be covered during the next 11 years
period in the state (Fig 2.8).
i)
Orissa state was identified as a potential state for
Oil Palm cultivation by the Chadha Committee-1988 with
a potential area of 10,000 ha. The state was found to
be ideally suitable for Oil Palm cultivation with an
average rainfall of 900-1200 mm and average
temperature of 21-360 C. The soil type is loamy sand.
The state has three major rivers i.e., the Mahanadi, the
Brahmani and the Baitarani besides some other small
rivers. The estimated surface water potential is more
than adequate for a net cropped area of about 6 million
ha in the state. However, only a negligible percentage
of the irrigation potential has been utilized so far.
The total area covered under the crop so far and

the future area expansion programmes are given in
Table 2.25 and Table 2.26.
2.3.11 Tamil Nadu
ii)
The state took up Oil Palm Development
Programme during the year 1992-93. While an area of
2,014 ha was covered initially the farmers lost interest
in the crop on account of non establishment of
processing facilities and failure of NABARD refinance
scheme in providing timely loans to farmers. In addition
the recurrence of super cyclone during the year 1999
completely damaged the nursery beds due to water
stagnation for more than 20 days and tilting of young
palms grown in the coastal belt. As a result, mass
uprooting of the crop by the farmers and less care to
the existing plants by the beneficiaries drastically
reduced the area in the state.
i)
The suitability of Tamil Nadu state for cultivation of
Oil Palm was reported by the Chadha committee-1988
on the basis of growth and yield of some Oil Palm plants
available at Veppankulam in Thanjuvar district.
ii) The vast plain lands of Tamil Nadu with deep soil
are ideal for Oil Palm cultivation. The annual maximum
temperature varies between 31o and 34oC (except in
hilly areas) and the annual minimum temperature varies
between 21o and 26oC. Temperature thus does not seem
to be a limiting factor for Oil Palm cultivation in these
districts. The average annual rainfall of the state is 1010
mm. North-east monsoon season accounts for 70
percent of the annual rainfall. Since this is not adequate,
Oil Palm cultivation in this state was recommended
under irrigation. Tamil Nadu has 43.6 percent of the net
iii) The future scope of Oil Palm cultivation was

discussed by the Working Group in its meeting held at
31
32
Dhenkanal
Gajapati
Ganjam
Jajpur
Kendrapada
Koraput
Nayagarh
Rayagada
Sundergarh
Total
District
10,000
Potential area
identified earlier
(ha)
Fig. 2.8: Potential Areas for Oil Palm Cultivation in Orissa
Reassessed
potential area
2006 (ha)
3,000
2,500
2,500
3,000
3,000
2,500
3,000
2,500
3,000
25,000
Area
covered
(ha)
283
348
0
213
17
401
50
452
250
2,014

Table 2.25: Area identified and covered under Oil Palm in Orissa (ha)
District
Potential area
identified earlier
Dhenkanal
Gajapati
Ganjam
Jaipur
Kendrapada
Koraput
Nayagarh
Rayagada
Sundergarh
Total
Area covered
area (2006)
3,000
2,500
2,500
3,000
3,000
2,500
3,000
2,500
3,000
25,000
283
348
213
17
401
50
452
250
2,014
10,000
Table 2.26 : Future area expansion in Orissa (ha)

District
Dhenkanal
Gajapati
Ganjam
Jaipur
Kendrapada
Koraput
Nayagarh
Rayagada
Sundergarh
Total
X Plan
2006-07
2007-08
375
375
625
625
375
625
375
625
1,500
2,500
2008-09
200
375
375
200
200
375
200
375
200
2,500
XI Plan
2009-10
2010-11
300
300
375
375
375
375
300
300
300
300
375
375
300
300
375
375
300
300
3,000
3,000
2011-12
300
375
375
300
300
375
300
375
300
3,000
Total
1,100
2,125
2,125
1,100
1,100
2,125
1,100
2,125
1,100
14,000
b. XII Plan
District
Dhenkanal
Gajapati
Ganjam
Jaipur
Kendrapada
Koraput
Nayagarh
Rayagada
Sundergarh
Total
2012-13
400
2013-14
400
XII Plan
2014-15
400
2015-16
400
2016-17
300
Total
1,900
400
400
400
400
400
400
400
400
300
269
1,900
1,869
400
400
400
400
200
1,800
400
400
400
400
300
1,900
2,000
2,000
2,000
2,000
1,369
9,369
33
Total (2006-07
to 2016-17)
3,000
2,500
2,500
3,000
2,969
2,500
2,900
2,500
3,000
24,869
34
Trichy
Karur
Peramabalur
Thanjavur
Tiruvarur
Nagapattinam
Tiruvallur
Vellore
Cuddalore
Villupuram
Theni
Tirunelveli
Tuticorin
Total
District
30,000
Potential area
identified earlier
(ha)
Fig. 2.9: Potential Areas for Oil Palm Cultivation in Tamil Nadu
Reassessed
potential area
2006 (ha)
2,500
1,000
8,000
20,000
12,500
10,000
11,000
11,000
20,000
15,000
20,000
21,000
10,000
1,62,000
Area
covered
(ha)
3,024
316
3,744
3,808
954
2,638
226
0
0
0
30
65
89
14,894
35
1671.6
Tirunelveli
Total
Tiruvallur
744.3
Tiruvarur
Trichy
Thoothukudi
Theni
425.3
Thanjavur
502
Peramabalur
1993-94
Nagapattinam
Karur
District
2212.6
495
995.3
722.3
1994-95
994
390
250
354
1995-96
VIII plan
1227
204
666
357
1996-97
6105.2
1833.3
2336.6
1935.3
Total
2072.77
357.95
304.02
774.1
334.5
212.25
89.95
1997-98
667.07
102.26
50.05
50
50
30.26
101.9
198.2
31.4
53
741.83
68.9
15.1
48
100
39.45
135.5
260
29
45.88
848.1
127.2
0.4
672.6
47.9
1998-99 1999-2000 2000-01
IX plan
772
86.6
87.4
585.5
12.5
2001-02
5101.8
742.91
152.95
48
454.02
89.45
30.26
1011.5
2050.8
272.65
249.23
570.3
102.2
5.3
460.8
Total 2002-03
724
119.16
41.8
29.5
463.44
49.5
20.6
2003-04
1091.21
126
144.78
110.15
530.28
150
30
2004-05
X plan
Table 2.27: Year wise and district wise area covered under Oil Palm in Tamil Nadu
1301
113
210
330
363
270
15
2005-06
3036.66
152.95
48
850.6
89.45
30.26
3823.05
3868.32
2677.45
316.83
G. Total
3686.60 14893.52
460.45
396.58
474.95
1817.52
469.5
67.6
Total

area sown under irrigation. The underground water
source which is not fully utilized can be exploited by
digging open/bore wells and filter points.
vii) The performance of yielding plantations does not

leave any doubt about the success of Oil Palm in the
identified areas. Further the establishment of a
processing mill at Varanavasi by M/s Cauvery Palm Oil
Ltd. coupled with training of farmers once again started
attracting farmers to Oil Palm cultivation. The intensive
propaganda in the mass media has also created
awareness among farmers and there is a definite
prospect for Oil Palm cultivation in Tamil Nadu.
iii) Keeping its suitability in view, an area of 30,000

ha was estimated as potential for commercial cultivation
of Oil Palm in Thanjavur and Tiruchirapalli districts under
Cauvery irrigation project. It was also recommended
that a trial cum demonstration plot of about 100 ha be
established at Vadapathimanglam of Thanjavur district
in the land available with the Department of Oilseeds.
viii) The state is also reported to have passed a bill for

the regulation of cultivation of Oil Palm and for orderly
growth and processing thereof and for matters
connected therewith.
iv) The Department of Agriculture, Govt of Tamil Nadu

introduced Oil Palm as a viable crop alternative in the
deltaic region of the erstwhile Thanjavur district during
the year 1993-1994. Innovative farmers who were
looking for profitable and reliable alternate crops were
attracted to this crop since they were not happy with
the low profitability and problems of the traditional crops.
In order to motivate the potential farmers, a total of six
demonstration plots of 0.5 ha each were established in
the state seed farms to serve as model farms to
disseminate Oil Palm cultivation technology. Large scale
plantations of Oil Palm were also undertaken at
Aduthurai and Sirugamani Research Stations of the
Tamil Nadu Agricultural University. Despite the
constraints, the newly introduced crop performed quite
well due to high inherent fertility of the soil. Details of
year wise area covered under Oil Palm in different
districts is given in Table 2.27.
ix) This committee considered the proposal put

forward by Tamil Nadu Govt. for area identification based
on parameters identified by the Committee and the
details of potential areas in various districts are given
in Table 2.28 and Fig 2.9. Details of area identified and
covered under Oil Palm are given in Table 2.29. To cover
the identified area, action plan for area expansion during
the next 11 years as given in Table 2.30 was suggested
by the state department and approved by the
Committee.
x) The state govt. shall allot the identified potential
areas to entrepreneurs without delay for speedy
progress in area expansion. Cuddalore and Villupuram
districts shall be allotted to M/s Cauvery Palm Oil Ltd.,
as decided in the PMC meeting of the state.
v) Early plantations in Thanjavur district started

bearing bunches from 1997 onwards and M/s. S&S
Industries and Enterprises Limited started procuring
FFB and making payments and were sending fruits for
processing to Andhra Pradesh. After June 2000, M/s
S&S made partial procurement during the next two
months after which their operation reportedly stopped
completely. In order to protect the interest of the growers,
the Govt. of Tamil Nadu considered options like
procurement of FFB by the Govt. through Department
of Agriculture and to grant permission to Oil Palm
Growers Association to market FFB to nearby factories.
xi) On the basis of proposals received and subsequent

discussions, an area of 1,62,000 ha has been identified
as suitabile for Oil Palm cultivation. However the targets
for area coverage for X Plan (2006-07), XI Plan and XII
Plans are 2,375 ha, 37,000 ha and 45,000 ha
respectively.
2.3.12 Tripura
i)
The earlier Committee had identified 5,000 ha area
in Tripura as potential for Oil Palm cultivation. However,
no initiative was shown by the state in implementing
these recommendations and only an area of 120 ha
has been covered so far. The state even did not respond
to the request of the present Committee either to attend
the meetings of the Working Group on 12th May, 2006
at Aizawl or on 31st May, 2006 at Ahmedabad or to send
any information about the scope of taking up Oil Palm
cultivation in the state. As such the Committee presumes
that the state is not interested in taking up Oil Palm as
a potential crop and is unable to recommend any areas
in this state for Oil Palm cultivation.
vi) It is understood that none of these options

materialized. However, another entrepreneur M/s
Cauvery Palm Oil Limited came forward to help farmers
subject to Govt. approval. In the meantime some
impatient growers, who could not afford to wait started
uprooting the palms from their fields. Demonstration
farms were also uprooted leaving only two at Pattukottai
and Kanjikudikadu. Half of the area under Oil Palm at
Aduthurai Research Station was also uprooted. This left
only 225 ha of Oil Palm plantation of which only 50
percent came to bearing in 2002-03.
36

Table 2.28 : District wise potential areas identified for Oil Palm cultivation in Tamil Nadu
Districts
Mandal
Cuddalore
Banrutti, Chidambaram, Kattumannarkoil,

Thittakudi, Virudhachalam
Karur, Kulithalai
Mayilapluthur, Semmbanarkoil, Sirkali
Ariyalur, Jeyakondam, Perambalur
Kumbakonam, Orathanadu, Papanasam
Pattukottai, Peravoorini, Thanjavur,
Thiruvaiyavur, Thiruvidaimaruthr
Kodavasal, Mannarkudi, Nannilam
Needamangalam, Tiruvarur, Valangaiman
Sankarankoil, Thenkasi, Tirunelveli
Kummidipoondi, Oothukottai , Ponneri, Thiruthani
Periyakulam, Theni, Uthamapalayam
Lalgudi, Trichy
Kovilpatti, Srivaikundam, Thiruchendur
Arakonam, Valajaya, Vniyambadi
Gingeevanur, Kallakurichi, Sankarapuram,
Thirukovilur, Ulundurpet, Villupuram
Karur
Nagapattinam
Perambalur
Thanjavur
Tiruvarur
Tirunelveli
Thiruvallur
Theni
Trichy
Thoothukudi
Vellore
Villupuram
Total
Area under Expected extent of

assured
crop replacement
irrigation (ha) for Oil Palm (ha)
1,46,355
20,000
42,880
1,48,174
63,987
1,60,889
1,000
10,000
8,000
20,000
1,41,206
12,500
1,10,389
83,954
52,657
91,549
40,038
70,294
2,22,021
21,000
11,000
20,000
2,500
10,000
11,000
15,000
4,45,359
1,62,000
Table 2.29: Area identified and covered under Oil Palm in Tamil Nadu (ha)
District
Area identified
earlier
Area
covered
Cuddalore
Karur
Nagapattinam
Peramabalur
Thanjavur
Theni
Thoothukudi
Tiruvarur
Tiruvallur
Tirunelveli
Trichy
Vellore
Villupuram
Total
30,000
37
315.83
2637.45
3744.32
3807.05
30.26
89.45
953.60
226.00
65.55
3024.01
-
area as on 2006
20,000
1,000
10,000
8,000
20,000
20,000
10,000
12,500
11,000
21,000
2,500
11,000
15,000
14893.52
1,62,000

meeting of the Working Group on 12th May, 2006 at
Aizawl or on 31st May, 2006 at Ahmedabad or to send
any information about the scope of taking up Oil Palm
cultivation in the state. The Committee presumes that
the State Govt. is not interested in taking up Oil Palm
as a potential crop in the state.
2.3.13 West Bengal

i)
The earlier committee had identified 10,000 ha
area in West Bengal as potential for Oil Palm cultivation.
However, no initiative was shown by the state in
implementing these recommendations. The state even
did not respond to the request either to attend the
Table 2.30 : Future area expansion in Tamil Nadu (ha)

District
Cuddalore
Karur
Nagapattinam
Peramabalur
Thanjavur
Theni
Thoothukudi
Tiruvarur
Tiruvallur
Tirunelveli
Trichy
Vellore
Villupuram
Total
2006-07
0
25
550
200
825
0
0
650
0
0
125
0
0
2,375
2007-08
250
25
450
325
800
200
50
500
50
100
100
50
100
3,000
2008-09
1,200
25
450
325
800
1,200
300
500
350
700
100
350
700
7,000
XI Plan
2009-10
1,500
25
450
325
800
1,500
600
500
600
1,000
100
600
1,000
9,000
2010-11
1,500
25
450
325
800
1,500
600
500
600
1,000
100
600
1,000
9,000
2011-12
1,500
25
450
325
800
1,500
600
500
600
1,000
100
600
1,000
9,000
Total
5,950
125
2,250
1,625
4,000
5,900
2,150
2,500
2,200
3,800
500
2,200
3,800
37,000
b. XII Plan
District
Cuddalore
Karur
Nagapattinam
Peramabalur
Thanjavur
Theni
Thoothukudi
Tiruvarur
Tiruvallur
Tirunelveli
Trichy
Vellore
Villupuram
Total
2012-13
1,500
25
450
325
800
1,500
600
500
600
1,000
100
600
1,000
9,000
2013-14
1,500
25
450
325
800
1,500
600
500
600
1,000
100
600
1,000
9,000
XII Plan
2014-15 2015-16
1,500
1,500
25
25
450
450
325
325
800
800
1,500
1,500
600
600
500
500
600
600
1,000
1,000
100
100
600
600
1,000
1,000
9,000
9,000
38
2016-17
1,500
25
450
325
800
1,500
600
500
600
1,000
100
600
1,000
9,000
Total
7,500
125
2,250
1,625
4,000
7,500
3,000
2,500
3,000
5,000
500
3,000
5,000
45,000
Total (2006-07
to 2016-17)
13,450
275
5,050
3,450
8,825
13,400
5,150
5,650
5,200
8,800
1,125
5,200
8,800
84,375
2.4 Areas Uprooted

i)
As discussed elsewhere, a total area of 87,211 ha
was actually covered in different states under Oil Palm
cultivation under the Oil Palm Development Programme
(OPDP). Unfortunately a lot of this area was uprooted
by farmers in different states due to one reason or the
other. A break up of 30,000 ha of area uprooted in
different states is given in Table 2.31.
Failure of NABARD refinance scheme in providing

timely loans to farmers as in Orissa.
As a result of reduction in import duty for Crude

Palm Oil, the palm oil prices got reduced and the
entrepreneurs could not pay remunerative price
to the Oil Palm farmers and their sustenance
became questionable during the said period.
The trend has now changed. In most states the
iii)
Table 2. 31: Details of area covered, uprooted and net existing area in various states under OPDP
State
Andhra Pradesh
Goa
Gujarat
Karnataka
Kerala
Mizoram
Orissa
Tamil Nadu
Tripura
Total
Covered (ha)
53,370
894
725
12,398
1,796
1,000
2,014
14,894
120
87,211
Area
Uprooted (ha)
8,000
71
525
7,934
0
0
1,883
11,587
0
30,000
% uprooted
15.32
7.94
72.41
65.51
0
0
93.49
79.11
0
34.66
Net covered (ha)

45,370
823
200
4,464
1,796
1,000
131
3,307
120
57,211
Note : Other than 57211 ha area covered under OPDP, 1593 ha under ANIFPDC, 3705 ha under OPIL, 1000 ha as demonstrations
in Maharashtra and 4 ha in Chattisgarh is existing under Oil Palm.
relative advantages of Oil Palm cultivation, wherever

taken up systematically, are visible and majority of the
Oil Palm growers are now quite happy with this crop.
ii) The uprooting of area was not restricted to a particular

state. In fact it took place in 6 out of 9 states namely
Andhra Pradesh, Karnataka, Tamil Nadu, Gujarat,
Orissa and Goa. The extent of area uprooted varied
from 7.94 % in Goa to as high as 93.49% in Orissa
followed by 79.11% in Tamil Nadu, 72.41% in Gujarat
and 65.51% in Karnataka and 15.32% in Andhra
Pradesh. There are no reports of uprooting of any area
in Kerala and Tripura. In Mizoram area expansion started
only recently. The reasons are not uniform in all the
states. In general, the following major factors can be
identified having led to uprooting.
Unsuitability of some selected areas for taking up

Oil Palm cultivation, e.g. Guntur and Prakasam
districts in Andhra Pradesh.
Continued drought due to failure of monsoon and

depletion of ground water as in Andhra Pradesh
resulting in poor productivity and inadequate
returns.
Difficulty in harvesting as expressed by farmers in

Goa.
Higher remunerative prices for some crops in

certain areas, e.g. arecanut in Karnataka.
Non availability of processing facilities as in states

like Tamil Nadu, Karnataka, Gujarat and Orissa.
2.5 Future Area Expansion

i)
As discussed earlier, the present Committee has
identified potential areas for expansion of Oil Palm
cultivation in different states. An analysis of state-wise
area identified and plan-wise area expansion is given
in Table 2.32. District wise information of the potential
areas in various states is given in Table 2.33.
ii) An area of 5.75 lakh ha was identified as suitable
for Oil Palm cultivation in India by the Chadha Committee
in 1988. Subsequently various committees
recommended an additional area of 2.26 lakh ha.
However, the findings of this committee have shown
that there is difference in response from state to state
with respect to future expansion programme for Oil Palm
cultivation. Accordingly,
In the states of Tamil Nadu and Gujarat, area

identification projections have increased.
States like Mizoram and Chhattisgarh are quite

enthusiastic in taking up Oil Palm cultivation over
large areas.
A major decrease in area expansion targets has
39
Fig. 2.10: Potential Areas for Oil Palm Cultivation in India
State
Potential area
identified earlier
(ha)
Andaman & Nicobar
Andhra Pradesh
4,00,000
Assam
10,000
Chhattisgarh
0
Goa
10,000
Gujarat
61,350
Karnataka
2,50,000
Kerala
5,000
Maharashtra
10,000
Mizoram
0
Orissa
10,000
Tamil Nadu
30,000
Tripura
5,000
West Bengal
10,000
TOTAL
40
8,01,350
Reassessed
potential area
2006 (ha)
0
4,00,000
0
40,000
2,000
90,000
2,50,000
6,500
0
61,000
25,000
1,62,000
0
0
10,36,500
Area
covered
(ha)
1,593
53,370
0
4
894
725
12,398
5,501
1,000
1,000
2,014
14,894
120
0
93,513

been noticed in Karnataka. The state department
is cautious in their approach because of the
uprooting that took place in the past.
States like Assam, Tripura, Maharashtra and West

Bengal have not shown interest in taking up Oil
Palm cultivation on a commercial scale.
In Kerala though potential area exists as per OPIL,

no projections have been made on future area
expansion.
iv) Finally, it is relevant to mention that the potential

area in different states for Oil Palm cultivation in the
next 11 years is on the basis of ground realities and
can only be considered as macro level in character
based on some assumptions of creation of irrigation
facilities through various means, change of mindset of
farmers, competitiveness of existence crops and
availability of planting material and processing facilities.
Accordingly, it is recommended that while implementing
the programme, micro level identification will be required
by the states and processors to avoid any failure of the
crop due to any of the above reasons.
v) Further in any future strategy for area expansion,
the receptivity of farmers in particular area, the yield
potential, the processing capacity available and the
additional area required to run the existing factories to
full capacity should be used as a guiding principle.
Cluster approach should be the hallmark rather than
too thinly spreading plantations miles apart.
iii) However, a total area of 10,36,500 ha has been

now identified by the Committee as available for Oil
Palm cultivation in the country (Fig 2.10). Of this 23,975
ha is proposed to be covered during 2006-07 of X Plan
2,24,100 ha during XI Plan and 3,01,396 ha during XII
Plan periods. Largest area has been projected in Andhra
Pradesh followed by Karnataka, Tamil Nadu and
Gujarat.
41
42
10,000
Maharashtra
5,000
10,000
Tripura
West Bengal
G Total
30,000 1,62,000
Tamil Nadu
6,500
8,01,350 10,36,500
25,000
5,000
10,000
Orissa
2,50,000 2,50,000
61,000
90,000
2,000
40,000
Kerala
Karnataka
10,000
61,350
10,000
Gujarat
Mizoram
4,00,000 4,00,000
2,375
1,500
850
3,750
350
100
50
3,000
2,500
3,950
3,50
1,000
100
1,000
63,513 23,975 32,450
120
3,307
131
5,501
4,464
1,000
1,000
200
823
45,370 15,000 17,400
1,593
9,000
3,000
4,000
6,500
2,000
100
1,000
9,000
3,000
4,100
6,500
3,000
100
2,000
9,000
3,000
4,400
6,650
3,000
100
2,750
37,000
14,000
20,450
29,650
11,000
500
7,750
9,000
2,000
4,900
6,000
2,580
100
4,000
42,000 46,250 50,100 53,300 2,24,100 54,980
7,000
2,500
4,000
6,500
2,000
100
1,000
18,900 20,650 22,400 24,400 1,03,750 26,400
9,000
2,000
5,500
6,000
2,580
130
4,000
9,000
2,000
6,000
6,000
2,580
130
4,000
57,690 60,610 64,110
9,000
2,000
5,200
6,000
2,580
110
4,000
28,800 31,400 34,400
Potential ReasseNet
Area Targetted for next 11 years
area
ssed Existing X Plan
XI Plan
XII Plan
identified Potential
Area 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
Total 2012-13 2013-14 2014-15 2015-16
earlier area as
on 2006
Goa
Chhattisgarh
Assam
Andhra Pradesh
Andaman
& Nicobar
State
Table 2.32: State wise future area expansion targets (ha)
Total
45,000
9,369
28,100
30,000
12,900
627
20,000
84,375
24,869
850
52,300
60,000
24,000
1,177
27,750
64,006 3, 01,396 5,49,471
9,000
1,369
6,500
6,000
2,580
157
4,000
34,400 1,55,400 2,74,150
2016-17
Grand
Total
(2006-07
to 2016
-17)
State &
Table 2.33: District wise potential area under Oil Palm in various states (ha)
43
Tabel 2.33 : (Contd.)
44
Tabel 2.33 : (Contd.)
45
46
3. PLANTING MATERIAL
3.1 Importance and Type of Planting
Material
seeds from Malaysia, Nigeria, Ivory Coast, Papua New

Guinea and Republic of Zaire during 1970-82.
i)
The success in cultivation of any crop depends to
a greater extent on the use of quality planting material.
It is only with good planting material coupled with proper
management practices that potential yield levels can
be achieved in crops.
iv) Subsequently, the Andaman and Nicobar Islands

Forest and Plantation Development Corporation
imported tenera seeds during 1973 to 1986 from NIFOR,
Nigeria; Harrison & Cross Field Limited and FELDA,
Malaysia; IRHO, France; IDEFOR, Ivory Coast and
Unilever, Zaire.
ii)
Oil Palm seed is the nut which remains after the
Plate 3.1
ii
iii
Cross section of i) Dura fruit ; ii) Pisifera fruit ; iii) Tenera fruit
soft oily mesocarp has been removed from the fruit.
There are three different fruit forms namely, dura, pisifera
and tenera. Dura (female parent) has a thick shell and
less mesocarp while pisifera (male parent) is shelless
and female sterile. Tenera hybrid produced from superior
dura and pisifera parents has thin shell, more mesocarp
and yields higher than its parents and is therefore, used
as planting material for commercial cultivation
(Plate 3.1).
3.3 Recommendations
Committee - 1988
Quality planting material holds a key to successful

Oil Palm cultivation. Tenera (hybrid) is
recommended for commercial cultivation.
3.2 Early Introduction of Seeds
Besides indigenous production of hybrids, there

are two more possibilities for meeting the
requirement of planting material. These include
import of elite seeds and propagation through
tissue culture.
Import of elite seeds has to be made with caution

since many diseases unknown to India are
prevalent in the Oil Palm growing countries.
Quarantine inspection procedures should be
clearly spelt out and a team which should clear
the material in India, should be identified.
Technical personnel well versed with Oil Palm

should be associated in selecting the planting
Chadha
The Chadha Committee report - 1988 made the

following recommendations in respect of planting
material.
i)
The earliest source of Oil Palm seeds for
distribution in India was the Maharashtra Association
for Cultivation of Sciences (MACS), Pune which supplied
limited quantity of dura seeds from the available palms
in Pune since 1947. The parent palms were introduced
from Africa.
ii)
In 1960s, the Department of Agriculture, Kerala
established a 40 ha plantation at Thodupuzha, Idukki
district using the planting material introduced from
Nigeria and Malaysia.
iii)
of
Oil Palm India Limited imported tenera Oil Palm
47

material for commercial cultivation. Simultaneous
introductions of parental lines, e.g., dura seeds and
tissue cultured pisifera are also recommended for
establishing seed gardens.
3.4 Achievements Made
The performance of tissue cultured progenies has

been reported to be erratic; hence it is necessary
to conduct field trials before releasing tissuecultured plantlets for commercial cultivation.
Three seed gardens each with 20 ha area are

recommended to be established in three states,
namely, Andhra Pradesh, Karnataka and Tamil
Nadu. These seed gardens can cater to the future
requirements of the country.
i)
A team consisting of Dr. K.L. Chadha, Deputy
Director General (Hort.), Dr. R.L. Rajak, Plant Protection
Adviser, Plant Protection & Quarantine Directorate, Dr.
S. Natesh, Senior Scientific Officer, Dept. of
Biotechnology and Dr. K.U.K. Nampoothiri, Scientistin-charge, CPCRI Research Centre (ICAR), Palode
visited Costa Rica during September-October, 1988.
The summary of the observations and
recommendations are given in Box 3.1.
3.4.1 Import of Oil Palm sprouts
Box 3.1
Observation and recommendations of Chadha Committee (1988)
i)
An idea of the important diseases in Costa Rica was made during visit and discussions. An agreed format
of declaration in the phytosanitary certificate acceptable to Plant Protection Advisor, Govt. of India was
devised. This declaration will cover freedom of sprouted seeds and parent trees from diseases, pests and
nematodes. There is virtually no programme on standardizing agro-techniques. Only limited success has
been achieved in tissue culture technology. Two species of pollinating weevil are obtainable in Costa Rica.
ii)
The company has four processing mills at various places with a combined capacity of 115 tonnes FFB/hr.
The processing plant visited was very well-maintained and has an efficient operation.
iii) The company showed willingness to supply seeds to India like other countries by direct negotiations.
iv) The company also offers two visits of one week each of its technicians to provide assistance for nursery
handling free of charge in Central Latin America. India, being quite away it agreed to provide this facility
against payment of international air fare and local transportation.
v)
The company is willing to establish a seed garden using elite parent material jointly with ICAR/DAC for
future seed supplies to India and neighbouring countries in the region.
vi) The company offers training courses in Costa Rica regularly 2-3 times a year. It is also willing to organize
courses in India as per requirements of the country.
vii) Chiquita Brands is a well-established company with long experience in oil palm cultivation in Costa Rica
and Honduras. The plantations seen were well-maintained except for micronutrient deficiencies prevalent
in certain parts of the plantation.
viii) The company has a well organized research group led by Dr. Richardson. It has an advantage of having a
wide genetic base and a sound breeding programme. The identification of compact and super compact
dwarf palms shows how well the programme has been carried out.
ix) Seeds expected to be supplied by the company will be from 450 combinations. While the parents have
been selected on the basis of yield performance, all the combinations have not been field tested. Therefore,
it was not possible to estimate the yield potential of all these combinations proposed to be supplied to
India. The company claimed that under good management in India, a yield of 20-22 tonnes FFB can be
expected. Good quality oil palm seeds are also available from PORIM (Malaysia), IRHO (Ivory Coast),
48
Planting Material
Indonesia and Papua New Guinea, while Malaysia is unwilling to supply seeds. It is not known whether
efforts to procure seeds have been made from other sources and if so with what results. For the time being
India will have to buy seeds from Chiquita Brands, Costa Rica.
x)
The seeds are processed very systematically, stored in hygienic conditions, germinated under ideal
conditions and packed in card board cartons. However, while ordering it should be made clear that seeds
should be sent combination-wise. It is suggested that a sample from each of these combinations may be
supplied to CPCRI for research purpose.
xi) The company showed its willingness to supply E. oleifera species and certain germplasm material as well
as Elaeidobius subvitattus not so far introduced in India for use in research programmes.
xii) It showed willingness to make available the consultancy services of its Head of R&D, Dr. Richardson as
and when needed as per terms and conditions listed elsewhere in this report.
Plate 3. 2
Primary nursery
Oil Palm sprouts

ii)
Another team consisting of Dr. K.L. Chadha,
Deputy Director General (Horticulture), ICAR (Team
leader), Dr. K.R. Rao, Senior Processing Technologist,
Technology Mission on Oil Seeds, Dr. K.U.K.
Nampoothiri, Scientist-in-charge, CPCRI Research
Centre (ICAR), Palode and Dr. R.L. Rajak, Plant
Protection Advisor, Government of India visited Papua
New Guinea and Malaysia during November, 1992 to
assess the availability of good quality tenera Oil Palm
seeds for raising plantations in India. The
recommendations of this team are given in Box 3.2
iii) In January, 1993 an expert team headed by
Dr. K.L. Chadha, Deputy Director General (Hort.), ICAR,
Shri K.R. Rao, Senior Processing Technologist, TMOP
and Dr. K.U.K. Nampoothiri, Scientist i/c, CPCRI
Research Station, Palode was deputed to United
Kingdom, France, Ivory Coast, Republic of Benin and
Nigeria to assess critically the sources of Oil Palm seed
material. Major observations of this team are given in
Box 3.3. The Govt. of India also spelt out procedure
Secondary nursery
and quarantine requirements for Oil Palm seeds/ sprouts
at port of entry.
iv) The Malaysian authorities did not agree to supply
material for large-scale plantations in India. The team,
however, recommended import of planting material from
49
Box 3.2
i)
The DAMI Oil Palm Research Station (OPRS) Under Harrison and Crosfield is undertaking Oil Palm breeding
programme since 1968. The dura mother palms presently available are derived from deli dura of Malaysian
origin. The pisifera pollen parents are derivatives of Indonesia which include SP 540 t the well known
tenera parent. The dura x pisifera (tenera) hybrids have a potential of producing 35 MT fresh fruit bunches
(FFB) per hectare per year which is equivalent to 7 MT palm oil. They were found to have thin shells, the
mesocarp/fruit being 75 to 80 per cent. Since they have been grown on volcanic soils, the selected hybrids
are claimed to do well in soils deficient in magnesium.
ii)
DAMI has a capacity of producing seven million tenera seeds annually of which they will be able to supply
three million to India on six months notice. The price is 0.45 cents per sprout. The sprouts will be supplied
combination-wise if required, from three seed gardens planted in 1968, 1978 and 1986. One noticeable
advantage is that the plantations are free of any serious pest or disease. DAMI OPRS is prepared to spare
germplasm material and Elaeis oleifera seeds. Negotiations may be made for supply of these as well as
parental materials (dura and txt) if and when commercial seeds are ordered for. They are willing to participate
in a Genotype x Environment trial in India. This could be used for our advantage.
iii) Small holder plantations are also fostered by Harrisons and Crosfield. But their yields are low.
iv) The United plantations in Malaysia has very good seed material. They produce two million seeds per year.
The local price is 60 Malaysian cents/sprout. However, these will not be available to India in view of the ban
on import of seeds. The tissue cultured clonal progenies are still under field testing and not yet planted in
commercial plantations. There are very modern mills not only to produce high quality Palm Oil and refined
oil but also value added products.
Box 3.3
i)
UNIFIELD, England has a potential to produce about four million hybrid seeds capable of yielding 4.5 MT
oil/ha/year under average conditions and 7 MT in best conditions. The oil to bunch ratio in some cases is
as high as 30, but on an average 24% extraction ratio is expected. These are largely produced in R. Zaire
at Bimga Research Station. The cost is 40 cents/sprout for orders upto 50,000. Selection is based not only
on yield but also vegetative characters like reduced height and bunch index.
ii)
Tissue culture plantlets are available at ORSTOM, Montpellier @ 4.5 US $. The progenies do not show
abnormalities to any significant extent. Their yields are around 25% more than the seedling progenies and
extraction rate is quite high (26%). CIRAD is prepared to set up tissue culture laboratories in India on a
collaborative basis.
iii) The technique of cryopreservation has been perfected at ORSTOM.

iv) The breeding programme at IDEFOR has a strong base and long history. The crosses are made using
parents belonging to Deli duras, Deli x African duras and pisiferas of 4 geographical regions. Seeds produced
in the second cycle of the reciprocal recurrent selection breeding programme is capable of producing 24
MT FFB with an extraction ratio of 24% giving an oil yield of 5.76 MT/ha in Ivory coast and 7 MT under
Indonesian conditions from 8th/9th year of planting. India should procure maximum seeds from the best 14
crosses which gave highest yields after the second cycle of breeding programme.
50
Planting Material
v)
Vascular wilt (Fusarium oxysporum f. sp. elaeidis) is a very serious disease in Africa. But tolerant lines are
distributed for commercial planting. It is not seed transmitted.
vi) From Republic of Benin seeds are available to the tune of two million per year. The average yields in Benin
is only 4 to 8 tonnes of FFB because of severe drought conditions. The hybrids selected here are likely to
be drought tolerant.
vii) The potentiality of commercial tenera seeds produced at the Nigerian Institute for Oil Palm Research is 15
to 20 tonnes of FFB/year under Nigerian conditions where drought prevails for 4 or 5 months.
viii) It will be better to import seeds rather than sprouts from the quarantine angle.
Tenera xTenera (T xT) populations subsequently

planted in five seed gardens namely, Lakshmipuram
and Rajahmundry (Andhra Pradesh), Taraka
(Karnataka) and Thodupuzha and Palode (Kerala).
Costa Rica and Papua New Guinea. The company in

Costa Rica also agreed to supply some parental
combinations for evaluation and use in our seed gardens
and to depute their experts to help in establishment of
nurseries and training of staff. As a consequence, the
import of planting materials was allowed by the Govt. of
India from the recommended sources. Four Oil Palm
growing states, viz ., Andhra Pradesh, Gujarat,
Karnataka and Tamil Nadu imported about 6.3 million
sprouts from exotic sources during the last two decades
(Table 3.1). Maximum import of sprouts was from Costa
Rica while major import was in Andhra Pradesh followed
by Karnataka. These sprouts were enough to cover
31,443 ha area.
iii) Two advanced dura materials from ASD-Costa

Rica imported under the UNDP sub-programme
Breeding for Seed Production along with sib crosses
of TxT from Palode were planted in the sixth seed
garden at National Research Centre for Oil Palm,
Pedavegi in 2000. This garden has not commenced seed
production so far. From the first five seed gardens, a
total of 394 dura and 60 pisifera palms were provisionally
selected for crossing programme and hybrid seed
production. The details of different seed gardens and
their current seed production potential are given in
Table 3.2.
v) As a result of import of exotic planting material

from various sources, considerable populations from
different organizations and countries have now become
available in our country. Most of our plantations in the
Oil Palm growing areas were planted with ASD-Costa
Rica materials introduced during nineties. Despite
restrictions of Malaysian Govt., Palm Tech India Ltd.
could import some materials from Applied Agriculture
Research, Golden Hope, Unipalm and Guthrie
Research and United Plantations of Malaysia during
2005.
iv) The NRCOP located at Pedavegi has been given

the responsibility of co-ordinating the demand and
supply of Oil Palm seed sprouts by TMOP. To achieve
this objective, the NRCOP organizes Seed-Meet every
year to assess the demand from states/entrepreneurs
and fixes the time and schedule of supply. The supply
schedule is prepared and targets are fixed keeping in
view the planting material available vis--vis the targets
for area expansion fixed by the respective states/ Govt.
of India.
3.4.2 Establishment of seed gardens
v) A project related to planting material entitled

Strengthening of Oil Palm seed gardens for indigenous
seed production funded under ISOPOM is currently in
operation at the NRCOP for strengthening seed
production activities. NRCOP is also having
collaboration with all the seed production centres/
organizations located in different Oil Palm growing
States for assisting in all the activities relating to planting
material production, maintenance of quality etc.
i)
Since, Oil Palm cultivation on a commercial scale
could not have been promoted merely depending on
outside sources, the programme of setting up of seed
gardens for indigenous production of quality seed was
taken up. Accordingly, six seed gardens have been
established in the country to create indigenous
availability of Oil Palm seeds.
ii)
Basic breeding materials introduced from Malaysia
and Nigeria were planted at Thodupuza, wherein
selfing/inter se crossing among selected genotypes was
done. This gave rise to present advanced dura and
vi) The personnel involved in seed production are

being trained in the areas of Oil Palm hybrid seed
51

Table 3.1: Import of sprouts from exotic sources by entrepreneurs in different States of India (1992-2005)
State/Entrepreneur
Source of seed supplier
Cross
Year of
import
Quantity of sprouts
imported (No.)
i. Andhra Pradesh
A.P. Oilfed Ltd.
Simhapuri Agro
Products Pvt. Ltd.
Godrej Agrovet Ltd.
Tenera
Deli X Ekona
Deli X Ghana
Deli X Lame
Deli X Ekona
Deli X Avros
Deli X Kigoma
Deli X Ghana
Deli X Ghana
Deli X Avros
Deli X Nigeria
Deli X Lame
Tenera
Tenera
IDEFOR - Ivory Coast

ASD Costa Rica
IDEFOR - Ivory Coast

ASD Costa Rica
ASD Costa Rica
Papua New Guinea
DXA, DXE
DXA, DXE
DXE, DXA, DXG
DXE, DXA, DXG
DXG
Deli X Lame
Deli X Yangambi
Tenera
ASD Costa Rica
Tenera
ASD Costa Rica

Papua New Guinea
Guthrie Plantation,
Malaysia
Golden Hope Plantation,
Malaysia
ASD Costa Rica
Tenera
Unipalm-Zaire
ASD Costa Rica
South India Corporation

(Agencies) Ltd.
Palm Tech India Ltd.
Radhika Vegetable
Oils (P) Ltd.
DXP
DXE
DXG
DXY
DXP
52
1994
1995
1996
1996
1997
1997
1998
1999
2000
2001
2003
2004
2005
1996
1,00,000
50,000
2,30,000
50,000
1,20,000
1,00,000
1,00,000
50,000
50,000
17,455
1,47,500
77,500
25,000
1,50,000
1997
1998
1999
1993
1994
1995
1996
2003
2004
2004
1993
1994
1996
1997
2003
2004
1996
1996
2003
50,000
1,00,000
45,000
2,60,000
2,30,000
1,65,000
1,82,000
1,00,000
30,000
20,000
3,50,000
2,00,000
50,000
12,744
50,000
50,000
1,50,000
1,00,000
49,969
2003
50,000
1990
1993
1994
1996
1997
1997
1997
1999
1999
Total (i)
30,000
20,000
30,000
30,000
24,000
14,135
14,127
2,074
10,000
36,86,504
Planting Material
State/Entrepreneur
Source of seed supplier Cross
Year of Quantity of sprouts

import
imported (No.)
ii. Gujarat
Government of
Gujarat
Tenera
ASD Costa Rica
1992
1996
10,00,000
30,000
Total (ii)
10,30,000
1992
1993
1994
1994
1995
1995
2,00,000
2,00,000
3,00,000
1,00,000
4,00,000
3,00,000
Total (iii)
15,00,000
iii. Karnataka
Government of
Karnataka
Tenera
ASD Costa Rica

IRHO-France
ASD Costa Rica
IRHO-France
ASD Costa Rica
IDEFOR-Ivory Coast
iv. Tamil Nadu

Govt. of Tamil Nadu
ASD Costa Rica
DXP
Grand Total (i+ii+iii+iv)
1999
72,000
Total (iv)
72,000
1992-2005
62,88,504
Table 3.2 : Parental palms planted in different seed gardens of India

Year of
planting
Location of
seed garden
1982
NRC for Oil Palm,

Thodupuzha
Regional Station,
Palode, Kerala
Navabharath Private
Palode
Ltd, Lakshmipuram,
A.P.
Department of
Palode
Horticulture,
Rajahmundry, A.P.
Oil Palm India Ltd.,
Thodupuzha
Thodupuzha, Kerala
Department of
Palode
Horticulture, Taraka,
Karnataka
**NRC for Oil Palm,
ASD Costa
Pedavegi, A.P.
Rica and
Palode
1990
1992
1994
1994
2000
Source of
planting
material
Dura
palms
(Total no.)
Dura
palms
(Selected no.)
TXT
palms
(Total no.)
Pisifera
palms
(Selected no.)
Seed production
potential
(Millions)
90
90
0.54
475
86
519
19
0.52
1,921
120*
715
13
0.72
2000
43
140
11
0.26
980
55*
111
0.33
965
219
60
2.37
Total
6,431
394
1,704
* Selection of dura palms continuing ; ** Seed production not yet started
53

production and Oil Palm Nursery Management at
NRCOP. Awareness is also being created among
farmers and officials connected with OPDP by publishing
literature on Oil Palm planting material. This centre has
published manuals titled Oil Palm Nursery
Management, Oil Palm Hybrid Seed Production and
a booklet on Oil Palm Seed Production in a Nutshell.
allotted from the five seed gardens for supply to six

States.
iv) Seed production and distribution from Palode was
taken up under the ICAR Revolving Fund scheme
Indigenous production of Oil Palm hybrid seeds from
1999 to 2005. Except, Lakshmipuram seed garden
which is in the private sector, all the other gardens are
maintained by Govt. organizations.
3.4.3 Planting materials produced and

distributed
v) The quality of sprouts supplied to entrepreneurs

is monitored by scientists of NRCOP. In case of any
problem or complaint with regard to sprout quality,
factual position is assessed in the nursery and loss of
sprouts is compensated from the respective seed
gardens.
i)
Seed production from NRCOP Regional Station,
Palode started in 1982. Limited quantity of sprouts were
supplied to different agencies spread across the country.
There was only one seed garden supplying sprouts
during 1982-96, two between 1997-2000; three during
2000- 2002; four during 2002 2005 and five during
2005-2006. The sprout supply gradually increased
nearly ten fold from 2,22,790 in 1997-98 to 21,57,763
vi) In view of above, the Committee recommends that

the present arrangement of monitoring the quality seed
production from all the seed gardens by NRCOP should
Table 3.3: Sprout production from different seed gardens between 1982 to March 2006
Seed Garden
1982-96
NRC for Oil Palm-RS, 14,62,027

Palode, Kerala
1997-98 1998-99 1999-2000

77,300
13,000
2003-04
2004-05
2005-06
Total
1,85,130 2,07,486 1,69,161 1,71,000 3,38,400
2000-01 2001-02 2002-03
3,46,600
6,28,147
35,98,251
2,65,000
6,33,500
11,36,032
77,000
1,12,800
2,84,922
9,34,796
2,33,535 1,21,931 1,93,246 2,11,330 1,77,317
3,10,589
4,46,600
20,10,248
1,64,594
1,64,594
4,18,665 5,50,660 4,73,164 5,21,653 8,19,000 1,034,989
21,57,763
78,43,921
Department of
Horticulture,
Rajahmundry, A.P.
Navabharath Pvt Ltd,

Lakshmipuram, A.P.
- 2,21,243 1,10,757 1,28,074
OPIL, Thodupuzha,
Kerala
- 1,45,490 1,70,210
Department of
Horticulture, Taraka,
Karnataka
Total
14,62,027 2,22,790 1,83,210
in 2005-06. During the initial period, sprouts were

supplied to non-potential states also (Uttar Pradesh,
Madhya Pradesh and Bihar) apart from states identified
as having potential for Oil Palm cultivation.
11,249 2,26,283
continue. Out of the six seed gardens now available in

the country Thodupuza and Lakshmipuram seed
gardens do not have Research Associates at present.
Efforts should be made to fill up these positions at the
earliest.
ii) Seed gardens at Lakshmipuram, Rajahmundry

and Taraka started commercial seed production during
2000, 2002 and 2005 respectively (Table 3.3). A total
quantity of 78,43,921 sprouts have been produced
and supplied to various agencies during 1982 to 200506 from these seed gardens which were enough to cover
39,220 ha.
iii)
3.4.4 Planting material available

i)
Oil Palm seedlings presently available in the
nurseries of various entrepreneurs are given in Table3.4.
A total quantity of 26,64,967 seedlings are available in
various nurseries maintained by entrepreneurs/State
Departments which would be enough to cover 13,325
ha during the current year 2006-07.
During 2006-07, 21,12,000 sprouts have been
54
Planting Material
Table 3.4: Quantity of plantable seedlings
available in various nurseries in major Oil Palm
growing States
State
Andhra Pradesh
Karnataka
Tamil Nadu
Goa
Total
4.32 and 10.91 million, respectively. The country will

therefore, need 98.91 million sprouts to meet the
requirements of area expansion of 5,49,471 ha by the
end of XII Plan in a phased manner. Out of this 40.35
million sprouts could be raised through indigenous seed
production while balance quantity of 58.56 million
sprouts need to be imported from identified exotic
sources.
Number of seedlings
16,06,727
5,64,727
4,79,013
14,500
26,64,967
3.6 Strategy to Meet Requirements

3.6.1 Augmenting production of existing seed
gardens
i)
One of the strategies to meet the projected
requirements of planting material for area expansion
programme would be to augment the production
potential of the existing seed gardens.The six seed
gardens existing at present in different states have a
maximum production potential of 2.2 million sprouts per
year. During 2005-06 seed production centres produced
2.16 million sprouts which is almost double of the
previous year production. The present potential of 2.2
million sprouts per year could at best be augmented to
2.5 millions from 2008 onwards.
3.5 Requirement of Planting Material

3.5.1 Estimates (2006-2017)
i)
Keeping in view the identified areas in different
states and the yearly targets proposed for area
coverage, the requirement of planting materials has
been worked out yearwise and is given in the Table 3.5.
ii) The targets of area coverage vary from 23,975 ha
in 2006-07 to 60,610 ha in 2014-15. For coverage of
this area, the number of seed sprouts required will be
Table 3.5: Area targeted and estimated requirements of sprouts for the period 2006-07 to 2016-17
Year
Proposed area
to be covered
(ha)
2006-07
i. Total
23,975
23,975
2007-08
2008-09
2009-10
2010-11
2011-12
ii. Total
32,450
42,000
46,250
50,100
53,300
2,24,100
2012-13
2013-14
2014-15
2015-16
2016-17
iii. Total
Total (i+ii+iii)
54,980
57,690
60,610
64,110
64,006
3,01,396
5,49,471
Total sprout
requirement
@180/ha (millions)
X Plan
4.32
4.32
XI Plan
5.84
7.56
8.33
9.02
9.59
40.34
XII Plan
9.90
10.38
10.91
11.54
11.52
54.25
98.91
From indigenous
source
(millions)
Shortage
(millions)
2.37
2.37
1.95
1.95
2.37
2.67 *
2.97 **
2.97
2.97
13.95
3.47
4.89
5.36
6.05
6.62
26.39
2.97
2.97
2.97
7.56 ***
7.56
24.03
40.35
6.93
7.41
7.94
3.98
3.96
30.22
58.56
* Seed production potential would be augmented; ** Commencement of seed production from Pedavegi
seed garden; *** Commencement of seed production from new seed gardens.
55

Table 3.6: Proposed location of additional seed
gardens in different Oil Palm growing states
ii) At present a total of 430 duras and 60 pisiferas

have been selected and are being utilised in seed
production in different seed gardens. Selection of
additional promising dura mother palms needs to be
done on priority. Similarly, Selection of dura palms in
bearing plantations of imported materials available at
NRC for Oil Palm need be explored.
State
Andhra Pradesh
Karnataka
Gujarat
Tamil Nadu
Mizoram
Orissa
Total
iii) Selected mother palms of all seed gardens should

be given copious irrigation and other inputs. Sufficient
amount of organic manures should be applied along
with recommended inorganic fertilizers to increase the
production of more number of female bunches thus
improving the potential seed harvest.
Seed
gardens (No.)
1
1
1
1
1
1
6
Area required
(ha/garden)
15
15
15
15
15
15
90
iv) The production potential of six seed gardens, 15

ha each is presented in Table 3.7. Six new seed gardens
will provide additional sprouts to the extent of 4.59
millions per year.
iv) Germination failure in DxP combinations may also

upset the final outcome of sprouts available for planting.
Corrective measures by evaluating the germination
potential in different combinations based on the
guidelines of NRCOP must be taken up in order to get
maximum possible germination and sprouts.
Table 3.7 : Estimated seed production potential of

six seed gardens proposed
Particulars
Area of each seed garden
Estimate
15 ha
i)
In addition to augmentation of seed production in
the existing seed gardens, there is need to establish
new seed gardens keeping in view the potential area
proposed to be covered under Oil Palm in different
states. For this purpose, establishment of six new seed
gardens is recommended. These seed gardens can be
established by the states proposing to take up or
intensifying Oil Palm cultivation (Table 3.6).
Area to be planted with dura
10 ha
Number of Dura palms
1430
Dura palms to be selected
150
Area planted with

Tenera x Tenera
5 ha
Number of palms for

selection of pisifera
715
ii) Since, private sector is equally involved in the

promotion of Oil Palm cultivation in the respective zones
allotted to them, the Govt. of India should encourage
them to take responsibility for setting up of a few seed
gardens particularly in the states where area availability
for Oil Palm is quite adequate for meeting the
requirement.
Pisifera palms which can

be used as parents
10
Number of crossed bunches

expected /dura
Number of seed per bunch
1500
Total number of seeds

expected: 150 x 5 x 1500
1.125 millions
iii) The parental combinations for these seed gardens

can be supplied from NRCOP. The seed processing
facilities established at Taraka under the aegis of Dept.
of Horticulture, Government of Karnataka can be taken
as model for adoption. A team consisting of officials of
NRCOP, TMOP&M and State department concerned
should be entrusted responsibility to select suitable
location for new seed gardens. The states where new
seed garden need to be established are suggested in
Table 3.6. It will take about nine years from now onwards
for the newly established seed gardens to initiate seed
production.
Sprouts obtainable
@ 80% germination
0.90 millions
Transportable seedlings @ 85%
0.765 millions
Area which can be covered/Year

@ 200 /ha
3825 ha
Total expected production from

six seed gardens
4.59 millions
Area which can be covered by

sixseed gardens/year
22,950 ha
3.6.2 Establishment of new seed gardens
56
Planting Material
expansion in different states in years to come exotic
sources need to be identified apart from ASD-Costa
Rica. The list of seed producers, which may be contacted
for import of planting materials for immediate
requirements is given in the Box 3.5. Option of selection
of different approved sources of exotic suppliers should
be made available to the entrepreneurs instead of
depending on only one supplier.
ii) Indigenously produced Oil Palm sprouts are sold
at Rs. 10.00 per sprout and a uniform rate is followed in
all the seed gardens. The cost of each exotic sprout is
however US $ 0.50 plus 6.50% customs duty, 1.0%
handling charges and 2.0% other incidental charges.
Finally, after adding the PEQ charges of Rs. 1.60 per
sprout, the cost of ASD Costa Rica sprout comes to
Rs. 28/- at the current exchange rate.
v) To meet the base population requirement of

parental palms, dura and tenera selfings or inter-se
crossings from Palode and Thodupuzha (Kerala),
Lakshmipuram and Rajahmundry (AP) can be taken up.
The respective research personnel appointed in different
seed gardens under ISOPOM/OPDP projects being
operated from NRCOP should be entrusted to start
crossing programme with effect from 2006 in order to
get crossed bunches and initiation of nursery activities.
There is also need to procure breeding materials in order
to have wider genetic base. The quality of material and
its performance must be ensured before import of
breeding materials.
vi) A team of experts representing GOI, PPA and
NRCOP needs to be sent to explore the possibilities of
importing genetic materials through negotiation by
outright purchase. The seed sources to be identified
should be based on parental performance with desired
traits (high fresh fruit bunch (FFB) yield potential,
dwarfness, drought resistance, high oil yield and better
oil quality etc.). Parents required to be imported can be
marked upon selection of potential source in the first
visit itself, while a second needs to be ensured during
harvest and seed processing of earmarked bunches.
Import of breeding materials can be initiated during the
current financial year, so as to establish new seed
gardens. The materials can be imported either in presprouted or pre-heated forms. The nursery raising and
maintenance of seedlings and then supply can be
undertaken by respective organizations who would be
entrusted to establish new seed gardens. The list of
organizations which can be contacted for this purpose
is given in the Box 3.4.
3.6.4 Micropropagation
i)
Oil Palm is a cross-pollinated crop and hence each
palm is genetically different and can be considered as
a variety. There is no method of propagating an elite
palm (high yielder/ high quality oil/ compact stature etc.)
other than tissue culture. This is the only way to produce
large scale planting material resulting in quantum jump
in Oil Palm yields.
ii) No in vitro regeneration protocol of Oil Palm using
explants from mature-palms is available in India and
presently no organization is involved in tissue culture
of Oil Palm in the country. Being solely responsible for
Oil Palm research in India, National Research Centre
for Oil Palm needs to shoulder this responsibility.
iii) Though there was initial set back in Oil Palm tissue
culture in Malaysia due to somaclonal variation,
presently several Agencies/ Organizations are
producing Oil Palm clones on a commercial scale (ASD-
3.6.3 Import of seeds

i)
In view of shortage of indigenous planting material
and to meet the target proposed by TMOP&M for area
Box 3.4
The list of organizations to be contacted for importing parental material for proposed new seed gardens
Papua New Guinea: Dami Oil Palm Research Station, New Britain; Palm Oil Development Ltd, Dami,
New Britain; New Britain Palm Oil Limited.
Nigeria: Nigerian Institute for Oil Palm Research (NIFOR), P.M.B.1030, Benin City, Nigeria.
France: CIRAD, formerly Institute Pour Recherche sur les Huiles et Olagineux (IRHO) 11, Square
Petrarque, 75116 Paris, France.
Malaysia: Malaysian Palm Oil Board (MBOP), Kuala Lumpur.
Ivory Coast: IRHO.
57
Box 3.5
List of exotic sources of planting material for import to meet shortage of planting material
Columbia: Plantaciones Unipalma De los llanos SA.
Carrera 7 No. 72-13 piso 4, Apartado Aereo 101186, Bagota, Columbia.
Dami, Lasflores, Dami-Las Flores E-Mail: damilasflores@haciendalas Flores.Com Fax 57-5) 3441799
Phone 57-5) 5747331/5747332/5742302.
Cote Divoire: Institut De Recherches Pour Les Huiles Et Oleagineux.
(IRHO), Station De La Me, B.P.13 Bingerville, Cote Divorie.
Indonesia : Marihat Research Station, Marihat, Permatang Siantar, Sumatra Utara, Indonesia.
Malaysia: Guthrie Plantations and Agricultural Service Sdn.
Bhd. Po Box 134, Jalan Sungei Ujong, 70710 Seremban, Negeri Sembilan, Malaysia (E-Mail:
lbc@guthrie.insdustries.com).
Golden Hope Plantations Bhd. Oil Palm Research Station, PO Box. 207, 42700 Banting, Selangor, Malaysia.
Highlands Research Unit Sdn. Bhd. Jalan Langat, PO Box.2009, 41720 Banting, Selangor, Malaysia.
Perbadanan Khidmat Pertanian Felda, Jalan Makbat, 54000 Kuala Lumpur, Malaysia.
Sime Darby Plantations, Ebor Research, Locked Bag 202, Batu Tiga, 40000 Shah Alam, Selangor,
Malaysia.
United Plantations Bhd. C/o Jenderata Estate, 36009 Teluk Intan, Perak, Malaysia.
United Kingdom : Unipalm : PO Box 120, Wiligton, Bedford Mk 44 3ym, Uk Fax: +44(0) 1234831443
(E-Mail: Jenny tomsett@unipalmseed.co.uk/ Jtomsett.Unipalm@Zen.Co.UK.
Thailand: UNIVANICH 258 aoluk-laensak road. PO Box 8-9, krabi.
v) Since the cost of tissue culture plantlets in Malaysia
is quite high, the Govt. of India team should negotiate the
price with the suppliers so that bulk clonal planting
materials can be introduced at competitive rates.
Costa Rica; Agrocom Enterprise (M) and Sdn Bhd,

Unilever Plantation, Kumpulan Guthrie Bhd, IOI
Research Centre at Malaysia and Dami Oil Palm
Research Station under new Britain Oil Palm Company
Ltd., (Papua New Guinea). Attempts should be made
to procure the available technology from any of these
agencies. The agreement should be valid till the clonal
plants are established in the field with their yield
performance.
vi) Entrepreneurs need to be encouraged to seek joint

ventures with reputed exotic Oil Palm nurseries who
can be permitted to start seed gardens with their
advanced breeding materials. Tissue culture technique
and production of clones of elite planting materials can
also be allowed through joint venture of private
participation of Indian companies with foreign
collaborators.
iv) In India, the first batch of 20,000 clonal plantlets

has been imported by the Godrej Agrovet Pvt. Ltd. during
2005 and the plants are at present in the farmers field.
Since, the private companies are directly involved in
Oil Palm industries and handle Oil Palm planting
material, a Govt.-Private sector joint venture for
procurement of Oil Palm tissue culture technology may
be attempted, which would reduce the import of clonal
plantlets. Otherwise also, import of planting material
always carries a hidden threat of not getting the genuine
material and transmission of new diseases and pests.
To continue the tissue culture research on Oil Palm in
India and improve the available technology, a world class
tissue culture laboratory with all other associated facility
should be developed at the National Research Centre
for Oil Palm with funding from OPDP.
3.7 Related Technical Issues

3.7.1 Selection of seed parents
i)
Careful selection of seed parent is necessary in
the establishment of seed gardens. In India, the
selection is done as per criterion prescribed by Standard
Research Institute of Malaysia (SIRIM).
ii) Presently 150 kg FFB/palm/year is the selection
criteria fixed for individual mother palms with good bunch
characters (Bunch characters: mesocarp/fruit: 55%,
shell/fruit: 35%, oil/dry mesocarp: 70% and oil/bunch:
16%). Sterile pisiferas with a good progenitor pedigree
58
Planting Material
are used as pollen parent. The process of pollen
collection from parental pisifera palms and pollination
of female inflorescences needs to be carried out under
strict supervision and control.
sprouts, undifferentiated, ungerminated sprouts

and multiple sprouts.
iv) Though India is not lacking behind in enforcing
quality control, specified standards for seed programme
are not prescribed. Hence the Committee recommends
development and enforcement of national seed
certification standards.
3.7.2 Seed quality standards

i)
The seed production programme must guarantee
a planting material with high yielding potential. It should
also meet the phytosanitary standards maintained by
the supplier. Genetic purity must be 99.9% (0.1% dura
contamination).
3.7.3 Seed germination

i)
Oil Palm seed is dormant when it is harvested and
under natural conditions germinates sporadically over
the years. Speedy and uniformly germinated seeds are
required to go for large-scale nursery and field planting
in the plantations. The dry heat method is now in routine
use wherein seeds are subjected to pre-treatment at
38-40 oC for a period of 60-80 days.
ii) Although good overall germination is possible if
heat and moisture requirements are fulfilled, there are
factors, which influence abnormalities in Oil Palm
sprouts. These include a) DXP seeds which show poor
germination and high abnormality should be discarded
from seed production b) small, white seeds and floaters
should be graded and discarded before going for dry
heat treatment and c) efforts should be made to reduce
the period of germination of Oil Palm seeds.
ii) The main Oil Palm seed producers in the world

namely, ASD-Costa Rica and Malaysian Palm Oil Board
(MPOB) are prescribing and adopting stringent seed
quality standards for their seed production programmes
through Oil Palm seed certification programme enforced
through neutral public sector organization. Seed
standards prescribed by ASD Costa Rica are as follows:
Physical purity: 100%; minimum germination: 8090%; moisture content: 22% after soaking; 18%
during pre-heating; abnormal embryos: when >
15% entire bunch must be rejected; pollen viability:
70-80%.
All packing materials must be labeled with official

stickers indicating the lot number, Dura x Pisifera
cross, and date when the seeds were germinated.
iii) As prescribed by reputed seed producers quality
control measures being followed in seed gardens are
as follows;
3.7.4 Nursery management

i)
The State Horticultural/Agricultural departments
and entrepreneurs involved in Oil Palm development
procure Oil Palm sprouts to raise seedlings for
distribution to the farmers. Even though 143 seedlings
are required to be planted/ha, it is recommended to
procure 180 seed sprouts to meet losses during nursery
raising as given in Table 3.8.
While collecting pollen grains, the whole process

should be carried out in isolated pollen rooms to
prevent possible contamination from foreign pollen.
Even if there is empty inflorescence, it may be
incubated to allow the birth of weevils to avoid any
suspicion of ineffective isolation. Palms, which are
having the habit of producing functional maleness
in the female inflorescence should not be included
for seed production even if they are high yielders.
Correct stage of fruit maturity must be ensured
before extracting seeds from the fruits. Outer seeds
on a bunch tend to be larger and multi-kerneled.
Seed grading must be done to remove floaters.
Sprouts should be examined for quality in terms
of healthiness. Damaged radicles either by
physical force or those infected by brown germ
should be rejected.
ii) Several shortcomings have been observed in Oil

Palm nursery e.g., deviation from recommended potting
mixture affecting the normal growth of seedlings;
improper spacing in the main nursery; use of smaller
polythene bags and nurturing culled seedlings by adding
Table 3.8: Requirement of sprouts for planting one
ha of Oil Palm
Stage
Germination and culling

Planting failure
Culling in progeny
Future gap filling
Samples of minimum 20 % of the total seeds to be

supplied are subjected to quality analysis for the
following parameters: abnormal sprouts,
mechanical damage, over grown sprouts, diseased
59
Percentage Number of
losses
sprouts
(appx.)
remaining
out of 180
5%
171
2%
168
10%
150
3%
143

fatal yellowing, leaf mottle and red ring disease and c)
Phillipines: Cadang Cadang (viroid) and Tenagafa
disease. The introductions from the above countries
need to be watched to prevent entry of these pathogens.
extra amount of fertilizer and water which should be

avoided.
iii) The Departments of Horticulture/Agriculture
entrusted with Oil Palm development programme need
to ensure quality planting materials by following the
above recommended nursery standards. The
Department of Horticulture, Govt. of Karnataka has a
practice of making team visits to nurseries to ensure
supply of quality seedlings to the farmers.
ii) The Phytosanitary regulations of Oil Palm are

operated through Plant Quarantine (Regulation of
Import into India) Order, 2003 (PQ Order) issued under
the Destructive Insects and Pests Act, 1914 (DIP Act).
Under Schedule IV of this order, Oil Palm seeds/ pollen/
seed sprouts are prohibited to be imported from
Philippines and Guam due to Cadang Cadang disease
and Tinangaja disease (viroid) under ScheduleVI, Oil
Palm seeds/ pollen/ seed sprouts are permitted to be
imported for commercial purpose with specific import
conditions and additional declarations. As per the
provisions of PQ Order, the import permit and
phytosanitary certificates are mandatory for the import
of seeds/ plants/ plant materials that are covered under
Schedule-VI, including Oil Palm seeds/ seed sprouts.
The import of Oil Palm seeds/ seed sprouts (all plant
propagative materials) is permitted only through major
plant quarantine stations viz ., Amritsar, Chennai,
Kolkata, Mumbai and New Delhi. The import permits
are issued for bulk import of Oil Palm seeds/ seed
sprouts based on the recommendations of Department
of Agriculture and Cooperation (Ministry of Agriculture),
as per the provisions of New Policy on Seed
Development.
iv) Raising the Oil Palm nursery for distribution to the

farmers is a part of area expansion programme. Since
TMOP&M is promoting Oil Palm cultivation in India by
giving subsidies on the planting material, there is a need
to fix uniform price for Oil Palm seedlings both
indigenous and imported at appropriate intervals on the
basis of actual cost of production/import and other
charges involved. Since the cost of production of
seedlings varies from state to state and with source the
price may continue to be decided in the PMC of the
respective states.
3.7.5 Ideal seedlings for planting

i)
The ideal seedlings for planting should have well
developed root system binding the soil in the poly bag,
natural frond spread without etiolation. To achieve ideal
seedlings, culling of defective seedling needs to be
carried out during the entire period of nursery raising.
Optimum age of seedlings is 12-14 months for field
planting.
3.7.6 Quarantine regulations
iii) During the post-entry quarantine inspection of

nurseries raised from imported seed sprouts in the
States of Andhra Pradesh, Karnataka and Tamil Nadu
in association with Designated Inspection Authority
(DIA), a few fungi were recorded which are not exotic
pathogens. Stray occurrence of Poty-virus infection was
reported in Karnataka during 1994 by Quarantine
section of the Department of Plant Protection Advisor
in the introductions from Costa Rica. However, there
was no recurrence of this disease. Also, it is worthwhile
to mention that similar symptoms were not reported in
the Oil Palms raised with introduced material from Costa
Rica so far.
i)
Under the New Policy on Seed Development
brought out by the Govt. of India in 1988, large scale
import of seeds/ seed sprouts of Oil Palm are permitted
for import to facilitate rapid expansion of Oil Palm
cultivation due to limited availability of indigenous
planting material. This strategy will have to be continued
in the future area expansion programme also. However,
caution is to be exercised particularly against diseases
which are not prevalent in India. The diseases of
quarantine importance are a) West Africa: vascular wilt
( Fusarium oxysporum f.sp. elaeidis ) Freckle
(Cercospora elaeidis) b) Tropical American countries:
iv) The above information indicates that introduction

of pathogens of dreaded diseases of Oil Palm prevalent
in the major Oil Palm growing countries can be
successfully prevented by enforcing strict quarantine
measures. In view of the above, the Committee
recommends that since area expansion is coming up in
North Eastern States and other newly identified areas,
entrepreneurs should import sprouts only through the
quarantine stations located nearer their zones.
Scientists from NRCOP should be included (as a
Member) in the plant quarantine inspection team
identified for nursery inspection.
ii) Oil Palm seedlings are usually maintained in the

nursery for 12-14 months and some times upto 18
months. In unavoidable circumstances, the nursery
maintenance can be extended upto 24 months. Bag
size and spacing are critical factors in determining
seedling size. Keeping the old seedlings for a prolonged
period with spacing prescribed for normal 18-monthold seedling will result in etiolation of seedlings and
penetration of roots to the ground which need extra
maintenance and adds to the cost of nursery.
60
4. PRODUCTION AND PRODUCTIVITY

yields is advantageous to the farmers as well as
processors in monetary terms in general, and more
capacity utilization to the processors in specific. FFB
production is likely to increase many times in the years
to come due to a large additional area coming to bearing
and better appreciation of the need for adoption of agrotechniques.
4.1 Production of Oil Palm

4.1.1 Production of FFB
i)
The Oil Palm plants start bearing from fourth year
onwards and the production progressively increases
upto 10 years. The pattern of bearing as per International
standard is given in Table 4.1.
iii) The total FFB produced is given year-wise in the

Table 4.2. Increasing trend in the production of FFB is
noticed from 1999-2000 onwards, as it increased from
1.02 lakh tonnes to 1.86 lakh tonnes in 2003-04.
ii) The total area under Oil Palm Development

Programme has increased from 8,585 ha before 1988
to 53,160 ha in 2003-04. Similarly, FFB production
increased from 7,182 MT in 1992-93 to 1,86,060 MT in
2003-04. Huge increase in quantity of FFB has been
noticed from 1999-2000 onwards. Improvement in FFB
iv) While the Oil Palm bunches are available all the
year round, the peak period is between June to October.
Seventy to seventy five per cent of the total crop is
harvested during these months.
Table 4.1: FFB yield levels of Oil Palm as

influenced by age
Age
(years)
Bearing Potential
(MT/ha)
4
5
6
7
8
9
10
5.0
8.0
11.0
15.0
18.0
18.0
18.0
v) While the total quantity of the FFB increased with

years, the average yield also increased from 0.83 MT/
ha in 1992-93 to 4.15 MT/ha in 2003-04. However, this
figure is not very encouraging and efforts need to be
made to improve the productivity.
4.1.2 Harvesting and handling

i)
Harvesting in Oil Palm plantations is a skilled job.
It is normally done with the help of sickles attached to
aluminium poles. As the trees grow, harvesting becomes
more difficult since palms become tall. The harvesting
criteria followed in Oil Palm are dropping of 5-10 fruits
Table 4.2: Area, production and yield of fresh fruit bunches (FFB) during different years.
Year
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
Total area (ha)

8,585
8,585
10,119
13,310
19,152
27,406
33,977
39,051
41,271
42,721
43,312
44,788
48,160
53,160
Bearing area (ha)
8,585
8,585
10,119
13,310
19,152
27,406
33,977
39,051
41,271
42,721
43,312
44,788
61
FFB (MT)
7,182
10,567
5,051
9,138
14,232
27,595
38,997
1,02,838
1,42,824
1,28,873
1,57,737
1,86,060
Average yield (MT/ha)
0.83
1.23
0.50
0.69
0.74
1.00
1.15
2.63
3.46
3.02
3.64
4.15

from the bunch and change in fruit colour from black to
deep orange.
Realistic yields of 30-35 MT FFB/ha/year have been

reported in Malaysia and Indonesia. In India however,
yields of 25-30 MT FFB/ha/year have been realized by
many Oil Palm growers in Andhra Pradesh. This
variation in yield is due to a number of factors such as
climate, soil, water, age, nutrition, intercropping, weed
management and harvesting.
ii) The stage of harvesting of FFB is very important

in realizing better oil yield. Also, adequate care should
be taken in restricting the length of bunch stalk, which
can reduce oil extraction ratio. Longer harvesting
intervals should be avoided as it affects the oil quality.
The harvesting profile of a farmers mature Oil Palm
plantations (Haji M.A. Jamal Moideen Papa, Thanjavur,
TN) is given in Table 4.3.
ii) Data collected from Andhra Pradesh (AFC, 2002)

indicated that in this state 14.1 % growers harvested
1-4 MT FFB/ha while 23.6 %, 48.2% and 13.6%
harvested as much as 5-8, 9-18 and >18 MT/ha
respectively (Table 4.4). This shows that the Oil Palm
plantations with more than 1/4th of the 199 farmers have
been yielding as per expectations in A.P. The results
were however not similar as far as Karnataka and Tamil
Nadu are concerned.
iii) The peak period of harvest in Oil Palm is between

July to September followed by May to June and October
to November. There is very poor crop harvest between
December to April. This pattern occurs with reasonable
uniformity year after year in a particular region.
4.2. Yield Potential
iii) An analysis of actual FFB received between 199293 and 2003-04 from an area of 1708.64 ha of plants
between 2 and 13 years (Table 4.5) reveals that while
21 percent of the area gave low yield (upto 50 % of
i)
The genetic yield potential of Oil Palm has been
computed to be 44-46 MT/ha/year. However, such ideal
conditions and yields are not obtained commonly.
Table 4.3: Harvesting profile of an Oil Palm plantation in Tamil Nadu

Month
th
8 Year
April
0.19
May
0.23
June
1.00
July
3.77
August
4.10
September
2.20
October
3.10
November
0.60
December
0.43
January
0.12
February
0.07
March
Total
15.81
Source : M/s Cauvery Palm Oil Ltd.
Yield (MT/ha)
9 Year
10th Year
0.18
0.55
0.90
1.80
0.66
1.90
2.50
2.20
3.42
2.36
4.50
2.11
2.40
2.40
0.69
0.42
0.20
0.23
0.35
0.07
0.30
0.30
0.73
0.39
16.83
14.73
th
11th Year
0.88
1.35
2.72
4.98
6.28
3.32
0.84
0.76
0.10
0.31
0.30
1.278
27.12
Table 4.4: Yield levels in Oil Palm plantations at Andhra Pradesh, Karnataka and Tamil Nadu
Yield levels
(MT/ha)
1-4
5-8
9-18
>18
Total
Farmers in
A.P. (%)
14
23
48
15
100
Farmers in
Karnataka (%)
41
26
26
7
100
Source : AFC Report, 2002
62
Farmers in
Tamil Nadu (%)
19
30
49
2
100
13
12
11
10
9
8
7
6
5
4
3
2
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
Total
43.71
125.13
85.68
120.95
64.93
27.07
175.08
164.92
143.89
205.25
203.39
348.64
1708.64
Area (ha)
International
yield stnd
(MT/ha)
18
18
18
18
18
18
15
11
8
5
2
0
FFB yield as per

international
standard (MT)
786.78
2252.34
1542.24
2177.10
1168.74
487.26
2626.20
1814.12
1151.12
1026.25
406.78
0
15438.93
Actual FFB
received
(MT)
806.66
2128.42
1244.14
1890.39
638.48
250.85
1818.67
1449.39
942.49
471.39
99.43
12.25
11752.61
18.0
17.0
15.0
16.0
10.0
9.0
10.0
9.0
7.0
2.0
0.5
0.0
7
Yield
(MT/ha)
Low %
Medium %
High %
(50 to 99%)
(>99%)
(<50%)
of std. yield of std. yield of std. yield
7%
46%
47%
9%
35%
56%
15%
36%
49%
13%
34%
53%
24%
38%
38%
25%
50%
25%
12%
44%
44%
25%
17%
58%
33%
21%
46%
41%
24%
35%
51%
20%
29%
NA
NA
100%
21%
31%
48%
63
Sava Sudhakar
Tummala Venkanna
Pichikala Prasad
S. Suryanrayana Reddy
P. Venkateswara Rao
M. Krishna Rao
Pathuri Satyanarayana
G. Alivelu Manga Tayaru
D. Apparao
S.R.K.G. Chowdary
Urrinkala Laxmi Tulasi
K. Sita Ramulu
1
2
3
4
5
6
7
8
9
10
11
12
Dubacheria
Timmannapalem
Pothavaram
Ramannapalem
Devarapalli
Tadepalligudem
Cheepurugudem
Sankarapuram
Chagallu
Kommugudem
Cheepurugudem
Kalavalapalli
Village
Source: Foods Fats & Fertilisers Limited, Hyderabad
Name of the farmer
Sl.
No.
Nallajerla
Nallajerla
Nallajerla
Devarapalli
Devarapalli
Tadepalligudem
Nallajerla
Nidadavole
Chagallu
Tadepalligudem
Nallajerla
Chagallu
Mandal
2003-04
2002-03
2001-02
2000-01
1999-00
1998-99
1997-98
1996-97
1995-96
1994-95
1993-94
1992-93
Year of
planting
2
3
4
5
6
7
8
9
10
11
12
13
Age
(Years)
1.52
0.50
1.82
1.75
3.50
1.26
1.50
0.50
1.62
1.54
1.22
3.00
Area
(ha)
0
2
5
8
11
15
18
18
18
18
18
18
International
yield std.
(MT/ha)
4
16
22
33
36
30
41
34
33
36
39
30
Yield
Obtained
(MT/ha)
4
15
17
25
25
15
23
16
15
18
21
12
Increase over
International
standard
(MT/ha)
Table 4.6: Highest yields recorded (year wise) in the plantations of Foods Fats & Fertilisers Limited, West Godavari District, Andhra Pradesh
Source: Foods Fats & Fertilisers Limited, Hyderabad
Age
(years)
Year of
planting
Table 4.5: FFB receivables as per Internatonal Standard vs Actual FFB Received in West Godavari District, Andhra Pradesh

dry matter production due to reduced photosynthetic
activity. It also causes adverse effects on FFB yield and
also reduces the oil to mesocarp ratio. Folding of
younger leaves, non opening of spear leaves and
decreased leaf production are other effects on Oil Palm
growth. The number of productive inflorescences (sex
ratio) as well as total inflorescences are high during dry
season than in wet season of year.
standard yield), 31% gave medium yield (50 to 99 % of

standard yield) and 48 % gave high yields ( higher yield
than International standard).
iv) A farmer Shri Pathuri Satyanarayana of village
Cheepurugudem in Nallajerla mandal planted in 199798 over an area of 1.5 ha harvested 41 MT/ha yeild at
the age of 8 years (Table 4.6).
4.3 Causes for Low Yields in Oil Palm
4.3.2 Quality of planting material
i)
The Committee tried to identify the possible causes
for low yields of Oil Palm in India. Some of these are :
Unfavourable climatic conditions
Poor quality material
Under/Over age of plant
Improper intercropping practices
Inadequate use of fertilizers
Inadequate application of water
Pest and disease incidence
i)
In India, both exotic and indigenous Oil Palm
planting materials have been used for commercial
cultivation. There is a general feeling among growers
and entrepreneurs that imported planting material is
giving better performance than the indigenously
produced plants. To know the factual position, a trial
was laid out at NRC for Oil Palm, Pedavegi during 1996.
The preliminary results have revealed that the Palode
combination 12 D x 313 P out yielded other exotic
hybrids in terms of FFB yield (15.96 MT/ha) at the age
of 10 years. Material from Costa Rica recorded the
lowest yield among four sources of planting materials.
However, there was no significant difference among
them. The material from Ivory Coast, however, gave
more average yield in comparison to Palode material
(Table 4.7).
4.3.1 Climatic conditions

i)
Oil Palm is characterized as humid tropical palm
which comes up well in climates where the temperature
ranges from 20-35oC with an evenly distributed annual
rainfall of 2,000 mm. High temperature results in lesser
Table 4.7: Performance of planting material from four sources at

National Research Centre for Oil Palm, Pedavegi, A.P.
Source of
planting
material
Cross
details
Costa Rica Deli x Avros

Deli x Ekona
Deli x Ghana
Deli x Lame
Mean
Ivory Coast 18C x 2501
9C x 1001
Mean
Papua New 1M - 0069
Guinea
Mean
Palode
65D x 111
12D x 313
12D x 266
128D x 31325
Mean
19992000
20002001
Yield (Kg/palm)
20012002- 2003- 2004 2002
2003
2004 2005
91.10
89.04
86.85
82.13
86.61
85.42
84.79
85.10
114.04
114.04
92.06
95.66
100.43
103.30
97.68
92.41
101.17
113.59
105.79
99.10
127.44
128.50
127.97
102.78
102.78
113.77
107.46
109.81
95.36
104.56
80.81
93.09
89.57
83.97
82.39
92.29
107.67
99.98
105.41
105.41
88.84
112.37
115.64
109.12
98.98
101.73 65.80
93.70 93.00
83.89 75.60
73.62 66.10
87.67 65.95
107.03 102.30
131.79 55.40
119.41 78.85
109.90 85.70
109.90 85.70
101.55 96.80
90.03 169.60
99.83 55.20
94.21 82.20
97.88 89.50
64
200506
83.70 82.10
89.59 72.40
105.16 104.90
123.37 68.70
103.53 75.40
87.41 83.90
77.30 77.50
82.35 80.70
99.39 91.80
99.39 91.80
97.32 65.40
78.63 67.60
101.07 88.40
95.33 70.50
96.32 67.95
Average Average
(kg/year) (MT/ha/
year)
84.89
12.14
94.11
13.50
93.56
13.40
90.57
12.95
87.73
13.00
103.29
14.77
100.13
14.32
101.71
14.54
100.64
14.39
100.64
14.39
99.66
14.25
111.62
15.96
96.31
13.77
95.24
13.62
97.45
14.40

planting material from Papua New Guinea (PNG)
recorded higher yield compared to that from Costa Rica.
Material from Palode was comparable with PNG at one
location. Material from IRHO (France) recorded very low
average yields (Table 4.8). The survey, however,
revealed wide variation in yield performance of different
planting materials in the farmers fields.
ii)
Results of bunch analysis study conducted jointly
by NRC for Oil Palm and RRL, Thiruvananthapuram in
farmers fields of West Godavari, East Godavari and
Krishna Districts of Andhra Pradesh during 1996-98
revealed that Palode material recorded more bunch
weight, kernel to fruit ratio, oil to bunch ratio and fruit to
bunch ratio and was on par with Costa Rica material for
mesocarp: fruit ratio and oil: mesocarp ratio.
v) In addition, a survey of the yield obtained in farmers

field in Simhapuri Agro products Ltd, Nellore revealed
similar pattern of yield performance among Palode and
Costa Rica materials. Palode material from one location
gave as high as 17.79 MT/ha followed by Costa Rica
(17.33) and Unipalm (17.14) in a 6 year old plantation
(Table 4.9). Others showed wide variations and hence
no inference can be drawn.
iii) In a hybrid evaluation study at NRC for Oil Palm,

Pedavegi, Palode hybrid was compared with 23 Costa
Rica hybrids. No significant difference in yield of FFB
was observed among them.
iv) The survey conducted in SICAL zone of Krishna
district, in plantations aged 10-15 years revealed that
Table 4.8: Performance of different sources of planting material (at full bearing stage of 10-15 years) in
Krishna district, Andhra Pradesh
Source/plantation
ASD: Location 1
ASD: Location 2
Average
IRHO : Location 1
Average
Palode: Location 1
Palode: Location 2
Palode: Location 3
Average
PNG: Location 1
PNG: Location 2
PNG: Location 3
PNG: Location 4
Average
Area
(ha)
9.11
4.41
6.76
4.85
4.85
7.02
5.02
9.21
7.08
22.00
6.11
1.95
4.72
8.69
20002001
5.27
10.43
7.85
11.96
11.96
26.78
6.18
17.81
16.9
13.86
26.68
26.15
20.97
22.81
Yield of FFB (MT/ha)

2002200320042003
2004
2005
4.94
6.37
10.10
16.33
13.83
14.74
10.63
10.10
12.40
3.30
11.34
10.31
3.30
11.34
10.31
22.79
15.95
21.79
9.36
9.96
11.95
16.83
17.81
2.17
16.32
14.57
11.97
15.00
10.14
10.23
23.73
20.29
14.24
21.54
30.77
22.05
18.01
18.43
18.64
19.57
19.9
16.29
20012002
9.66
12.70
11.18
8.66
8.66
19.09
8.37
13.79
13.75
13.86
27.82
23.59
19.70
22.24
20052006
14.82
17.69
16.20
12.16
12.16
14.53
12.75
18.13
15.13
14.00
18.82
23.59
10.59
16.25
Average
8.53
14.29
11.40
9.62
9.62
20.16
9.76
14.42
14.78
12.85
21.93
24.62
17.73
19.28
Table 4.9: Performance of planting material from different sources in Nellore district of AP
Source
1999-00
Palode
1
3
Costa Rica 1
4
Unipalm 1
Average
0.06
26.58
65.32
25.05
26.46
48.50
34.70
30.25
32.12
Yield of FFB (kg/palm)

2000-01 2001-02
2002-03
28.30
17.69
32.14
38.05
36.93
38.20
36.46
24.40
31.52
14.00
21.27
11.96
32.09
23.85
27.41
19.32
36.04
23.24
32.00
36.62
48.24
68.22
73.75
83.32
50.64
87.36
60.02
65
2003-04
2004-05
51.63
47.85
88.00
94.15
82.25
104.23
71.57
82.60
77.79
124.44
67.58
83.20
104.96
121.20
60.77
96.23
119.88
97.28
Yield
(MT/ha)
Source
mean
17.79
9.66
11.90
15.01
17.33
8.69
13.76
17.14
13.91
13.11
13.69
17.14
14.64

vi) FFB yield recorded from Nallajerla and Deverapalli
locations of West Godavari districts in FFF processing
Zone revealed superior performance of Palode material
over Costa Rica. (Table 4.10 and Fig 4.1).
Fig 4.1: Performance of planting material from

different sources in West Godavari district of
Andhra Pradesh (1999-00 to 2004-05)
vii) In fact, in a number of trials, the performance of

planting material from Palode was better. Hence, the
procurement of quality planting material from other
countries need not be over emphasized. Import of seed
may be allowed only when there is a shortfall in our
indigenous seed production. Even the AFC in its
consultancy report (2002) clearly mentioned that
indigenous hybrids produced at Palode are in no way
inferior to any planting material introduced in India from
any source.
Mean of three plantations each from Palode & Costa Rica

30.9
35
15
17.3
22.2
23.1
22.4
19.3
17.4
20.9
18.3
16.2
13.1
20
15.4
18.2
25
21.8
30
10
5
0
viii) In the light of the above findings, it is recommended

that awareness about comparable performance of
indigenous vs exotic planting material to farmers,
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05

ASD Costa Rica
Mean
Palode
Table 4.10: Performance of planting material from different sources in West Godavari district, AP
Source
Location
Age Area
(Year) (ha)
Costa Rica Nallajerla
Yield of FFB (MT/ha)

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 Mean
10
3.05
9.22
13.89
16.05
11.22
10.66
23.53
14.09
,,
Nallajerla
10
3.05
21.83
22.63
25.79
29.48
29.85
32.29
26.98
,,
Nallajerla
10
3.05
8.51
9.74
12.93
11.60
8.03
13.36
10.70
Palode
Devarapalli
11
2.38
25.73
21.52
26.02
21.77
26.34
28.67
25.01
,,
Devarapalli
11
4.80
7.51
14.85
21.17
18.48
20.47
30.25
18.79
,,
Devarapalli
11
0.48
21.03
26.24
18.35
17.75
20.28
33.84
22.91
Source
mean
17.25
22.23
overcoming this problem would be the use of staggered

raising of nursery at periodic intervals. Use of bigger
polybags would be another solution to the above
problem.
officials and companies needs to be created. Further

detailed study in this regard should be conducted in
more locations and the findings should be disseminated
through NRCOP publications and training programmes.
4.3.3 Age of the palms
4.3.5 Intercropping practices
i)
Oil Palm starts yielding from 4th year onwards and
yield progressively increases upto 7 to 10 years and
stabilizes after that. As the plants get old, yield starts
declining after 25 years rendering Oil Palm cultivation
uneconomical due to increased harvesting costs.
i)
Intercropping is essential for making Oil Palm a
viable crop during its juvenile phase. A number of
intercrops have been identified and have been widely
grown by Oil Palm farmers (Plate 4.1). The intercrops
commonly grown are:
4.3.4 Age of seedlings
Field crops: Groundnut, maize and tobacco.
i)
A number of farmers have been supplied with
overaged seedlings (>30 months) and it has served well
resulting in better yields. Results have shown that if the
aged seedling are provided with better management
and technology, these can come up well and yield better.
This change of approach would provide flexibility in
managing the overaged seedlings. Another way of
Fruit & Plantation crops: Banana, cocoa and

pineapple.
Vegetable crops: Bottle gourd, chillies, drumstick, ladys
finger and tomato.
Spices: Black pepper and turmeric.
66

Plate 4.1
Avoid crops which can act as a common host for

pests and diseases of Oil Palm
Crops chosen should have adequate market in the

area of its cultivation.
Tying of leaves during juvenile phase to help

intercrops grow should be avoided.
iv) Intercroping has been widely practiced in the

States of A.P., Karnataka and Tamil Nadu. In A.P., 7090% of farmers practice intercropping in the districts of
East Godavari, West Godavari and Krishna. While it
ranges from 30-60% in Nellore, Vizag and Guntur
districts. Similarly, in Haveri, Koppal, Gadag and
Devangere districts of Karnataka, 90-100% of the
farmers practice intercropping, while it is of less intensive
in Mysore, Bellary and Raichur districts. The number of
farmers taking intercropping in Tamil Nadu is less than
50%.
Maize as an intercrop in Oil Palm plantation
4.3.6 Nutritional practices

i)
Fertilizer is one of the most critical inputs in Oil
Palm cultivation. Adequate and timely application of
fertilizers results in higher yields. The farmers who apply
recommended doses of fertilizer have realized FFB
yields of 20-30 MT/ha/year. Nutrient deficiencies like
potassium, magnesium, boron and N/K imbalance are
most commonly seen in Oil Palm plantations due to
inadequate / imbalanced use of fertilizers, which also
result in reduction in yield. However, these can be
corrected by application of deficient nutrients to Oil Palm
plantations.
Cocoa as an intercrop in Oil Palm plantation
ii) The identification of the optimum requirements of

nutrients should be done by leaf / tissue analysis. For
this purpose leaf analysis laboratories are
recommended to be established by processing mills in
intensive pockets of Oil Palm cultivation, so that farmers
could be guided properly to follow recommended doses
of fertilizers for realizing better yields.
ii)
While intercrops do add to the viability of Oil Palm
cultivation, improper choice of growing them for too long
can adversely affect the yield of the main crop. It should
be ensured that intercrops selected do not have any
adverse effect on the main crop.
iii) While selecting intercrops, the following points
should be kept in view:
4.3.7 Water availability
These do not compete with Oil Palm for light,

nutrient and water
These are compatible with Oil Palm in agrotechniques
Leguminous crops should be preferred as they help
in maintaining the soil fertility
Perennial plants should be discouraged as
intercrops except Cocoa
i)
As Oil Palm is mostly grown in India under irrigated
conditions, water management assumes greater
importance. The availability of water to Oil Palm
plantations is mostly from rain, canals and ground water
sources. Inadequate water leads to non-opening of
spear leaves and decreased leaf production rate, which
in turn affects the photosynthesis in particular and yield
in general. Micro-irrigation systems (Plate 4.2) like drip
and micro jets are efficient than basin systems in terms
of better water use efficiency. Research studies at
Crops with high water requirements should be

avoided to ensure water needs of Oil Palm.
67

performance. Other pests like leaf eating caterpillars,
birds and rats have also been reported but have not
attained severity.
NRCOP have indicated that palms irrigated with micro

irrigation systems recorded better morphological and
physiological parameters than basin method. Hence,
all efforts should be focused for ensuring adequate water
availability to the Oil Palm plantations. The Committee
recommends that no area under cultivation should be
brought in any state without having irrigation facilities.
ii) Among the diseases reported in India so far, only

bud rot, stem wet rot and spear rot are considered as
major ones. Bud rot occurring in all Oil Palm growing
states can be effectively controlled by crown cleaning
and drenching of systemic fungicides like Carbendazim.
Stem wet rot endemic to plantations of Andhra Pradesh
so far can be managed by stem surgery, protective
coating of fungicide to the cavity and root feeding/stem
injection of calixin. Spear rot disease caused by
phytoplasma endemic in the plantations of Kerala is not
amenable to chemotherapy and hence infected plants
need to be removed as and when observed to check
the disease spread.
Plate 4.2
4.4 Productivity Incentives

i)
In case, Oil Palm cultivation in India has to be
successful, it is necessary to improve the present low
yield levels in various states. While the national average
as per area covered is only 4.5 MT/ha, instances of
farmers having achieved 20-30 MT/ha FFB are not
uncommon. In Andhra Pradesh, a farmer has obtained
a record yield of 41 MT/ha in Oil Palm. It is, therefore,
recommended that steps should be taken to persuade
Oil Palm growers to meticulously follow the package of
practices recommended for Oil Palm cultivation. While
there is limited staff devoted to Oil Palm development
in the states, it is the responsibility of the entrepreneurs
to ensure that productivity levels in their respective
zones are improved.
Drip irrigation in Oil Palm
ii) The Govt. of Goa has introduced a productivity

linked incentive to improve yields of Oil Palm in the State
(Table 4.11). These incentives have already given the
desired dividend by increasing the yields. Such
incentives need to be considered at Central/State level.
Special incentives should be given to those obtaining
more than 25 MT/ha after the age of 7 years.
Micro jet irrigation in Oil Palm
Table 4.11 : Productivity linked incentives

given in Goa.
4.3.8 Pests and Diseases

i)
Even though not many pests and diseases are
prevalent in Oil Palm plantations in epidemic form, their
appearance cannot be ruled out due to more area
expansion. Rhinoceros beetle is the major pest reported
from various Oil Palm growing states. A severe attack
of the beetle in Oil Palm plantations can cause
considerable loss of active leaves resulting in reduction
in the photosynthetic activity, thereby affecting the yield
Category
68
Yield
(MT/ha)
Incentive paid for

yield increase over
that of previous year
Upto 5
Rs. 1.0/Kg
II
5-15
Rs. 1.5/Kg
III
7-15
Rs. 2.0/Kg

vi) Majority of the potential areas identified in India
for Oil Palm cultivation are in the costal belt where there
are chances of occurrence of cyclones. Cases of
cyclone damage have already been reported in Oil Palm
plantations. The NRC for Oil Palm has found that it would
be economical to rejuvenate the palms rather than going
for replanting. The Centre has also standardized
technology for rejuvenation of cyclone affected Oil Palm
plantations by employing earth movers.
4.5 Mechanization
i)
Mechanization of agriculture is becoming more and
more relevant in the present context, wherein there is
acute shortage of agricultural labour, which is going to
be more severe with the present rate of urbanization
and education. Shortage of labour will lead to increase
in labour cost and thereby adversely affecting the cost
of production. Mechanization is also widely accepted
as a means to reduce drudgery of agricultural
operations. With the current emphasis to mechanize
and to reduce reliance on manual labour at every stage
of the operation, Oil Palm can position itself to be more
competitive.
4.5.2 Harvesting and handling operations

i)
Harvesting is a skilled job. Manual methods are
being followed for which special training is required.
Harvesting of young palms of less height is
comparatively easy. As the palm grows, sickle attached
to aluminium pole is used. Climbing on the tree with a
ladder or using a rope and employing sickle or chisel to
cut the fronds and bunches is also practiced. Climbing
becomes difficult after certain height, mainly due to the
hindrance of frond base in the trunks. Long aluminium
poles attached with sickles are used in tall palms
(Plate 4.3). Balancing the lengthy poles, hooking
bunches and fronds, pulling and cutting consume time
and cause stress to the labour and result in low overall
efficiency.
4.5.1 Production operations

i)
The Oil Palm production process starts with seed
processing and nursery establishment. Both are time
consuming and laborious operations and need to be
mechanized by introducing suitable bunch cutting
devices, driers, seed sorters, polyhouse technology
coupled with micro irrigation facilities, automated solar
powered irrigation systems etc.
ii) Field establishment activities include lining, digging
pits and planting of seedlings. Tractor mounted post hole
diggers can be used for making pits.
Plate 4.3
iii) Field maintenance operations in Oil Palm

production include weeding, manuring, water
management, pest and disease management, pruning,
disaster management etc. Manually operated or petrol
operated hand held devices can be employed for
weeding in palm basins. Tractor operated slashers
coupled with tillage implements would be helpful in
cutting weeds and leguminous intercrops for
incorporating in the soil. Tractor mounted fertilizer
spreaders can be employed for fertilizer application.
Small garden tractors would be suitable for the purpose.
Oil Palm fronds can be made into compost by employing
shredders (Frond cutter). There is a need to develop an
efficient shredder for Oil Palm fronds. Mechanical
application of Palm Oil Mill Effluent (POME) as fertilizer
needs a suitable tractor tanker system, piping nozzles
etc.
iv) Both basin and microirrigation are practiced for Oil
Palm. Since water is a scarce resource in most of the
Oil Palm growing areas, an automated irrigation system,
which delivers water based on crop requirement is
important. The effectiveness of fertigation systems also
need to be studied.
v) For disease control, trunk injection of fungicide is
in practice; the process can be motorized to improve
the effectiveness.
Harvesting from tall palms
69

ii) Taller trees are often left un-harvested due to the
lack of suitable methods and devices for harvesting.
Hence replanting is followed after the trees attain a
height of 10-15 metres at the age of 30-35 years even if
the palm gives steady yields. However, under irrigated
conditions, tree growth is faster and hence harvesting
is going to be a great problem at younger stage itself.
While efforts have been initiated to mechanize the
operation, a well accepted and economically viable
mechanized harvesting system is yet to be developed.
Research has to be concentrated on developing a
suitable device for harvesting from tall palms. Attempts
have to be made to improve the traditional method of
harvesting by using lightweight aluminium or alloy poles.
However, possibility of import of any superior gadgets/
methods for harvesting Oil Palm employed in countries
like Malaysia, Indonesia etc. need to be explored.
Plate 4.4
Transportation of Fresh Fruit Bunches
iii) While harvesting, care must be taken for restricting

the length of bunch stalk to 5 cm. Long bunch stalk
increases the trash content and absorbs oil during
sterilization, which causes reduction of OER. The
principal cause for incomplete loose fruit collection
during harvesting and high percentage of unripe
bunches is the shortage of labour, which results in less
optimum harvesting interval being practiced and
relaxation of harvesting standards. Loose fruit collection
and selective harvesting by observing maturity
standards is labour intensive, lack of which has an
indirect effect on OER. Long harvesting interval due to
labour shortage leads to more loose fruits and handling
losses.
damage to ensure the quantity and quality of final

product. Collection is done manually from the palm
basins and the FFB is carried by headload to the
mainline transporting mechanism like tractor or lorry or
animal drawn carts (Plate 4.4). Manual collection is
tedious due to the presence of thorns in FFB and needs
mechanization. Pointed iron rods used for picking
bunches by piercing cause damage to fruits. In manual
handling, normal tendency of a person carrying load
on head is to unload the weight by putting it down, which
causes damage to the fruits. Mechanized collection and
transportation for safe handling of FFB will not only
reduce drudgery but also maintain the quality of raw
material as well as final product. During harvesting,
loose fruits may fall down and these also need to be
collected and transported. A vacuum evacuation system
for loose fruit collection would serve the purpose.
iv) Collection and transport systems should be aimed

at the handling of fruits as fast as possible without
70
5. PROCESSING FACILITIES
indigenous equipment. The equipment such as
boiler, sterilizer, stripper, digester, press, clarifier
and purifier used in the small-scale unit were
fabricated indigenously. Under hygienic conditions,
these processing units could produce edible palm
oil.
5.1 Introduction
i)
Fresh fruit bunches (FFB) harvested from Oil Palm
plantations are highly perishable and require processing
within 24 hours. Delay in this adversely affects the
quantity and quality of palm oil. The process consists of
extraction of crude palm oil (CPO) from the fruit
mesocarp and extraction of palm kernel oil (PKO) from
the kernel. The cultivation of Oil Palm thus requires to
be linked with processing facilities right from the
beginning.
ii)
The Food and Agricultural Organization (FAO) of
the United Nations has classified palm oil processing
units into four categories. The units which use traditional
technologies and manual power for unit operations are
termed traditional units. Processing units handling up
to 2 MT of FFB/hr are considered to be small.
Installations that process between 3 and 10 MT FFB/hr
are termed medium scale, while units that process more
than 10 MT/hr are considered as large scale.
A large scale modern processing factory with a

capacity of 5-30 MT FFB /hr (based on the
assumption that yields would be 15-25 MT FFB/
ha) could be set up through corporate or cooperative sector, covering contiguous plantations
of 1,000-5,000 ha. With this size of processing
factory, all modern equipment could be employed.
ii) It was hoped that with the experience gained by

OPIL in setting up of old and modern processing units
and the work done by the RRL (CSIR),
Thiruvananthapuram, it should be possible to be self
reliant in the procesing technology of Oil Palm for setting
up of processing units suited to local conditions.
iii) Small extraction units with indigenous technology

were functioning in the Oil Palm India Ltd.(OPIL), Kerala
and Andaman and Nicobar Islands Forest and
Plantation Development Corporation Limited
(ANIFPDC), A&N Islands right from 1980 onwards.
These units provided with hydraulic press and manual
methods of extraction were not very efficient. As the
plantations grew and production increased, urgent need
was felt for the development of improved technology for
oil extraction.
5.3 Establishment of Processing Units

i)
Consequent to the implementation of the 1988
report on Oil Palm, a large number of processing units
have been established in different states with different
crushing capacities. Their year of establishment and
current status is discussed state wise.
5.3.1 A&N Islands
iv) During 1989, Oil Palm India Limited established a

5MT/hr mill costing Rs.1.90 crores with technical
assistance from FEDO- a unit of Fertilizers and
Chemicals Travancore Ltd., a Govt. of India undertaking.
i)
The Andaman and Nicobar-Islands Forest and
Plantation Development Corporation Limited
established a 5MT/hr mill in Little Andamans during
1992 to process the FFB from their own plantations.
Presently, this mill caters to the need of 1593 ha Oil
Palm plantations.
5.2 Recommendations
Committee-1988
5.3.2 Andhra Pradesh
of
Chadha
i)
In Andhra Pradesh, the identified mandals have
been allotted to 12 Oil Palm companies, out of which 9
companies have already established processing units
in their factory zones with a total crushing capacity of
70 MT/hr. The remaining 3 companies are likely to
establish the processing units by the end of 2007. The
details of the established processing units are presented
in Table 5.1.
i)
Since Oil Palm cultivation in India was proposed
to be taken up under irrigated conditions. The Chadha
Committee in its report proposed two kinds of
processing situations:
A small scale processing unit with a capacity of 1

MT FFB/hr to cater to the needs of upto 200 ha
plantations to be set up either by a small group of
farmers forming a co-operative or by a small
outside agency. The technology for setting up of
such processing units was available and this could
be installed within a period of 12 months with
5.3.3 Assam
i)
There is neither any area under Oil Palm nor any
plan for a processing mill in the state.
71
72
Total processing capacity
Location
70
Year of Processing
Remarks
establicapacity
shment
(MT/hr)
A.P Cooperative
Pedavegi,
1992
4
Initially installed as a 1MT/hr mill with technical guidance from RRL,
West Godavari
Thiruvananthapuram and upgraded to 2MT/hr capacity during 1994
and 4MT/hr capacity during 1995 with financial assistance from
TMOP&M. It has a plan to install an additional unit at Aswaraopeta.
Food Fats &
Yernagudem,
1998
10
Initially installed as a 5MT/hr capacity unit at Tadepalligudem,
Fertilizers Ltd.
West Godavari
(2005)
West Godavari District during 1998. That was replaced by new
10 MT/hr at Yernagudem is expandable to 20 MT/hr capacity. Though
the screw press is imported from Malaysia, all the other machineries
are indigenous. This mill caters to the processing need of 3,000 ha
plantations.
Godrej
Pothepalli,
1999
10
A kernel extraction unit is also attached to this unit. It caters to the
Agrovet Ltd.
West Godavari
processing need of 2,951 ha plantations. This unit can be expanded
to 30 MT/hr in a phased manner.
Navabharath
Jangareddygudem, 2003
5
This is the only mill in India using vertical sterilizers. Even though the
Agro Products Ltd. West Godavari
area allotted for this mill is 20,000 ha, so far, only 5,045 ha have been
covered and presently this mill receives FFB from 3,162 ha plantations.
Palm Tech
Peddapuram,
1999
15
The mill is expandable to 30MT/hr capacity. Equipped with a steam
India Ltd.
East Godavari
power generation plant and the generated power is sufficient for the
operation of the mill.
Radhika
Garividi,
1996
7
Capacity at the time of installation was 5MT/hr, and is expandable to
Vegetable
Vizianagaram
10 MT/hr capacity. Lack of digestion system and use of screw press
Oils (Pvt.) Ltd.
are the specialties of the mill. All the machineries are indigenous.
Presently, it caters to the need of 750 ha Oil Palm plantations.
South India
Ampapuram,
1996
10
Installed capacity is 5MT/hr, upgraded to 10 MT/hr during 1999.
Corporation
Krishna
(1999)
A kernel oil extraction unit is also attached with this unit. It caters to
(Agencies) Ltd
the processing need of 1,887 ha plantations.
Simhapuri Agro
Manubole,
1997
5
The mill is expandable to 10MT/hr capacity. It caters to the need of
Products Pvt. Ltd. Nellore
960 ha plantations.
Sri Srinivasa
Lungalavalasa,
2005
4
All the machineries are being made indigenously.
Palm Oil Mills
Srikakulam
S. Name of
No. the company
Table 5.1: Processing units established in Andhra Pradesh
Palm Tech India Ltd. The oil extraction in this 1 MT/hr
capacity mill was done using a hydraulic press, till 2004.
The mill, however, underwent upgradation to a screw
press recently.
5.3.4 Chhattisgarh
i)
processing mill in the state. In the next Plan, however,
when Oil Palm demonstration and plantation programme
is proposed to be taken up, it is proposed to group the
potential area under three factory zones with three
districts each. In the third year, it is recommended to
establish a small mill of 1 MT FFB/hr capacity. With
increase in the crop, the capacity can be enhanced in a
phased manner depending on the need.
ii) A 10 MT/h capacity mill was established as a joint

venture of State Horticulture Department and M/s Oswal
Group in Shimoga district in Karnataka during 1997.
The commissioning of this mill could not be done due
to lack of FFB supply and hence it functioned at a much
lower capacity of 3 MT/hr for many years. During this
time, the major supplier of raw material was Plantation
Corporation of Kerala, which is nearly 600 km away from
the unit. Recently, the mill was taken over by another
group namely Bhadravathy Balaji Oil Palms Ltd. and is
working at 10MT/hr capacity.
5.3.5 Goa
i)
Godrej Agrovet Ltd. established a 2.5 MT/hr mill
at Valpoi, Goa during 2001 with technical guidance from
RRL, Thiruvananthapuram and financial assistance from
TMOP. This mill caters to the needs of the state and
also receives some FFB from plantations in the
neighbouring Konkan region of Maharashtra. Presently,
it caters to the need of 400 ha Oil Palm plantations in
Goa.
5.3.8 Kerala
i)
During 1989, The RRL, Thiruvananthapuram
standardized indigenous technology for palm oil milling
by establishing a demonstration unit with 1 MT/hr
capacity at the then Research Centre of the Central
Plantation Crops Research Institute (CPCRI) at Palode,
Kerala, (currently, the Regional Station of the NRC for
Oil Palm) as a joint venture. The mill is still functioning
without much modification.
5.3.6 Gujarat
i)
The Oil Palm plantations established in Gujarat
during 1993-94 started bearing during 1997-98. To meet
the processing needs of these plantations, a traditional
mill was started by Kalyan Agrl.Crop Sales and
Processing Co-op. Society Limited during 1998-99 at
Maroli Bazar. This mill was, however, not enough for
meeting the processing needs of the then covered area
of 452 ha. Lack of processing and marketing facility
compelled the farmers to uproot the plantations.
Presently this mill is non-existent.
ii) With this experience, the RRL started extending

technical guidance in setting up of small to medium
capacity mills in various parts of the country. Later on,
the capacity of some of these mills was increased to
meet the requirement of the growing plantations. Some
large capacity mills were set up with the technical
guidance from Malaysia.
iii) During 1992, Mr. K.J. Thomas Kaithappadam of
Kuttanadu, Kerala installed a traditional FFB processing
unit in his homestead garden to process FFB from his
own garden. All the gadgets required for this small unit
were made by local artisans. Efficiency of this unit was
extremely low and processing was unhygienic. The
crude oil was used for frying purposes locally and for
conditioning of the wooden boats. Since the capacity
of the unit was low, he had to close the unit and supply
the FFB to the nearby small scale mechanical unit at
Kuravilangadu. Even though this traditional unit was
not successful, this gave confidence to farmers of
nearby area, and helped in promotion of Oil Palm
cultivation in that area.
ii) Since the farmers of Gujarat started uprooting the

palms due to lack of processing facility, a 2.5 MT/hr
plant was commissioned by Kalyan Agrl.Crop Sales and
Processing Co-op. Society Ltd. during 2001 by replacing
the traditional type mill with the technical guidance from
RRL, Thiruvananthapuram and financing from
TMOP&M. By the time the mill got established, the
plantations were uprooted due to lack of processing
facility and there was no FFB for the mill to process.
Even though this mill has a capacity to process FFB
from 313 ha mature plantation in the peak period, the
total area in fruiting stage at present is only 80 ha and
hence the mill is lying idle.
iv) A 5 MT/hr mill at Bharathipuram, Oil Palm India

Ltd. (OPIL), which is a joint venture of Govt. of Kerala
and Govt. of India installed another small mechanical
FFB processing unit of 1 MT/hr capacity in their Chithara
Estate during 1993. Later on with the commissioning of
5.3.7 Karnataka
i)
The Karnataka Horticulture Department
established a mill in Kabini, Karnataka under UNDP
programme during 1997. This unit is leased out to M/s
73

a modern unit during 1999, the 5MT/hr mill available at
Bharatipurum was shifted to Chithara. This mill is not
being put to use now.
allotted (during 2004-05) large areas are proposed to

be covered in the state. Accordingly three companies
viz. M/s Palm Tech Ltd., M/s Godrej Agrovet Ltd., M/s
Foods Fats and Fertilizers Ltd. have been identified to
develop area under Oil Palm and to establish processing
facilities. Three zones have also been identified in the
state for allotting each to these three companies.
v) OPIL established a modern palm oil mill of

20 MT/hr capacity at Bharathipuram in Kerala during
1999. This is the largest palm oil mill in India. A 5MT/hr
capacity mill was available there since 1982. The present
mill was established with the technical guidance of
Malaysian consultants. Though the lions share of its FFB
supply is from OPIL plantations itself, small scale
farmers in the nearby area also supply FFB to this mill.
However the mill is not in a position to run with full
capacity except in the peak season. The mill is, however,
self sufficient in energy generation. The boiler with
additional capacity produces steam for electricity
generation in a steam turbine. This mill is equipped with
kernel oil extraction unit and caters to the processing
need of 4,668 ha plantations.
5.3.11 Orissa
i)
No processing facilities exist in the State at present.
However to take care of the processing needs during
XI Plan, M/s Lakshmi Balaji Oils Pvt. Ltd. has been
identified as the entrepreneur.
5.3.12 Tamil Nadu

i)
A 2.5MT/hr capacity mill was established in
Perambalur district of Tamil Nadu by M/s Cauvery Palm
Oil Ltd., during 2003 with provision to expand it to 5MT/
hr with the financial assistance from TMOP&M and
technical assistance from RRL, Thiruvananthapuram.
Since the establishment of a processing mill was
delayed in Tamil Nadu, many farmers found it difficult to
market their produce and this caused uprooting of the
palms in many places. Presently the Oil Palm
development in Tamil Nadu is progressing well utilizing
this mill. This mill at present receives FFB from 227 ha
young plantations only and runs at much lower capacity.
vi) United Oil Palm Planters and Extractors Pvt. Ltd.,

an organization of a group of farmers in Kottayam district
of Kerala started a 300 kg/hr capacity mill during the
year 2000. The FFB from their own estate as well as
from nearby small plantation are being processed there.
Pressing in this mill was done by a hydraulic press, which
is less efficient. Capacity of this mill was not enough for
meeting the requirement of the adjoining plantations.
Recently a screw press is installed in place of the
hydraulic press. This mill by and large has helped in
developing small-scale Oil Palm cultivation in Kottayam
district of Kerala.
5.3.13 Tripura
i)
plan for a processing mill. Since the State Govt. has not
shown interest in area development, there is no
relevance for establishment of a processing unit in the
next plan also.
vii) The Central Plantation Crops Research Institute

(CPCRI), Kasaragod designed and developed a 250
Kg/hr capacity micro-palm oil mill equipped with a
hydraulic press during 1998. It is presently maintained
at the Regional Station of NRC for Oil Palm at Palode,
Kerala as a demonstration unit for small scale farmers.
This mill is suitable for 45 ha (matured) Oil Palm
plantation.
5.3.14 West Bengal

i)
Like Tripura, this state also does not have any area
under Oil Palm and the Govt. has not shown interest in
area development, even during the XI Plan. As such,
there is neither a processing unit in the state nor any
proposal for the same in the next Plan.
5.3.9 Maharashtra
i)
The total area under Oil Palm plantations in the
state is quite less. There is no processing unit
established at present. The FFB from the present
plantations is being procured by M/s Godrej Agrovet
Ltd. for processing in their Goa mill. To save loss of
quality as well as quantity, it is recommended that the
state establishes a small mill of 1 MT FFB/hr capacity
to bring relief to farmers already cultivating Oil Palm.
5.4 Processing Capacity

i)
Presently India has 18 palm oil processing mills
with capacity ranging from 0.30 MT/hr to 20MT/hr in
various states of the country with overall processing
capacity of 115 MT/hr (Table 5.2), which has a potential
to process FFB from 19,931 ha mature Oil Palm
plantations (based on 16 % FFB arrival in a peak month
assuming production of 18 MT/ha/year). A view of
Modern processing unit and heap of FFB ready for
processing is given in Plate 5.1. It is estimated that once
the presently covered 63,513 ha plantations start giving
5.3.10 Mizoram
i)
No processing unit is established so far as there
was no OPDP in the state up to the IX Plan. TMOP&M
74
Table 5.2: Total mill-wise and State-wise processing capacity available in India
Name of mill
A.P. Cooperative Oilseeds Growers
Federation Ltd.
Food Fats & Fertilizers Ltd.
Godrej Agrovet Ltd.
Navabharath Agro Products Ltd.
Radhika Vegetable Oils (Pvt.) Ltd.
South India Corporation (Agencies) Ltd.
Simhapuri Agro Products Pvt. Ltd.
Sri Srinivasa Palm Oil Mills
Sub Total (9)
Kalyan Agrl.Crop Sales and
Processing Co-op. Society Ltd.
Sub Total (1)
Bhadravathy Balaji Oil Palms Ltd.
Sub Total (2)
Location
Andhra Pradesh
Pedavegi, West Godavari
Yernagudem, West Godavari
Pothepalli, West Godavari
Jangareddygudem, West Godavari
Peddapuram, East Godavari
Garividi, Vizianagaram
Ampapuram, Krishna
Manubole, Nellore
Lungalavalasa, Srikakulam
Gujarat
Maroli Bazaar, Navsari
Capacity (MT/hr)
4.0
10.0
10.0
5.0
15.0
7.0
10.0
5.0
4.0
70.0
2.5
2.5
Karnataka
Bhadravathy, Shimoga
Kabini, Mysore
Kerala
NRC for Oil Palm
Palode, Thiruvananthapuram
Oil Palm India Ltd.
Anchal, Kollam
United Oil Palm Palnters & Extractors Ltd. Kuravilangad, Kottayam
Sub Total (3)
Tamil Nadu
Cauvery Oil Palm Ltd.
Varanavasi, Perambulur
Sub Total (1)
Goa
Godrej Agrovet Ltd.
Valpoi, Sattari
Sub Total (1)
A&N Islands
Andman Nicobar Islands Forest &
Little Andamans
Plantation Development Corporation
Sub Total (1)
Grand Total (18)
75
10.0
1.0
11.0
1.0
20.0
0.3
21.3
2.5
2.5
2.5
2.5
5.0
5.0
114.8
a stabilized yield of 18MT/ha/year, an overall processing

capacity of 366 MT/hr has to be ensured exclusively for
these plantations.
5.7 Oil Extraction Ratio (OER)

i)
The Oil Extraction Ratio (OER) is a measure of
the efficiency of entire palm oil production process,
which is expressed as a percentage of the crude palm
oil extracted to the total weight of FFB. It is influenced
both by the condition of the plantation and the efficiency
of processing mill. Plantation factors include climatic
parameters, source of planting material, management
practices, harvesting standards, method of FFB
procurement etc. Care and maintenance of machineries,
mechanisms to recover oil from waste streams, control
of spillage, proper steam supply and maintenance of
required temperature in all processing lines etc. are the
mill factors affecting OER. The notion that palm oil is
formed in the field and not in the mill; the mill merely
processes to recover it is significant for any programme
to improve OER or in other words the oil production
should start from the plantations. Tight management
and control on FFB harvesting, collection and handling
is necessary to improve OER. Factors affecting OER
are discussed later.
Plate 5.1
A modern palm oil mill
ii) Pollination has a significant effect on OER. Efficient

pollination results in more fruit setting, which affects
stripping efficiency in the mill. Effective pollination results
in more kernel percentage, which does not allow the
mesocarp to grow much, which in turn affects the OER
though Kernel Oil Extraction Rate (KER) being more.
However, the efficiency of pollination needs to be
improved in those palms which produce bunches with
less fruit setting to improve the fruit/bunch ratio.
iii) Underripe and unripe bunches are difficult to
sterilize and strip, thereby inflicting higher milling losses.
Over ripening causes loss of loose fruits during
harvesting, transportation and handling in the mill. Oil
loss in sterilizer condensate and absorption of oil in
bunch stalks increases with percentage of over ripe and
bruised fruitlets. Loose fruits are from the outer layer,
which contains more oil. Harvesting at right maturity is
thus, important to avoid low OER (Plate 5.2).
Heap of FFB in the factory premises
5.5 Capacity Utilization

The FFB procured and processed between 198889 and 2005-06 is tabulated in Tables 5.3(a) and 5.3(b)
During this period, total of 14,47,915 MT FFB were
processed indigenously.
5.6 Palm Oil/Palm Kernel Oil Produced
Plate 5.2
The crude palm oil and palm kernel oil produced

after Chadha Committee report during 1988-89 to 200506 is tabulated in Table 5.4 (a) & (b) and 5.5 (a) & (b).
During this period, total of 2,48,287 MT crude palm oil
and 28,559 MT palm kernel oil were produced
indigenously. Kernel oil extraction was done either in
local oil mills or exclusive kernel crushing units in the
un-organized sector since most palm oil mills are not
equipped with extraction facility. Hence the kernel oil
quantity is calculated from quantity of nuts/kernels
produced by individual mills.
Unripe
bunch
76
Underripe
bunch
Ripe
bunch
1988-89
Sub Total
Kerala
NRC for Oil Palm
15
Oil Palm India Ltd.
10,400
Sub Total
10,415
Goa
Godrej Agrovet Ltd.
Sub Total
Tamil Nadu
Sub Total
Gujarat
Sub Total
A&N Islands
ANIFPDC, A&N Islands
5,051
Sub Total
5,051
Grand Total (Processed)
14,466
* Quantity procured Data not available
Name of mill
Andhra Pradesh
Federation Ltd.
Food Fats & Fertilizers,
TP Gudem/ Yernagudem
Godrej Agrovet Ltd.
(Agencies) Ltd.
Sub Total
Karnataka
77
7,125
7,125
18,333
112
9,349
9,349
24,800
200
14,051
14,251
1,200
1,200
10,868
10,868
34,587
124
19,910
20,034
3,685
3,685
688*
102*
112
3,685
1,200
112
1994-95
1993-94
1992-93
4,215
3,392
5,837
4,215
3,392
5,837
14,585
15,839
18,175
Not started functioning
1991-92
75
11,021
11,096
23
12,424
12,447
1990-91
76
12,262
12,338
17
10,353
10,370
1989-90
9,088
9,088
36,454
110
19,901
20,011
7,355
6,864
6,864
64,482
7*
7*
9,771
9,771
55,221
46*
46*
361*
361*
159*
159*
8,515
8,515
42,412
642*
642*
53
21,972
22,025
119
19,771
19,890
167
285
37,443
23,425
37,443
4,330
1,191
23,425
6,441
11,837
12,971
12,975
1,07,290
74*
74*
900*
900*
122
22,792
22,914
1,261
1,215
70,190
70,190
2,191
7,596
5,070
21,682
15,750
5,193
960
7,642*
12,708
1999-00
13,875
1998-99
4,278
7,358
3,204*
10,598
1997-98
123
21,951
22,074
11,823
11,823
1,701
831
119
7,355
2,676*
9,291
1996-97
1,573*
7,236
1995-96
Table 5.3a: FFB procured and processed (MT) during 1988-89 to 1999-00
Name of mill
78
Sub Total
Sub Total
Sub Total
Tamil Nadu
Sub Total
Gujarat
Kalyan Agrl.Crop Sales and Processing
Co-op. Society Ltd.
Sub Total
A&N Islands
Sub Total
Grand Total (Processed)
* Quantity procured
Data not available
Goa
Godrej Agrovet Ltd.
Kerala
NRC for Oil Palm
Oil Palm India Ltd.
A.P. Cooperative Oilseeds Growers Federation Ltd.

Food Fats & Fertilizers, TP Gudem/ Yernagudem
Godrej Agrovet Ltd.
Palm Tech India
South India Corporation (Agencies) Ltd
Sub Total
Karnataka
Andhra Pradesh
1,07,594
75,877
6.20
8,957
8,957
1,57,819
29.28
36.25
10,011
9,801
10,011
9,801
1,18,568
1,52,132
6.20
434 *
434 *
2,774
2,774
63.9
32,992
33,056
29.28
229 *
229 *
1,611
1,611
140.13
31,589
31,729
689
1,472 *
1,543
2,232
1,10,771
17,977
5,955
28,211
2792
27,997
5,540
17,495
4,804
2002-03
36.25
164 *
164 *
1,150 *
1,150 *
144.03
31,016
31,160
1,443 *
1,372
1,372
28,763
4,775
19,535
4,696
6,574
4,781
22,985
5,638
1,605 *
1,484
1,484
15,889
6,871
27,065
2001-02
9,548
5,137
21,214
2000-01
10,742
10,742
1,83,266
255* 268
255* 268
2,757
2,757
83.57
32,298
32,382
754
1,786 *
2,082
2,836
1,36,253
20,502
7,694
29,350
10315
34,629
6,764
22,505
4,494
2003-04
Table 5.3b: FFB procured and processed (MT) during 2000-01 to 2005-06
7,841
7,841
1,83,289
739
739
2,800
2,800
40.34
29,749
29,789
1614
2,020 *
2,088
3,702
1,38,412
17,876
9,294
31,856
14288
31,148
8,915
20,121
4,914
2004-05
3,864
3,864
2,03,197
1,202
1,202
2,677
2,677
72.54
33,408
33,481
2,143
2,267 *
2,382
4,525
19,872
13,596
35,106
22293
32,842
6,864
20,963
3,652
2,240
1,57,428
2005-06
79
560
560
2,597
2
2,035
2,037
1988-89
A&N Islands
Sub Total
Grand Total
Sub Total
Name of mill
Andhra Pradesh
Federation Ltd.
Godrej Agrovet Ltd.
(Agencies) Ltd.
Sub Total
Karnataka
Sub Total
Kerala
NRC for Oil Palm
Oil Palm India Ltd.
Sub Total
Goa
Godrej Agrovet Ltd.
Tamil Nadu
Gujarat
433
433
2,955
4
2,518
2,522
562
562
2,896
11
2,323
2,334
* Data not available
506
506
2,618
4
2,108
2,112
1,266
1,266
3,527
1,525
1,525
4,699
31
2,949
2,980
194
17
12
2,232
2,244
194
17
1,745
1,745
6,616
19
4,370
4,389
482
482
1,544
1,544
6,442
14
3,948
3,962
1,426
1,426
7,725
13
4,264
4,277
2,022
279
165
19
936
1,578
917
1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97
Table 5.4a: Crude oil produced (MT) during 1988-89 to 1999-00
1,205
1,205
10,500
1,700
1,700
9,629
15
3,399
3,414
*
44
44
4
4,104
4,108
5,837
712
199
3,821
957
1,892
814
150
2,314
2,314
16,942
0.6
0.6
18
4,653
4,671
*
183
183
9,773
379
*
802
3,460
2,575
1,743
2,126
702
1,174
1,746
1997-98 1998-99 1999-00
80
* calculated assuming average OER is 15%
Andhra Pradesh
Godrej Agrovet Ltd.
South India Corporation(Agencies) Ltd
Sub Total
Karnataka
Sub Total
Kerala
NRC for Oil Palm
Oil Palm India Ltd.
Sub Total
Goa
Godrej Agrovet Ltd.
Sub Total
Tamil Nadu
Sub Total
Gujarat
Sub Total
A&N Islands
Sub Total
Grand Total
Name of mill
3.75
3.75
1,840
1,840
26,306
5.4
5.4
1,801
1,801
25,636
1,697
1,697
28,528
4.35
4.35
486
486
2,044
2,044
30,796
4.2
1,475
1,475
30,169
0.9
0.9
111
111
51
51
4.2
490
490
6
5,793
5,799
282
366
648
21,645
2,938
1,493
5,638
2,230
3,605
1,434
3,535
772
2004-05
483
483
11
6,733
6,744
131
366
497
121
278
399
282
282
244
244
245
245
20,973
3,240
1,127
4,948
1,632
4,511
1,055
3,773
687
2003-04
19,361
9
6,572
6,581
17,800
17,023
3,037
918
5,076
441
5,040
917
3,143
789
2002-03
18
6,118
6,136
4,351
801
3,407
704
5,136
822
4,129
889
22
6,540
6,562
2,819
1,092
4,626
2001-02
1,516
809
3,722
2000-01
Table 5.4(b): Crude oil produced (MT) during 2000-01 to 2005-06
852
852
29,706
178
178
469
469
10
6,478
6,488
377
380
757
1,121
3,606
572
421
20,959
3,248
2,392
6,123
3,476
2005-06
81
224.0
223.9
223.9
1988-89
256.0
256.1
256.1
1989-90
304.0
303.8
303.8
329.0
328.5
328.5
1990-91 1991-92
500.0
136.2
136.2
61.3
61.3
359.0
321.5
321.5
42.3
4.3
293.8
293.8
42.3
4.3
730.0
155.8
155.8
451.7
451.7
122.5
122.5
1992-93 1993-94 1994-95
800.0
132.0
132.0
425.4
425.4
986.0
121.8
121.8
514.7
514.7
349.2
27.0
13.3
1.7
242.3
308.9
240.6
1995-96 1996-97
(*Calculated from the nuts/kernels produced in the mill by taking kernel content in nuts as 50% and extractable oil in kernel as 35%)
Grand Total
Name of mill
Andhra Pradesh
Federation Ltd.
Godrej Agrovet Ltd.
Palm Tech India
(Agencies) Ltd.
Sub Total
Karnataka
Sub Total
Kerala
Oil Palm India Ltd.
Sub Total
Goa
Godrej Agrovet Ltd.
Tamil Nadu
Gujarat
A&N Islands
Sub Total
Table 5.5(a): Kernel oil produced* (MT) during 1988-89 to 1999-00
1,177.0
120.8
120.8
493.2
493.2
1,385.0
109.6
109.6
435.4
435.4
4.1
4.1
835.9
75.4
19.5
562.9
89.1
192.5
81.5
17.6
1,788.0
185.2
185.2
192.8
192.8
16.8
16.8
1,392.8
40.2
129.4
84.9
356.0
278.3
422.5
1999-00
461.3
75.1
115.9
352.4
1997-98 1998-99
82
2,254.0
Grand Total
3,217.0
135.8
135.8
3,790.0
3,446.0
106.4
106.4
25.8
25.8
10.2
10.2
170.5
170.5
48.7
48.7
48.1
48.1
640.4
640.4
38.3
37.4
75.7
2,548.7
637.8
86.9
565.8
85.8
628.2
131.3
331.5
81.4
2004-05
4,048.0
48.0
48.0
45.6
45.6
46.6
46.6
754.6
754.6
48.7
25.4
74.1
699.0
77.8
626.7
445.9
677.9
102.3
340.9
71.5
37.5
3,079.5
2005-06
(*Calculated from the nuts/kernels produced in the mill by taking kernel content in nuts as 50% and extractable oil in kernel as 35%)
2,967.0
135.1
135.1
48.3
48.3
743.0
743.0
16.5
37.4
53.9
15.7
32.8
48.5
28.2
28.2
21.2
21.2
25.9
25.9
2,764.7
681.7
106.9
513.6
206.3
706.7
109.1
370.3
70.1
2003-04
2,237.8
746.7
746.7
2,129.4
1,438.3
597.7
80.2
504.0
55.8
541.5
94.5
289.1
75.0
2002-03
653.2
653.2
556.2
77.3
321.3
74.3
148.1
77.2
371
94.4
653.6
653.6
528.3
89.0
483.0
2001-02
317.5
54.5
375.6
135.8
135.8
2000-01
Andhra Pradesh
Godrej Agrovet Ltd.
South India Corporation(Agencies) Ltd.
Sub Total
Karnataka
Sub Total
Kerala
Oil Palm India Ltd.
Sub Total
Goa
Godrej Agrovet Ltd.
Sub Total
Tamil Nadu
Sub Total
Gujarat
A&N Islands
Sub Total
Name of mill
Table 5.5(b) Kernel oil produced*(MT) during 2000-01 to 2005-06
iv) One of the principal causes for incomplete and
loose fruit collection and high percentage of unripe
bunches is the shortage of labour. It results in less
optimum harvesting interval being practiced and
relaxation of harvesting standards, which in turn lead
to more unripe bunches. Loose fruit collection and
selective harvesting by observing maturity standards is
labour intensive, lack of which has an indirect effect on
OER. Long harvesting intervals thus need to be avoided
to reduce handling losses and improve OER.
FFB grading is such a process, whereby, FFBs are

assessed and classified according to the degree of
ripeness and quality. Palm oil mills in Malaysia, the
country which leads in palm oil production in the world,
follow grading system as in Box 5.1. Successful
implementation of grading requires well-defined grades
according to quality. Different FFB quality grades defined
by Palm Oil Registration and Licensing Authority
(PORLA), suitable for Malaysian conditions are
presented in Box 5.2. Similar bunch classification
standards need to be developed for Indian conditions
also.
v) The trash contamination in FFB reduces OER in

two ways. It contributes to the weight of non-oil portion
of the bunch and causes reduction in the calculated
OER by reducing the ratio. It also causes higher oil
losses by way of absorbing oil during processing. Trash
commonly refers to all foreign non-fruit components in
the FFB. This includes calyx, leaves, palm fronds,
spikelets/stalk fragments as well as non-vegetative
matter such as soil and stones. The harvesters, therefore
need to pick up the fruits rather than scraping them into
basket with debris. Further, the FFB handling may be in
perforated baskets so that stones and debris can be
sieved through.
ix) The extent of pressure and time in sterilization

decides the efficiency of stripping, and hence improper
sterilization causes unstripped fruits, which lower OER.
An OER drop of up to 1% due to inadequate FFB
sterilization (such as boiler incapacitation) is not
uncommon despite maintenance of good ripeness
standard in the plantation and observing other mill
management factors. Proper sterilization has to be
ensured particularly for bunches having more fruit
setting. In modern milling technology, unstripped
bunches are crushed in bunch crushers and fruits are
recovered by beater arms. The crushed bunches are
easy to dry and get decomposed. Effective stripping
has to be ensured so that all the unstripped bunches
(USB) are collected and recycled. The rpm of the stripper
should be adjusted to ensure proper tumbling of the
bunches.
vi) OER in Malaysian mills collecting FFB from small

holders and dealers is as low as 16 percent where as
OER of the mills processing own crop is more than 20
percent. This difference is attributed to the poor
harvesting and handling practices followed by the
farmers and dealers. Comparatively, high OER reported
by OPIL, Kerala and ANIFPDC Mill, A&N islands that
process their own crop underlines this observation. This
further emphasizes the need for improving the
harvesting and handling practices followed by the
farmers.
x) The efficiency of extraction equipment decides

extent of loss of oil through press fibre. Adoption of
modern technologies, proper care and maintenance of
the pressing equipment are the factors to be taken care
of. The wear and tear of screw presses has to be
monitored regularly and proper care has to be taken to
maintain its efficiency by maintaining the screw
geometry.
vii) It is interesting that high OER seems to be in the

low production period and low OER in the high
production period in India. Maximum fruit production is
reported during June-September, which is coupled with
rainy season. Low OER in this season can be attributed
to poor harvesting standards due to adverse weather/
labour shortage as well as the non-oil material weight
added due to rainwater. The trash contamination also
is more during rainy season. Since rainwater adds to
the weight of non-oil portion of the bunch, bunches have
to be covered with waterproof covers during handling
and transportation. Other effects of climatic factors in
the total oil content of bunches need detailed study.
xi) Less efficient equipments for oil recovery from the

oil-water-sludge mixture cause more oil loss through
Palm Oil Mill Effluent (POME), which also affects OER.
Sludge centrifuges are to be used for recovering oil from
the clarifier back wash. Extent of recovery of oil from
POME is another factor. The loss of oil in sterilizer
condensate can be avoided by recycling it to the screw
press for diluting the press liquid.
xii) Temperature maintenance in all stages of milling
is important for which sufficient boiler and back pressure
should be ensured. Good boiler pressure is for steady
running of the mill and good back pressure is for
complete sterilization of fruit to ensure proper
conditioning for maximum oil extraction. Proper
viii) In order to improve OER, there is need to develop

a mechanism in the processing units to check the FFB
quality. This would act as a corrective measure for the
farmers to improve their products and improve OER.
83
Box 5.1
FFB grading procedure followed in Malaysian palm oil mills
FFB
Consignment
Unload and Take

Minimum Sample
50-100 Bunches
Separate and
Grade Sample
Record
Grading Data
Good Quality
Bunches
Result
Poor Quality
Bunches
No
Penalty
Reject
Load
Penalty
Pay According to
Basic Extraction
Ratio*
Return to
Supplier
Pay According to
Graded
Extraction Ratio*
* The basic extraction rate is the theoretical extraction rate, which is also the maximum extraction rate for oil
and kernel.
(Source: Fresh Fruit Bunch Grading Manual (Revised edition), 1995, Palm Oil Registering and Licensing
Authority, Ministry of Primary Industries, Malaysia)
84
Box 5.2
Palm Oil Registering and Licensing Authority (PORLA), Malaysia classification of oil palm FFB
Bunch Grades
Description*
Ripe Bunch
Reddish orange in colour, outer layer fruit mesocarp is orange in

colour, has at least 10 fresh sockets of detached fruitlets and more
than fifty percent (50%) of the fruits still attached to the bunch.
Reddish orange or purplish red in colour, outer layer fruits mesocarp
yellowish orange in colour and has less than 10 fresh sockets of
detached fruitlets.
Black or purplish black in colour, outer layer fruits mesocarp is
yellowish in colour, does not have any fresh sockets of detached
fruitlets and sockets (if any) on the bunch are not due to normal
ripening process.
Fruits are darkish red coloured and has more than fifty percent (50%)
of detached fruitlets but with at least ten percent (10%) of the fruits
still attached to the bunch.
Has more than ninety percent (90%) of detached fruitlets.
Partly or wholly and together with its loose fruits, has turned blackish
in colour, rotten and mouldy.
Has a stalk of more than 5 cm in length (measured from the
lowest level of the bunch stalk).
Has been harvested and left at the field for more than 48 hours before
being sent to the mill. The whole fruit or part of it together with its stalk
has dried out. Normally, this type of bunch is dry and blackish in
colour.
Has been harvested and left at the field before being sent to the mill.
The fruits still remaining on the bunch are dry and brownish black in
colour. The stalk is also dry, soft, fibrous and blackish in colour.
With more than half of its surface covered with mud, sand, other dirt
particles and mixed with stone or other foreign matters.
Has small fruits and weighs less than 2.3 kg. (5 lbs.)
With more than thirty percent (30%) of its fruits damaged by pest
attack such as rats, birds etc.
Has more than fifty percent (50%) parthenocarpic fruits and is not
normal in terms of its size or its density.
With shell thickness of 2-8 mm, Ratio of shell to fruit of 25-50%,
Ratio of mesocarp to fruit of 20-60%, Ratio of kernel to fruit of 4-20%
and with no fibre ring around the shell
Fruit detached from a fresh fruit bunch because of ripeness and is
reddish orange in colour.
Consignment of fresh fruit bunches (FFB) which has excessive free
water.
Underripe Bunch
Unripe Bunch
Overripe Bunch
Empty Bunch
Rotten Bunch
Long Stalk Bunch
Unfresh bunch
Old bunch
Dirty Bunch
Small Bunch
Pest Damaged Bunch
Diseased Bunch
Dura Bunch
Loose Fruit
Wet Bunch
* At the time of inspection at mill.
85

temperature is to be ensured for proper digestion to
ensure that oil cells are ruptured for maximum oil
extraction. Good temperature has to be maintained in
the entire system to keep the viscosity at a minimum
for ease of oil particle release from the press liquid.
more trash contamination in a sizable quantity of the

annual production. Any steps to improve the oil quality
should start from the plantations, as the quality of
finished products cannot be assured as long as
processors are not assured of receiving good quality
raw materials.
5.8 Oil Quality and Quality Control
v) Other post-harvest factors at processors level that

affect oil quality are extraction method, maintenance of
oil storage tanks, handling of crude oil, refining practices
etc. During processing also there are chances for metal
contamination from different machineries and steam
lines in storage tanks and microbial contamination due
to improper cleaning of fruit loading platforms,
conveyors, oil lines, storage tanks etc. There is always
chance for contamination with left over oil or fruits of
the previous processing, particularly during lean season
when mill is closed for some days due to shortage of
FFB. Hence the standard practices to be followed in a
palm oil processing unit required during storage and
shipping of Oil Palm products need to be identified in
consultation with experts and specified in
implementation by processing units.
i)
Studies on health aspects of palm oil confirm that
its impact on blood cholesterol and lipoprotein are
beneficial. Studies have shown that palm oil enriched
diet did not raise blood cholesterol, but in fact reduced
the levels of blood cholesterol and LDL-cholesterol
compared with diet containing coconut oil, butter fat,
vegetable ghee or hydrogenated cottonseed oil.
Unrefined palm oil is one of the richest source of betacarotene, which is widely regarded as an anti-cancer
agent of great promise. It is therefore, essential to
improve its quality and ensure quality control.
ii) Assuring the quality of palm oil is a pre-requisite
for promoting its edible utilities. Since palm oil has been
considered more an industrial oil in India, the palm oil
industry has not been much quality conscious. It is high
time to popularize the edible utilities of this promising
oil to promote this cheap and nutritious oil in the country.
There should be a mechanism to monitor the end uses
of indigenously produced palm oil and to curtail its use
for industrial purposes as the industry is promoted by
the Govt. to maximize edible oil production in the country.
vi) Quality variation due to variation in process

parameters is a factor, which needs attention. For
instance, some mills follow continuous sterilization for
1 hour, while in others intermittent sterilization or
sterilization for 45 minutes is enough. In some mills,
clarification is done at higher temperature for more time,
which results in deep coloured oil. Such variability in
mill operations causes variation in quality of finished
product. Hence co-ordination and uniform processing
standards for all the mills are to be ensured for uniform
quality product. Standard practices for mill operation and
management need be laid down in consultation with
experts.
iii) The term oil quality represents two types of quality

viz., the quality affected by harvest and post harvest
factors and the inherent quality. In palm oil, quality
affected by harvest and post harvest management
factors is Free Fatty Acid (FFA) content, colour, metallic
contamination, dirt, microbial load etc. FFA induces
rancidity and bad odour to the crude oil. High FFA
content causes problem with neutralization during
refining, and hence increases refining costs. The
allowable limit of FFA is 5 percent in edible palm oil. In
order to reduce the FFA, it is recommended that FFB
should be processed as early as possible, i.e. within 24
hours of harvest.
vii) The inherent qualities of palm oil are its long shelf
life, presence of natural antioxidants, less requirement
of hydrogenation due to moderate level of saturation,
equal proportion of saturated and unsaturated fatty
acids, maximum tocotrienols and carotenoids etc. It has
15 times more retinol-equivalent than carrots and 50
times more than tomatoes. More than 80% of the
carotenoids are still retained in the specially refined
product called Red Palm Oil.
iv) The harvest and post harvest factors at farmers

level that affect oil quality, harvesting standards, bunch
collection methods and handling practices, all of which
affect the quality of bunch. Processing of over ripened,
unfresh and dirty bunches results in lowering the quality
both by way of increasing FFA content and microbial
load. Delay in bunch collection and supply to the mill
from interior villages, lack of transportation facilities etc.
are other related factors causing quality deterioration.
Occurrence of monsoon during the peak season causes
viii) It is recommended to constitute a Oil Palm

Development Authority which can act as a body not only
for promoting Oil Palm cultivation but also laying down
quality standards for palm oil, monitoring the quality of
raw materials, quality control in processing units, storage
of finished products, shipping of the produce etc. The
specific functions of the body can be:
86
To formulate policies and progrmmes for expansion

of area and improving productivity in Oil Palm.
To formulate and establish a grading system for FFB.
To create awareness on quality and promotion of quality
consciousness among farmers.
To define the grades and standards for palm oil
products.
To chalk out standard practices for the palm oil industry
to ensure quality.
To inspect and issue license to palm oil mills to ensure
process quality control.
To regulate and improve the storage and shipping
of Oil Palm products.
To arrange training programme for farmers and
officials on oil quality.
sustainable method to combat Vitamin A deficiency in

children.
v) The practice of using a particular oil for cooking is
part of tradition, culture and habbit of people. Thus the
superior quality oils take time to replace traditional
cooking oils through canvassing or educating people.
Hence one way of popularizing palm oil in Indian diet is
to promote value added products from palm oil. With
this in view, the value added products from palm oil need
to be developed to suit Indian cuisine.
vi) It is estimated that at the end of XI Plan, the
indigenous production of crude palm oil per year would
be 4,14,695 MT and by end of XII Plan the production
would be 10,59,764 MT, if the area expansion as
suggested is followed. The non-food uses of palm oil
and palm kernel oil can be promoted at a stage wherein
domestic production is in excess of the requirement for
food purposes.
5.9 Value Addition

i)
Palm oil and palm kernel oil have a wide range of
applications; while about 80% of the world production
is used of food applications, the rest is feedstock for a
number of non-food applications.
5.10 Waste Utilization

i)
Utilization of waste from Oil Palm industry is one
of the strategies to reduce production cost and make
oil palm cultivation more competitive and remunerative.
Besides, it also helps in environment friendly disposal
of waste. There are two categories of biomass available
from oil palm industry, namely, plantation wastes and
mill wastes. Plantation wastes include palm trunk and
fronds while the mill wastes include Empty Fruit Bunches
(EFB), Palm Press Fibre (PPF), Palm Kernel Shells,
Palm Kernel Cake (PKC) and Palm Oil Mill Effluent
(POME)(Plate 5.3).
ii)
Among the food uses, refined, bleached and
deodorized (RBD) olein is used mainly as cooking and
frying oils, shortenings and margarine while RBD stearin
is used for the production of shortenings and margarine.
In the production of ice cream, milk fats are replaced
by a combination of palm oil and palm kernel oil. A blend
of palm oil, palm kernel oil and other fats replace milk
fat for the production of non-diary creamers or whiteners.
Palm oil and palm kernel oil are also ingredients for
production of specialty fats, which include Cocoa Butter
Equivalents (CBE) and Cocoa Butter Substitutes (CBS)
and general-purpose coating fats.
ii) The issue of palm trunk utilization arises only in

case of replanting. The oldest Oil Palm plantations are
yet to be replanted in the country. Studies in Malaysia
indicate that furniture made from Oil Palm trunk has a
tiger strip design and is suitable for international
markets.
iii) Among the non-food uses, palm oil and palm kernel
oil are used in the oleochemical industry (chemicals
derived from natural oils/fats, which are analogous to
petrochemicals derived from petroleum). Oleochemicals
can be used for the production of candles, cosmetic
products, soaps, pharmaceuticals, lubricants, textiles,
rubber/plastic processing, etc. Direct applications of
palm oil include the use of CPO as bio-lubricants, drilling
mud, soaps and epoxidised palm oil products (EPOP),
polyols, polyurethanes and polyacrylates. Research
results have shown that crude palm oil can be used
directly as a fuel for cars with suitably modified engines.
iii) Large number of fronds have to be cut during

harvesting and hence disposal of fronds often creates
problem to the farmers. Fronds heaped in plantations
often hinder the movement of transportation devices,
tillage machinery etc. and act as host for insects, snakes
etc. It is, therefore, recommended to shred the fronds
with frond cutter and use them for vermi-composting or
mulching. NRCOP has developed a power tiller operated
mobile Oil Palm waste shredder, which is suitable for
in-field disposal of fronds in small plantations. However,
to suit medium and large-scale plantations, a tractor
operated frond shredder needs to be developed or
procured. The presently available models are not
popular due to their functional drawbacks. Studies at
iv) RRL, Thiruvananthapuram has developed

indigenous technology for production of Red Palm Olein
(RPO) that retains 80 percent of the original carotenes
and Vitamin E. This can be used as a Vitamin A
supplement particularly for children. It has also
demonstrated a cost effective (30 paise /child/day) and
87

Plate 5.3
Empty fruit bunches
Oil Palm fronds
Palm press fibre
Palm kernel shell
Palm oil mill effluent
substitute/supplement for coir fibre and industries should

be encouraged to produce of EFB fibres. It would be
worthwhile to seek collaboration with private industries
in this field.
NRCOP indicated that fronds are also suitable for

gasification.
iv) The Empty Fruit Bunches (EFB) of Oil Palm, a left
over of fruit stripping operation in palm oil mills are
mostly wasted excepting a meager quantity used in
mulching. The conventional method of burning these
residues often creates severe air pollution. On an
average 0.25 MT of EFB is produced/MT of FFB
processed. EFB is an abundant source of natural fibre
with 25.08 percent lignin, 59.86 percent cellulose and
2.17 percent hemicellulose content. EFB fibres are
clean, biodegradable than many other fibres from other
wood species and are suitable for the manufacture of
mattresses, car seats, insulation, composite panels,
medium-density fibreboards, thermal insulating
materials, packaging materials, rubberized mattresses,
coir geo-textiles etc. The EFB fibre extractor developed
and commercialized by NRCOP would be suitable for
extracting and grading EFB fibre continuously
(Plate 5.4). The lab scale technologies developed by
the centre for manufacture of medium density fibre
boards, rubberized mattress, blended yarn and cushions
etc. from EFB fibre need upgradation and popularization.
Natural fibre from EFB needs to be popularized as a
v) The palm kernel shells and palm press fibre can

be directly fed to the boiler as fuel in the processing
units (Plate 5.5). It is estimated that fibre and shell from
1 MT FFB has potential to generate 6,02,430 Kcal of
energy. Shell can produce high quality activated carbon,
phenol, methanol and acetic acid through destructive
distillation. Such technologies have to be standardized
indigenously.
vi) Palm kernel cake (PKC) contains 15 percent
residual oil, which is extracted by solvent extraction up
to 1 percent residual oil level. Solvent extracted cake is
used for fish/cattle feed manufacture.
vii) Palm oil mill effluent (POME) does not contain any
chemicals and is rich in nutrients. When applied in a
controlled manner, it can replace normal fertilizer to a
large extent. The residual oil content and organic content
in POME make it suitable for feed manufacture.
Indigenous technology needs to be developed for value
addition of POME.
88
will certainly cause load on the national power grid in
the coming years. Hence captive power generation
plants in conjunction with palm oil processing units need
to be popularized.
Plate 5.4
iv) The other two waste products, which can be

utilized as energy resources are empty fruit bunches
and palm oil mill effluent. It is estimated that dry empty
fruit bunch has a calorific value of 2,97,850 Kcal. Due
to the high initial moisture content and related difficulty
in drying and also due to high content of sulphur it is
believed that EFB is not suitable for direct feeding in
boilers. However, EFB to a limited extent is being used
for boiler firing purposes by industries other than palm
oil mills. Biogas produced during anaerobic digestion
of POME has calorific value of 1,10,864 Kcal. In
Malaysia biogas thus generated is being used for
industrial purposes. Such systems can be planned in
the country at a later stage.
Extraction of fibre from FFB

Plate 5.5
5.12 Environmental Issues

i)
Palm oil mills produce environmental pollutants like
oily effluent with high organic content, smoke &
particulate air emissions, undisposed empty fruit
bunches, odour and noise. Accordingly the
environmental issues in palm oil processing units are
primarily related to:
Water pollution due to indiscriminate discharge of

untreated or partially treated effluents into public
water courses.
Improper interim storage of solid waste materials

like boiler ash, decanter solids, empty fruit
bunches, dry sludge etc.
Improper soil application of POME.
Air pollution due to agro waste fired boilers and

burning of empty fruit bunches.
Odour emission from poorly managed POME

treatment ponds and fruit residues.
Noise from milling process.
Palm press fibre and shells as boiler fuel
5.11 Energy Management

i)
The energy requirement in a palm oil mill is in the
form of heat energy for steam generation in boilers and
electrical energy for running various machineries. The
PPF and shells produced in the mill are sufficient for
running the boilers. In all palm oil mills, the boiler is
fired with these waste products.
ii)
Palm kernel shells would be available in excess
quantity in those mills where kernel crushing is practiced.
Such mills can go for captive power generation by using
steam turbines, wherein the excess PPF and shells can
be used as fuel. In India, three palm oil mills viz. OPIL,
Kerala, Palm Tech Ltd. and Foods Fats and Fertilizers
Ltd., Andhra Pradesh are equipped with steam power
generation plants and the generated power is used for
mill operations. Some of the mills are also generating
excess power, which is being supplied to the national
power grid.
ii) Even though POME does not contain any

chemicals, its high biological oxygen demand (BOD)
creates environmental problem by depleting oxygen of
water bodies and putting aquatic life to suffocate. It is
estimated that 1-1.5 MT of water is required for
processing 1 MT of FFB of which about half of the water
ends up as effluent and rest lost as vapour during
various operations. It is estimated that untreated POME
from a 30 MT/hr mill has an organic content equivalent
to raw domestic sewage from a population of 3,00,000
persons.
iii) Oil Palm development in the country, as envisaged

needs additional processing units to be installed, which
89

iii) The present POME treatment system in palm oil
mills involves anaerobic, aerobic and facultative pond
treatment stages, which require large area and close
monitoring during operation. Lack of proper care and
maintenance of treatment systems often creates
environmental hazards.
mill capacity currently available with rest of the

processing units is either more than required or is
expandable to meet the needs upto 2006-07. The millwise and state-wise future projection of processing
capacity from 2006-07 to 2016-17 are tabulated in Table
5.6 and 5.7, Table 5.8a and 5.8b, Table 5.9a and 5.9b.
iv) Since the POME contains no chemicals and is

suitable for making value added products like feeds and
fertilizers, treatment systems should envisage the scope
of value addition also. The high temperature of POME
when discharged from the mill and excess boiler
capacity in many mills would be congenial for employing
multiple effect evaporator to concentrate it and treating/
value addition thereafter. The study already initiated by
NRCOP on using multiple effect evaporator system for
POME treatment needs to be continued.
ii)
The mill-wise future capacity requirement was
calculated by obtaining the FFB arrival projection by each
mill. The state-wise data was calculated in two steps, i.e
1) the processing capacity required for already covered
plantations, when they become mature and start giving
stabilized yields. 2) The year wise processing capacity
required for meeting the processing needs of the area
proposed for coverage from 2006-07 onwards, which is
calculated based on the age of plants and corresponding
yields.
5.13 Required Processing Capacity
iii) Once the presently covered 63,513 ha plantations

starts giving stabilized yields, it is estimated that an
overall processing capacity of 366 MT/hr has to be
ensured exclusively for these plantations against the
present processing capacity of 115MT/hr. The capacity
required for the targeted area would be over and above
this.
i)
The area expansion potential has been discussed
in Chapter 2 of this report. The strategy would call for
enhancement of processing capacity both by
upgradation of existing processing units and also
establishment of new mills. Except in AP OILFED, the
Table 5.6: Projected processing capacity required for various States for 2006-07
State
A&N Islands
Andhra Pradesh
Goa
Gujarat
Karnataka
Kerala
Tamil Nadu
Total
FFB expected*
Mill capacity
required (MT/hr)
1.3
61.9
0.9
0.3
1.7
11.2
0.8
78.1
4,000
1,94,420
2,800
1,000
5,300
35,000
2,500
245020
* Obtained from the future projection data of each mills.
90
Present
capacity (MT/hr)
5
70
2.5
2.5
11
20
2.5
113.5
Bearing area
available
(ha)
Andhra Pradesh
Federation Ltd.
Food Fats & Fertilizers
1,762
Godrej Agrovet Ltd.
2,951
5,045
750
1,887
(Agencies) Ltd.
960
Sub Total
13,355
Karnataka

583
Sub Total
583
Kerala
Oil Palm India Ltd.
4,668
Sub Total
4,668
Goa
Godrej Agrovet Ltd.
400
Sub Total
400
Tamil Nadu
227
Sub Total
227
Gujarat
80
Sub Total
80
A&N Islands
1593
Sub Total
1593
Grand Total
20906
*
Obtained from the future projection data of each mills.
Particulars of mill
10.3
6.0
12.5
7.4
12.2
2.2
8.0
1.4
1.9
61.9
0.6
1.1
1.7
11.2
11.2
0.9
0.9
0.8
0.8
0.3
0.3
1.3
1.3
78.1
19,618
39,000
23,000
38,211
7,000
25,051
4,500
6,000
1,94,420
2,000
3,300
5,300
35,000
35,000
2,800
2,800
2,500
2,500
1,000
1,000
4000
4000
245020
Mill capacity
required
(MT/hr)
32,040
FFB
expected
(MT) *
91
5.0
5.0
113.5
2.5
2.5
2.5
2.5
2.5
2.5
20.0
20.0
10.0
1.0
11.0
5.0
4.0
70.0
10.0
5.0
15.0
7.0
10.0
10.0
4.0
Present
capacity
(MT/hr)
Table 5.7: Projected processing capacity required for existing mills for 2006-07
5.0
5.0
220.5
5.0
5.0
5.0
5.0
5.0
5.0
45.0
45.0
20.0
1.5
21.5
10.0
4.0
134
30.0
15.0
30.0
10.0
15.0
20.0
Capacity to which
expansion can
be done (MT/hr)
07-08
FFB expected (MT)*

08-09
09-10
10-11
11-12
Andhra Pradesh
37,513
41,810
44,610
46,499
48,087
Federation Ltd.
24,270
30,847
41,266
43,062
80,073
Godrej Agrovet Ltd.
44,000
49,000
58,000
80,500 1,05,000
24,150
25,257
28,624
27,952
29,353
47,479
61,686
83,003 1,10,522 1,42,904
9,000
12,000
15,000
25,000
30,000
South India Corporation (Agencies) Ltd.
29,254
35,329
46,332
56,457
NK
6,000
7,000
10,000
11,000
12,000
8,000
10,000
12,000
15,000
19,000
Sub Total
2,29,666 2,72,929 3,38,835 4,15,992 4,66,417
Karnataka
3,000
4,000
10,000
20,000
40,000
3,600
5,000
8,000
11,000
16,000
Sub Total
6,600
9,000
18,000
31,000
56,000
Kerala
Oil Palm India Ltd.
40,000
48,000
58,000
70,000
90,000
Sub Total
40,000
48,000
58,000
70,000
90,000
Goa
Godrej Agrovet Ltd.
3,500
4,200
5,000
6,000
7,000
Sub Total
3,500
4,200
5,000
6,000
7,000
Tamil Nadu
4,000
8,000
14,000
23,000
40,000
Sub Total
4,000
8,000
14,000
23,000
40,000
Gujarat
1,000
1,650
2,750
6,450
11,650
Sub Total
1,000
1,650
2,750
6,450
11,650
A&N Islands
Expansion under consideration of GOI
Grand Total
2,84,766 3,43,779 4,36,585 5,52,442 671,067
NK-Not known
Particulars of mill
92
10.0
15.7
8.1
19.7
3.8
11.3
2.2
3.2
87.4
1.3
1.6
2.9
15.36
15.36
1.3
1.3
2.6
2.6
0.5
0.5
8.0
14.1
7.7
15.2
2.9
9.4
1.9
2.6
73.8
1.0
1.2
2.2
12.8
12.8
1.1
1.1
1.3
1.3
0.3
0.3
0.9
0.9
4.5
4.5
1.6
1.6
18.56
18.56
3.2
2.6
5.8
18.6
9.2
26.6
4.8
14.8
3.2
3.8
98.3
13.0
14.3
2.1
2.1
7.4
7.4
1.9
1.9
22.4
22.4
6.4
3.5
9.9
25.8
8.9
35.4
8.0
18.1
3.5
4.8
133.4
14.0
14.9
3.7
3.7
12.8
12.8
2.2
2.2
28.8
28.8
12.8
5.1
17.9
33.6
9.4
45.7
9.6
NK
3.8
6.1
149.6
26.0
15.4

91.5
110.1
129.7
177.1 215.0
13.4
12.0
Mill capacity required (MT/hr)

07-08
08-09
09-10 10-11 11-12
Table 5.8a: Projected processing capacity required for existing mills for 2007-08 to 2011-12
93
1,39,896
1,83,000
32,362
2,24,411
50,000
NK
16,000
28,000
7,24,269
96,000
28,000
1,24,000
1,25,000
1,25,000
8,000
8,000
95,000
95,000
28,100
28,100
1,07,429
1,44,000
30,821
1,80,681
40,000
NK
14,000
23,000
55,89,256
60,000
21,600
81,600
1,05,000
1,05,000
7,500
7,500
64,000
64,000
18,900
18,900
37,900
37,900
1,32,000
1,32,000
8,500
8,500
1,35,000
1,35,000
1,20,000
34,600
1,54,600
18,000
33,000
8,61,530
2,17,000
33,980
2,71,741
60,000
NK
1,75,896
51,913
48,225
48,225
1,74,000
1,74,000
9,000
9,000
1,50,000
1,50,000
1,44,000
41,600
1,85,600
20,000
39,000
10,02,430
2,54,000
35,879
3,17,938
70,000
NK
2,11,896
53,717
13,29,530
15,69,255
50,600
49,325
12-13
FFB expected (MT) *

13-14
14-15
15-16
Grand Total
58,66,256 11,04,369
NK-Not known
Andhra Pradesh
Federation Ltd.
Godrej Agrovet Ltd.
(Agencies) Ltd.
Simhapuri Agro Products Pvt.Ltd.
Sub Total
Karnataka
Sub Total
Kerala
Oil Palm India Ltd.
Sub Total
Goa
Godrej Agrovet Ltd.
Sub Total
Tamil Nadu
Sub Total
Gujarat
Kalyan Agrl. Crop Sales and
Sub Total
A&N Islands
Particulars of mill
6.0
6.0
20.5
20.5
2.4
2.4
33.6
33.6
19.2
6.9
26.1
4.5
7.4
187.4
46.1
9.9
57.8
12.8
NK
34.0
15.8
9.0
9.0
30.4
30.4
2.6
2.6
40.0
40.0
30.7
9.0
39.7
5.1
9.0
232.1
58.6
10.4
71.8
16.0
NK
45.0
16.2
12.1
12.1
42.2
42.2
2.7
2.7
43.2
43.2
38.4
11.1
49.5
5.8
10.6
275.5
69.4
10.9
87.0
19.2
NK
56.0
16.6
16,02,483
276.0
354.0
425.0
59,475
59,475
2,17,000
2,17,000
10,000
10,000
1,68,000
48,600
2,16,600
22,000
10,99,408
2,84,000
37,463
3,71,987
80,000
NK
2,47,896
56,062
16-17
452.0
15.4
15.4
55.7
55.7
2.9
2.9
48.0
48.0
46.1
13.3
59.4
6.4
12.5
321
81.3
11.5
101.7
22.4
NK
68.0
17.2
512.0
19.0
19.0
69.4
69.4
3.2
3.2
53.8
15.6
69.4
7.0
351.4
90.9
12.0
119.0
25.6
NK
79.0
17.9
Mill capacity required (MT/hr)

12-13 13-14 14-15 15-16 16-17
Table 5.8b: Projected processing capacity required for existing mills for 2012-13 to 2016-17
07-08
0
0
0
0
0
0
0
0
0
0
08-09
22,500
0
75
150
5,625
1,275
525
2,250
3,563
35,963
FFB expected*
09-10
10-11
1,01,100
2,35,350
1,500
6,500
400
1,050
2,000
8,800
24,675
55,750
4,250
6,800
7,000
30,050
11,250
28,250
16,375
44,500
1,68,550
4,17,050
11-12
4,29,675
14,500
2,000
22,100
98,850
9,350
74,100
53,500
98,625
8,02,700
Mill capacity required**

07-08***
08-09
09-10
10-11
0
7.0
32.0
75.0
0
0
0
2.0
0
0
0.1
0.3
0
0
0.6
2.8
0
1.8
7.9
17.8
0
0.4
1.4
2.2
0
0.2
2.2
9.6
0
0.7
3.6
9.0
0
1.1
5.2
14.2
0
11.2
53.0
132.9
11-12
137.0
5.0
0.6
7.1
31.6
3.0
23.7
17.1
31.6
256.7
94
FFB expected*
Mill capacity required**
12-13
13-14
14-15
15-16
16-17
12-13
13-14
14-15
15-16
16-17
Andhra Pradesh
7,04,450 10,52,700 14,34,650 18,49,950 23,01,800
225.0
337.0
459.0
592.0
737.0
Chhattisgarh
27,000
48,125
9,750
1,21,000
1,72,250
9.0
15.0
26.0
39.0
55.0
Goa
3,300
4,950
6,750
8,565
10,445
1.1
1.6
2.2
2.7
3.3
Gujarat
43,000
74,300 1,14,670
1,59,570
2,07,210
13.8
23.8
36.7
51.1
66.3
Karnataka
1,57,850 2,29,850 3,04,750
3,83,200
4,65,950
50.5
73.6
97.5
122.6
149.1
Kerala
12,750
15,300
15,300
15,300
15,300
4.1
4.9
4.9
4.9
4.9
Mizoram
1,38,000 2,24,775 3,32,550
4,47,500
5,60,950
44.2
71.9
106.4
143.2
179.5
Orisa
89,500 1,35,500 1,84,500
2,32,000
2,78,000
28.6
43.4
59.0
74.2
89.0
Tamil Nadu
1,83,125 2,95,250
41,250
5,87,250
7,49,250
58.6
94.5
138.0
187.9
239.8
Total
13,58,975 20,80,250 29,04,170 38,04,315 47,61,155
434.9
665.7
929.7
1,217.6
1,521.9
* Calculated based on the prediction of yield from different aged plantations.
** Calculated by assuming the FFB arrival in peak month is 16% of the annual quantity and mill operates 25 days/month and 20 hours/day.
States
Table 5.9b: Projected processing capacity required during XII Plan for the new area proposed in various States.
* Calculated based on the prediction of yield from different aged plantations.

** Calculated by assuming the FFB arrival in peak month is 16% of the annual quantity and mill operates 25 days/month and 20 hours/day.
*** Area planted during 2006-07 would start yielding during 3rd year only.
Andhra Pradesh
Chhattisgarh
Goa
Gujarat
Karnataka
Kerala
Mizoram
Orisa
Tamil Nadu
Total
States
Table 5.9a: Projected processing capacity required during XI Plan for the new area proposed in various States.
6. RESEARCH AND DEVELOPMENT

University of Kerala and Bhabha Atomic Research
Centre, Mumbai since VIII Five Year Plan.
6.1 Introduction
i)
Oil Palm research in India started with the
establishment of a research station at Thodupuzha by
the Department of Agriculture, Kerala during 1960. Later
the Indian Council of Agricultural Research started
research programmes on Oil Palm at the Central
Plantation Crops Research Institute, Research Centre,
Palode, Thiruvananthapuram, Kerala during 1975
(Plate 6.1).
6.2 Recommendations of Chadha

Committee - 1988
i)
The Chadha Committee-1988 had recommended
that the available research infrastructure be
strengthened to meet the emerging requirements of
Oil Palm research under varying agro-climatic
conditions. To achieve these objectives, it has
suggested that the Centre at Palode may be raised to
the status of a National Research Centre for Oil Palm
to help upgradation of the technology required for
expansion of Oil Palm in the country.
Plate 6.1
6.3 Research
i)
The ICAR accepted the above recommendation
and established a National Research Centre for Oil
Palm at Pedavegi, Andhra Pradesh (Plate 6.2) over an
area of 100 ha during 1995 to conduct research on all
aspects of Oil Palm under irrigated conditions. Later
the CPCRI, Research Centre at Palode was merged
with NRC for Oil Palm during 1999 to bring Oil Palm
research in the country under one Institute. Since 1995
systematic efforts have been made at this Centre to
cater to the needs of the Oil Palm community and to
increase the production and productivity of the crop.
The centre has now excellent infrastructure with a new
lab cum administrative building, well equipped
laboratories with latest state of art facilities and
sanctioned strength of 23 scientists. The research work
so far carried out has yielded useful results.
NRCOP, Regional Station, Palode

ii) During the VII Five Year Plan, Oil Palm was
included as one of the crops in the All India Co-ordinated
Research Project on Palms sanctioned by the ICAR.
Under this project four centres, one each in the states
of Andhra Pradesh, Karnataka, Maharashtra and Tamil
Nadu were included to work exclusively on Oil Palm.
The main emphasis of these centres was to evaluate
hybrids in different agro-climatic zones and conduct
fertilizer cum irrigation trials.
ii) Three prospections were carried out by CPCRI

in association with FAO and TMO&P in Tanzania,
Zambia and Guinea Bissau for drought tolerant material
iii) Research on different aspects on palm oil was also

taken up at the RRL, Thiruvananthapuram, Kerala,
Plate 6.2
National Research Centre for Oil Palm, Pedavegi
95

and Cameroon for cold tolerance. A total of 15 drought
and cold tolerant duras have been collected during the
explorations and are under evaluation at NRCOP.
Characterization of the above germplasm by
morphological, biochemical, physiological as well as
molecular level revealed that considerable diversity
exists among different accessions. DNA fingerprinting
showed that no two palms were genetically the same.
Two high yielding hybrid combinations namely Palode
1 and Palode 2, having a yield potential of 4-6 MT
oil/ha under rainfed conditions were evolved.
have been perfected. Techniques for control of

inflorescence diseases have also been standardised.
vii) Harvesting FFB is of major concern as the palms
get taller with age. Sickles attached to an aluminium
pole were found to be the most efficient harvesting
device.
viii) NRC for Oil palm has developed a 1MT/hr capacity
improved mini palm oil mill (Plate 6.3) equipped with
single screw press. Testing and standardization of the
mill is in progress. The estimated cost of the unit is about
25 lakhs. A fibre extraction machine for extraction of
fibre from empty fruit bunches has also been designed,
developed and the technology transferred. Further, the
carotenoids extraction technology from crude palm oil
has been standardized, retaining the edibility of oil.
iii) Commercial seed production, which was started

during 1982 was further strengthened by the
establishment of four seed gardens at Rajahmundry,
Lakshmipuram, Pedavegi (Andhra Pradesh) and Taraka
(Karnataka) in addition to the already existing two
gardens. Acceleration of seed germination by physical
and chemical treatment showed promising results.
Plate 6.3
iv) Attempts have been made by Bhaba Atomic

Research Centre, Bombay and CPCRI, Kasaragod for
micropropagation of Oil Palm and reported a
regeneration protocol using seedling explant.
Biochemical studies on different types of Oil Palm fruits
have been reported from Kerala University.
v) Irrigating palms at the rate of 90 l/palm/day during
summer months increased oil yield from 3.3 to 4.7 MT/
ha under rainfed conditions. Palms irrigated with jet and
basin irrigation systems recorded better growth and yield
parameters than basin irrigation in the irrigated tracts
of Andhra Pradesh. Root distribution studies indicated
that most of the Oil Palm roots are concentrated up to
40 cm depth and at 1.5 m away from the trunk base.
Vermi composting technique of Oil Palm wastes has
been standardized. Two thirds of nutrient requirement
can be profitably substituted through composted Oil
Palm wastes. Canopy size in juvenile plantations
indicated that intercrops/associated crops can be
successfully grown in Oil Palm plantation till the end of
third year without adversely affecting the main crop.
Mini palm oil mill
6.4 Demonstrations
i)
During the year 1988-89, small holder plantations
under DRDA and large scale plantations by M/s
Navabharat Enterprises were taken up in the West
Godavari district of Andhra Pradesh. The plantations
by M/s Navabharat Enterprises were taken up at
Lakshmipuram, West Godavari and yield between
25- 30 MT/ha have been realised.
ii) Fifty five demonstration plots of 0.5 ha each were
laid out by Department of Horticulture, Govt. of
Karnataka during the year 1989. Subsequently, the
Department of Biotechnology, Govt. of India in
collaboration with Govt. of Andhra Pradesh, Karnataka
and Maharashtra established three demonstration units
of l000 ha during 1990-91 to demonstrate the feasibility
of growing Oil Palm under irrigated conditions. Average
FFB yields of 20-25 MT/ha were realized in the
plantations of Andhra Pradesh. The observations
revealed that:
Agro-climatic conditions of most of the states

identified are suited to the cultivation of Oil Palm.
vi) In Oil Palm, diseases and pests are not a major

concern, since their damage is insignificant. However,
Rhinoceros beetle is found to be the major pest. Field
sanitation, pheromone traps and application of
Metarhizium controlled the beetles. Baculovirus infected
beetles decreased the beetle population significantly.
Scaring device for control of wild boars and bamboo
noose traps for rat control have also been evolved.
Hanging of fishnets in between two palms at 1m above
ground was found effective in controlling birds.
Beauveria bassiana was found effective in controlling
leaf eating caterpillar. Stem surgery and crown surgery
for the control of stem wet rot and bud rot respectively
96
Water was found to be the most critical input in

the successful cultivation of the crop.
Large mortality of sprouts and seedlings in the
nursery was found to be an important factor during
raising of nurseries.
Nutrient deficiency symptoms like boron,
magnesium and potasium were most commonly
observed in the plantations.
Chhattisgarh: In Chhattisgarh, there are no

commercial Oil Palm plantations and there is no
Horticultural Officer exclusively for Oil Palm either at
headquarter or in any district identified for Oil Palm
promotion.
Goa : There is no exclusive staff for Oil Palm

development in the State even though ten taluks with a
potential of 2,000 ha area have been identified.
Gujarat : The State has provided two Horticultural

Officers exclusively for Oil Palm at its head quarters at
Gandhinagar, two for Surat district and one for Navsari
district. However, of these five positions, only one in
Navsari district has been filled so far. No separate staff
has been provided in the Valsad district.
6.5 Extension
i)
The work of transfer of technology is being carried
out by the State Departments of Agriculture, staff of the
processing units and also by the limited staff of NRC
for Oil Palm. The infrastructure available for this purpose
is discussed below:
Karnataka : The Karnataka State has a provision

of three officers, i.e. one Additional Director and two
Assistant Horticultural Officers exclusively for Oil Palm
at head quarters. However, only one Horticulture Officer
is in position in one district out of 18 districts. The State
authorities indicated that even though the Govt. has
created regular posts for monitoring of Oil Palm
development programme in the districts, these posts
have been kept vacant in order to cut down the
expenditure on staff and contingencies which has to be
kept within 10% of the expenditure incurred on
developmental activities.
ii)
Oil Palm is a relatively new crop in India. As a

result, very less expertise is available not only with the
farmers but also with the extension agencies. Since the
promotion of Oil Palm needs lot of attention for
expansion of area, promotional activities and help in
distribution of subsidy, raising/procurement and supply
of planting material and coordination between
production and processing activities between the
farmers and the processing industry, it requires exclusive
staff for taking care of its special needs. It is therefore,
felt that each state needs to allocate sufficient staff for
this purpose in the XI Five Year Plan keeping in view
the potential area in the state, area required to be
covered and Mandals allotted to different companies.
Kerala: One Assistant Manager has been provided

to look after the OPDP programme in the State.
Maharashtra: No specific staff has been provided

either at the headquarters or in the Konkan region of
Maharashtra suited for Oil Palm cultivation.
iii) In addition, processing industry would also require

technical manpower for identifying suitable farmers,
assistance in lay out, guidance in planting, help in
procurement of planting material, timely harvest of fully
matured bunches, proper grading and cleaning and over
viewing of transport of FFBs to factories.
Mizoram: One Assistant Director of Agriculture is

looking after the Oil Palm Development Programme.
Orissa : The Orissa State has appointed a Special

Officer (Oil Palm) based at the Directorate of Horticulture
at Bhubaneswar. In addition, four Assistant Horticultural
Officers (Oil Palm) have been posted one at
Paralakhemundi in Gajapati district, two at Sukinda in
Jaipur district and one Assistant Horticultural Officer
posted at Kalinga Nagar of Dhenkanal district. It was
indicated that more field level staff will be deployed
during the execution of the programme in the XI Plan.
6.5.1 Extension staff in different states

i)
At present, there is lot of variation in different states
about the staff deployed by them in this area of activity
as detailed below:
Andhra Pradesh: In Andhra Pradesh, 29

horticultural officers have been provided three each in
the districts of Srikakulam, Vizianagaram,
Visakhapatnam, Nellore and Khammam, four in East
Godavari and five each in West Godavari and Krishna
districts. Each of these officers have been assigned an
area of 2000 ha of Oil Palm. In addition, at the
headquarters at Hyderabad, a Cell comprising of one
Additional Director, one Assistant Director (Horticulture)
and one Horticultural Officer has been provided.
Tamil Nadu: In Tamil Nadu, one Agricultural Officer

has been provided exclusively for Oil Palm at head
quarters while no Agricultural Officer has been provided
in the identified districts of Oil Palm.
ii) The Extension support in different states indicates
that except in Andhra Pradesh, adequate staff for Oil
Palm cultivation has not been provided in most of the
states having potential for cultivation. All the
97

entrepreneurs involved in Oil Palm development should
engage technical staff for promoting the crop.
- Harvesting and processing of Oil Palm
6.5.4 Publicity
6.5.2 Staff with processing companies
i)
Publicity is very important in inspiring the farmers
to take up Oil Palm. Sustained campaign over the media
and discussion, Symposia, Workshops, Interface meets
should be organized to project the potentialities of Oil
Palm. Support in this direction should be extended by
OPDP to State Govt. and entrepreneurs.
i)
Most of the entrepreneurs involved in Oil Palm
development have staff for expansion, extension as well
as for running Palm Oil mills (Table 6.1) while about
65% of the staff has been employed in running mills,
20% in area expansion/extension and 12% for raising
nurseries.
6.6 Training
6.5.3 Publications
- Bud rot - symptoms, damage and control
i)
Training programmes are being organized by
NRCOP regularly for the staff involved in Oil Palm
development and for the farmers. As a result 826
Officers belonging to different state departments of
Agriculture / Horticulture, entrepreneurs and
researchers from ICAR and SAUs have been trained
during 1996-2006 through courses like Oil Palm
Production Technology, Plant Protection in Oil Palm,
Nursery Management in Oil Palm, Oil Palm Hybrid Seed
Production, Leaf Nutrient Analysis in Oil Palm and
Harvesting of Fresh Fruit Bunches (Table 6.2). Further
a total of 19,542 farmers belonging to different Oil Palm
growing States of India (Table 6.3) have been trained
during 1996-2006 on subjects like Oil Palm cultivation,
Harvesting of FFB, Plant Protection and Nutrient and
Water Management.
- Stem wet rot - symptoms, damage and control
6.7 Future Strategies
- Oil Palm leaf analysis (Telugu)
6.7.1 Research
ii) In order to promote Oil Palm cultivation, NRC for

Oil Palm has brought out several publications which are
of use to officials and growers. Some of these are:
Oil Palm Know How - Do How in English, Telugu,

Tamil, Kannada, Hindi and Malayalam.
Oil Palm Cultivation - Video cassette in English,

Hindi, Telugu and Tamil.
Oil Palm Cultivation in Slides.
Technical folders relating to

- Rhinoceros beetle - symptoms, damage and
control
Technical bulletins on
- Oil Palm empty fruit bunch fibre extractor
i)
The future strategies for pursuing Oil Palm
research under irrigated/ rainfed conditions should aim
at the following broad issues:
E- manual on Oil Palm
E- information system on
Widening germplasm through explorations to

important Oil Palm producing Countries.
Development of molecular markers for shell
- Pests, diseases and disorders of Oil Palm
- Pests and diseases of Oil Palm
Table 6.1: Staff pattern for Oil Palm development in the different processing companies
Name of company
Godrej Agrovet, A.P.
AP OILFED, A.P.
Simhapuri Agro product, A.P.
Sical, A.P.
Srinivasa Enterprises, A.P.
Godrej Agrovet, Goa.
Cauvery Palm Oil, T.N.
Total
Processing mills
80
105
21
58
47
13
47
371
98
Staff (No.)
Area expansion
39
8
10
52
5
6
20
140
Nursery
50
18
3
21
12
3
5
112
O&M
12
8
10
7
4
2
4
47
99
State
AndhraPradesh
Karnataka
Tamil Nadu
Kerala
Goa
Gujarat
Orissa
Mizoram
Total
State
Andhra Pradesh
Karnataka
Tamil Nadu
Kerala
Goa
Gujarat
Orissa
Mizoram
Maharashtra
West Bengal
Assam
Madhya Pradesh
Tripura
Total
79
1
1
1997-98
44
10
15
2
2
4
106
2
11
7
1998-99
37
5
44
48
4
1
3
3
1999-00
13
8
14
1
115
2000-01
84
6
20
3
2001-02
23
2002-03
15
3
5
52
2003-04
34
6
11
1
88
2
1
5
2004-05
52
20
1410
1996-97
906
175
329
2738
53
3
1997-98
1353
481
848
5180
1998-99
3615
85
1480
2682
25
54
1999-00
1302
904
397
660
26
38
2000-01
34
409
153
1007
22
52
1525
201
2001-02 2002-03
663
1165
270
103
56
529
43
47
2003-04
359
80
1529
25
125
54
2004-05
1179
146
Table 6.3: Farmers trained on various aspects of Oil Palm at NRCOP, Pedavegi (1996 to 2006)
230
1996-97
140
78
8
Table 6.2: Officers trained on various aspects of Oil Palm at NRCOP, Pedavegi (1996-2006).
23
55
2282
92
2005-06
1554
479
79
2
85
2005-06
18
4
2
7
28
1
8
14
1
Total
12130
3132
3342
25
337
452
69
55
19542
Total
437
140
119
16
33
24
22
22
5
4
1
1
2
826

thickness, dwarfness, biotic and abiotic stress
resistance, oil quality, -carotene and tocopherol
content.
Evolving hybrids with high FFB yield and superior

oil quality, dwarfness, high-unsaturated fatty acid
content and disease resistance.
Micropropagation of elite palms.
Integrated water and nutrient management for

higher and sustainable productivity.
Studies on fertigation, organic farming, weed

management, high density planting and optimum
leaf pruning and standardization of Oil Palm based
cropping and farming systems.
Integrated disease and pest management for major

pests & diseases, Studies and management of the
beneficial insects and new pollinators and
strengthening the quarantine aspects of Oil Palm.
Standardization for maximum oil extraction with
low FFA, standardization of technologies for

product development and diversification for value
added products, development of improved tool and
machinery for harvesting and processing of Oil
Palm FFB, farm cost studies to provide practical
recommendations to improve production and cost
competitiveness of Oil Palm.
ii) The Committee, therefore, strongly recommends
that NRCOP should concentrate on broadening the
genetic base through explorations, standardization of
protocol for clonal propagation, nutrient and water
management studies and efficient harvesting tools,
which are of prime importance, keeping the farmers
interest in mind.
6.7.2 Demonstration
i)
The demonstrations laid out have played an
important role in raising the confidence of farmers about
Oil Palm cultivation. These should be continued in the
next Plan.
100
7. POLICY ISSUES
i)
Being the highest edible oil yielding crop, Oil Palm
was identified as a potential crop that can help in
meeting the ever increasing edible oil demand of
growing population in the country and achieving self
sufficiency in edible oil production. Accordingly, an area
of 8.01 lakh ha was identified having potential for Oil
Palm cultivation in different states. While Oil Palm has
established itself as a successful crop in a number of
states in the country the area coverage did not take
place as per targets envisaged.
ii)
The discussion by the Committee with various
stake holders and consideration of reports of various
agencies have revealed that a potential area of
10,36,500 ha is available for expanding Oil Palm
cultivation in India. However, for taking up this
programme a number of measures are required to be
taken, e.g. availability of planting material, processing
capacity, Govt. support and properly trained human
resource. The Govt. has been supporting Oil Palm
cultivation through its Oil Palm Development Programme
(OPDP) since 1992. While this programme needs to be
continued we have to learn lessons from our experience
and bring about changes in our policies so that fullest
potential of this crop can be exploited. The chapter
discusses related policy issues.
7. 1 Land Related Issues

i)
In India, Oil Palm is cultivated in small holdings
unlike the captive plantations in Malaysia where Oil Palm
industry is a success story. The land reforms act in
various states in the country restricts the size of land
holdings by individual farmers and purchase of land by
non-agriculturists. Hence there were suggestions from
many entrepreneurs and farmers to relax the land ceiling
norms for Oil Palm plantations to increase area, yield
and efficiency, which would reduce FFB collection costs
and also management of the plantations would be
easier.
ii)
Presently the land ceiling limit in the country is 20
ha which is not ideal for a crop like Oil Palm as it needs
massive area. Even though farmers are capable to
procure/purchase the land more than the ceiling limit
prescribed, because of the land ceiling act they are
unable to do so. If the land ceiling is enhanced for the
Oil Palm crop as a special case, the industry can survive
better and provide employment and income throughout
the year and thereby increase the GDP of the country.
Both in Malaysia and Indonesia such reforms have been
implemented which helped Oil Palm to come up very
fast and create a dent in the world map in respect of

vegetable oil sector.
iii) It is proven that Oil Palm can grow under varied
climatic and soil conditions ranging from low lying
submerged areas of Kuttannadu in Kerala to low rainfall
areas in Andhra Pradesh. The Committee was informed
that there is considerable area lying unutilized both in
Govt. and private sector in various parts of the country.
The scope for utilizing these lands for Oil Palm cultivation
needs to be seriously examined.
iv) In Oil Palm Development Programme under
ISOPOM during X Plan period, a provision of 15% funds
was made for the development of wastelands owned
by farmers, Govt. corporations of the state and central
Govt. and cooperatives. The State Farms Corporation
(SFC) of India Limited, a Govt. of India undertaking
under the Ministry of Agriculture owns 12 farms in
various parts of the country. If these farms in Oil Palm
growing states are given on lease to the interested firms
for Oil Palm development, they will not only act as good
demonstration units but also serve as an eye opener
both to the farmers who are not following proper
cultivation practices and to the interested growers.
Similarly, on the lines of FELDA in Malaysia (which was
a turning point for Malaysias economy and
development, and was carried out with the help of World
Bank), these waste lands can also be developed by
obtaining financial assistance from appropriate sources.
v) The present contractual system of cultivation of
Oil Palm by assuring inputs and buy back arrangements
has gone a long way in boosting the rural livelihood by
assured income in Oil Palm cultivating areas. Hence
such contractual system needs to be continued.
7. 2 Price Mechanism
i)
The price of FFB is an important factor in promoting
Oil Palm cultivation in the country. The procedure for
pricing mechanism is laid out in the respective Oil Palm
Act enforced in concerned states. Presently Oil Palm
act is enforced in four states viz., Andhra Pradesh, Goa,
Mizoram and Tamil Nadu. In other states where such
act has not been enforced, the price is fixed by Project
Management Committees of the states.
ii) In Andhra Pradesh, Karnataka and Goa, price
fixation is done by respective Price Fixation Committees
constituted under the Act by the State Govt. The
committee meets once in 3 months to discuss the
progress in cultivation and the price of FFB to be paid
to the growers for the next three months.
101

iii) Each state has devised its own system for fixing
the price of FFB. For instance in Andhra Pradesh, the
FFB price was calculated as per the formula: (Price per
MT of FFB = (Price per MT of CPO) (10/16percent
OER/100). The average OER was calculated by
obtaining monthly OER reported by various mills and
also by giving weightage to the value reported by
APOILFED mill at Pedavegi. Since there is no
mechanism to cross check the reported OER of
commercial mills, there existed a controversy between
the growers and processors on this issue. Hence it was
decided to arrive at a scientific formula. Till such time
the price /MT of FFB is calculated as 12% of the average
price/MT of CPO reported by AP OILFED. There is
considerable variation in the basis of price fixation of
FFB within the country (10-12% of crude palm oil price).
In Karnataka, the price is calculated every three months
as 11 percent of the average crude palm oil price in the
market till the average OER reported by the mills is 18
percent. In Goa, the price is calculated as 10 percent of
the average crude palm oil price for three months in the
market.
iv) The Committee recommends that a uniform pricing
policy should be brought forward. Instead of the practice
of price fixing by individual states as at present, it is
recommended that a Central Committee with members
from Govt. of India, State Govt. officials, farmers,
entrepreneurs etc. should fix the price. The price fixation
frequency should be 3 months starting from 1st April of
every year.
v) The Committee also studied the price fixation
formula used elsewhere particularly by Malaysian mills,
which is as follows:
Price per MT of FFB = [ (net price/MT of CPO) (percent
OER] /100 + [(net price/MT of palm kernel) (KER) processing charges including profit]/100
However, the implication of such a formula need to be
studied critically before introducing any changes in the
existing mechanism.
vi) In Malaysia, the Palm Oil Registering and Licensing
Authority (PORLA) recommends to fix the price based
on grading of FFB. They have established theoretical
extraction rate of oil and kernel for different ages and
regions, which is called basic extraction rate. Bunches
are graded according to the criteria set by PORLA and
graded extraction rates are calculated by subtracting a
penalty from basic extraction rate and payment is made
based on this. The basic extraction rates arrived by
PORLA for different palm ages and regions and
penalties for poor grade bunches are provided in
Annexure 7.1a to k. Since the processors may not get
information on age of palms of small holders and

farmers, age is correlated to bunch weight and basic
extraction rates are established based on bunch weight
also. Average bunch weight is arrived by dividing the
total bunch weight with number of bunches in a
consignment.
vii) Even though this appears to be a good method
wherein the farmers would be encouraged to supply
good quality bunches due to price variation, it is too
early to recommend such stringent standards for price
fixation under Indian conditions where Oil Palm
cultivation is still in its infancy. However, there is need
to establish grading criteria, basic extraction rates etc.
in a systematic manner in different Oil Palm producing
states in India.
7. 3 Oil Palm Act

i)
Oil Palm is a newly introduced crop in the country.
The unique feature of Oil Palm is that FFB is highly
perishable and there is no technology to store or process
FFB at farm level. Hence, the farmers are totally
dependent on processors for marketing and pricing. This
situation led to the need of having a suitable legislation
to regulate the Oil Palm development by constituting
an advisory committee, zonal committees and with
provisions to regulate the cultivation, production,
processing, purchase and sale of FFB and fixing of FFB
price. This has been achieved through the enactment
of an Act by different states. This Act is at present being
implemented only in four states viz., Andhra Pradesh,
Tamil Nadu, Goa and Mizoram.
ii) Andhra Pradesh was the first state to promulgate
the AP Oil Palm Act on 17th December, 1992. In Tamil
Nadu, the Act called Tamil Nadu Oil Palm (Regulation
of Production and Processing) Act, 1994 was brought
out on 28th June 1994. The state of Goa also brought
out the Oil Palm Act namely Goa Oil Palm (Regulation
of Production and Processing) Act, 1998. In Mizoram
the Oil Palm Act was brought out on 2nd December, 2004
and is called the Mizoram (Regulation of Production
and Processing) Act, 2004. Other States are still in the
process of passing the Oil Palm Act.
iii) The act empowers Govt. to declare, by notification
any area as factory zone for the purpose of supply of
FFB by the farmers to the factory. The farmers in that
area shall supply FFB only to the factory to whom the
factory zone is attached and to none else. The
concerned factory shall buy all the Oil Palm FFB
produced by all the Oil Palm growers or their cooperative societies in that factory zone at a price which
shall not be less than the price fixed by the Govt.
102
Policy Issues
iv) The factory owner shall be liable to compensate
the loss in the event of failure on the part of the factory
to buy all the FFB from the growers in that factory zone
without any valid reason. Upon delivery of FFB, the
occupier or owner of a factory shall be liable to pay the
price of FFB within 14 days from the date of such
delivery. The price of Oil Palm FFB remaining unpaid
on the expiry of 14 days period shall carry interest at
15% per annum from the date of delivery of FFB and it
shall be recovered as an arrear of land revenue. If any
factory owner fails to pay the price of the Oil Palm FFB
sold to him, he shall in addition to the said price be
liable to the penalty.
v) Every allottee of the factory shall maintain records
as prescribed or as required by the Oil Palm
Commissioner with the approval of the Govt. An Oil Palm
inspector at any time may inspect the factory and verify
such records, reports etc. as may be required to be
maintained.
vi) The Committee further suggests that there should
be a provision in the Act to recover the amount of
subsidy from the entrepreneur and the grower who
withdraws from Oil Palm after availing the subsidies
without any justified reasons and without the approval
of the designated authority in each state.
7. 4 Credit Support
Owing to high investments and a long gestation
period, the following incentives are suggested to
motivate farmers to take up Oil Palm cultivation:
i)
Interest-free loans or soft loans for establishing
plantations up to yielding stage and for creation of
infrastructure facilities like bore well, generator set,
harvesting sickles with Malaysias telescopic light weight
poles, fencing, small processing units, etc.
ii)
Commercial banks and NABARD should be
involved actively for promoting Oil Palm cultivation.
Financial assistance should also be sought from
international lending institutions like World Bank, FAO,
Asian Development Bank, Commonwealth Development
Corporation and EEC.
iii) Apart from the above, credit support should also
be provided liberally by having tripartite agreement
among processing companies, local nationalized banks
and farmers for various miscellaneous items.
iv) Eventhough NABARD had issued instructions to
all the leading banks in the Oil Palm growing areas for
sanctioning loans to the growers, it did not prove
effective as many nationalized banks did not come
forward to sanction the loans for Oil Palm development.

This led to the frustration among the interested farmers
for taking up Oil Palm cultivation.
v) Even though subsidies are being granted for Oil
Palm cultivation, the initial investment becomes a big
limitation for many growers and has been acting as an
impediment in area expansion. Therefore, there is an
urgent need for sanctioning of loans at correct time, to
boost the morale of the farmers to take up Oil Palm
expansion programme.
7. 5 Price Stabilization Fund

i)
There is a long time demand from the farming
community for establishment of a Price Stabilization
Fund by collecting certain percentage of money from
the FFB sale. This is mainly to use it as a support fund
when the prices fall. This suggestion is worth
implementing and the Committee supports the same.
7. 6 Import Policy
i)
The price of Oil Palm is mainly dependent on
international market price. In South East Asia, the Oil
Palm producing countries like Malaysia and Indonesia
dump their produce to the thickly populated countries
like India and China as their production is many times
greater than consumption. This has led to the nonstabilization of palm oil price in the importing countries
and thus affects the local industry. Hence, Govt. should
take into consideration the effect of import policy of oil
on the local oil seed industry particularly the cultivation
of Oil Palm.
7. 7 Private Sector Participation

i)
Many operations in Oil Palm cultivation are linked
with development and processing industry. Hence it is
very much essential to have the involvement of private
sector to carry out various operations which need
funding from themselves in the beginning and later
getting it reimbursed from Govt. A few such items are
importing of seed sprouts spending huge amounts,
raising seedlings in the nursery, financing the farmers
for re-establishment of the gardens affected by natural
calamities etc. as it is essential for maintaining the
processing mills. Apart from these, establishment of
processing units and raising captive plantations are
essential for the sustenance of the industry. Since Oil
Palm is a long duration crop, net profit cannot be
expected overnight. Normally a time frame of 10 years
is needed for getting the net profits from Oil Palm
industry. During these 10 years period processing
companies have to face financial crisis unless Banks
support them.
103
7. 8 Subsidies
i)
Assistance in the form of subsidies is being given
by TMOP&M under ISOPOM to both farmers and
entrepreneurs for various identified components in the
production and processing chain of Oil Palm. This is
mainly to popularize the crop and to achieve the long
term goals set therein. As a result the crop has already
been popularized among the farmers in states like
Andhra Pradesh, Tamil Nadu and Karnataka.
Considerable efforts have to be made for developing
Oil Palm in states like Orissa and Gujarat where the
crop has not picked as per expectation. In the states of
Mizoram and Chhattisgarh where the crop is yet to be
taken up for commercial cultivation, much more
incentives are required. Accordingly the extent and
pattern of assistance in the form of subsidy also needs
to be reviewed to ensure acceptance of the crop and its
continued area expansion at least during the XI Plan.
The Committe reviewed the present pattern of
assistance and the following recommendations are
made depending on the promotional requirement in
respective states (Table 8.2 in Chapter 8).

a) Planting material distribution
i)
Presently, the seedlings from sprouts either of
indigenous or exotic origin are raised in the nurseries
maintained by the state departments or entrepreneurs
and supplied to the farmers when they are 12-18 months
old. To ensure supply of quality seedlings and
encourage farmers, TMOP has introduced subsidy since
the VIII Plan. The subsidy was not extended to the
beneficiaries in cash, but routed through the
entrepreneurs who supply the seedlings to the farmers.
After setting off the planting material subsidy against
the permitted selling price of seedlings, the balance cost
is collected by the entrepreneurs from the farmers. The
limit of assistance to the extent of 75% cost of seedlings
has been increased from Rs. 5,400 per ha in IX Plan to
Rs. 7,500 per ha X Plan for the entire land holding of
the farmer. The Committee feels that in accordance with
the escalation of cost of production of seedlings and
related expenditure, the subsidy for exotic and
indigenous seedlings be increased to 85 percent of the
cost with a ceiling of Rs. 9,000 per ha for entire land
holding of the farmer.
ii) As huge investment needs to be made for raising
seedlings in nurseries, the subsidy to the tune of 80
percent is being given as advance to the entrepreneur
after sowing each batch of sprouts in the nursery. Such
advance payments avoid blocking of the investment of
entrepreneurs for 15-18 months. As a token of

encouragement to the entrepreneurs, such advance
payments need to be ensured on time. The frequency
of such payment also should be fixed.
iii) Farmers are showing keen interest in the tissue
cultured planting materials having compact and high
yielding characters for which the cost is in the range of
Rs. 200/- to Rs. 250/-. The Committee recommends that
subsidy can be extended for tissue cultured plants also
to a limited extent during the XI Plan period.
b) Establishment and maintenance of seed garden
iv) No specific guidelines are existing in X Plan
regarding financial assistance for establishment and
maintenance of seed gardens. However, the existing
seed gardens in Andhra Pradesh, Karnataka and Kerala
are maintained with the fund allocated to the state for
other components under OPDP. Production of good
quality planting material of Oil Palm is the objective of
of the seed garden. Establishment of seed garden
involves huge investment and requires constant care.
Hence, it is felt that a separate provision should be made
to establish and maintain seed gardens as these are
prerequisite to achieve the planting material requirement
in tune with the targets of area expansion. Accordingly,
the Committee has recommended establishment of 6
new seed gardens. The seed garden may be developed
over an area of 15 ha each as a Revolving Fund Scheme
with the assistance of Rs. 10 lakh in the first year and
Rs. 2 lakh each for 2nd, 3rd,4th , 5th and 6th year. In 7th
year a block grant of Rs.10 lakh be provided . From 8th
year onwards the scheme is likely to become selfsupportive. During 1st year the assistance may be
utilized towards the cost of seedlings, cultivation, drip
systems, motor pumps and maintenance. From 2nd to
6th year, the subsidy may be utilized towards cultivation
cost and maintenance. In 7th year the assistance may
be utilized towards cultivation cost, labour for pollination,
providing infrastructure for seed germination etc.
c) Cultivation cost
v) During IX Plan, the assistance to farmers on
cultivation cost was limited to 50%, for the gestation
period (4 years) and the ceiling of the area for assistance
was 6 ha. However, in the X Plan it was revised as
50% of the cost during gestation period (4 years) with
a ceiling of Rs.15,500 per ha up to 15 ha. The yearwise fund allocation was Rs.4,600, Rs.3,300, Rs.3,500
and Rs.4,100 for 1st, 2nd 3rd and 4th years respectively.
As the costs have gone up manifold for critical inputs,
mainly to meet the cost of fertilizers as Oil Palm is a
gross feeder and demands a balanced and adequate
supply of macro, secondary and micro nutrients for
104
Policy Issues
growth and yield and also of labour, it is felt that the
cultivation cost subsidy should be increased from the
present level to achieve healthy plantations and thereby
higher yields. Accordingly, the Committee recommends
the increase in assistance as 50% of the cost during
gestation period (4 years) with a ceiling of Rs.20,000
per ha upto 25 ha. The year-wise fund allocation on
this pattern will be Rs.6,000, Rs. 3,500, Rs. 4,500 and
Rs. 6,000 for 1st, 2nd, 3rd and 4th years, respectively.
vi) Intercropping in Oil Palm can be promoted by
selecting crops suitable for different phases of Oil Palm
growth, in such a way that the intercrops do not compete
with Oil Palm for any resources. The practice of
intercropping gives more remuneration to the farmers
making the Oil Palm cultivation more sustainable. The
proposal for providing subsidy to planting material cost
of intercrops has been examined by this Committee and
it recommends 50% subsidy on planting material cost
of intercrop. This may be met from the innovative
component by the states.
d) Development of waste lands
vii) During X Plan 15% of fund was allocated for
development of wasteland owned by farmers or
Government or by the corporations of the states and
Central Govt. or co-operatives. Out of this 15%, onefourth share (25%) is being utilised for development of
infrastructure and providing irrigation facilities for
wastelands. The Committee recommends that 15% of
the fund allocated may be utilised for tapping un-utilized
cultivable land and 25% funds be utilised for
development of infrastructure and irrigation facilities
including construction of water harvesting tanks.

i)
Oil Palm cultivation in India is recommended under
assured irrigation conditions. Water requirements of
Oil Palm are very high (287 litres/ palm/ day) in India. It
has to be ensured that sufficient quantity of good quality
water is applied economically and efficiently. For this
purpose, micro-irrigation methods are widely followed.
In addition in several areas ground water is the major
source of irrigation water, which can be tapped through
bore wells and tube wells. There is also scope of tapping
water through watershed in high rainfall areas. In hilly
areas in Mizoram, there is ample scope for tapping the
springs in hillocks. Since water determines the success
of Oil Palm cultivation, it is recommended that subsidy
for irrigation should not be restricted only for providing
micro irrigation but related to promoting water availability
in Oil Palm plantation.
ii) Presently, for drip irrigation a subsidy of 50 percent

of the cost for small, marginal, SC,ST and women
farmers with a ceiling ranging from Rs.7,400/- to
9,300/- and 35 percent for other categories with a ceiling
of Rs.5,200/- to Rs.6,500/- is being provided to a
maximum of 4 ha area per beneficiary. Considering the
cost escalation, the committee recommends to enhance
the subsidy to 85 percent of the cost for small, marginal,
SC/ST and women farmers with a ceiling of Rs. 20,000
and 75 percent for the 1st 1 to 5 ha and 50 percent for 6
to 25 ha for other categories with a ceiling of Rs. 20,000
per ha. The committee also recommends that 100
percent grant may be extended to North-Eastern states
for augmenting water availability. The centre-state share
for other states could be 90:10.
iii) During the X Plan period, assistance has been
given for diesel pump sets by way of 50 percent subsidy
to a maximum limit of Rs.10,000 per set. The subsidy
can be enhanced to 75 percent of the cost to a maximum
limit of Rs. 25,000 per set for diesel pump set including
accessories. Farmers having a minimum of 2 ha
plantations may be eligible for the subsidy. Since
majority of farmers are small and marginal particularly
in districts of states where Oil Palm cultivation is in its
infant phase, the purpose of assistance is not being
served. Hence the Committee recommends to re-fix the
minimum area as 1 ha under this component.
iv) Bore wells are mainly used for tapping the ground
water in majority of the Oil Palm growing areas. The
cost of digging one bore well is around Rs.75,000
depending on subsoil strata, water table etc. Due to
depletion of ground water, these wells go dry at times.
There is no assistance given for digging bore wells under
OPDP. Small farmers having plantations up to 2 ha find
difficulty in creating additional bore well facility due to
unaffordable cost. More over during the juvenile phase,
farmers do not get any returns from the crop and it is a
fact that irrigation is of high importance during juvenile
phase. Hence, the Committee recommends to provide
subsidy of 25 percent of the cost with a ceiling of Rs.
25,000 per additional bore well for those farmers who
own Oil Palm plots upto 2 ha.
v) The Committee observed that in some areas of
Andhra Pradesh there exists a ban for digging bore wells
for purposes other than for human consumption. This
affects development of Oil Palm in many identified
areas. Such ban in the existing areas will adversely
affect Oil Palm cultivation. Hence, the Committee
recommends that during micro level area selection in
such over exploited basins, concerned departments
should also be consulted. The Committee further
105

recommends that while enforcing such bans in area
where Oil Palm is existing, state Govt. should give
relaxation to the Oil Palm plantations.
vi) Since water is an essential requirement for Oil
Palm, there is fear of ground water depletion in the Oil
Palm growing areas and hence implementing watershed
development programmes to ensure conservation of
water is of high importance for any Oil Palm development
programmes. Hence the Committee recommends that
location specific water shed development programmes
need to be implemented in districts where Oil Palm is
grown, in consultation with concerned agencies and
assistance in the form of subsidy needs to be given for
such development programmes by the state Govt.
vii) In hilly areas where Oil Palm is cultivated viz.
Mizoram, one of the sources of irrigation is water from
the springs, which needs to be diverted and stored. This
requires suitable channels, storage tanks etc. The
Committee feels that assistance can be given in such
areas for the construction of structures for tapping water
from hillocks to a maximum limit of Rs. 50,0000 per
structure. Towards water shed development,
Rs. 30,0000 for a maximum of 2 ha is recommended.

i)
Demonstration of Oil Palm cultivation in different
locations have created a significant impact in
understanding the needs of the crop and cultivation
techniques which inturn inculcated confidence among
the farmers to take up Oil Palm cultivation. It is
recommended that this programme be extended to the
districts in different states where the OPDP programmes
are proposed for the first time during XI and XII Plans.
For this purpose 5 demonstrations of 1 ha each are
recommended in new districts proposed to be brought
under Oil Palm.
ii) Training is an important component for Oil Palm
development. Since it is a new crop and many new
farmers are coming forward to take up Oil Palm
cultivation in new areas, the Committee recommends to
impart training to both farmers as well as officers
concerned to Oil Palm development.
a) Farmers training: Training programmes of one day
duration covering visits to already established Oil Palm
gardens as well as research centres need to be carried
out. The Committee recommends an amount of Rs.
20,000 per training for a batch of 50 farmers within the
state.
b) Officers training: National Research Centre for Oil
Palm, Pedavegi may be used as hub for imparting
training to the officers on various aspects of Oil Palm
cultivation. The trained officers will further impart training

to their subordinates. They will be given need based
support as per requirement for training, extension &
publicity, establishment and staff and other ongoing
schemes of seed gardens, leaf analysis lab, training of
staff/officers and testing of genotype etc. The committee
recommends 10% of the total financial allocation of the
state for this purpose.
7.8.4 Post harvest management

a)
Establishment of mills
i)
A number of demonstration units with a capacity
of 2.5 MT/hr were set up by the Govt. in various parts of
the country under subsidy scheme. Such demonstration
units helped in boosting the confidence of farmers as
well as entrepreneurs in a big way. In newly developed
areas like in Tamil Nadu, Gujarat and Orissa where
establishment of such units were delayed, the set back
faced for Oil Palm development programme underlines
this fact.
ii) The demonstration units of 2.5 MT/hr capacity
installed in those states, where the Oil Palm cultivation
has been started newly are underutilized due to lack of
adequate FFB to meet their capacity. The mill installed
in Gujarat has not been in a position to run so far and
that installed in Tamil Nadu has been operating only 23 days in a month. The unit in Goa is operating only at
25 percent of its total capacity. The low FFB arrival from
plantations of young age is the reason for such under
utilization.
iii) The subsidy for demonstration units which was
available during X Plan has been withdrawn by the Govt.
w.e.f the last year of X Plan. Since such units have
played a key role in the area development in the up
coming states, it is felt that such demonstration units
will have to be established in the newly proposed districts
in different states by offering subsidy to develop
confidence among the farmers. However, it will have to
be ensured that such units utilize their maximum
installed capacity so as to make them cost effective.
The yield pattern during the initial phases of plantation
establishment as well as the low OER for bunches from
juvenile plantations should be considered while arriving
at the capacity of such demonstration units.
iv) Since the present demonstration units of
2.5 MT/hr capacity costing Rs. 375 lakh are under
utilized, units of 1MT/hr capacity and costing only about
Rs. 25 lakh being developed at NRC for Oil Palm would
be more appropriate. As the plantations grow, such units
can be upgraded in a phased manner to suit the
106
Policy Issues
increased FFB arrivals. The installed capacity of the
first processing unit (APOILFED) in Andhra Pradesh,
where Oil Palm development is a success story, was 1
MT/hr, which further underwent up-gradation in a
phased manner to the present 4MT/hr.
capacity up to 6th year, which is highly uneconomical.

Low OER for bunches from young plants also make
high capacity mills further uneconomical. During 6th and
7th years and thereafter, the 1 MT/hr capacity mill can
go for upgradation in a phased manner.
v) Oil Palm takes 3-4 years to start yielding. The yield

pattern till stabilization at 8th year as per international
standards is provided in Table 7.1. Keeping in view of
this yield pattern and considering the 16 percent FFB
vii) However, the Committee recommends

establishment of 1 MT/hr or 2.5 MT/hr capacity mills in
Mizoram and Chhattisgarh for which a central share of
60% with a ceiling of Rs. 30 lakh for 1 MT/hr and
Table 7.1: Yield pattern of oil palm

plantations till yield stabilization.
Plantation
age (year)
3
4
5
6
7
8
yield/ha/
year (MT)
1.5
5.0
8.0
11.0
15.0
18.0
Table 7.2: Comparison between 1 MT/hr mill and 2.5 MT/hr

mill in area allotment
Plantation
age (year)
3
4
5
6
7
8
Area (ha) covered

1 MT/hr mill
2.5 MT/hr mill
2,083
5,209
625
1,563
391
977
284
710
208
521
174
434
Source : AFC Report (2002)

Table 7.3: Comparison between 1 MT/hr mill and 2.5 MT/hr mill in
capacity utilization for an area of 434 ha.
Plantation
age (year)
3
4
5
6
7
8
FFB arrival/
year (MT)
651
2170
3472
4774
6510
7812
Mill capacity
required (MT/hr)
0.2
0.7
1.1
1.5
2.1
2.5
Capacity utilization (%)

2.5MT/hr mill
1.0MT/hr mill
8
20
28
70
44
110
60
150
84
210
100
250
arrival during a peak month, and mill operation of 25

days a month and 20 hours a day, the area that can be
managed by a 1 MT/hr capacity mill as compared with
that of 2.5 MT/hr mill is given in Table 7.2. If the area of
demonstration plot is 434 ha (maximum area of matured
plantations that can be allotted for a 2.5 MT/hr capacity
mill), the FFB arrivals and capacity utilization till 8th year
for 1.0 MT/hr capacity mill is compared with that of 2.5
MT/hr a in Table 7.3.
Rs. 300 lakh for 2.5 MT/hr capacity mills to the state or
entrepreneur in the form of plant and equipment may
be provided.
vi) This indicates that for a 434 ha plantation, a 2.5MT/

hr capacity mill will require 8 years for full capacity
utilization, where as 1MT/hr mill reaches full capacity
utilization during 5th year itself. The huge capacity mill,
which requires huge investment runs less than half the
7.8.5 Crop insurance
viii) Since the aim of demonstration unit is to build

confidence among the farmers, the Committee
recommends that the mill installation should be
completed at the end of third year of planting so as to
process the FFB from 4th year onwards.
i)
India, being a predominantly agrarian country, the
role of crop insurance need not be over emphasized.
Instances of farmers resorting to extreme steps like
committing suicide due to indebtedness as a result of
107

crop failure due to various reasons either natural or manmade are not uncommon in the country. Oil Palm
growing states have in the past faced natural calamities
like cyclones, floods and drought in the recent past. Oil
Palm being a perennial crop with gestation period of 34 years and economic life of 25-30 years, the investment
of the farmer in the crop and the benefits expected
thereof need to be protected, in order to encourage them
to cultivate this crop.
ii) Insurance is an important item for Oil Palm
cultivation in India as the crop is being cultivated by
providing large scale inputs. Natural calamities due to
both abiotic and biotic factors may lead to failure of the
crop. Provision of an insurance for damage to plant yield
reduction or total loss will act as a great security in
promoting Oil Palm cultivation. It is, therefore, suggested
that a suitable insurance scheme mutually beneficial
both to the farmer and the company needs to be worked
out and launched.
iii) A few years back, M/s Oriental Insurance Company
Limited came out with a policy for insuring Oil Palm.
However, there were practically no takers as the
insurance cover excluded major risk factors like
cyclones, floods, drought etc. Recently, the Govt. of
Andhra Pradesh took the lead in negotiating with various
insurance companies to provide comprehensive
insurance scheme for Oil Palm covering most of the
risks. The Oriental Insurance Company Limited has got
quoted a reasonable premium. Such schemes need to
be seriously considered for their feasibility for adoption.
iv) The Oil Palm growers in Andhra Pradesh have also
evinced interest in the Crop Insurance Scheme. They
are willing to contribute 50% of the premium as their
share if the balance 50% is borne by the Govt. and/or
the entrepreneurs. However, under ISOPOM there is
no component for providing subsidy for crop insurance.
The Committee recommends that in the Oil Palm
Development Programme under ISOPOM, during the
XI Plan period a component for subsidizing crop
insurance to the extent of 30% of the premium paid by
the farmer from the begining of 7th year plantation
limited to Rs. 3/- per palm may be included.

i)
Mechanization is widely accepted as a means to
reduce drudgery of agricultural operations and reliance
on manual labour. Mechanization of Oil Palm production
operations will make the crop more competitive and lead
to its sustainable development. The Committee
observed that no assistance by way of subsidy has been
extended under this component during the last Plan
periods.
ii) Harvesting tools: Harvesting is the most laborious

and time consuming operation in the Oil Palm production
process. Different types of hand held devices and
ladders are in practice for FFB harvesting. Being one
of the oldest plantations in India, the tools used in OPIL
plantations in Kerala are found to be superior. It is
recommended that tools and gadgets used in Oil Palm
plantations in Malaysia may be imported and
popularized among the farmers as such or with
modification to make harvesting easy. The Committee
further recommends to provide 50 percent subsidy for
gadgets for harvesting (including cost of sickle and pole)
with a ceiling of Rs. 2,500/-. The quality of the tools
should be ensured before offering subsidy.
iii) Frond cutter: Oil Palm fronds are found good for
composting and mulching and act as a good soil
conditioner. The undisposed fronds in plantations make
movement of transportation devices difficult and act as
host for snakes, insects etc. Disposal of these wastes
needs frond shredders designed specially for the
purpose. The committee observed that the frond
shredders adopted by many farmers need improvement
to get maximum efficiency. The Committee, therefore,
recommends subsidy for this component to the tune of
50 percent of the cost with a ceiling of Rs. 20,000/- to
interested growers. The quality of the machine should
be ensured before offering subsidy.
iv) Vermi compost pits: Masonry structures are
required for preparing vermicompost units in Oil Palm
plantations. Assistance in the form of subsidy can be
offered to the tune of 50 percent with a ceiling of
Rs.15,000/- for three vermicompost units of 15 m length,
0.90 m width and 0.24 m. depth.
7. 9 Organisational changes
i)
Oil Palm demands high level of technical
management and investment where production and
processing are linked. It therefore deserves a special
organizational setup. Existing infrastructure both at
Centre and State is not sufficient for achieving the
desired area expansion targets.
ii)
The Chadha Committee -1988 had suggested
creation of a Central Apex Body namely National Oil
Palm Development Board exclusively for Oil Palm
development with full power and adequate funds to
promote oil palm cultivation in India. However, Oil Palm
Development Programme is linked with TMOP where
at present only one Asst. Director is available for
exclusively looking after the programme.
iii)
108
While Oil Palm programmes in some states like
Policy Issues
Andhra Pradesh, Karnataka, Chhattisgarh, Gujarat and
Orissa are being implemented by Dept. of Horticulture,
in some states like Tamil Nadu, Goa and Mizoram OPDP
is the responsibility of Dept. of Agriculture. This creates
anomalies in management of the programme. Oil Palm
research programmes are covered by the Horticulture
division under ICAR and the requirements of the crop
are also akin to other palms like coconut, areca nut etc.,
So, it is recommended for uniform placement of Oil Palm
in the department of Horticulture in other states also
viz., Tamil Nadu and Mizoram where such departments
exist.
iv)
There is need to assign independent staff by the
departments of horticulture for promotion of Oil Palm.
v)
Private sector entrepreneurs identified by
different states also need to take responsibility of transfer
of technology. Qualified technical staff should be
exclusively appointed for looking after OPDP and should
be trained for the purpose. They should be involved in

area identification, guiding the farmers in adopting
the recommended package of practices, setting up
collection centres, looking after timely payment etc.
While some entrepreneurs have appointed separate
extension staff for this purpose, this is not followed
uniformly.
vi)
Strengthening of National Research Centre for
Oil Palm on the pattern of PORIM in Malaysia is called
for in order to address various research issues on Oil
Palm in different agro-climatic zones. As NRCOP is
established exclusively for research on Oil Palm the
responsibility of Oil Palm research under AICRP on
palms with headquarters at CPCRI needs to be
transferred to Director, NRCOP. Additional centres under
AICRP need to be established in states with sizable
area coverage for getting region specific
recommendations.
Annexure 7.1
a : Basic extraction rate for oil and kernel based on the age of palm for Tenera (DP) Progeny
Year planted
<3
3-<4
4-<5
5-<6
6-<7
7-<8
8-<18
18 and above
Peninsula
Extraction rate
Oil (%)
Kernel (%)
14 - 15
4.0 - 4.2
15 - 16
4.2 - 4.5
16 - 17
4.5 - 4.8
17 - 18
4.8 - 5.0
18 - 19
5.0 - 5.5
19 - 2 0
5.0 - 5.5
20
5.0 - 5.5
19 - 20
5.0 - 5.5
Sabah/Sarawak
Extraction rate
Oil (%)
Kernel (%)
15 - 16
3.5 - 3.9
16 - 17
3.9 - 4.2
17 - 18
4.2 - 4.5
18 - 19
4.5 - 4.8
19 - 20
4.8 - 5.0
20 - 21
4.8 - 5.0
21
4.8 - 5.0
20 - 21
4.8 - 5.0
b : Basic extraction rate for oil and kernel based on bunch weight, Tenera (DP) Progeny
Bunch weight (kg)
<5
5-<6
6-<7
7-<8
8-<9
9-<10
10-<25
25 and above
Peninsula
Extraction rate
Oil (%)
Kernel (%)
14 - 15
4.0 - 4.2
15 - 16
4.2 - 4.5
16 - 17
4.5 - 4.8
17 - 18
4.8 - 5.0
18 - 19
5.0 - 5.5
19 - 2 0
5.0 - 5.5
20
5.0 - 5.5
19 - 20
5.0 - 5.5
109
Sabah/Sarawak
Extraction rate
Oil (%)
Kernel (%)
15 - 16
3.5 - 3.9
16 - 17
3.9 - 4.2
17 - 18
4.2 - 4.5
18 - 19
4.5 - 4.8
19 - 20
4.8 - 5.0
20 - 21
4.8 - 5.0
21
4.8 - 5.0
20 - 21
4.8 - 5.0

c : Deduction imposed on the basic oil extraction rate based on the percentage of unripe bunch
% unripe
bunch
0
1
2
3
4
5
6
7
8
9
10
20
30
40
50
60
70
80
0
0.12
0.24
0.36
0.48
0.60
0.72
0.84
0.96
1.08
1.20
1.32
1.44
1.56
1.68
1.80
1.92
2.04
2.16
2.28
2.40
2.52
2.64
2.76
2.88
3.00
3.12
3.24
3.36
3.48
3.60
3.72
3.84
3.96
4.08
4.20
4.32
4.44
4.56
4.68
4.80
4.92
5.04
5.16
5.28
5.40
5.52
5.64
5.76
5.88
6.00
6.12
6.24
6.36
6.48
6.60
6.72
6.84
6.96
7.08
7.20
7.32
7.44
7.56
7.68
7.80
7.92
8.04
8.16
8.28
8.40
8.52
8.64
8.76
8.88
9.00
9.12
9.24
9.36
9.48
90
9.60
9.72
9.84
9.96
10.08
10.20
10.32
10.44
10.56
10.68
10.80
10.92
11.04
11.16
11.28
11.40
11.52
11.64
11.76
11.88
d : Deduction imposed on the basic oil extraction rate based on the percentage of under ripe bunch
% underripe
bunch
0
1
2
3
4
5
6
7
8
9
10
20
30
40
50
60
70
80
90
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.33
0.36
0.39
0.42
0.45
0.48
0.51
0.54
0.57
0.60
0.63
0.66
0.69
0.72
0.75
0.78
0.81
0.84
0.87
0.90
0.93
0.96
0.99
1.02
1.05
1.08
1.11
1.14
1.17
1.20
1.23
1.26
1.29
1.32
1.35
1.38
1.41
1.44
1.47
1.50
1.53
1.56
1.59
1.62
1.65
1.68
1.71
1.74
1.77
1.80
1.83
1.86
1.89
1.92
1.95
1.98
2.01
2.04
2.07
2.10
2.13
2.16
2.19
2.22
2.25
2.28
2.31
2.34
2.37
2.40
2.43
2.46
2.49
2.52
2.55
2.58
2.61
2.64
2.67
2.70
2.73
2.76
2.79
2.82
2.85
2.88
2.91
2.94
2.97
e : Deduction imposed on the basic oil extraction rate based on the percentage of empty bunch
% empty
bunch
0
1
2
3
4
5
6
7
8
9
10
20
30
40
50
60
70
80
90
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
1.00
1.10
1.20
1.30
1.40
1.50
1.60
1.70
1.80
1.90
2.00
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
* Reject the load
110
Policy Issues
f : Deduction imposed on the basic oil extraction rate based on the percentage of rotten bunch
% rotten
bunch
0
1
2
3
4
5
6
7
8
9
10
20
30
40
50
60
70
80
90
0.00
0.12
0.24
0.36
0.48
0.60
0.72
0.84
0.96
1.08
1.20
1.32
1.44
1.56
1.68
1.80
1.92
2.04
2.16
2.28
2.40
2.52
2.64
2.76
2.88
3.00
3.12
3.24
3.36
3.48
3.60
3.72
3.84
3.96
4.08
4.20
4.32
4.44
4.56
4.68
4.80
4.92
5.04
5.16
5.28
5.40
5.52
5.64
5.76
5.88
6.00
6.12
6.24
6.36
6.48
6.60
6.72
6.84
6.96
7.08
7.20
7.32
7.44
7.56
7.68
7.80
7.92
8.40
8.16
8.28
8.40
8.52
8.64
8.76
8.88
9.00
9.12
9.24
9.36
9.48
9.60
9.72
9.84
9.96
10.08
10.20
10.32
10.44
10.56
10.68
10.80
10.92
11.04
11.16
11.28
11.40
11.52
11.64
11.76
11.88
g : Deduction imposed on the basic oil extraction rate based on the percentage of long stalk bunch
% long
stalk bunch
0
1
2
3
4
5
6
7
8
9
10
20
30
40
50
60
70
80
90
0.00
0.00
0.00
0.00
0.00
0.00
0.06
0.07
0.08
0.09
0.10
0.11
0.12
0.13
0.14
0.15
0.16
0.17
0.18
0.19
0.20
0.21
0.22
0.23
0.24
0.25
0.26
0.27
0.28
0.29
0.30
0.31
0.32
0.33
0.34
0.35
0.36
0.37
0.38
0.39
0.40
0.41
0.42
0.43
0.44
0.45
0.46
0.47
0.48
0.49
0.50
0.51
0.52
0.53
0.54
0.55
0.56
0.57
0.58
0.59
0.60
0.61
0.62
0.63
0.64
0.65
0.66
0.67
0.68
0.69
0.70
0.71
0.72
0.73
0.74
0.75
0.76
0.77
0.78
0.79
0.80
0.81
0.82
0.83
0.84
0.85
0.86
0.87
0.88
0.89
0.90
0.91
0.92
0.93
0.94
0.95
0.96
0.97
0.98
0.99
h : Deduction imposed on the basic oil extraction rate based on the percentage of dirty bunch
% dirty
bunch
0
1
2
3
4
5
6
7
8
9
10
20
30
40
50
60
70
80
90
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
1.00
1.10
1.20
1.30
1.40
1.50
1.60
1.70
1.80
1.90
2.00
2.10
2.20
2.30
2.40
2.50
2.60
2.70
2.80
2.90
3.00
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
* Reject the load
111

i : Deduction imposed on the basic oil extraction rate based on the percentage of dura bunch
% dura
bunch
0
1
2
3
4
5
6
7
8
9
10
20
30
40
50
60
70
80
90
0.00
0.04
0.08
0.12
0.16
0.20
0.24
0.28
0.32
0.36
0.40
0.44
0.48
0.52
0.56
0.60
0.64
0.68
0.72
0.76
0.80
0.84
0.88
0.92
0.96
1.00
1.04
1.08
1.12
1.16
1.20
1.24
1.28
1.32
1.36
1.40
1.44
1.48
1.52
1.56
1.60
1.64
1.68
1.72
1.76
1.80
1.84
1.88
1.92
1.96
2.00
2.04
2.08
2.12
2.16
2.20
2.24
2.28
2.32
2.36
2.40
2.44
2.48
2.52
2.56
2.60
2.64
2.68
2.72
2.76
2.80
2.84
2.88
2.92
2.96
3.00
3.04
3.08
3.12
3.16
3.20
3.24
3.28
3.32
3.36
3.40
3.44
3.48
3.52
3.56
3.60
3.64
6.68
3.72
3.76
3.80
3.84
3.88
3.92
3.96
j : Deduction imposed on the basic oil extraction rate based on the percentage of old bunch
% old
bunch
0
1
2
3
4
5
6
7
8
9
10
20
30
40
50
60
70
80
90
0.00
0.08
0.16
0.24
0.32
0.40
0.48
0.56
0.64
0.72
0.80
0.88
0.96
1.04
1.12
1.20
1.28
1.36
1.44
1.52
1.60
1.68
1.76
1.84
1.92
2.00
2.08
2.16
2.2
2.32
2.40
2.48
2.56
2.64
2.72
2.80
2.88
2.96
3.04
3.12
3.20
3.28
3.36
3.44
3.52
3.60
3.68
3.76
3.84
3.92
4.00
4.08
4.16
4.24
4.32
4.40
4.48
4.56
4.64
4.72
4.80
4.88
4.96
5.04
5.12
5.20
5.28
5.36
5.44
5.52
5.60
5.68
5.76
5.84
5.92
6.00
6.08
6.16
6.24
6.32
6.40
6.48
6.56
6.64
6.72
6.80
6.88
6.96
7.04
7.12
7.20
7.28
7.36
7.44
7.52
7.60
7.68
7.76
7.84
7.92
k : Deduction imposed on the basic oil extraction rate based on the percentage of free water
consignment of fresh fruit bunch
degree of freshness
fresh
unfresh
0.40%
0.80%
0.00%
0.00%
dripping water
no dripping water
112
8. BUDGETARY PROVISION
8.1 Budget Allocation and Utilization
during VIII, IX & X (upto 2005-06) Plans
i)
The Oil Palm Development Project was launched
during VIII plan with an initial allocation of Rs.7,061.16
lakh. The allocation and utilization of funds during
different plans is given in Table 8.1. While the allocation
was marginally increased from Rs. 7,061.16 lakh during
VIII Plan to Rs. 7,400 lakh in IX Plan, it got significantly
reduced during the first four years of the X Plan
(Rs.4,946.39 lakh). However the utilization increased
marginally. Total utilization was 71% (Rs.13,729.19 lakh
out of Rs.19,407.55 lakh) of total allocated up to
2005-06.
ii)
The state-wise and institution-wise budget
allocated by Govt. of India under Oil Palm Development
Programme (OPDP) and utilized during VIII, IX & X (up
to 2005-06) Plans is given in Table 8.1 and discussed
hereunder:

During VIII plan, the allocation was Rs. 3,992.07
lakh out of the total allocation of Rs. 7,061.16 lakh.
Against this, the utilization was Rs. 2,252.68 lakh. The
major portion of total allocation and utilization of funds
has been by this state during all the plans. The state
has utilized Rs. 7,852.58 lakh out of the total allocation
of Rs. 9,929.75 lakh made during VIII, IX and X (up to
2005-06) Plans.
8.1.2 Assam
The total allocation during VIII to X Plan was Rs.
88.57 lakh, while it utilized only Rs. 10.01 lakh during
IX Plan towards planting material, nursery, training of
staff and drip irrigation, it did not utilize the allocation
made during VIII & X Plans. The state Govt. is currently
not implementing the OPDP.
8.1.3 Goa
Though the allocation shows increasing trend in
all Plans, the utilization showed a decreasing trend. The
state utilized only Rs. 103.55 lakh out of the total
allocation of Rs. 204.20 lakh during all the three Plans
so far.
8.1.4 Gujarat
The state utilized a total of Rs. 273.55 lakh out of
Rs. 489.45 lakh during all the Plans. The utilization is
only around 55% of the total allocation. The utilization

was high during IX Plan being Rs 106.45 lakh out of
the allocation of Rs. 151.66 lakh.
8.1.5 Karnataka
Next to Andhra Pradesh, Karnataka got highest
funds allocated and utilized in all the Plans. The state
utilized Rs. 2,726.62 lakh out of Rs. 3,757.48 lakh
allocated during the three Plan periods.
8.1.6 Kerala
The state utilized Rs. 187.28 lakh out of the
allocation of Rs. 273.82 lakh made during the three
Plans. The utilization is around 68% of allocation. The
utilization was more than double of the allocated fund
during X Plan i.e. Rs 103.84 lakh against the allocation
of Rs. 43.50 lakh. This was due to utilization of unspent
balances of previous Plans.
8.1.7 Mizoram
There was no separate allocation for Mizoram state
during VIII and IX Plans. During X Plan Rs. 110 lakh
have been utilized by the state towards planting material,
nursery, training and publicity, drip irrigation and diesel
pumpset.
8.1.8 Orissa
allocation of Rs. 718.88 lakh made during all the Plans.
The utilization is only around 33% of allocation. This is
because of low utilization during IX Plan and nonutilization during X Plan.
8.1.9 Tamil Nadu

Next to Andhra Pradesh and Karnataka, Tamil
Nadu is another major state to have allocated more
funds in all the Plans. The state utilized Rs. 1892.64
lakh out of the allocation of Rs.2476.34 during all the
Plans. This is 76.4% of the total allocation to the state.
8.1.10 Tripura
allocation of Rs. 88.83 lakh made during all the Plans
towards planting material, nursery and area expansion
to the extent of 250 ha in Govt. land. The utilization is
around 44.6% of allocation. This is because of low
utilization during IX and X Plans. However, the utilization
was 100% during VIII Plan.
113
Name of the
State/Institution
Andhra Pradesh
Assam
Goa
Gujarat
Karnataka
Kerala
Others including
Mizoram
Orissa
Tamil Nadu
Tripura
Sub Total (I)
AFC
ICAR
OPIL
TMO&P
Sub Total (II)
Component on
Development of
Wasteland
Sub Total (III)
G. Total (i) + (ii) + (iii)
105.21
698.05
13.40
4366.86
24.20
106.34
56.77
0.00
187.31
16.74
16.74
4570.91
161.57
896.43
13.00
6792.91
51.03
138.66
61.82
0.00
251.51
16.74
16.74
7061.16
VIII Plan
Allocation
Utilization
3992.07
2252.68
15.00
0.00
64.94
59.45
142.79
74.65
1449.09
1109.84
32.22
28.21
25.80
25.37
114
372.00
7400.00
530.31
960.75
31.83
6836.21
32.00
128.79
4.00
27.00
191.79
372.00
0.00
4744.86
129.99
746.00
16.70
4694.53
0.00
50.33
0.00
0.00
50.33
0.00
IX Plan
Allocation
Utilization
3420.50
2851.74
44.57
10.01
82.76
29.97
151.66
106.45
1288.44
748.44
198.10
55.23
127.29
0.00
234.00
4946.39
27.00
619.16
44.00
4648.29
0.00
64.10
0.00
0.00
64.10
234.00
0.00
4413.42
0.00
448.59
9.52
4368.03
0.00
45.39
0.00
0.00
45.39
0.00
X Plan (up to 2005-06)

Allocation
Utilization
2517.18
2721.16
29.00
0.00
56.50
14.13
195.00
92.45
1019.95
868.34
43.50
103.84
97.00
110.00
622.74
19407.55
718.88
2476.34
88.83
18277.41
83.03
331.55
65.82
27.00
507.40
622.74
16.74
13729.19
235.20
1892.64
39.62
13429.42
24.20
202.06
56.77
0.00
283.03
16.74
Grand Total for Plans

Allocation Utilization
9929.75
7825.58
88.57
10.01
204.20
103.55
489.45
273.55
3757.48
2726.62
273.82
187.28
250.09
135.37
Table 8.1: State-wise and institution-wise Central allocation made and utilized during VIII, IX & X (up to 2005-06) Plan periods under
Oil Palm Development Programme (OPDP)
Rs. in lakhs
Budgetary Provision
8.1.11 ICAR, OPIL, AFC & TMOP

The utilization by these organisations during all
the Plans is Rs. 283.03 lakh out of the allocation of Rs.
507.40 lakh. This is 55.7% of the total allocation to these
organisations. Regular allocation and utilization was
observed in the ICAR institution. No utilization in IX Plan
and no allocation & utilization in X Plan has been
observed for OPIL and AFC respectively.
the X Plan need based support will be provided

during XI Plan also, but will be limited to 10% of
total financial allocation of the state.
Subsidy for establishing small palm oil mills is

recommended only for the states of Chhattisgarh
and Mizoram.
For the establishment and maintenance of seed

gardens no specific guidelines were available
during X Plan. However, during XI Plan it is
proposed that seed gardens be developed by the
state govt./private sector as a revolving fund
scheme.
For the development of waste land, though the fund

allocation remains the same, it has been proposed
to utilize the fund allocated for tapping unutilized
land and construction of water harvesting tanks in
addition to the existing items or pattern of
utilization.
During XI plan, assistance is proposed for new

components like digging of borewell, diesel
generator set, crop insurance, development of
water harvesting structures in North Eastern states
and innovative components like vermicompost
units, frond cutter and harvesting tools.
ii)
Central/state share in the programme
8.1.12 Development of wasteland

The total utilization of funds was merely Rs. 16.74
lakh out of the total allocation of Rs. 622.74 lakh during
all the Plans. The fund was utilized only in VIII Plan.
This may be due to non-suitability of wastelands for Oil
Palm cultivation. Keeping this in view, a component of
tapping unutilized cultivable land/wastelands for Oil Palm
cultivation has been suggested during XI Plan in place
of development of wastelands.
8.2 Subsidies and Incentives

To promote Oil Palm development, the Govt. of
India provided several subsidies and incentives to
farmers. These were accepted very well and played a
major role in attracting farmers to Oil Palm cultivation.
Keeping in view the constraints faced by farmers due to
increased cost of cultivation and new opportunities
available, the committee has proposed need based
modifications in subsidies during the XI Plan. While the
justification for this change is elaborated in Chapter 7,
comparative statement of the existing subsidies with
the proposed modifications during the XI Plan are given
in Table 8.2.
8.3. Future Pattern of Assistance

8.3.1 Component-wise assistance
i)
The major changes in subsidy component available
in the X Plan are summarised below.
An increase in the pattern of assistance for XI plan

as compared to the existing pattern has been
proposed with regard to planting material
distribution, cultivation cost, drip irrigation,
purchase of diesel pump, farmers training and
establishment of palm oil mill.
For establishment of Demonstration plots, the

cultivation assistance is proposed to be increased
from 30,950 per ha to Rs 35,000 per ha whereas
the planting material assistance is recommended
to remain the same at Rs10,000 per ha.
For officers training, publicity, extension etc, as in
The programme will be implemented on 75:25

sharing basis between Govt. of India and the concerned
state governments, except for the component of drip
irrigation for which sharing on 90:10 basis between Govt.
of India and the concerned state government is
recommended. For North-Eastern states, the entire cost
on installation of drip irrigation system in Oil Palm
plantation would be met by the center. For components
like training, testing of genotypes etc. being implemented
by ICAR, entire funds will be provided by the Central
Govt.
iii)
SC/ST Components
A minimum of 25% of the funds allocated for

implementation of beneficiary oriented components,
viz., planting material, cultivation, training and drip
irrigation will be earmarked by State Govt. for farmers
belonging to Scheduled Castes (17%) and Scheduled
Tribes (8%).
8.3.2 Physical targets

i)
As per the component wise pattern of assistance
proposed during 2006-07 of X Plan and XI Plan, state
wise physical targets were set and the consolidated
details are given in Table 8.3.
115
For planting material distribution, an area of

2,48,175 ha has been set as target for both X and
XI Plan periods.
Six seed gardens of 15 ha each are proposed to

be established during XI Plan
8.3.3 Budget requirement
Cultivation cost subsidy is worked out for a total

targeted area of 2,48,075 ha proposed to be
covered during 2006-07 and XI Plan period and
the resulting commitment in the first three years
of XII Plan.
Subsidy for installation of Drip irrigation has to be

provided for a proposed area of 6,114 ha during
2006-07 and 78,433 ha during XI Plan periods.
Assistance for purchase of diesel/motor pumpsets

will be provided to 255 farmers during 2006-07 and
7,695 farmers during XI Plan.
Assistance for purchase of diesel generator set

will be provided to 7699 farmers during XI Plan.
Assistance for development of water harvest

structures will be provided only in the north eastern
states to a total of 505 beneficiaries during XI Plan.
Borewell subsidy will be provided starting from the

XI Plan to a total of 4,229 beneficiaries.
Assistance will be provided for setting up of 200

demonstration plots of 1 ha each during 2007-08
and 2008-09. These will be established in the
newly identified OPDP districts only.
A total of 4,750 farmers (95 batches of farmers,

each batch comprising 50 farmers) will be trained
during 2006-07 and 36,850 farmers (737 batches)
will be trained during the 5 years period of XI Plan.
Assistance for officers training , extension, publicity

etc. will be need based.
Two numbers of 1 MT/2.5 MT palm oil mills will be

established in the states of Chhattisgarh and
Mizoram with assistance from OPDP.
Assistance for innovative components like

vermicomposting, frond cutter, harvesting tools etc.
will be provided to an extent of 10% of financial
allocation and no targets were set.
The plantations of 7 years age have been included

for insurance coverage during XI Plan and
committements in XII Plan.
i)
Based on the component wise pattern of
assistance proposed and the physical targets set for
the X and XI Plan periods the budget requirement has
been calculated state wise and also component wise
and the details are given in Tables 8.4 and 8.5
respectively.
During 2006-07, the total budget requirement has
been estimated to be Rs.64.72 crore of which the central
share is 49.15 crore and that of states share will be
Rs.15.57 crore. For the XI and XII Plans a budget of
Rs. 1,175.22 crore (central share is Rs. 912.17 crore
and state share is Rs. 263.04 crore) and Rs.189.53 crore
( central share is Rs. 142.15 crore and states share is
Rs. 47.38 crore) respectively is proposed.
ii) Subsidies to the tune of Rs. 219.75 crore for
planting material distribution, Rs.1.80 crore for
establishment and maintenance of seed gardens,
Rs. 506.87 crore for subsidy towards cultivation cost,
Rs. 185.81 crore towards tapping unutilized cultivable
land, Rs. 171.96 crore towards drip irrigation, Rs. 11.80
crore towards diesel motor and pump sets, Rs. 10.57
crore towards borewell subsidy, Rs.19.25 crore towards
diesel generator set, Rs. 2.52 crore for development of
water harvesting structures and water sheds in north
eastern states, Rs. 0.70 crore towards demonstrations,
Rs. 1.62 crore towards farmers training, Rs. 123.87
crore for officers training, publicity, extension etc., Rs.
6.0 crore for establishment of small palm oil mills, Rs.
123.87 crore for innovative measures and Rs. 43.07
crore towards insurance are to be provided for the entire
2006-07 and XI Plan periods. Of this total of Rs.
1,429.47 crore, the central share will be Rs. 1,103.48
crore and states share will be Rs. 325.99 crore.
The state wise physical targets of nine states and
their budget requirement are given in Table 8.6(a) to
Table 8.15(b). Requirement of funds from TMOP for
ISOPOM schemes operative at NRCOP, Pedavegi and
the proposed project on mass micro propogation of elite
palms to the tune of Rs. 23.98 crore is given in Table
8.16.
116
Proposed pattern for XI Plan*

85% of the cost with a ceiling of Rs.9,000 per ha for entire land
holding of the farmer.
Seed garden may be developed by state in an area of 15 ha as a
Revolving Fund Scheme with the assistance of Rs. 30.00 lakh
with the breakup of Rs. 10.00 lakh in the first year and Rs. 2.00
lakhs each for 2nd, 3rd, 4th, 5th & 6th year. In 7th year a block grant of
Rs. 10.00 lakh will be provided. From 8th year onwards the scheme
is likely to become self-supportive.
During 1st year the assistance may be utilized towards the cost of
seedlings, cultivation, drip systems, motor pumps and
maintenance. From 2nd to 6th year, the subsidy may be utilized for
cultivation cost and maintenance. In 7th, year the assistance may
be utilized towards cultivation cost, labour for pollination, providing
infrastructure for seed germination etc. (for the States of A. P.
Gujarat, Karnataka, Mizoram, Orissa & Tamil Nadu only)
50% of the cost during gestation period (for 4 years) with a ceiling
of Rs.20,000 per ha up to 25 ha. The year-wise fund allocation is
Rs. 6,000, Rs. 3,500, Rs. 4,500 and Rs. 6,000 for 1st, 2nd, 3rd and
4th years, respectively.
15% of fund allocated for tapping unutilized cultivable land owned
by farmers or Government lands / wasteland owned by the corporations of the State and Central Government or cooperatives.
Out of this 15%, 25% funds will be provided for infrastructure,
irrigation facilities, water harvesting tanks etc. for the unutilized
cultivable lands.
Existing pattern during X Plan

75% of the cost with a ceiling of Rs. 7,500 per
ha for entire land holding of the farmer.
No specific guidelines
50% of the cost during gestation period (for 4

years) with a ceiling of Rs.15,500 per ha up to 15
ha. The year-wise fund allocation is Rs. 4,600, Rs.
3,300, Rs. 3,500 and Rs. 4,100 for 1st, 2nd, 3rd and
4th years, respectively.
15% of fund allocated for development of wasteland owned by farmers or Government lands /
wasteland owned by the corporations of the State
and Central Government or cooperatives. Out of
this 15%, 25% funds will be provided for infrastructure, irrigation facilities for wastelands.
Component
Area Expansion
i) Planting Material
distribution
ii) Establishment and

maintenance of seed
garden
iii) Cultivation cost
iv) Development of
wasteland
Table 8.2: Component-wise pattern of assistance existing in X Plan and proposed pattern of assistance for
XI Plan under Oil Palm Development Programme.
Budgetary Provision
117
118
--
--
iii) Bore well subsidy
iv) Purchase of Diesel

Generator set
v) Development of water -harvesting structures and

water shed in North
Eastern states.
50% cost to a maximum limit of Rs.10,000 per

set.
50% of the cost for Small, Marginal, SC/ST and

Women farmers with ceiling ranging from Rs.7,400
to Rs.9,300 and 35% for other categories with a
ceiling of Rs.5,200 to Rs. 6,500. Assistance will
be provided for a maximum of 4 ha per beneficiary.
ii) Diesel Pump sets
i) Drip Irrigation
Irrigation components
Table 8.2 : (Contd.)
100% cost to a maximum limit of Rs. 50,000 per water harvesting structure and Rs. 30,000 per water shed for a maximum of
2 ha.
75% cost to a maximum limit of Rs.25,000 per set for Diesel

Generator set in all the states.
25% cost to a maximum limit of Rs.25,000 per bore well to

bonafide Oil Palm growers.
75% cost to a maximum limit of Rs.15,000 per set for either

Diesel Pump set of 2.5 to 5.0 HP depending on the requirement
or Electric Motor Pump set in all the states.
i) 85% of the cost for Small, Marginal, SC/ST and Women farmers
with ceiling of Rs. 20,000, and 75% for the 1st 1 to 5 ha and 50%
for 6 to 25 ha for other categories with a ceiling of Rs.20,000 per
ha.
ii) High pressure compensated drip system is recommended for
North-Eastern state farmers with 85% of the cost upto Small,
Marginal, SC/ST and Women farmers with ceiling of Rs. 25,000,
and 75% for the 1st 1 to 5 ha and 50% for 6 to 25 ha for other
categories with a ceiling of Rs.25,000 per ha.
iii) 100% share from GOI in case of North-Eastern state farmers.
iv) The Central and state share in case of other states would be
90:10.
119
i) Establishing Small Palm

Oil mills under the
Scheme Post Harvest
Technology
A central share of 60% with a ceiling of Rs. 240

lakh to the state or entrepreneur in the form of
plant and equipment (This was discontinued from
the year 2005-06).
Need based support would be provided as per

requirement for training, extension & publicity,
establishment and Staff and other ongoing
schemes of seed gardens, leaf analysis lab,
training of staff / officers and testing of genotype
etc.
iii) Officers Training,

Extension & Publicity,
Establishment & staff &
other ongoing schemes.
Post Harvest
component
Rs. 15,000/- per training for a batch of 50

farmers
In a block where new Oil Palm plantation of 500

ha or above are being taken up on farmers fields,
20 demonstrations of 1 ha each will be taken up
with a view to demonstrate cultivation and
management practices, plant protection measures
and potential yield of Oil Palm to the farmers. Under
Oil Palm demonstrations entire expenditure subject
to the maximum of Rs.10,000/- per ha for planting
material and maximum of Rs.30,950 per ha for
cultivation during gestation period of 4-5 years is
being provided. Balance cost, if any, on planting
material, cultivation and other expenditures may
be met either by the farmer or state government.
ii) Farmers training
i) Demonstrations
Promotional components
A central share of 60% with a ceiling of Rs. 30.00 lakhs for 1

tonne and 300 lakhs for 2.5 tonnes mill capacity to the state or
entrepreneur in the form of plant and equipment.
Applicable only in the newer states of Chhattisgarh & Mizoram.
i) Need based support would be provided as per requirement for

training, extension & publicity, establishment and Staff and other
ongoing schemes of seed gardens, leaf analysis lab, training of
Staff / Officers and testing of genotype etc. limited to 10 % of the
total financial allocation of the state.
ii) Training of officials and extension staff both within/outside India
Rs. 20,000/- per training for a batch of 50 farmers with in the

state.
In districts where new Oil Palm plantation of 500 ha or above are

being taken up on farmers fields, 5 demonstrations of 1 ha each
in the years 2007-08 & 2008-09 will be taken with a view to
demonstrate cultivation and management practices, plant
protection measures and potential yield of Oil Palm to the farmers.
Under Oil Palm demonstrations entire expenditure subject to the
maximum of Rs.10,000/- per ha for planting material and maximum
of Rs.35,000 per ha for cultivation during gestation period of 5
years is recommended. The break up of the above subsidy is Rs.
7,000, Rs. 5,000, Rs. 6,000, Rs. 8,000 and Rs. 9,000 for 1st, 2nd,
3rd, 4th & 5th years, respectively. Balance cost, if any, on planting
material, cultivation and other expenditures may be met either by
the farmer or state government.
Demonstrations are recommended for the Nalgonda District of
A. P.; UKP Zone of Karnataka; Vellore, Cuddalore, Villupuram,
Theni, Tirunelveli and Tutucorin districts of Tamil Nadu and all the
OPDP districts of Chhattisgarh, Gujarat, Mizoram, and Orissa only.
Budgetary Provision
30% of the premium from the beginning of 7th year of plantation

limited to Rs. 3 per tree.
ii) Insurance
* All the above subsidies/assistance are recommended to be applicable for individual farmers, entrepreneurs, NGOs and any other private
organizations interested in Oil Palm Development Programmes.
--
Introducing innovative measures or any special component to the

extent of 10% of financial allocation. The assistance pattern is as
follows :
i) Vermi compost: 50% of the cost with a ceiling of Rs. 15,000 for
three units of 15 m length, 0.9 m width and 0.24 m depth.
ii) Frond cutter : 50% of the cost with a ceiling of Rs. 20,000.
iii) Harvesting tools : 50% of the cost with a ceiling of Rs. 2,500.
i) Introducing innovative Introducing innovative measures or any special

measures and others like component to the extent of 10% of financial
vermi-compost, frond allocation
cutter, harvesting tools,
etc.
Innovative components
120
0
32,428
0
95
0
0
0
0
Development of water
harvesting structures, water
sheds in NE states (No.)
Demonstrations 1 ha
each (No.)
Farmers training (No.)50 farmers batch
Officers Training,
Extn. & Publicity, Estt &
Staff
Establishing Small Palm Oil

Mills under PHT Scheme (No.)
Innovative measures-Vermi
compost, Frond cutter
Harvesting tools etc (No.)
Insurance (ha)
604
121
# includes previous three years commitment area
106
98
60
1,161
0
0
1,159
10,470
76,901
32,450
2007-08
46,250
2009-10
37,833
137
102
110
1,419
790
1,417
14,575
43,238
153
110
1,572
875
1,572
16,175
1,11,180 1,44,775
42,000
2008-09
48,643
166
110
1,718
952
1,718
17,900
1,70,800
50,100
2010-11
Total
2012-13
2013-14
737
200
505
7,699
4,229
7,695
78,433
55,047 2,17,189
175
115
1,829
1,008
1,829
19,313
committed
2,48,175
G.Total
832
200
505
7,699
4,229
7,950
84,547
0 3,06,350 10,50,241
2015-16 2016-17
Total
75,272 1,10,722 1,52,722 1,98,972 2,49,072 7,86,760 10,03,949
53,300
2014-15
XII Plan (Commitment cost of XI Plan)
1,91,650 6,95,306 1,49,650 1,03,400
53,300 2,24,100
2011-12
XI Plan (includes Commitment on cultivation cost of X Plan)
Purchase of Diesel
Generator sets (No.)
255
6,114
48,585
24,075
2006-07
X Plan
Borewell subsidy (No.)
Diesel/Motor Pump set (No.)
Drip irrigation (ha)
Tapping unutilised cultivable

land (15% of financial allon.)
Cultivation cost (ha) #
Est. & Maintenance of Seed

Garden 15 ha Unit (No.)
Planting Material
distribution (ha)
Components
Table 8.3: Component-wise Physical targets for Oil Palm Development Programme under ISOPOM for
X Plan (2006-07), XI Plan & XII Plan (Commitment of XI Plan)
All India Summary-Component-wise Physical Targets
Budgetary Provision
Andhra Pradesh
Central Share
State Share
Total
Assam
Central Share
State Share
Total
Chhattisgarh
Central Share
State Share
Total
Gujarat
Central Share
State Share
Total
Goa
Central Share
State Share
Total
Karnataka
Central Share
State Share
Total
Kerala
Central Share
State Share
Total
Maharashtra
Central Share
State Share
Total
Components
30.46
9.35
39.81
1,110.00
362.00
1,472.00
30.02
10.01
40.03
0.00
0.00
0.00
10.82
3.44
14.26
676.27
223.37
899.64
161.48
51.06
212.54
0.00
0.00
0.00
607.03
192.34
799.37
0.00
0.00
0.00
281.17
83.72
364.90
0.00
0.00
0.00
0.00
0.00
0.00
34.73
10.93
45.66
6,333.35
1,871.12
8,204.47
2007-08
122
0.00
0.00
0.00
28.08
9.36
37.45
1,287.80
417.27
1,705.07
35.71
10.90
46.61
572.18
170.73
742.91
302.61
90.87
393.48
0.00
0.00
0.00
7,419.15
2,193.05
9,612.20
2008-09
0.00
0.00
0.00
26.14
8.71
34.85
1,493.12
481.71
1,974.83
41.34
12.78
54.12
664.57
201.52
866.09
386.85
113.95
500.80
0.00
0.00
0.00
8,656.97
2,565.66
11,222.63
2009-10
0.00
0.00
0.00
0.00
0.00
0.00
1,650.44
530.15
2,180.58
46.30
14.43
60.74
1,035.48
315.16
1,350.63
683.53
207.84
891.37
0.00
0.00
0.00
9,925.01
2,948.34
12,873.34
2010-11
0.00
0.00
0.00
0.00
0.00
0.00
1,750.99
559.66
2,310.65
46.71
14.57
61.28
1,145.46
351.82
1,497.27
919.28
278.91
1,198.18
0.00
0.00
0.00
10,861.08
3,220.36
14,081.44
2011-12
2012-13
0.00
0.00
0.00
84.25
28.08
112.33
7,292.35
2,350.78
9,643.13
200.52
62.04
262.56
3,698.85
1,122.95
4,821.80
2,899.29
883.91
3,783.20
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
462.34
154.11
616.46
13.31
4.44
17.75
273.33
91.11
364.44
186.24
62.08
248.32
0.00
0.00
0.00
43,195.56 2,521.83
12,798.52
840.61
55,994.08 3,362.44
Total
3,262.78
1,022.59
4,285.37
2006-07
X Plan
0.00
0.00
0.00
0.00
0.00
0.00
379.64
126.55
506.18
11.01
3.67
14.67
248.25
82.75
331.01
186.03
62.01
248.04
0.00
0.00
0.00
2,089.22
696.41
2,785.63
2013-14
0.00
0.00
0.00
0.00
0.00
0.00
250.01
83.34
333.34
7.95
2.65
10.60
145.94
48.65
194.59
130.19
43.40
173.58
0.00
0.00
0.00
1,409.04
469.68
1,878.71
2014-15
0.00
0.00
0.00
0.00
0.00
0.00
64.88
21.63
86.50
3.77
1.26
5.03
17.37
5.79
23.17
9.65
3.22
12.87
0.00
0.00
0.00
377.48
125.83
503.30
Total
Rs. in lakh
40.14
13.38
53.52
711.92
237.31
949.23
528.20
176.07
704.26
0.00
0.00
0.00
251.47
78.86
330.33
4,445.50
1,371.18
5,816.69
3,427.49
1,059.98
4,487.46
0.00
0.00
0.00
53,305.45
16103.48
69,408.94
Total
Grand
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
245.73
79.14
324.87
78.07 1,234.94 9,203.55

26.02
411.65 2,985.80
104.09 1,646.58 12,189.35
4.10
1.37
5.46
27.03
9.01
36.04
16.09
5.36
21.45
0.00
0.00
0.00
449.55 6,847.11
149.85 2282.37
599.40 9,129.49
2015-16 2016-17
XII Plan (Commitment of XI Plan)
State-wise Budget requirement -All India Financial Summary
Table 8.4: State-wise Budget requirement for Oil Palm Development Programme under ISOPOM for
Mizoram
Central Share
State Share
Total
Orissa
Central Share
State Share
Total
Tamil Nadu
Central Share
State Share
Total
Tripura
Central Share
State Share
Total
West Bengal
Central Share
State Share
Total
National
Central Share
State Share
Grand Total
Components
Contd...
123
897.10
279.03
1,176.13
1.95
0.65
2.60
0.00
0.00
0.00
436.73
145.06
581.78
1.77
0.59
2.36
0.00
0.00
0.00
0.00
0.00
0.00
1.38
0.46
1.85
1,915.35
598.45
2,513.80
815.72
246.91
1,062.62
3,189.75
657.00
3,846.74
2008-09
12,057.95 15,567.73
3,486.77 4,394.99
15,544.71 19,962.72
719.11
214.70
933.81
247.67
77.68
325.35
4,915.28
1,556.65
6,471.93
2,047.75
463.83
2,511.59
2007-08
18,485.61
5,303.62
23,789.23
0.00
0.00
0.00
0.00
0.00
0.00
2,638.30
829.43
3,467.73
1,084.64
331.55
1,416.19
3,493.69
758.31
4,252.00
2009-10
0.00
0.00
0.00
0.00
0.00
0.00
3,472.12
1,097.37
4,569.50
1,234.59
381.53
1,616.13
4,161.95
970.65
5,132.60
2011-12
323.30
107.77
431.07
693.63
231.21
924.84
2012-13
0.00
0.00
0.00
3.33
1.11
4.45
0.00
0.00
0.00
0.00
0.00
0.00
12,012.19
955.34
3,774.06
318.45
15,786.25 1,273.79
5,061.84
1,547.28
6,609.13
16,769.04
3,735.51
20,504.55
Total
21,513.75 23,592.18 91,217.21 5,429.32

6,244.00 6,874.87 26,304.25 1,809.77
27,757.75 30,467.05 1,17,521.47 7,239.10
0.00
0.00
0.00
0.00
0.00
0.00
3,089.32
969.77
4,059.09
1,207.78
372.59
1,580.38
3,875..90
885.72
4,761.62
2010-11
83.04
21.94
104.98
2006-07
X Plan
4,454.62
1,484.87
5,939.50
0.00
0.00
0.00
0.00
0.00
0.00
743.39
247.80
991.18
257.04
85.68
342.72
540.04
180.01
720.06
2013-14
30.99
10.33
41.32
57.43
19.14
76.58
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2,339.58
779.86
3,119.44
808.30
269.43
1,077.74
1,705.22
568.41
2,273.63
Total
Rs. in lakh
0.00
0.00
0.00
5.10
1.70
6.81
14,788.49
4,698.98
19,487.47
6,117.82
1,894.40
8,012.21
18,557.30
4,325.86
22,883.16
Total*
Grand
2,889.88 640.19 801.39 14,215.41 1,10,347.90

963.29 213.40 267.13 4,738.47 32,599.37
3,853.18 853.59 1,068.52 18,953.88 1,42,947.27
0.00
0.00
0.00
0.00
0.00
0.00
107.57
35.86
143.43
40.64
13.55
54.19
78.35
26.12
104.46
2015-16 2016-17
454.66 78.62
151.55 26.21
606.21 104.82
156.34
52.11
208.45
335.77
111.92
447.69
2014-15
Budgetary Provision
2007-08
60.00
397.41 2,225.25
25.50
Drip irrigation
Diesel/Motor Pump set
0.00
0.00
14.25
646.96 1,550.21
harvesting structures and
water sheds in NE states
Demonstrations
Farmers training
Officers Training, Extn. &

Publicity, Estt & Staff
151.00
Purchase of Diesel
Generator sets
124
0.00
0.00
0.00
Insurance
1,556.65
6,471.93 15,544.71
State Share
Total (Centre+State)
3486.77
4,915.28 12,057.95
GOI Share
139.12
1550.21
646.96
Innovative measures - Vermi

compost, Frond cutter,
Harvesting tools etc.
600.00
0.00
Establishing Small Palm

Oil Mills under PHT Scheme
21.20
6.86
30.00
290.25
0.00
0.00
Borewell subsidy
173.85
970.43 2,325.31
1,964.79 3,500.96
0.00
2009-10
12.00
30.60
10.98
55.00
393.00
218.75
235.80
185.49
0.00
2375.44
0.00
5,303.62
19,962.72 23,789.23
4,394.99
15,567.73 18,485.61
162.30
0.00
1992.34
0.00
1,992.34 2,375.44
27.40
12.04
55.00
354.75
197.50
212.55
3,158.75 3,478.75
2,988.51 3,563.16
5,017.23 6,692.33
12.00
3780.00 4,162.50
2008-09
27,757.75
6,244.00
21,513.75
208.68
0.00
2775.78
0.00
2,775.78
33.20
13.96
55.00
429.50
238.00
257.70
3,823.75
4,163.66
8,461.75
12.00
4,509.00
2010-11
108.00
12.00
60.00
0.00
2013-14
0.00
0.00
2014-15
147.40
60.82
252.50
1,924.75
1,057.25
1,154.25
600.00
0.00
0.00
322.92
26,304.25 1,809.77
91,217.21 5,429.32
931.74
0.00
0.00
0.00
0.00
9.18
0.00
0.00
0.00
0.00
0.00
0.00
30,467.05 1,17,521.47 7,239.10
6,874.87
23,592.18
236.15
0.00
3046.70 11740.47
0.00
3,046.70 11,740.47
35.00
16.98
57.50
457.25
252.00
274.35
4,112.60 16,799.10
4,570.06 17,610.70
5,939.50
1,484.87
4,454.62
475.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
3,853.18
963.29
2,889.88
655.18
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
72.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
161.65
70.00
252.50
1,924.75
1,057.25
1,179.75
600.00
0.00
267.13 4,738.47
32,599.37
801.39 14,215.41 1,10,347.90
4,306.94
0.00
0.00 12,387.43
0.00
0.00 12,387.43
0.00
9.18
0.00
0.00
0.00
0.00
0.00 17,196.51
0.00 18,581.14
853.59 1,068.52 18,953.88 1,42,947.27
213.40
640.19
180.00
0.00 21,974.63
Total
G.Totala
Rs. in lakh
0.0015,497.50 50,687.31
0.00
0.00
853.59 1,068.52 3,375.20
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2015-16 2016-17
9,552.75 33,225.01 6,895.00 5,404.50 3,198.00
12.00
0.00
Total 2012-13
4,797.00 20,169.00
2011-12
1,805.63 2,920.50
2006-07
X Plan
Tapping un utilised
cultivable land
Cultivation cost
Est. & Maintenance of

Seed Garden
Planting Material distribution
Components
Tabel 8.5: Component-wise Budget requirement for Oil Palm Development Programme under ISOPOM for
All India Summary-Component-wise Budget Requirement
125
40
0
0
Farmers training (No.)-50

farmers batch


Oil Mills under PHT
Scheme (No.)
compost, Frond cutter
Harvesting tools etc (No.)
Insurance (ha)
27,222
47
580
315
580
6,000
47,961
17,400
2007-08
31,759
50
630
344
630
7,000
60,863
18,900
2008-09
36,296
55
688
373
688
8,000
71,950
20,650
2009-10
40,833
60
747
407
747
9,000
79,350
22,400
2010-11
Total
277
10
3,458
1,879
3,458
40,000
45,370 1,81,480
65
813
440
813
10,000
86,350 3,46,474
24,400 1,03,750
2011-12
XI Plan (includes Commitment on cultivation cost of X Plan
Demonstrations 1 ha
each (No.)
Purchase of Diesel
0
water sheds in NE states (No.)
5,000
Tapping un utilised
cultivable land (15% of
financial allon.)
33,341
15,000
2006-07
X Plan

Planting Material
distribution (ha)
Components
60,370
67,450
2012-13
77,770
46,800
2013-14
Total
0 1,38,650
2015-16 2016-17
96,670 1,17,320 1,39,720 4,91,850
24,400
2014-15
Table 8.6(a): Physical targets for Oil Palm Development Programme under ISOPOM for
X Plan (2006-07), XI Plan & XII Plan (Commitment of XI Plan) for Andhra Pradesh
6,73,330
317
10
3,458
1,879
3,458
45,000
5,18,465
1,18,750
G.Total
Budgetary Provision
2007-08
10.00
126
6.00
4,285.37 8,204.47
3,262.78 6,333.35
1,022.59 1,871.12
116.78
0.00
GOI Share
State Share
820.45
428.54
Insurance
0.00
0.00
820.45
9.40
0.35
0.00
145.00
78.75
87.00

428.54
Farmers training

0.00
Demonstrations
0.00
Purchase of Diesel
Generator sets
0.00
0.00
0.00
Borewell subsidy
325.00 1,200.00
Drip irrigation
642.81 1,230.67
1,329.49 2,119.62
0.00
2009-10
2.00
11.00
0.55
0.00
172.00
93.25
103.20
0.00
155.71
175.17
1,287.33
0.00
1,287.33
12.00
0.70
0.00
186.75
101.75
112.05
1,800.00
1,931.00
3,961.25
2.00
2,016.00
2010-11
9,612.20 11,222.63 12,873.34

7,419.15 8,656.97 9,925.01
2,193.05 2,565.66 2,948.34
136.25
961.22 1,122.26
0.00
961.22 1,122.26
10.00
0.60
0.00
157.50
86.00
94.50
1,400.00 1,600.00
1,441.83 1,683.39
2,660.08 3,298.50
2.00
1,701.00 1,858.50
2008-09
18.00
9,337.50
2.00
0.00
Total 2012-13
10.00
0.00
2013-14
0.00
0.00
2014-15
778.55
5,599.41
0.00
5,599.41
55.40
3.05
0.00
864.50
469.75
518.70
8,000.00
8,399.11
258.99
0.00
0.00
0.00
0.00
0.45
0.00
0.00
0.00
0.00
0.00
0.00
333.63
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
414.71
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
14,081.44 55,994.08 3,362.44 2,785.63 1,878.71

10,861.08 43,195.56 2,521.83 2,089.22 1,409.04
3,220.36 12,798.52 840.61
696.41
469.68
194.64
1,408.14
0.00
1,408.14
13.00
0.85
0.00
203.25
110.00
121.95
2,000.00
2,112.22
503.30
377.48
125.83
503.30
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
G. Total
12.00
30.00
0.00 10,462.50
Total
Rs. in lakh
599.40 9,129.49 69,408.94

449.55 6,847.11 53,305.45
149.85 2,282.37 16,103.48
0.00
2,888.59
0.00
599.40 2,110.04
0.00
6,027.95
61.40
3.50
0.00
864.50
469.75
518.70
8,325.00
9,041.92
6,027.95
0.00
0.00
0.00
0.45
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00 7,007.00 24,687.20
0.00
0.00
2015-16 2016-17
4,311.25 16,350.71 3,101.00 2,442.00 1,464.00
2.00
2,196.00
2011-12
1,125.00 1,566.00
2006-07
X Plan
Tapping un utilised
cultivable land
Cultivation cost

Seed Garden
Components
Table 8.6(b): Budget requirement for Oil Palm Development Programme under ISOPOM for
X Plan (2006-07), XI Plan & XII Plan (Commitment of XI Plan) for Andhra Pradesh
X Plan
127
0
0
0
0
Demonstrations
1 ha each (No.)


Oil Mills under PHT
Scheme (No.)
Innovative measuresVermi compost, Frond cutter

Harvesting tools etc. (No.)
Insurance (ha)
22
33
17
33
250
1,000
1,000
23
33
17
33
250
2,000
1,000
2008-09
33
17
33
375
3,000
1,000
2009-10
67
33
67
500
5,000
2,000
2010-11
92
46
92
688
6,750
2,750
2011-12
23
45
258
130
258
2,063
17,750
7,750
Total

2007-08
Diesel/Motor
Pump set (No.)
Tapping un utilised
cultivable land
(15% of financial allon.)
Purchase of Diesel

2006-07
Planting Material
distribution (ha)
Components
5,750
2012-13
1,000
4,750
2013-14
2,000
2,750
2014-15
3,000
5,000
2015-16 2016-17
X Plan (2006-07), XI Plan & XII Plan (Commitment of XI Plan) for Chhattishgarh
11,000
13,250
Total
11,000
23
45
258
130
258
2,063
31,000
7,750
Total
Grand
Budgetary Provision
X Plan
Purchase of Diesel
Generator sets
128
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Demonstrations
Farmers training


Oil Mills under
PHT Scheme
Innovative measures Vermi compost, Frond cutter

Insurance
GOI Share
State Share
0.00
0.00
0.00
Borewell subsidy
0.00
0.00
0.00
Tapping un utilised
cultivable land
0.00
Cultivation cost
Drip irrigation
0.00
0.00

Seed Garden
2006-07
Components
192.34
607.03
799.37
0.00
79.94
300.00
79.94
0.60
1.54
0.00
8.25
4.25
4.95
50.00
119.91
60.00
0.00
90.00
2007-08
90.87
302.61
393.48
0.00
39.35
0.00
39.35
0.60
2.71
0.00
8.25
4.25
4.95
50.00
59.02
95.00
0.00
90.00
2008-09
113.95
386.85
500.80
0.00
50.08
0.00
50.08
0.60
2.47
0.00
8.25
4.25
4.95
75.00
75.12
140.00
0.00
90.00
2009-10
207.84
683.53
891.37
0.00
89.14
0.00
89.14
1.20
3.14
0.00
16.75
8.25
10.05
100.00
133.71
260.00
0.00
180.00
2010-11
278.91
919.28
1,198.18
0.00
119.82
0.00
119.82
1.60
3.82
0.00
23.00
11.50
13.80
137.60
179.73
340.00
0.00
247.50
2011-12
883.91
2,899.29
3,783.20
0.00
378.32
300.00
378.32
4.60
13.68
0.00
64.50
32.50
38.70
412.60
567.48
895.00
0.00
697.50
62.08
186.24
248.32
0.00
0.00
0.00
0.00
0.00
2.07
0.00
0.00
0.00
0.00
0.00
0.00
246.25
0.00
0.00
Total 2012-13
62.01
186.03
248.04
4.29
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
243.75
0.00
0.00
2013-14
43.40
130.19
173.58
8.58
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
165.00
0.00
0.00
2014-15
3.22
9.65
12.87
12.87
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
5.36
16.09
21.45
21.45
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2015-16 2016-17
X Plan (2006-07), XI Plan & XII Plan (Commitment of XI Plan) for Chhattishgarh
176.07
528.20
704.26
47.19
0.00
0.00
0.00
0.00
2.07
0.00
0.00
0.00
0.00
0.00
0.00
655.00
0.00
0.00
Total
1,059.98
3,427.49
4,487.46
47.19
378.32
300.00
378.32
4.60
15.75
0.00
64.50
32.50
38.70
412.60
567.48
1,550.00
0.00
697.50
G.Totala
Rs. in lakh
X Plan
129
1
0
0


Oil Mills under PHT
Scheme (No.)

Insurance (ha)
120
34
17
34
250
Demonstrations
1 ha each (No.)
Purchase of Diesel
0
7
0
50
1,232
240
0
1,000
140
67
33
67
500
3,228
2,000
2008-09
160
67
33
67
500
5,200
2,000
2009-10
180
100
50
100
750
8,000
3,000
2010-11
200
100
50
100
750
10,000
3,000
2011-12
800
31
15
368
183
368
2,750
27,659
11,000
Total

2007-08
200
2006-07
Tapping un utilised
financial allon.)

Planting Material
distribution (ha)
Components
400
8,000
2012-13
1400
6,000
2013-14
3,400
3,000
2014-15
5,400
8,400
2015-16 2016-17
X Plan (2006-07), XI Plan & XII Plan (Commitment of XI Plan) for Gujarath
19,000
17,000
Total
19,800
32
15
368
183
375
2,800
44,899
11,200
G.Total
Budgetary Provision
4.57
0.00
4.57
0.00
45.66
34.73
10.93

Mills under PHT Scheme
Innovative measures -Vermi

Insurance
GOI Share
State Share
0.00
Purchase of Diesel
Generator sets
0.15
0.00
Borewell subsidy

0.70
Farmers training
3.25
Drip irrigation
0.00
6.85
Tapping un utilised
cultivable land
Demonstrations
10.58
Cultivation cost
0.00
0.00

Seed Garden
15.00
2006-07
X Plan
Components
130
83.72
281.17
364.90
0.51
36.49
0.00
36.49
0.60
0.49
0.00
8.50
4.25
5.10
50.00
54.73
67.73
10.00
90.00
2007-08
170.73
572.18
742.91
0.60
74.29
0.00
74.29
1.20
0.91
0.00
16.75
8.25
10.05
100.00
111.44
163.13
2.00
180.00
2008-09
201.52
664.57
866.09
0.69
86.61
0.00
86.61
1.20
0.82
0.00
16.75
8.25
10.05
100.00
129.91
243.20
2.00
180.00
2009-10
315.16
1,035.48
1,350.63
0.77
135.06
0.00
135.06
1.60
1.04
0.00
25.00
12.50
15.00
150.00
202.60
400.00
2.00
270.00
2010-11
351.82
1,145.46
1,497.27
0.86
149.73
0.00
149.73
1.60
1.27
0.00
25.00
12.50
15.00
150.00
224.59
495.00
2.00
270.00
2011-12
1,122.95
3,698.85
4,821.80
3.43
482.18
0.00
482.18
6.20
4.53
0.00
92.00
45.75
55.20
550.00
723.27
1,369.06
18.00
990.00
91.11
273.33
364.44
1.72
0.00
0.00
0.00
0.00
0.72
0.00
0.00
0.00
0.00
0.00
0.00
360.00
2.00
0.00
Total 2012-13
82.75
248.25
331.01
6.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
315.00
10.00
0.00
2013-14
48.65
145.94
194.59
14.59
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
180.00
0.00
0.00
2014-15
5.79
17.37
23.17
23.17
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
9.01
27.03
36.04
36.04
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2015-16 2016-17
X Plan (2006-07), XI Plan & XII Plan (Commitment of XI Plan) for Gujarath
237.31
711.92
949.23
81.51
0.00
0.00
0.00
0.00
0.72
0.00
0.00
0.00
0.00
0.00
0.00
855.00
12.00
0.00
Total
1,371.18
4,445.50
5,816.69
84.94
486.75
0.00
486.75
6.35
5.25
0.00
92.00
45.75
55.90
553.25
730.12
2,234.63
30.00
1,005.00
G.Totala
Rs. in lakh
X Plan
131
0
0


Oil Mills under PHT
Scheme (No.)

Insurance (ha)
494
20
171
100
576
25
257
100
2008-09
659
25
350
100
2009-10
741
25
400
100
2010-11
823
25
400
100
2011-12
3,293
20
10
20
120
1,577
500
Total

2007-08
Purchase of Diesel
Demonstrations
1 ha each (No.)
13
Tapping un utilised cultivable

103

50
2006-07
Planting Material
distribution (ha)
Components
873
300
2012-13
973
200
2013-14
1,073
100
2014-15
1173
1,273
2015-16 2016-17
X Plan (2006-07), XI Plan & XII Plan (Commitment of XI Plan) for Goa
5,365
600
Total
8,658
20
10
22
133
2,280
550
G.Total
Budgetary Provision
132
0.15
1.43
0.00
1.43
0.00
14.26
10.82
3.44



Insurance
GOI Share
State Share
0.00
Demonstrations
Farmers training
0.00
0.00
Purchase of Diesel
Generator sets
0.20
0.00
Borewell subsidy
0.85
Drip irrigation
4.32
2.14
Tapping un utilised
cultivable land
0.00

Seed Garden
Cultivation cost
3.75
2006-07
X Plan
Components
9.35
30.46
39.81
2.12
3.98
0.00
3.98
0.20
0.00
0.00
1.00
0.50
0.60
4.00
5.97
8.46
0.00
9.00
2007-08
10.90
35.71
46.61
2.47
4.66
0.00
4.66
0.20
0.00
0.00
1.00
0.50
0.60
5.00
6.99
11.53
0.00
9.00
2008-09
12.78
41.34
54.12
2.83
5.41
0.00
5.41
0.20
0.00
0.00
1.00
0.50
0.60
5.00
8.12
16.05
0.00
9.00
2009-10
14.43
46.30
60.74
3.18
6.07
0.00
6.07
0.20
0.00
0.00
1.00
0.50
0.60
5.00
9.11
20.00
0.00
9.00
2010-11
14.57
46.71
61.28
3.53
6.13
0.00
6.13
0.20
0.00
0.00
1.00
0.50
0.60
5.00
9.19
20.00
0.00
9.00
2011-12
62.04
200.52
262.56
14.13
26.26
0.00
26.26
1.00
0.00
0.00
5.00
2.50
3.00
24.00
39.38
76.03
0.00
45.00
4.44
13.31
17.75
3.75
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
14.00
0.00
0.00
Total 2012-13
3.67
11.01
14.67
4.17
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
10.50
0.00
0.00
2013-14
2.65
7.95
10.60
4.60
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
6.00
0.00
0.00
2014-15
1.26
3.77
5.03
5.03
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1.37
4.10
5.46
5.46
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2015-16 2016-17
Tabel 8.9(b): Budget requirement for Oil Palm Development Programme under ISOPOM for
X Plan (2006-07), XI Plan & XII Plan (Commitment of XI Plan) for Goa
13.38
40.14
53.52
23.02
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
30.50
0.00
0.00
Total
78.86
251.47
330.33
37.14
27.68
0.00
27.68
1.15
0.00
0.00
5.00
2.50
3.20
24.85
41.52
110.86
0.00
48.75
G.Totala
Rs. in lakh
X Plan
133
0
0
20
0
0
Demonstrations
1 ha each (No.)


Oil Mills under PHT
Scheme (No.)
Innovative measuresVermi compost, Frond cutter,

Insurance (ha)
2,678
25
125
100
125
200
10,337
3,950
3,125
30
150
125
150
300
13,291
4,000
2008-09
3,571
35
180
140
180
400
15700
4,000
2009-10
4,018
38
200
150
200
500
16,050
4,100
2010-11
4464
40
220
160
220
600
16500
4,400
2011-12
17,856
168
15
875
675
875
2,000
71,878
20,450
Total

2007-08
0
0
Purchase of Diesel
101
158
6,839
Tapping un utilised
financial allon.)
3,750
2006-07

Planting Material
distribution (ha)
Components
8,214
12,500
2012-13
12,164
8,500
2013-14
16,164
4,400
2014-15
20,164
24,264
2015-16 2016-17
X Plan (2006-07), XI Plan & XII Plan (Commitment of XI Plan) for Karnataka
80,970
25,400
Total
98,826
188
15
875
675
976
2,158
1,04,117
24,200
G.Total
Budgetary Provision
X Plan
Purchase of Diesel
Generator sets
134
11.49
362.00
223.37
Insurance
147.20
676.27 1,110.00
0.00

0.00
State Share
89.96

147.20
GOI Share
0.00

0.49
5.00
899.64 1,472.00
89.96
Farmers training
0.00
31.25
25.00
18.75
40.00
220.80
459.32
10.00
355.50
15.32
197.48
0.00
197.48
7.00
0.82
0.00
45.00
35.00
27.00
80.00
296.22
711.50
2.00
360.00
2009-10
417.27
481.71
1,287.80 1,493.12
1,705.07 1,974.83
13.41
170.51
0.00
170.51
6.00
0.91
0.00
37.50
31.25
22.50
60.00
255.76
574.73
2.00
360.00
2008-09
530.15
1,650.44
2,180.58
17.24
218.06
0.00
218.06
7.60
1.04
0.00
50.00
37.50
30.00
100.00
327.09
803.00
2.00
369.00
2010-11
559.66
1,750.99
2,310.65
19.15
231.06
0.00
231.06
8.00
1.27
0.00
55.00
40.00
33.00
120.00
346.60
827.50
2.00
396.00
2011-12
2,350.78
7,292.35
9,643.13
76.60
964.31
0.00
964.31
33.60
4.53
0.00
218.75
168.75
131.25
400.00
1,446.47
3,376.05
18.00
1,840.50
154.11
462.34
616.46
35.24
0.00
0.00
0.00
0.00
0.72
0.00
0.00
0.00
0.00
0.00
0.00
578.50
2.00
0.00
Total 2012-13

2007-08
0.00
3.00
Demonstrations
0.00
0.00
0.00
Borewell subsidy
10.27
10.10
134.95
Tapping un utilised
cultivable land
Drip irrigation
280.15
0.00
281.25
2006-07
Cultivation cost

Seed Garden
Components
126.55
379.64
506.18
52.18
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
444.00
10.00
0.00
2013-14
83.34
250.01
333.34
69.34
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
264.00
0.00
0.00
2014-15
21.63
64.88
86.50
86.50
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
12.00
0.00
Total
423.96
0.00
0.00
347.36
1,054.28
0.00
1,054.28
36.60
5.25
0.00
218.75
168.75
141.35
410.27
1,581.42
0.00
0.00
0.00
0.00
0.72
0.00
0.00
0.00
0.00
0.00
0.00
4,942.70
30.00
2,121.75
G.Totala
Rs. in lakh
26.02
411.65
78.07 1,234.94
2,985.80
9,203.55
104.09 1,646.58 12,189.35
104.09
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00 1,286.50
0.00
0.00
2015-16 2016-17
Tabel 8.10(b): Budget requirement for Oil Palm Development Programme under ISOPOM for
X Plan (2006-07), XI Plan & XII Plan (Commitment of XI Plan) for Karnataka
135
14
0
0


Oil Mills under PHT
Scheme (No.)

Insurance (ha)
1,170
2007-08
1,038
2008-09
850
2009-10
2010-11
2011-12
3,057
Total
Purchase of Diesel
Demonstrations
1 ha each (No.)
0
0
28
213
1,310
850
2006-07
X Plan


Planting Material
distribution (ha)
Components
2012-13
2013-14
2014-15
2015-16 2016-17
X Plan (2006-07), XI Plan & XII Plan (Commitment of XI Plan) for Kerala
Total
14
28
213
4,367
850
G.Total
Budgetary Provision
13.85
2.80
0.00
0.00
Drip irrigation
Borewell subsidy
Purchase of Diesel
Generator sets
136
161.48
51.06
Insurance
State Share
0.00
Innovative measuresVermi compost, Frond

cutter, Harvesting tools etc.
GOI Share
21.25

212.54
0.00

2.10
21.25
Farmers training
0.00
31.88
Tapping un utilised
cultivable land
Demonstrations
55.65
Cultivation cost
0.00
0.00

Seed Garden
63.75
2006-07
X Plan
Components
10.01
30.02
40.03
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
40.03
0.00
0.00
2007-08
9.36
28.08
37.45
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
37.45
0.00
0.00
2008-09
8.71
26.14
34.85
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
34.85
0.00
0.00
2009-10
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2010-11
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2011-12
28.08
84.25
112.33
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
112.33
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Total 2012-13
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2013-14
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2014-15
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2015-16 2016-17
Tbale 8.11(b): Budget requirement for Oil Palm Development Programme under ISOPOM for
X Plan (2006-07), XI Plan & XII Plan (Commitment of XI Plan) for Kerala
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Total
79.14
245.73
324.87
0.00
21.25
0.00
21.25
2.10
0.00
0.00
0.00
0.00
2.80
13.85
31.88
167.98
0.00
63.75
G.Totala
Rs. in lakh
X Plan
137
5
0
0


Oil Mills under PHT
Scheme (No.)

Insurance (ha)
10
20
60
200
60
200
2,625
3,886
3,500
20
20
110
200
110
200
4,875
10,374
6,500
2008-09
20
110
200
110
200
4,875
16,850
6,500
2009-10
20
110
200
110
200
4,875
23,000
6,500
2010-11
1,000
20
115
200
110
200
5,000
26,150
6,650
2011-12
1,000
90
40
505
1,000
500
1,000
22,250
80,260
29,650
Total

2007-08
Purchase of Diesel
Demonstrations
1 ha each (No.)
67
265
386
350
2006-07


Planting Material
distribution (ha)
Components
1,350
19,650
2012-13
4,850
13,150
2013-14
11,350
6,650
2014-15
17,850
24,350
2015-16 2016-17
X Plan (2006-07), XI Plan & XII Plan (Commitment of XI Plan) for Mizoram
59,750
39,450
Total
60,750
95
40
505
1,000
500
1,067
22,515
1,20,096
30,000
G.Total
Budgetary Provision
X Plan
17.31
15.75
17.23
6.70
0.00
0.00
Cultivation cost
Tapping un utilised
cultivable land
Drip irrigation
Borewell subsidy
Purchase of Diesel
Generator sets
138
251.16
0.00
10.50
0.00
10.50
0.00



Insurance
1.40
83.04 2,047.75
21.94
GOI Share
State Share
463.83
104.98 2,511.59
300.00
251.16
2.00
0.00
0.75
Farmers training
30.00
50.00
15.00
30.00
656.25
376.74
222.88
10.00
315.00
637.80
789.35
2.00
585.00
2009-10
0.00
425.20
0.00
425.20
4.00
2.20
55.00
50.00
27.50
30.00
657.00
758.31
3,189.75 3,493.69
3,846.74 4,252.00
0.00
384.67
0.00
384.67
4.00
2.40
55.00
50.00
27.50
30.00
1,218.75 1,218.75
577.01
525.73
2.00
585.00
2008-09
885.72
3,875.90
4,761.62
0.00
476.16
0.00
476.16
4.00
2.80
55.00
50.00
27.50
30.00
1,218.75
714.24
1,120.00
2.00
585.00
2010-11
4.29
2,050.45
300.00
2,050.45
18.00
12.20
252.50
250.00
125.00
150.00
5,562.50
3,075.68
3,966.97
18.00
2,668.50
970.65
3,735.51
4,161.95 16,769.04
231.21
693.63
924.84
5.79
0.00
0.00
0.00
0.00
1.80
0.00
0.00
0.00
0.00
0.00
0.00
915.25
2.00
0.00
Total 2012-13
5,132.60 20,504.55
4.29
513.26
0.00
513.26
4.00
3.40
57.50
50.00
27.50
30.00
1,250.00
769.89
1,309.00
2.00
598.50
2011-12

2007-08
Demonstrations
0.00
0.00
26.25

Seed Garden
2006-07
Components
180.01
540.04
720.06
20.81
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
689.25
10.00
0.00
2013-14
111.92
335.77
447.69
48.69
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
399.00
0.00
0.00
2014-15
19.14
57.43
76.58
76.58
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
12.00
0.00
Total
256.33
0.00
0.00
0.00
0.00
1.80
0.00
0.00
0.00
0.00
0.00
0.00
260.62
2,060.95
300.00
2,060.95
18.75
14.00
252.50
250.00
125.00
156.70
5,579.73
3,091.43
5,987.78
30.00
2,694.75
G.Totala
Rs. in lakh
26.12
568.41
4,325.86
78.35 1,705.22 18,557.30
104.46 2,273.63 22,883.16
104.46
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00 2,003.50
0.00
0.00
2015-16 2016-17
X Plan (2006-07), XI Plan & XII Plan (Commitment of XI Plan) for Mizoram
139
4
0
0


Oil Mills under PHT
Scheme (No.)

Insurance (ha)
79
22
85
42
83
625
4,000
2,500
2007-08
92
23
85
42
83
625
6,500
2,500
2008-09
105
100
50
100
750
9,500
3,000
2009-10
118
100
50
100
750
11,000
3,000
2010-11
131
100
50
100
750
11,500
3,000
2011-12
525
38
45
470
234
466
3,500
42,500
14,000
Total
Purchase of Diesel
Demonstrations
1 ha each (No.)
50
375
1,500
1,500
2006-07
X Plan


Planting Material
distribution (ha)
Components
1,631
9,000
2012-13
4,131
6,000
2013-14
6,631
3,000
2014-15
9,631
12,631
2015-16 2016-17
X Plan (2006-07), XI Plan & XII Plan (Commitment of XI Plan) for Orissa
34,655
18,000
Total
35,180
42
45
470
234
516
3,875
62,000
15,500
G.Total
Budgetary Provision
X Plan
48.80
24.38
5.00
0.00
0.00
Tapping un utilised
cultivable land
Drip irrigation
Borewell subsidy
Purchase of Diesel
Generator sets
140
77.68
Insurance
247.67
0.00

State Share
32.53

GOI Share
0.00

325.35
32.53
Farmers training
0.00
0.60
Demonstrations
0.00
69.00
Cultivation cost
0.00
112.50
2006-07

Seed Garden
Components
214.70
719.11
933.81
0.34
93.38
0.00
93.38
1.40
1.54
0.00
21.25
10.50
12.45
125.00
140.07
199.50
10.00
225.00
2007-08
0.45
141.62
0.00
141.62
1.60
2.47
0.00
25.00
12.50
15.00
150.00
212.43
441.50
2.00
270.00
2009-10
246.91
331.55
815.72 1,084.64
1,062.62 1,416.19
0.39
106.26
0.00
106.26
1.40
2.71
0.00
21.25
10.50
12.45
125.00
159.39
290.00
2.00
225.00
2008-09
372.59
1,207.78
1,580.38
0.51
158.04
0.00
158.04
1.60
3.14
0.00
25.00
12.50
15.00
150.00
237.06
547.50
2.00
270.00
2010-11
381.53
1,234.59
1,616.13
0.56
161.61
0.00
161.61
1.60
3.82
0.00
25.00
12.50
15.00
150.00
242.42
570.00
2.00
270.00
2011-12
1,547.28
5,061.84
6,609.13
2.25
660.91
0.00
660.91
7.60
13.68
0.00
117.50
58.50
69.90
700.00
991.37
2,048.50
18.00
1,260.00
107.77
323.30
431.07
7.00
0.00
0.00
0.00
0.00
2.07
0.00
0.00
0.00
0.00
0.00
0.00
420.00
2.00
0.00
Total 2012-13
85.68
257.04
342.72
17.72
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
315.00
10.00
0.00
2013-14
52.11
156.34
208.45
28.45
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
180.00
0.00
0.00
2014-15
10.33
30.99
41.32
41.32
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
148.67
0.00
0.00
0.00
0.00
2.07
0.00
0.00
0.00
0.00
0.00
0.00
915.00
12.00
0.00
Total
13.55
40.64
269.43
808.30
54.19 1,077.74
54.19
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2015-16 2016-17
X Plan (2006-07), XI Plan & XII Plan (Commitment of XI Plan) for Orissa
1,894.40
6,117.82
8,012.21
150.92
693.45
0.00
693.45
8.20
15.75
0.00
117.50
58.50
74.90
724.38
1,040.17
3,032.50
30.00
1,372.50
G.Totala
Rs. in lakh
X Plan
141
0
0


Oil Mills under PHT
Scheme (No.)

Harvesting tools, etc (No.)
Insurance (ha)
1,835
10
15
100
51
100
500
7,075
3,000
2,141
20
15
250
117
250
1,000
13,585
7,000
2008-09
2,447
25
300
150
300
1,250
21,375
9,000
2009-10
2,753
25
300
150
300
1,500
28,000
9,000
2010-11
37,000
Total
3,059
25
300
150
300
1,500
12,235
105
30
1,250
618
1,250
5,750
34,000 1,04,035
9,000
2011-12

2007-08
10
Purchase of Diesel
Demonstrations
1 ha each (No.)
40
wate shed in NE states (No.)
4,797
2,375
2006-07


Planting Material
distribution (ha)
Components
2,434
27,000
2012-13
8,434
18,000
2013-14
15,434
9,000
2014-15
24,434
33,434
2015-16 2016-17
X Plan (2006-07), XI Plan & XII Plan (Commitment of XI Plan) for Tamil Nadu
84,170
54,000
Total
96,405
115
30
1,250
618
1,250
5,790
1,62,832
39,375
G.Total
Budgetary Provision
X Plan
2.60
0.00
0.00
0.00
Drip irrigation
Borewell subsidy
Purchase of Diesel
Generator sets
142
7.87
279.03
897.10
145.06
Insurance
117.61
State Share
0.00

0.00
436.73
58.18

117.61
581.78 1,176.13
0.00

1.05
2.00
GOI Share
58.18
Farmers training
0.00
25.00
12.75
15.00
100.00
176.42
320.82
10.00
270.00
2.00
810.00
2009-10
10.50
346.77
0.00
346.77
5.00
1.65
0.00
75.00
37.50
45.00
250.00
520.16
598.45
829.43
1,915.35 2,638.30
2,513.80 3,467.73
9.18
251.38
0.00
251.38
4.00
1.80
0.00
62.50
29.25
37.50
200.00
377.07
657.74 1,017.38
2.00
630.00
2008-09
969.77
3,089.32
4,059.09
11.81
405.91
0.00
405.91
5.00
2.10
0.00
75.00
37.50
45.00
300.00
608.86
1,350.00
2.00
810.00
2010-11
2.00
0.00
52.49
1578.63
0.00
1,578.63
21.00
9.15
0.00
312.50
154.50
187.50
1150.00
2,367.94
10.44
0.00
0.00
0.00
0.00
1.35
0.00
0.00
0.00
0.00
0.00
0.00
5,025.93 1,260.00
18.00
3,330.00
Total 2012-13
1,097.37
3,774.06
3,472.12 12,012.19
318.45
955.34
4,569.50 15,786.25 1,273.79
13.12
456.95
0.00
456.95
5.00
2.55
0.00
75.00
37.50
45.00
300.00
685.42
1,680.00
2.00
810.00
2011-12

2007-08
0.00
1.50
Demonstrations
0.00
87.27
195.93
Tapping un utilised
cultivable land
0.00
178.13
2006-07
Cultivation cost

Seed Garden
Components
247.80
743.39
991.18
36.18
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
945.00
10.00
0.00
2013-14
151.55
454.66
606.21
66.21
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
540.00
0.00
0.00
2014-15
26.21
78.62
104.82
104.82
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
12.00
0.00
Total
361.09
0.00
0.00
0.00
0.00
1.35
0.00
0.00
0.00
0.00
0.00
0.00
413.58
1,636.80
0.00
1,636.80
22.50
10.50
0.00
312.50
154.50
187.50
1,152.60
2,455.20
7,966.86
30.00
3,508.13
G.Total
Rs. in lakh
35.86
779.86
4,698.98
107.57 2,339.58 14,788.49
143.43 3,119.44 19,487.47
143.43
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00 2,745.00
0.00
0.00
2015-16 2016-17
Table 8.14(b) Budget requirement for Oil Palm Development Programme under ISOPOM for
X Plan (2006-07), XI Plan & XII Plan (Commitment of XI Plan) for Tamil nadu
X Plan
143
0

Oil Mills under PHT
Scheme (No.)

Insurance (ha)
70
45
2008-09
2009-10
2010-11
2011-12
115
Total

2007-08
Purchase of Diesel


Demonstrations
1 ha each (No.)
70

2006-07
Planting Material
distribution (ha)
Components
2012-13
2013-14
2014-15
2015-16 2016-17
X Plan (2006-07), XI Plan & XII Plan (Commitment of XI Plan) for Tripura
Total
185
G.Total
Budgetary Provision
X Plan
0.00
Borewell subsidy
Purchase of Diesel
Generator sets
144
1.77
0.59
GOI Share
State Share

0.00
0.00

2.36
0.00

0.00
Farmers training
Insurance
0.00
0.00
Demonstrations
0.00
0.00
0.00
0.00
Drip irrigation
2.36
0.00
Tapping un utilised
cultivable land
0.00

Seed Garden
Cultivation cost
0.00
2006-07
Components
0.65
1.95
2.60
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2.60
0.00
0.00
2007-08
0.46
1.38
1.85
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1.85
0.00
0.00
2008-09
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2009-10
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2010-11
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2011-12
1.11
3.33
4.45
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
4.45
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Total 2012-13
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2013-14
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2014-15
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2015-16 2016-17
X Plan (2006-07), XI Plan & XII Plan (Commitment of XI Plan) for Tripura
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Total
1.70
5.10
6.81
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
6.81
0.00
0.00
G.Totala
Rs. in lakh
145
7.80
6.50
* New project starting from XI Plan
367.93
16.08
13.40
46.61
6.36
5.30
Total
25.69
21.41
312.00
2007-08
2006-07
X Plan
Mass - Micro propagation of

elite Oil Palm*
Strenghtening of Oil Palm

Seed Gardens for Indigenous
seed production
Strenghtening of Training on
Oil Palm Production Technology
Establishment of
Leaf Analysis Laboratory
Research Cum demonstration of

Oil Palm Genotypes under
varied environments
Name of the Scheme
355.12
288.00
9.36
19.30
7.63
30.83
2008-09
148.54
68.00
11.23
23.16
9.16
37.00
2009-10
164.65
68.00
13.48
27.79
10.99
44.40
2010-11
XI Plan
168.98
53.00
16.17
33.34
13.19
53.27
2011-12
1205.22
789.00
58.04
119.66
47.33
191.19
162.18
23.00
19.41
40.01
15.83
63.93
Total 2012-13
189.01
22.00
23.29
48.01
18.99
76.72
2013-14
222.41
22.00
27.95
57.62
22.79
92.06
2014-15
262.50
22.00
33.54
69.14
27.35
110.47
111.00
144.43
297.75
117.77
475.74
Total
310.60 1146.70
22.00
40.25
82.97
32.82
132.57
2015-16 2016-17
XII Plan
Table 8.16 : Requirement of funds from TMOP for ISOPOM Schemes operative at
National Research Centre for Oil Palm, Pedavegi
2398.53
900.00
208.98
430.82
170.40
688.34
XII Plans
07), XI &
X (2006-
Total of a
Budgetary Provision
146
9. SUMMARY AND RECOMMENDATIONS

9.1 Background
9.1.1 Problems and prospects of Oil Palm
cultivation
i)
Oilseeds, which produce edible oil, play an
important role both in the Indian house hold and Indian
economy. India is the third largest producer of oilseeds
in the world with an area and production of 27.6 million
ha and 26.70 million MT (2005-06). While the area and
production of oilseeds have increased significantly,
increase in population and income levels has resulted
in increase in the per capita annual demand and
consumption of vegetable oils. This has resulted in a
gap of 4.2 million MT in the requirement of edible oils.
Import value of edible oils has risen from Rs. 6,464.97
crores in 2001-02 to Rs.10,755.85 crores in 2004-05.
Oil consumption being income elastic is further projected
to grow at 6% per annum.
ii)
While there are several oilseed crops cultivated
globally, palm oil has come to play an important role in
the consumption pattern of vegetable oils with its
consumption being the highest among all the edible oils.
Palm oil presents definite advantages in comparison
with other vegetable oils e.g., price advantage, public
acceptability and nutritional attributes (being rich in
carotene and Vitamin E) and has the potential to play
a vital role in the nutritional security. It also has distinct
properties for making specialty fats and is a good raw
material for soaps etc. The increasing demand for edible
oil in India can be met by further increasing the area,
production and productivity of existing oilseed crops;
exploiting new high yielding oilseed crops like Oil Palm
and import of oil from other countries.
9.1.2 Recommendations of Chadha Committee

- 1988
iii) Keeping the advantages and increasing use of
palm oil in view, the Govt. of India constituted a
Committee under the chairmanship of Dr. K.L. Chadha,
the then Horticulture Commissioner, DAC during 1986
to find out the potential of Oil Palm cultivation in India
and suggest ways and means for improving its
cultivation. The Committee which submitted its report
in 1988 identified a potential area of 5.75 lakh ha in 9
states of the country. Subsequently, some other groups
constituted at the instance of Govt. of India/State Govt.
identified an additional area of 2.26 lakh ha in four states

of which Gujarat and Goa were not included in the earlier
report. The total number of states identified having
potential for Oil Palm cultivation thus rose from 9 to 11
with a potential area of 8.01 lakh ha.
9.1.3 Initiatives taken for promotion of Oil Palm

cultivation
iv) As a consequence of the recommendations of the
Chadha committee, several initiatives were taken. Three
large demonstrations of 1,000 ha each in Andhra
Pradesh, Karnataka and Maharashtra were taken up
under the ageis of Department of Biotechnology (DBT).
Foreign sources for large scale import of planting
material were identified. A National Research Centre
for Oil Palm was established at Pedavegi in Andhra
Pradesh. The states took up zonalisation of area for
promoting Oil Palm cultivation and processing.
Commercial Oil Palm cultivation under irrigated
conditions was taken up under Oil Palm Development
Programme (OPDP) launched by Govt. of India during
1991-92 in which several subsidies and incentives were
available for promotion of Oil Palm cultivation and
processing. Subsequently, this programme was brought
under the Technology Mission on Oilseeds and Pulses
during the VIII Plan. The programme was continued
during the IX and X Plans with modifications.
v) Despite these incentives and subsidies, the targets
of area coverage set by Govt. of India during various
plans could not be achieved. As against a potential area
of 8.01 lakh ha identified by various committees, an area
of 87,211 ha only has been covered since the inception
of the programme. Unfortunately, a large area of 30,000
ha in several states was uprooted due to one reason or
the other. Now a net area of 57,211 ha covered under
OPDP is existing besides the area already covered prior
to Oil Palm Development Programme by organisations
like OPIL, FPDC, PCKL etc. At present a total area of
93,513 ha has been covered under Oil Palm in the
country and of this only 63,513 ha is existing.
9.1.4 Experience of Oil Palm cultivation

vi) While there has been lot of enthusiasm in
accepting Oil Palm as a potential oil yielding crop, there
were considerable set backs due to non availability of
water, diversion of irrigated potential area to other crops,
147

successive droughts, non-creation of timely processing
facilities and reduction in import duties. While eight of
the 11 states namely, Andhra Pradesh, Goa, Gujarat,
Karnataka, Kerala, Maharashtra, Orissa and Tamil Nadu
took up Oil Palm cultivation to a small or large extent,
three states namely, Assam, Tripura and West Bengal
did not give due opportunity to Oil Palm to prove its
bonafides as a potential oil yielding crop.
vii) Some major factors impeding area expansion were
long gestation period, high initial investment, year-round
requirement of water, shortage of power, delayed
availability of electric connections, failure of credit
schemes, low yields and fluctuation in price of FFBs.
viii) Several factors resulted in uprooting of large areas
which included natural disasters like droughts and
cyclones, delay in allotment of factory zones, untimely
withdrawal of some entrepreneurs, depletion of ground
water and higher returns from some other competing
crops.
ix) Even though the area expansion programme did
not take up as per potential, there was an overwhelming
response from farmers in several states. Areas identified
by the earlier committees based on agro-climatic
conditions and other parameters proved suitable for Oil
Palm cultivation. Well managed plantations yielded as
per international standards. Oil Palm mainly a rainfed
crop, successfully established itself under irrigated
conditions.
9.1.5 Constitution of present Committee

x) Keeping in view the advantages, constraints and
opportunities in Oil Palm cultivation, the Govt. of India
constituted a second committee under the chairmanship
of Dr. K.L. Chadha, (Retd. DDG (Hort.), ICAR and the
erstwhile Chairman of the first Committee) to reassess
fresh/potential areas of Oil Palm in India vide Office
Order No. 3-18/2005/TMOP dated 9th November, 2005.
The terms of reference of this committee were : critical
assessment of problems and prospects of Oil Palm
cultivation in India to identify new areas for Oil Palm
cultivation; to assess the status and prospects of
processing facilities; to propose plan of action for Oil
Palm cultivation during the current and next Plan; to
suggest the funding including private sector funding for
development schemes with a view to quantitative and
qualitative improvement in Oil Palm cultivation in the
country and to suggest measures for promotion of
research and development of Oil Palm. This Committee
held two meetings at Delhi, the first on January 16, 2006

to discuss an action plan for the committee and the
second on July 20, 2006 to discuss and finalise the draft
report including recommendations.
xi) This Committee further constituted a Working
Group comprising of Dr. K.L. Chadha, the Chairman,
Dr. M. Kochu Babu (Director, NRCOP) and Shri P.K.
Sharma (Director, DAC representing MemberSecretary) as members. The Working Group visited
various states and held 5 meetings one each in
Hyderabad (AP), Panaji (Goa), Bangalore (Karnataka),
Aizawl (Mizoram) and Ahmedabad (Gujarat). During
these meetings discussions were held with the state
officials, entrepreneurs, farmers and farmers
associations. The issues discussed were reassessment
of potential areas, targets for production of planting
material, strategies for import of seed sprouts,
processing infrastructure required, technical issues
concerning future R&D priorities, improving productivity
and oil extraction ratio (OER) and pattern of subsidies
and incentives being offered by the Govt. of India for
promotion of production and processing of the crop.
Major recommendations of this Committee are
summarized in the following pages.
9.2 Reassessment of Potential Area

i)
The present committee held discussions to
reassess the potential area in different states through
views expressed in meetings and inputs received in
writing from different stake holders. Its observations/
recommendations on potential area and targets of area
coverage are given statewise.

ii) The earlier committees had identified 4 lakh ha
area distributed in ten districts of Andhra Pradesh as
suitable for Oil Palm cultivation. However, only 53,370
ha could be covered up to 2005-06. Of this 8,000 ha of
area has been reported to be uprooted. This state which
contributes about 50% of the potential area identified
in the country has made significant progress in Oil Palm
cultivation when compared with other states. It is also
the most suitable state as far as Oil Palm cultivation is
concerned.
iii) Two districts namely Guntur and Prakasam with
an area of 30,000 ha identified by the earlier committee
have been dropped in view of drought conditions as
indicated by the state authorities. However, Nalgonda
148
Summary and Recommendations

district with the same potential area of 30,000 ha has
been included as proposed by AP Oil Fed.
iv) As there is no change in area in any other district,
the total potential area, thus available in Andhra Pradesh
remains the same, i.e. 4 lakh ha. As far as the targets of
area coverage are concerned, the state proposes to
cover 15,000 ha during remaining period of X Plan
(2006-07), 1,03,750 ha during XI Plan and 1,55,400 ha
during XII Plan. The total area proposed to be covered
during this 11 years period is 2,74,150 ha. Besides,
45,370 ha area is already available in the state. Thus a
total area of 3,19,520 ha is likely to be available by the
end of XII Five Year Plan.
9.2.2 Assam
v) The earlier committee had identified potential area
of 10,000 ha in this state. However, even though the
programme of area expansion in this state was included
in the OPDP, the state did not avail any funds for this
purpose. Further, the state did not respond to the
invitation of the present Committee to discuss its
potentialities for oil palm cultivation. No written response
was also received from the state. Therefore, the
Committee cannot recommend any area coverage
under Oil Palm in this state.
9.2.3 Chhattisgarh
vi) Chhattisgarh state which was carved out from
Madhya Pradesh state was not included as a potential
state for Oil Palm cultivation in the 1988 report as the
state did not exist at that time. After its formation, it could
not be added to the already approved states in the last
Plan. However, the erstwhile Madhya Pradesh state laid
out some demonstration plots in areas now part of
Chhattisgarh state.
vii) After its formation, the Chhattisgarh state has
shown keenness in promotion of Oil Palm cultivation
and has identified 40,000 ha area as potential for Oil
Palm jointly with entrepreneurs.
viii) The Committee, however, recommends that the
state should go slow in area expansion and should first
try to plant two large scale demonstrations covering
about 1000 ha each in the two zones, i.e. Chhattisgarh
plains and Bastar plateau (on cluster approach) reported
to be suitable for Oil Palm cultivation with assured water
availability. In addition, an area coverage of 5,750 ha
has been targetted in XI Plan. During XII Plan a target
of 20,000 ha has been approved. Accordingly, the total
planted area under Oil Palm by the end of XII Plan will
be 27,754 ha. The committee approves 40,000 ha
identified having potential for Oil Palm.
9.2.4 Goa
ix) This state was not included in the potential states
for Oil Palm cultivation in the 1988 report. However,
another committee had identified 10,000 ha of potential
area in this state. Against this, the state has already
covered 894 ha till 2005-06. Of this 71 ha of area has
been uprooted.
x) Even though the performance of Oil Palm
plantations in Goa has shown potential for expansion
of the crop, in view of the meagre availability of land,
the committee approves the states proposal for
expansion of area by another about 1,177 ha only under
Oil Palm cultivation. The targets for X (2006-07), XI and
XII Plan, will thus be 50,500 and 627 ha respectively
with a total area coverage of 2,000 ha by the end of XII
Plan.
9.2.5 Gujarat
xi) The state of Gujarat was not identified by the
Chadha Committee 1988 for Oil Palm cultivation.
However, a subsequent state committee identified
61,350 ha. as suitable for Oil Palm cultivation. An area
of 725 ha only was covered under the crop between
1993-94 and 2005-06, out of which 525 ha was
uprooted.
xii) The present Committee is of the opinion that south
Gujarat districts viz., Valsad, Surat and Navasari are
well suited for Oil Palm cultivation and with the likely
availability of water many more districts can be brought
under Oil Palm cultivation in the state. As such the
Committee agrees with the potential area of 90,000 ha
identified in 10 districts of the state for Oil Palm
cultivation. The Committee further approves area
coverage targets of 100, 11,000 and 12,900 ha during
X (2006-07), XI and XII Plans respectively. As a result
the total coverage under Oil Palm by the end of XII Plan
in the state will be 24,200 ha.
9.2.6 Karnataka
xiii) In Karnataka, an area of 2.5 lakh ha was identified
as potential for Oil Palm cultivation. Against this, the
total area coverage was 12,398 ha. But an estimated
area of 7,934 ha has been uprooted, leaving an area of
only 4,464 ha.
149

xiv) The Committee was informed that even though no
planting was taken up in Upper Krishna Command area,
a large area can be brought under Oil Palm cultivation
in this zone. Further in Bellary district, the water table is
high and bore well recharging has good scope. The
Koppal district has good potential of irrigation due to
Harelle dam. Gadag district has also good water
potential for Oil Palm. There is also scope to divert some
area to Oil Palm cultivation in Belgaum district. In
Shimoga district, even though a large scale uprooting
took place, the farmers once again are not averse to
Oil Palm cultivation.
xv) Accordingly, the Committee accepts the targets of
area coverage of 3,750 ha, 20,450 ha and 28,100 ha
during X (2006-07), XI and XII Plans respectively as
proposed. However, the total potential area will remain
2.5 lakh ha as identified by earlier Committee. By the
end of XII plan the total area coverage expected in this
state is 56,764 ha.
9.2.7 Kerala
xvi) The area under Oil Palm cultivation in Kerala state
is primarily under the Oil Palm India Limited (OPIL) and
Plantation Corporation of Kerala Limited (PCKL) both
of which planted an area of 3,705 ha between 1971
and 1984.
xvii) The Chadha Committee - 1988 had recommended
a potential area of 5,000 ha in this state. However, only
1,796 ha could be brought under Oil Palm cultivation in
the farmers fields and plantations of OPIL and PCKL.
xviii) Even though southern part of Kerala is particularly
suited for Oil Palm, the Govt. of Kerala does not want
any area expansion programme under this crop due to
constraint of assigning more land or diverting land from
any other crop for Oil Palm cultivation due to high
population pressure in the state and the states anxiety
to maintain its forest wealth. However, OPIL which is a
joint subsidiary of Govt. of India and Govt. of Kerala
has projected 1.08 lakh ha as suitable for Oil Palm
cultivation. The Committee does not recommend
assigning OPDP to this state except 850 ha to be
covered during the last year of X Plan. This will result in
a total area coverage of 6,350 ha in Kerala by the end
of X Plan.
9.2.8 Maharashtra
xix) Maharashtra state had the distinction of
introducing Oil Palm in 1947, and took up the first large
scale demonstration of 1,000 ha under the DBT

programme. But the state did not show due attention
to the crop it deserved and against an identified area of
10,000 ha in 1988 the state did not cover virtually any
area. The state further did not show any interest in Oil
Palm programme for the XI plan. The Committee was
also informed that the performance of DBT
demonstrations under DCKL was poor and farmers in
the region were not willing to shift from other competing
crops.
9.2.9 Mizoram
xx) Mizoram state located in the North Eastern region
was not covered in the 1988 report of the Chadha
Committee. However, a subsequent committee found
that south Mizoram is suitable for Oil Palm cultivation
based on the agro-climatic conditions and water
availability. Accordingly the OPDP was sanctioned
during 2004-05 with a targeted area of 1,000 ha and
the same has been covered.
xxi) The state was upbeat in taking up Oil Palm
cultivation and saw it as a future crop of Mizoram with a
potential of replacing the conventional shifting
cultivation.
xxii) The state has a potential area of 61,000 ha in 8
districts and plans to cover an area of 350, 29,650 and
30,000 ha during X (2006-07), XI and XII Plans
respectively.
9.2.10 Orissa
xxiii) The experience of Oil Palm cultivation in Orissa
during the earlier plans is marked both by planting of
2,014 ha and uprooting of 1,883 ha against an identified
potential area of 10,000 ha. There is no doubt, however,
about the large potential which the state offers. Inspite
of initial set back, the farmers who once uprooted Oil
Palm are once again keen to take up Oil Palm cultivation
in the state as the entrepreneurs have been identified
for setting up processing units .
xxiv) A total area of 25,000 ha in 9 districts seems to
have potential on the basis of reports submitted by the
state and entrepreneurs. Of this, the target of area
coverage of 1,500, 14,000 and 9,369 ha is approved
for X (2006-07), XI and XII Plans.
9.2.11 Tamil Nadu

xxv) In Tamil Nadu, an area of 30,000 ha was identified
by the earlier committee. The programme, however, had
a set back due to non-availability of processing facilities
150

and an area of 14,894 ha covered was reduced to 3,307
ha after uprooting of an area of 11,587 ha. Thirteen
districts have been proposed by the state govt. to have
a potential area of 1,62,000 ha which has been approved
by the Committee.
xxvi) For future area expansion 2,375, 37,000 and
45,000 ha area has been targeted to be covered in X
(2006-07), XI and XII Plan periods respectively
amounting to a total area coverage during this period
to 84,375 ha.
9.2.12 Tripura
xxvii) Earlier committee had identified an area of 5,000
ha in the state of Tripura. However, no initiative was
taken by the state in implementation of these
recommendations. The state also did not respond to
this Committee and neither attended the meetings to
which it was invited nor submitted any proposal for taking
up Oil Palm cultivation. The Committee, therefore,
cannot recommend any area coverage in this state.
9.2.13 West Bengal

xxviii) In West Bengal an area of 10,000 ha was
identified by the earlier committee. But like Assam and
Tripura states, this state also did not take any initiative
for area expansion as per recommendations. Moreover,
the state has neither participated in the meetings nor
submitted any proposal for Oil Palm development.
Hence, the Committee does not recommend any
potential area for Oil Palm cultivation in this state.
xxix) Keeping in view the above, the Committee is of
the opinion that India has a potential area of about 1.03
million ha (10,36,500 ha) available for Oil Palm
development in 9 states. Of this, 23,975 ha is proposed
to be covered during X (2006-07) Plan, 2,24,100 ha
during XI Plan and 3,01,396 ha during the XII Plan
periods. The states in which large areas have been
identified are Andhra Pradesh, Karnataka, Tamil Nadu,
Gujarat and Mizoram. In case the above targets are met
the total area coverage under Oil Palm by the end of XII
plan will be 6,12,984 ha, which has a potential to
produce 2.2 milion MT of CPO when these plants come
to full bearing.
9.3 Planting Material

i)
The
earlier
committee
had
made
recommendations for production of planting material
indigenously by establishment of seed gardens,
procurement through import and standardization of
tissue culture technology. As a follow up, three

committees set up by Govt. of India each under the
Chairmanship of Dr. K.L. Chadha, the then DDG (Hort.)
ICAR, visited several countries namely Costa Rica,
Papua New Guinea, Malaysia, United Kingdom, France,
Ivory Coast, Republic of Benin and Nigeria between
1988 and 1993 and their major recommendations are
already given in the text. As a result, seed sprouts were
imported to the tune of 62,88,504 by various agencies
from Costa Rica, Ivory Coast and Papua New Guinea
during the last 3 Plan periods.
ii) Simultaneously, 6 seed gardens were established
for indigenous seed production and 78,43,921 sprouts
were produced and distributed upto March 31, 2006.
Currently (April, 2006) 26,64,967 Oil Palm seedlings
are available in different nurseries for future planting.
iii) Demand for planting material is increasing as
programmes for area expansion are getting popular.
Further, areas which need replanting also would require
large quantity of planting material in the near future.
For meeting the future needs, the Committee
recommends a four pronged strategy viz., augmentation
of seed production from existing seed gardens,
establishment of new seed gardens, import of seed
sprouts from Oil Palm growing countries and exploring
possibilities of micro-propagation.
iv) There is a need to fix uniform price for Oil Palm
seedlings both indigenous and imported at appropriate
intervals on the basis of actual cost of production/import
and other charges involved. Since the cost of production
of seedlings varies from state to state and with source
the price may continue to be decided in the PMC of the
respective states.
9.3.1 Augmenting production of existing seed

gardens
v) The potential of six existing seed gardens which
now produce around 2.2 to 2.37 million sprouts can only
be upscaled to a limited extent of 2.7 million in 2008.
However to achieve this several measures like selection
of dura palms in mature plantations of imported
materials, identification of high yielding plantations in
the farmers field and their utilization, exploiting all the
selected mother palms to increase the production of
female bunches by giving copious irrigation and other
inputs, measures to get maximum possible germination
and arrangement of monotiring the quality are
suggested.
151
9.3.2 Establishment of new seed gardens

vi) In addition to the above there is need to establish
six new seed gardens in public or private sector in the
states namely, Andhra Pradesh, Gujarat, Karnataka,
Mizoram, Orissa and Tamil Nadu, over an area of 15 ha
each. The private companies already involved in
establishing processing units should be encouraged to
take up seed and seedling production in their zones to
augment indigenous seed production potential.
vii) However, these gardens will start producing seeds
only from the year 2015-16 onwards if established during
the first two years of XI Plan. Further, the highest yielding
plantations in the farmers fields should also be identified
and seeds of tenera from different sources of planting
materials (Costa Rica, PNG, IRHO and Malaysia) should
be procured for establishment of seed gardens and also
for field gene bank conservation, evaluation and
utilization at NRCOP.
viii) While establishing new seed gardens, the following
aspects should be considered:
To meet the base population requirement of

parental palms, Dura and Tenera x Tenera selfings
or inter-se crossings from existing seed gardens
can be taken up.
There is also need to procure breeding materials
in order to have wider genetic base. The quality of
material and their performance must be ensured
before import of breeding materials.
A team of technical experts representing GOI,
ICAR (NRCOP), PPA and some state
representatives needs to be sent to explore the
possibilities of importing genetic materials through
negotiation by outright purchase.
The seed sources to be identified should be based
on parental performance with desired traits
(dwarfness, drought resistance etc.).
9.3.3 Import of seed sprouts

ix) As per recommendations of the Committee, the
estimated demand for Oil Palm seed sprouts during the
last year of X Plan, XI Plan, and XII Plan will be 4.32,
40.34 and 54.25 millions respectively. Against this, our
indigenous production is expected to be 2.37, 13.95
and 24.03 millions respectively. This shortage can be
met by importing sprouts from other Oil Palm growing
countries.
x) The Committee recommends that apart from Costa
Rica, from where a major part of seed sprouts have
been imported so far, other reputed organizations/Oil

Palm companies in different countries be identified and
approved for large-scale import of planting material so
as to provide quality planting material with a wide genetic
base for our future plantations.
xi) It is, therefore, recommended that a team of experts
comprising of members from GOI, ICAR (NRCOP), PPA
etc. be sent abroad to identify the sources of seed and
negotiate rates of companies which have been willingly
supplying seed sprouts of good quality to India so far.
Efforts should also be made to import Malaysian
materials by the interested companies. Private sector,
which is already in touch with different foreign sources
for seeds should be involved in this exercise.
9.3.4 Micropropagation of Oil Palm

xii) Though there was initial set back in Oil Palm tissue
culture due to somaclonal variation, presently several
Agencies / Organisations in other Oil Palm growing
countries are producing Oil Palm clones on a
commercial scale. Attempts should be made to procure
the available technology from any of the agencies and
MOU should be signed in this regard. The agreement
should be valid till the clonal plants are established in
the field with their yield performance.
xiii) Since, the Private Companies are directly involved
in Oil Palm Industry and are already handling Oil Palm
planting materials, a Public-Private joint venture for
procurement of Oil Palm tissue culture technology may
be attempted, which would reduce the import of clonal
plantlets. Otherwise also, import of planting material
always contains a hidden threat of not getting the
genuine material and transmission of new diseases and
pests. Since the cost of tissue culture plantlets is very
high, the Govt. of India team should negotiate with the
suppliers the price of bulk purchase of clonal planting
materials required in India.
xiv) To continue the tissue culture research on Oil Palm
in India and improvement upon the available technology,
a world class tissue culture laboratory with all other
associated facilities should be developed at National
Research Centre for Oil Palm.
xv) Entrepreneurs can be encouraged for joint
ventures with reputed foreign Oil Palm companies to
start seed gardens with their advanced breeding
materials and setting up tissue culture units for
production of clones of elite planting materials.
9.3.5 Quality control and quarantine

xvi) The seed production programme must guarantee
a planting material with good yielding potential. To
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achieve this, strict quality control and specific standards
for Oil Palm sprouts need to be fixed and enforced. Seed
certification standards should be enforced for Oil Palm
after assessing performance of the D x P combinations
in the seed gardens. Quarantine measures should be
enforced strictly to avoid import of exotic pests and
diseases in the country. Scientists of NRC for Oil Palm
should be included in the Plant Quarantine inspection
team of Govt. of India.
9.4 Production and Productivity

9.4.1 Production of FFB
i)
The Oil Palm plants start bearing from fourth year
onwards and the production progressively increases
upto 10 years. A total of 44,788 ha of area under Oil
Palm is now fully matured in the country which yielded
1,86,060 MT of FFB during 2003-04.
9.4.2 Yield potential and causes of low yield

ii)
The genetic yield potential of Oil Palm has been
computed to be 44-46 MT/ha/year. However, such ideal
conditions and yields are not obtained commonly.
Realistic yields of 30-35 MT FFB/ha/year have been
reported in Malaysia and Indonesia. In India however,
yields of 25-30 MT FFB/ha/year have been realized by
many Oil Palm growers in Andhra Pradesh. Fifty of the
199 Oil Palm farmers are getting yield as per
expectations in A.P. The results were however not similar
as far as Karnataka and Tamil Nadu are concerned.
iii) Factors causing constraints in obtaining optimum
yields include unfavourable climatic conditions, poor
quality planting material, improper intercropping
practices, inadequate application of fertilizers etc.
Irrigation has been found to be a critical factor for getting
optimum yields in Oil Palm.
iv) It is recommended that awareness about
comparable performance of indigenous vs exotic
planting material to farmers, officials and companies
needs to be created in NRC for Oil Palm training
programmes. Further detailed study in this regard should
be conducted in more locations and the findings should
be disseminated through NRCOP publications and
training programmes.
9.4.3 Productivity incentives

v)
The Govt. of Goa has introduced a productivity
linked incentive to improve yields of Oil Palm in the state.

These incentives have already given the desired
dividend by increasing the yields. Such incentives need
to be considered at Central/State level. Special
incentives should be given to those obtaining yield of
more than 25 MT/ha after the age of 8 years.
9.4.4 Mechanization of operations

vi) Mechanization of some operations in Oil Palm
cultivation is becoming more and more relevant due to
shortage of labour due to urbanization, education and
drudgery of labour. There is a scope for improving the
gadgets used particularly for harvesting of Oil Palm
bunches both by importing the same as well as through
innovations to improve existing gadgets in the country.
Some suggestions were received regarding improving
the present system of handling of FFBs without damage
to ensure both quantity and quality of the final product.
These deserve attention of relevant organizations.
9.5 Processing Facilities

9.5.1 Augmenting processing capacity
i)
Consequent to the recommendations of the report
of Chadha Committee-1988, 18 processing units have
been established in the country viz., Andaman and
Nicobar Islands-1, Andhra Pradesh-9, Goa-1,
Gujarat-1, Karnataka-2, Kerala-3 and Tamil Nadu-1.
These units offer a total processing capacity of 115 MT
per hour. While at present most of the mills find it difficult
to utilize the available capacity, the processing capacity
will require to be increased commensurate to the area
expansion programmes.
ii) It is estimated that once the already planted
plantations start giving stabilized yields, an overall
processing capacity of 366 MT/hr will be required to
meet the processing needs. In addition to this, a
processing capacity of 257 MT/hr and 1,522 MT/hr will
be needed by the end of XI and XII Plans respectively
to meet the processing needs of the newly proposed
areas coming into bearing.
iii) To ensure capacity utilization, it is recommended
that instead of too thinly distributing the area expansion
programme by the state, priority should be given to
expand area under the purview of the existing mills to
help them achieve capacity utilization and hence reduce
the cost of production.
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9.5.2 Oil Extraction Ratio (OER)

iv) The oil extraction ratio, a measure of the efficiency
of palm oil production process obtained by processing
factories in India is between 16-18% and is 2-3% less
than that obtained by processing units in other countries.
It is affected by a number of factors which need to be
attended to in the Oil Palm expansion programme.
These cover right stage of maturity, extent of trash
contamination, exposure of bunches to rain, efficiency
of extraction equipment etc.
v) Several suggestions have been made by the
Committee to improve the OER in Chapter 5. Some of
these are tight management and control during
harvesting, proper bunch collection and handling,
improving pollination, harvesting at right maturity,
avoiding long harvesting intervals, avoiding exposure
to rain etc. Some of these operations also affect oil
quality.
9.5.3 Oil quality and quality control

vi) Oil quality is affected both by harvest and postharvest factors represented by Free Fatty acid content,
colour, metal contamination, dirt and microbial load. To
reduce these losses, FFB should be processed as early
as possible preferably within 24 hours of harvest. Any
steps to improve the oil quality should start from the
plantations to ensure good quality raw material to
processors. Standard practices recommended for oil
mills to ensure uniform quality product need to be laid
out in consultation with experts. There is need to
establish an agency for ensuring quality control.
9.5.4 Uses of palm oil

vii) Most of crude oil now produced by palm oil mills in
the country is being used for non-food purposes. It is
felt that first preference for the palm oil produced should
be given for food uses and the non-food uses can be
promoted at a stage when the domestic production is
in excess of the requirement for food uses.
9.5.5 Waste utilization

viii) One of the strategies to reduce the cost of
production of Oil Palm/palm oil is utilization of field and
factory wastes. As these wastes are likely to increase
significantly, with increase in area and production, steps
for waste utilization, i.e. palm trunk for furniture,
shredded fronds for vermicomposting and mulching,
empty fruit bunches for making fibre (coir fibre), palm
kernel shells and palm press fibre as fuel in the boiler

and POME as a substitute of fertilizer need to be
promoted.
ix) Three palm oil mills are at present generating
power from kernel shell waste which is used for mill
operation and is partly being supplied to the national
grid. Hence captive power generation plants in
conjunction with palm oil processing units need to be
popularized.
x) Bio-gas generated from POME can be used for
industrial purpose. Even though POME does not contain
any chemicals, its high biological oxygen demand
creates environmental problems and needs to be taken
care of.
9.6 Research and Development

9.6.1 Research infrastructure and achievements
i)
The establishment of the National Research
Centre for Oil Palm at Pedavegi in Andhra Pradesh by
ICAR has been a significant land mark for promoting
technology backed Oil Palm cultivation in the country.
The Centre has created excellent infrastructural
facilities, inter-disciplinary man power, laid out
systematic research programmes and has been
conducting well attended training programmes.
ii) It has also made achievements in identifying high
yielding hybrid combinations, water and nutrient
management, choice of intercrops, pest and disease
management and post harvest technology.
iii) It has also played a significant role in making
available large amounts of indigenous planting material.
iv) To meet the future needs of the industry, priority
areas for R&D have been identified and listed. These
include among others identifying ideotypes having
dwarfing character, disease and pest resistance, high
unsaturated fatty acids and development of improved
machinery and strategies to improve productivity oil
extraction ratio and quality control.
v) The Committee received suggestions for setting
up of regional research facilities in Karnataka, Tamil
Nadu and Chhattisgarh states. It is felt that instead of
opening new regional centers, the already existing four
centers in four states under the All India Coordinated
Research Project of the ICAR be strengthened and
expanded to cover new states like Chhattisgarh, Gujarat,
Mizoram and Orissa. The centre at Mulde in Maharastra
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which is not serving the purpose as there is no Oil Palm
development programme in the state, is not
recommended to continue during XI Plan.
vi) Further it is recommended that the responsibility
of coordinating Oil Palm research in ICAR at present
vesting with Project Coordinator (Palms) located at
CPCRI, Kasargod should be transferred to the Director,
NRCOP to ensure proper co-ordination and
establishment of suitable linkages with NRCOP and
efficient development and proper utilization of the
technology developed for Oil Palm cultivation.
9.6.2 Demonstrations
vii) Early demonstrations in several locations have
played a significant role in understanding the needs of
the crop and inculcating confidence among the farmers
in Oil Palm cultivation. It is recommended that this
programme be extended to the districts in different
states where the OPDP programmes are proposed for
the first time during XI and XII Plans.
staff should be maintained for a reasonable period.

Some state representatives proposed hiring of
consultants for OPDP programme in the state as
provided in the National Horticultural Mission
Programme. The Committee endorses this suggestion.
x) The Committee also recommends that it should
also be mandatory for the entrepreneurs in each state
to have exclusive technical staff for Oil Palm to ensure
effective interaction with the State Govt. and farmers
and to co-ordinate and assist in activities related to
identification of suitable areas and farmers at micro level,
production, procurement, maintenance and supply of
planting material, guidance/assistance in making layout,
raising plantations on scientific way, harvesting and
handling and ensuring transportation from farm gate to
the processing units. A comprehensive training of seven
days duration to the staff both in public/private sector
should be a pre-requisite before giving them the actual
responsibility in OPDP.
9.7 Policy Recommendations
9.6.3 Transfer of technology
9.7.1 Land related issues
viii) The NRCOP has made a dent in transfer of

technology through a large number of training
programmes for officers and farmers. It has also brought
out a number of publications to help the farmers to follow
proper practices during production and post harvest
management. This programme is recommended to be
strengthened in the XI Plan. It is recommended that
staff employed in R&D programmes of Oil Palm should
be given proper exposure both within and out side India
in Oil Palm growing regions to get a first hand information
on production and processing. The needs of cultivation
and transfer of technology for Oil Palm plantations are
quite different from those of annual oilseed crops and
hence require technically trained staff to achieve proper
yield, OER and above all meeting targets.
i)
Oil Palm cultivation has a tremendous potential in
the country. If the country has to fully exploit this
potential, the land ceiling norms related to Oil Palm need
to be reviewed and the crop brought on par with some
plantation crops e.g. rubber, coffee, tea etc. This will
enable the entrepreneurs who are given the
responsibility of development of Oil Palm in a zone to
own reasonable area for factory plantations to serve as
a demonstration for R&D, raising future nursery and also
meeting partial FFB needs. This is necessary as the
industry if properly developed has a potential to provide
both income and employment throughout the year and
create a dent in vegetable oil production and import
substitution.
ix) Most states currently do not have suitably trained

and separate staff for promotion of Oil Palm cultivation.
The Committee feels that if Oil Palm cultivation has to
be pursued seriously there is need to provide senior
staff at headquarters of each Oil Palm growing state to
coordinate and monitor programmes on Oil Palm
besides well trained staff in Oil Palm production in all
districts/taluks under oil palm expansion programme. It
is felt that one Horticultural Officer is adequate for about
2,000 ha plantation of Oil Palm. It is further
recommended that to harness fullest potential, trained
ii) The funds provided in the earlier plans for

development of waste lands seem to be not adequately
utilized. It was pointed out that considerable area is lying
unutilized both in Govt. and private sector in various
states of the country. Its utilization for Oil Palm in relevant
states, which has potential for water availability needs
to be pursued seriously.
9.7.2 Price fixation mechanism

v) There is considerable variation in the basis
adopted for FFB price fixation in Malaysia and India.
While stringent grade standards and OER are taken
155

into consideration in Malaysia, in India the price fixed is
10-12 percent of CPO price. Further there is also a price
variation among different states. The Committee
recommends a uniform pricing policy by a Central
Committee representing different interests, once in
every three months.
vi) There is a need to establish a grading criterion
and basic extraction rates in a systematic manner in
different Oil Palm producing states of India. However,
as in other countries, this criterion should not be used
for determining the price unless proper awareness about
it is created among farmers.
9.7.3 Oil Palm Act
effect on the local oilseeds and oil production, marketing

and pricing.
9.7.7 Participation by private sector

xii) There is already private participation in Oil Palm/
palm oil industry through establishment of nurseries,
establishment of processing units, providing farmgate
transport and ready market to the Oil Palm growers.
This needs to be encouraged further.
9.8 Review of Incentives and Subsidies

i)
The pattern of subsidies and incentives has been
reviewed by the Committee and the revised pattern is
suggested as below
vii) Oil Palm Act has been already under

implementation in 4 states namely Andhra Pradesh,
Tamil Nadu, Goa and Mizoram. Keeping in view the
usefulness of the Act in regulating cultivation,
production, processing, purchase and sale of FFB and
fixing of FFB price, its enactment should be made
mandatory for all states participating in the Govt. of India
programme for promotion of Oil Palm cultivation.
viii) There have been many instances of uprooting of
area in some states and withdrawal by some
entrepreneurs who were allotted different areas for
development. Some of these growers are again reported
to be keen to take up Oil Palm cultivation. It is
recommended that there should be a provision in the
Act to recover the amount of subsidy from entrepreneurs
or growers who withdraw after availing subsidy without
any justified reasons to be determined by a designated
authority in each state.
9.7.4 Credit support

ix) Commercial banks and NABARD need to be
sensitized and involved in promotion of Oil Palm
cultivation through soft loans at appropriate time and in
adequate amount to boost the morale of the farmers.
9.7.5 Price stabilization fund

x) The Committee reiterates the long time suggestion
for establishment of price stabilization fund by collecting
certain percentage of money from FFB sale to support
the farmers when prices fall abnormally.
9.7.6 Import policy

xi) Import policy for oils needs to be announced on a
long term basis and should take into consideration its
ii) Planting material distribution: It is recommended

that the present rate of subsidy at 75% cost with a ceiling
of Rs.7,500/ha for entire land holding of the farmer be
revised to 85% with a ceiling of Rs.9,000/ha.
iii) Establishment and maintenance of seed gardens:
The Committee has recommended establishment of 6
new seed gardens in the states of Andhra Pradesh,
Gujarat, Karnataka, Mizoram, Orissa and Tamil Nadu.
Establishment of seed gardens involves huge
investment and requires constant care. Hence, it is
recommended that a separate provision should be made
to establish and maintain seed garden as seed gardens
are very important to achieve the planting material
requirement in tune with the targets of area expansion.
The seed garden may be developed in an area of 15 ha
as a Revolving Fund Scheme with the assistance of
Rs. 30 lakh with a breakup of Rs. 10 lakh in the first
year, Rs. 2 lakh each during 2nd, 3rd,4th , 5th and 6th year.
Rs. 10 lakh in the 7th year will be provided as a block
grant. From 8th year onwards the seed gardens are likely
to become self-supportive. During 1 st year the
assistance may be utilized towards the cost of seedlings,
cultivation, drip systems, motor pumps and
maintenance. From 2nd to 6th year, the subsidy may be
utilized towards cultivation cost and maintenance. In
7 th year the assistance may be utilized towards
cultivation cost, labour for pollination, providing
infrastructure for seed germination etc.
iv) Cultivation cost: The ceiling of Rs.15,500/- already
in force is recommended to be raised to Rs.20,000/ha
up to an area of 25 ha against 15 ha already in vogue.
The pattern of year-wise assistance will thus change
from the present Rs.4,600, 3,300, 3,500 and 4,100 to
Rs.6,000, Rs.3,500, Rs.4,500 and Rs,6,000 respectively
during 1st, 2nd,3rd and 4th years respectively.
v)
156
Development of waste lands: Considering that full

advantage was not taken of this provision in earlier
plans, it is recommended that 15% of funds be allocated
for tapping unutilized cultivable land owned by farmers
or Govt. lands/wasteland owned by the corporations of
the State and Central Govt. or cooperatives or such
lands owned/leased by Oil Palm entrepreneurs. Out of
this 15%, 25% fund may be provided for infrastructure,
irrigation facilities, water harvesting tanks etc.

vi) Drip irrigation: This has proved to be one of the
most useful schemes for promotion of Oil Palm. To
ensure all possible help to the farmers to exploit water
potential fully, the following revised pattern is proposed:
(a) 75% of the cost for small, marginal, SC/ST and
women farmers with a ceiling of Rs. 20,000/ha and 85%
for the first 1 to 5 ha and 50% for 6 to 25 ha for other
categories with a ceiling of Rs. 20,000/ha.
(b) High pressure compensated drip system is
recommended for North Eastern state farmers with 85%
of the cost for small, marginal, SC/ST and women
farmers with a ceiling of Rs. 25,000/ha and 75% for the
first 1 to 5 ha and 50% for 6 to 25 ha for other categories
with a ceiling of Rs. 25,000/ha.
(c) 100% grant from GOI in case of North-Eastern
states.
(d) The Central and State share in case of other states
would be 90:10.
vii) Diesel pump sets: 75% cost to a maximum limit of
Rs.15,000 per set for either diesel pump set of 2.5 to
5.0 hp depending on the requirement or Electric motor
pump set in all the states.
viii) Generator set: 75% cost to maximum limit of
Rs.25,000 per set in all the states.
ix) Bore well subsidy: 25% of cost to a maximum limit
of Rs. 25,000 per bore well to bonafide Oil Palm growers.
x) Development of water harvesting structures and
water shed in North-Eastern states: 100% cost to a
maximum limit of Rs. 50,000 per water harvesting
structure and Rs. 30,000 per water shed for a maximum
area of 2 ha.
All the above incentives and subsdies are
recommended to be uniformly available to farmers,
cooperative sectors, NGOs and processing units
wanting to promote Oil Palm in India.

xi) Demonstrations: In new districts where new Oil
Palm plantations of 500 ha or above are being taken up
in farmers fields, 5 demonstrations of 1 ha each in the
years 2007-08 and 2008-09 are recommended to be
taken with a view to demonstrate cultivation and
management practices, plant protection measures,
potential yield and harvesting and handling practices
to the farmers. Under Oil Palm demonstrations, entire
expenditure subject to the maximum of Rs.10,000 per
ha for planting material and maximum of Rs.35,000 per
ha for cultivation during gestation period of first five years
will be covered. The break-up of the above subsidy will
be Rs. 7,000, Rs.5,000, Rs.6,000, Rs. 8,000 and
Rs.9,000 for 1st,2nd,3rd, 4th and 5th year respectively.
Balance cost, if any, on planting material, cultivation and
other expenditures will have to be met either by the
farmer or State Govt.
xii) Farmers training: Rs. 20,000 per training for a
batch of 50 farmers within the state.
xiii) Officers training: (a) Need based support would
be provided as per requirement for training, extension
& publicity, establishment and staff and other ongoing
schemes of seed gardens, leaf analysis lab, training of
staff/officers and testing of genotype etc. limited to 10%
of the total financial allocation of the state.
(b) Training of officials and extension staff both within/
outside India.
9.8.4 Post harvest component

xiv) Establishment of palm oil mills: Assistance with a
central share of 60% with a ceiling of Rs.30 lakhs for 1
MT/hr and 300 lakhs for 2.5 MT/hr capacity mills to the
state or entrepreneurs in the form of plant and
equipment and will be applicable only in the newer states
of Chhattisgarh & Mizoram.

xv) Introducing innovative or any special measures
will receive component subsidy to the extent of 10% of
financial allocation. The assistance pattern is
recommended as follows:
(a) Vermi compost: 50% of the cost with a ceiling of
Rs.15,000 for three units of 15m length, 0.9m width
and 0.24m depth
157

(b) Frond cutter : 50% of the cost with a ceiling of Rs.
20,000
(c) Harvesting tools: 50% of the cost with a ceiling of
Rs. 2,500
(d) Crop insurance: Insurance is important in Oil Palm
keeping in view high investment, natural calamities etc.
A mutually beneficial scheme both to the insurance
company and the farmers needs to be implemented to
create security against partial or complete loss of crop
or loss of plants. It is recommended to provide 30% of
the premium limited to Rs. 3 per tree. Entrepreneurs
will also be eligible for this assistance for their own
captive plantations.
9.9 Organizational Changes

i)
Oil Palm is one of the few horticultural crops which
has the shortest shelf-life (24 hrs) but has assured
marketing facilities, i.e. farm gate transportation facilities,
price fixation mechanism and quick payments. It has a
potential to save considerable land area under oil seeds
in states having potential for its cultivation because of
its high yield potential and high oil production. With one
million ha potential area, it offers considerable
opportunities for sustaining small farmers with regular
and consistent returns and year round employment
potential. Bearing all the year round, it also provides
reasonable insulation for seasonal gluts. The crop also
demands a high level of technical management and
investment where production and processing are linked.
It therefore, deserves a special treatment for its
development.
ii) The above strategy proposed for Oil Palm
development calls for lot of planning with respect to area
coverage, ensuring timely production, import and
availability of requisite planting material, setting up of
mills to meet the processing requirement of increased
area, human resource development, enactment of
suitable quality standards in terms of seeds, FFB and
oil, ensuring quality control and sorting out issues of
half a million farmers expected to takeup Oil Palm
cultivation. Such gigantic tasks cannot be achieved with
the existing infrastructure both at the centre and state.
iii) The Chadha Committee 1988 had suggested
creation of a Central Apex Body namely National Oil
Palm Development Board exclusively for Oil Palm
development with full powers and adequate funds to
promote Oil Palm cultivation in India. However, this
recommendation perhaps did not find favour. Instead
the Govt. of India chose to link Oil Palm with the

Technology Mission on Oilseeds and Pulses. The
mission has undergone considerable changes in its
structure and staffing pattern with the result that only
one Asst. Director is now available in DAC for exclusively
looking after OPDP programme. The Committee,
therefore, recommends creation of National Oil Palm
Development Authority to take care of all aspects of
Oil Palm cultivation, processing, marketing, availability
of planting material, quality control and related issues.
iv) At present the monitoring of OPDP at the Central/
State levels needs much to be desired. There is
therefore need to strengthen this aspect during the next
plan.
v)
While Oil Palm programmes are being taken care
of by the Department of Horticulture in AP, Karnataka,
Chhattisgarh, Gujarat, Orissa and Maharashtra, in the
states of Tamil Nadu, Goa, Mizoram Oil Palm
development programmes are the responsibility of
Departments of Agriculture. This creates anomalies in
management of programmes. Keeping in view the
requirements of the crop which are akin to other palms
viz., coconut, arecanut, palmyrah and datepalm and the
fact that their research programmes are covered by the
Horticulture Division under ICAR, it is recommended
that Oil Palm programme be placed in the Department
of Horticulture in the other states also viz., Tamil Nadu
and Mizoram states, where such Department exists.
This will ensure in better coordination between R&D
agencies as also better technical execution of
programmes.
vi) The private sector entrepreneurs identified by
different states also need to take responsibility of
transfer of technology. Their areas of responsibility
should cover selection of micro area in the macro area
(Taluk), identifying / convincing farmers about scope of
Oil Palm, raising of seedling nursery, guidance in lay
out, exploitation of water potential, providing inputs and
guidance to the farmers about adoption of
recommended technology, training on maturity
standards and harvesting, setting up FFB collection
centres, facilitating transport of the produce, timely
payment etc. While some entrepreneurs have employed
separate extension staff for this purpose, this is not
followed uniformly. Committee recommends that
qualified staff should be appointed for such extension
work and it should be ensured that they get training in
the relevant field even before joining their position. The
Committee further feels that in case Oil Palm cultivation
has to be successful and area targeted to be expanded,
158

it is necessary to have staff exclusively trained for the
purpose.
vii) Proposal for setting up of new Regional Stations
on Oil Palm in the states of Karnataka, Tamil Nadu and
Mizoram were put up to the Committee. Considering
the huge targets proposed for the coming years, the
committee is of the opinion that to address various
research issues of different agro-climatic zones,
strengthening of the National Research Centre for Oil
Palm on the pattern of PORIM in Malaysia is called for.
While the Committee does not recommend any new
institutions for getting region specific recommendations,
additional centers under AICRP of ICAR need to be
established in states with sizeable potential of area
coverage e.g. Mizoram.
vii) Since NRCOP is established exclusively for
research on Oil Palm, the responsibility of Oil Palm
research under the AICRP on Palms with Head quarters
at CPCRI also needs to be transferred to Director, NRC
for Oil Palm. This will help in proper direction, coordination resulting in speedy development and
execution of research programmes as per regional
needs.
9.10 General Recommendations

i)
The area allotment in various states to
entrepreneurs has been based on zonalisation.
However, while making zones and subsequent allotment
to entrepreneurs some anomalies were reported. Such
anomalies include not allocating the full district to a
company, not allotting contiguous area to a company
(Mizoram), allocating more or less area to units than
their capacity utilisation (A.P.). Such anomalies are not
in the best interest of Oil Palm development and need
to be discussed by the respective state PMCs and

rectified to ensure smooth Oil Palm area development
programmes.
ii) In some states the process of decision making in
respect of identifying entrepreneurs for setting up
processing units has been exceedingly slow. This has
adversely affected the pace of Oil Palm development
and in some cases resulted in uprooting. All the states
identified for Oil Palm development should complete
this job before they seek financial assistance from
TMOP.
iii) Some states pointed out the renewed interest of
farmers in Oil Palm cultivation after availing the subsidy
and uprooting their earlier plantations due to one reason
or other. The committee recommends that only those
farmers should be considered again for subsidy where
uprooting was on account of lack of marketing facility
due to either lack of identification of entrepreneur or
their withdrawal or failure on the part of entrepreneur to
set up the mill.
iv) Currently the allocation of OPDP forms a part of
oil seed development programmes without defining the
separate allocation for Oil Palm crop. The allocation of
Oil Palm development programme is thus left to the
department of agriculture in respective states. The
committee feels that the current procedure is not very
conducive for Oil Palm development and recommends
that separate targets for various activities should be
fixed and funds should also be transferred to
Department of Horticulture in various states direct.
v) The committee feels that organic farming which is
becoming popular in several crops does not have any
potential at present as most of the CPO produced in
the country is being used for non food purposes.
159
160
10. PROCEEDINGS OF MEETINGS

COMMITTEE MEETING
NEW DELHI, 16th JANUARY, 2006
1
Introduction
1.1 Shri S.L. Bhat, Joint Secretary, Department of

Agriculture & Cooperation and Member-Secretary of the
Committee welcomed Dr. K.L. Chadha and other
members of the Committee. He explained the
background of the constitution of this Committee and
its terms of reference. He also mentioned that it was
important for our country to attain selfsufficiency in the
edible oil production and in view of this Oil Palm is a
priority area. In addition to the terms of reference, the
Committee is free to give any recommendation relevant
to the development of Oil Palm in the country. Thereafter
Shri Bhat requested the Chairman to express his views.
1.2 The Chairman, while opening the discussion gave
a historical background about the introduction of Oil
Palm cultivation in the country. He mentioned that the
earlier Committee under his chairmanship identified
8.01 lakh ha area suitable for Oil Palm cultivation in 11
States. He also mentioned that at this point of time no
country was willing to supply the planting material for
Oil Palm. However, after great persuasion and the visit
of the officials of the Govt. of India and the Scientists
dealing with Oil Palm, only three sources viz., Ivory
Coast, Costa Rica and Papua New Guinea agreed to
supply the planting material of Oil Palm. The processing
facilities were also non-existant at that time. Therefore,
to make the programme successful, the activities of
production and processing were harmonized.
1.2.1 During 1991-92, Technology Mission on Oilseeds
and Pulses (TMOP) took over Oil Palm in its fold.
Thereafter, a Centrally Sponsored Scheme of Oil Palm
Development Programme (OPDP) was started. Prior
to OPDP an area of 8,585 ha already existed. During
VIII Plan, a target of 80,000 ha was fixed but as against
this the achievement was very less i.e., 33,366 ha. Again
during IX Plan, the same target of 80,000 ha was fixed
but the achievement was again very less i.e., 20,781
ha. Looking to the very low achievement of area
coverage during VIII and IX plan, the targets of X Plan
were brought down to 50,000 ha. Currently, six seed
gardens have been established and there are 20
processing factories which have been established but
their capacity utilization is very low. Against the present

capacity of 70 MT per day, the capacity utilization is
only 30% while 70% capacity is lying idle.
1.2.2 The Chairman mentioned that since the targeted
area during VIII and IX Plans could not be achieved,
the Committee has to consider as to what has gone
wrong with the programme and what is required to be
done to bring renewed confidence with regard to Oil
Palm cultivation in the minds of the farmers as also in
the State Govt./agencies implementing the Oil Palm
development programme. All the impediments coming
in the way of implementation of Oil Palm development
programme will have to be removed by bringing
awareness amongst the farmers about the relevance
of the Oil Palm cultivation in the country. Since the
assessment for the identification of the potential area
was made 20 years back, therefore, the present
conditions are to be taken into consideration and the
Committee should concentrate for reassessment of only
the potential areas for Oil Palm cultivation. Accordingly
realistic targets will have to be fixed based on the
availability of planting material. If required, the Govt. of
Malaysia may again be approached for planting material
as the Malaysian Govt. has not so far agreed to supply
the quality planting material to our country. A favourable
policy environment is required to be created for Oil Palm
cultivation in the country by the Central Govt. and State
Govt. He suggested that the policy of Oil Palm
development should not be clubbed with the general
oilseed production.
1.2.3 Thereafter the Chairman left the floor for open
discussion on this subject and also mentioned that three
months given to the Committee is a very short time.
Tamil Nadu
Shri P. Chandrasekaran, Oil Palm Commissioner

and Additional Director of Agriculture, Govt. of Tamil
Nadu mentioned that the continuity of the identified staff
is to be ensured and proper market support is to be
provided to Oil Palm. Besides he also mentioned about
the constitution of a sub-committee/sub group for
reassessment of the potential area for Oil Palm in the
states.
161
Mizoram
Shri L. Tochhawng, Commissioner and Secretary

(Agriculture), Govt. of Mizoram emphasized about the
availability of the planting material and indicated his
preference for imported planting material. To this the
Chairman mentioned that we should first tap the
indigenous sources of planting material i.e., from
NRCOP and thereafter, if required, the planting material
can be imported from outside source. The
Commissioner and Secretary, Mizoram also mentioned
that there should be special session for N-E States. He
also mentioned about the potentiality of coverage of
24,000 ha area under Oil Palm in the State. The
Chairman also agreed that a separate meeting will be
held at Mizoram for N-E States i.e., Assam, Tripura and
Mizoram.
Orissa
Shri H.S. Chahar, Principal Secretary Agriculture,

Government of Orissa mentioned about the problems
being faced in setting up of processing units as the
earlier entrepreneur i.e., Krithika industry has backed
out of their commitment for setting up of processing
units. However, the matter has been sorted out and M/
s Godrej Agrovet has been selected for the purpose.
The MOU is yet to be signed between the party and the
State Govt. The processing units will cover the areas
of Rayagada, Koraput, Gajapati and Ganjam. The
Chairman suggested that details of temperature, rainfall
data and other relevant information in respect of State
of Orissa may be furnished for consideeration of the
Committee. The Principal Secretary also wanted to know
as to when the Committee will meet in Orissa. To this
the Chairman suggested that Orissa will be clubbed
with Andhra Pradesh for the meeting of the Committee.
5. Representative of AP OILFED, Hyderabad
mentioned that against the target of 4000 ha, they are
going to achieve 6000 ha area under Oil Palm during
2005-06 and the target for 2006-07 has been fixed at
8000 ha.
6. While concluding the discussion, the Chairman
desired that prompt action be taken on the following
issues.
6.1 The Chairman desired that the future strategies
for the identification of newer areas for Oil Palm will
have to be prepared by the Committee for which the
flow of information from the concerned states is very
much essential. A proforma will be developed and sent

to concerned States which will include historical
background, any objection in the area selected earlier,
new areas proposed for planting of Oil Palm year-wise,
its location and the age of plantation, source from where
the planting material has been received (year-wise),
processing facilities available and the marketing
arrangements made and the status of implementation
of Oil Palm Act in their States. Besides this the
information with regard to the uprooting of Oil Palm area
State-wise and district-wise along with a realistic
analysis of reasons for uprooting may be given by the
States. It was desired by the Chairman that a draft
format may be made available to him by the MD, AP Oil
Fed after discussion within a week for vetting so that it
can be circulated to all concerned States. He also
desired that the information on the above items may be
sent to him as also to TMOP latest by 1st February, 2006.
(Action: concerned states)
6.2 The Chairman also suggested that a format would
also have to be devised for the processors which may
include number of processing units, their location and
the zone allotted to them. They may also indicate their
future plan for the expansion of the processing unit,
suggestion for incentives, additional area required for
full utilization of the processing capacity, arrangements
made for technology transfer in their zone, how the
finances are being organized whether through bankers
or NABARD, arrangements made for proper utilization
of wastes of Oil Palm FFBs and oil extraction ratio
(OER) etc. He desired that this format may be sent to
him within a week for vetting and thereafter it will be
circulated to all concerned and the information on above
items may be made available to him latest by 9 th
February, 2006.
(Action: Processors)
6.3 Besides the Chairman also desired that Regional
Research Laboratory (RRL), Thiruvananthapuram may
also prepare a note about the type of processing units
designed by them, its cost and capacity and the
economics of its running. They may give a
comprehensive report on this subject to him within the
above mentioned date. He also desired that Director,
NRCOP may prepare a report about the status of
planting material indicating the existing seed gardens,
their upgradation and any proposal for additional seed
gardens, training arrangements at NRCOP, future
priorities in research, availability of tissue culture
162
Proceedings of Meetings
technology, pricing structure for the planting material
etc. Chairman desired that this information may be sent
to him by 9th February, 2006.
(Action:RRL and NRCOP)
6.4 As far as TMOP is concerned, it may also prepare
a note giving the following information:
6.7 TMOP will fix the dates in consultation with

Chairman and inform the States about the same who
will be requested to make all arrangements for these
meetings.
7. The meeting ended with a vote of thanks to the
Chair.
Funding position for Oil Palm during XI Plan
Area coverage targets
Arrangements for planting material
Chairman
Dr. K.L. Chadha
Incentives i.e., any change in the rate of assistance

or any other components
Policy change suggested
Member-Secretary
Shri S.L. Bhatt

JS(TMOP), GOI
LIST OF PARTICIPANTS
(Action: TMOP)
Members
6.5 Since it may not be possible for all the Members

of the Committee to go every where, it was decided by
the Chairman that a Working Group of the following
may be formed for meeting in different states.
Chairman
JS(TMOP) as Member Secretary
Director, NRCOP, Pedavegi
APCs of concerned State
Processors from the region
Shri H.S. Chahar

Pr. Secretary, Agriculture
Govt. of Orissa
Bhubaneswar
Shri L. Tochhawng
Commr. & Secretary (Agriculture),
Govt. of Mizoram, Aizawl
Shri P. Chandrasekaran
Local entrepreneurs
Some progressive farmers
Representative of Association of Growers
Oil Palm Commissioner &

Additional Director of Agri.,
Govt. of Tamil Nadu
Chennai
(Action : TMOP)
Dr. Kochu Babu
6.6 Chairman also decided the venue of the meetings

of the Committee as given below
States covered
Director, NRC for Oil Palm

Pedavegi
Venue of the meeting
Andhra Pradesh, Orissa

and Chhatisgarh
Hyderabad
Assam, Tripura and

Mizoram
Aizawl (Mizoram)
Tamil Nadu, Karnataka,

Kerala
Bangalore
Goa, Maharashtra,
Gujarat
Goa
NRCOP
Final meeting
Pedavegi (AP)
New Delhi
Dr.A Sundaresan
Scientist, RRL,
Thiruvananthapuram
Dr. T. Radha, I.A.S.
Vice Chairman &
MD, AP OilFED, Hyderabad
Special Invitee
(Action: TMOP)
163
Shri A.S.Y. Narayanmurthy

General Manager,
Palmtech India Ltd.
164
WORKING GROUP MEETING

HYDERABAD, 28th FEBRUARY, 2006
1
Introduction
1.1 Dr. S. Jagadeshwar Reddy, Additional Director of

Horticulture (Oil Palm), Commissionerate of
Horticulture, Government of Andhra Pradesh while
welcoming the Chairman Dr. K.L. Chadha, Director
(TMOP), and other members of the Working Group,
initiated the discussion with a presentation on the status
of Oil Palm in Andhra Pradesh giving background of Oil
Palm cultivation and outlining the scope of Oil Palm
cultivation in the State of Andhra Pradesh.
1.2 It was pointed out that the State has now achieved
an area of 52,204 ha. under Oil Palm upto January, 2006
of which an area of 8,451 ha. has been planted during
2006 (upto January, 2006) as against the GOI target of
4,800 ha and this may likely go up to 12,000 ha by the
end of the year. He also stated that the State has a
potential area of around 4.0 lakh ha for Oil Palm
cultivation. Therefore, the State has fixed the target of
15,000 ha for the year 2006-07 which can be achieved
as the response of farmers to this crop is overwhelming
due to high income in comparison to other crops. The
district-wise area covered under Oil Palm (as on
January, 2006) along with potential area in respective
districts is given in Table 10.2.1.
1.3 He also enumerated the difficulties experienced
by the State in area expansion like continuous drought
for the last four years, rapid depletion of ground water,
sudden price fall of CPO in international market and
unwillingness of farmers to switch over to Oil Palm in
the new areas. He further outlined the strategy to be
adopted for area expansion like identifying new mandals
based on availability of ground water (assured irrigation
facility), soil health, local climatic conditions, etc., to bring
additional area under Oil Palm, encouraging inter crops
like coco, pepper for getting additional income, extending
micro irrigation facilities under Andhra Pradesh Mircoirrigation (APMP) by providing 60% subsidy and training
of farmers as well as extension officials to create
technology awareness of the crop by organizing
periodical trainings at NRCOP. Apart from these, he
also suggested allowing Oil Palm cultivation by private
sector and allotment of Govt. land/wasteland without
any ceiling limit to private individuals/companies to
promote large scale captive plantations. He also said
that Andhra Pradesh is the first State to pass the Oil
Palm Act for regulation of cultivation and processing of
Oil Palm and has the powers to declare any area as

factory zone and that factory shall buy all Oil Palm FFBs
produced by all the growers in that factory zone at a
price fixed by the competent authority from time to time.
1.4 Dr. K. L. Chadha, Chairman of the Working Group
while giving his introductory remarks outlined the
Strengths, Weaknesses, Opportunities and Threats to
the Oil Palm cultivation and Oil Palm Industry some of
which are as under :
1.4.1 Strengths
High yield of oil per ha (4-6 tonnes/ha) than any

other edible oil yielding crop plants.
Declaration of Oil Palm as commercial crop.
Coming up of new mills & processing factories in
potential areas.
Technical Training and Extension support by
National Research Centre on Oil Palm, Pedavegi.
Facilities for indigenous production and supply of
planting material by National Research Centre on
Oil Palm, Pedavegi and sub centres.
GOI support to Oil Palm cultivation in the form of
subsidy.
More income per ha with the mechanism of price
fixation.
Acceptance of Oil Palm as a potential crop under
irrigated conditions in A.P., Karnataka and Tamil
Nadu.
1.4.2 Weaknesses
165
Slow progress under area coverage of Oil Palm.

Progress under area expansion is not up to the
mark and as expected.
Some of the areas identified in preliminary survey
are not available/not suitable for Oil Palm
cultivation.
Non availability of quality indigenous planting
material in proportion to the area expansion. The
Country is primarily dependent on import of
sprouts/seedlings from ASD Costa Rica. More
number of nurseries should be established and our
sources of import of seeds and seedlings need to
be identified.
Non availability of processing mills where they are
required as in case of Orissa and their not running
in full capacity wherever established.

Primitive infrastructure.
Inadequate subsidy support.
1.7 The participants were requested to give their view

point on different aspects of Oil Palm as desired by
Chairman.
1.4.3 Opportunities
2.1 Andhra Pradesh
Self Sustainable crop no other crop is yielding

more oil than Oil Palm.
More and more area is emerging for Oil Palm
cultivation.
Scope for modifying the policies and input subsidy
structures.
Indias status as Oil Palm producing country at
international level.
1.4.4 Threats
Unstable import policy is an important issue.

Continuous drought conditions.
1.5 The Chairman, thereafter, desired pointwise discussions on the following aspects
of Oil Palm
Critical estimates of problems and prospects.
Area expansion in consideration with availability

of irrigation and power facilities, climatic suitability,
and existing cropping pattern, etc.
Requirement of planting material and availability

of quality seedlings & the additional efforts needed
for supply of quality sprouts/seedlings.
Under/over produce of seed nursery linked with

target/budget allocation, availability of technical
manpower and staffing pattern.
Adequacy or otherwise, research & infrastructure.
Status & prospects of processing units of different

capacities.
Incentives.
Policy issues.
Price fixation and budget.

1.6 Shri P.K. Sharma, Director (TMOP), GOI, New
Delhi, while intervening in the discussion mentioned that
out of 8.0 lakh ha. of area identified in the country as
suitable for Oil Palm cultivation, so far only about 60,000
ha. has been brought under Oil Palm and stressed the
need to formulate strategies to bring more area under
Oil Palm. He urged the Working Group to suggest
appropriate policy changes and subsidy structures for
the consideration and needful action for the next plan
to achieve horizontal growth.
Area Expansion
2.1.1 Dr. Jagadeshwar Reddy, Additional Director of

Horticulture (Oil Palm), Govt. of Andhra Pradesh said
that there is lot of interest among farmers and
entrepreneurs in Oil Palm and this is indicative of the
scope for rapid area expansion in Andhra Pradesh.
Accordingly, the State has fixed a target of 15, 000 ha
for 2006-07 and may fix higher target for 2007-08 as
20, 000 ha and assured that the target will be achieved
in full and they may cross the target limit also.
2.1.2 It was informed that 18 new mandals have been
identified in 4 districts viz., Vizianagaram, Vizag, E.
Godavari and W. Godavari which are listed in Table
10.2.2. Chairman desired to submit the details of villagewise area availability in each mandal keeping in view
the desired parameters of Oil Palm cultivation with the
help of NRC-OP. He has also said that the State will
bring another 50, 000 ha under this crop within next 4
years.
2.1.3 He further indicated that in Andhra Pradesh 296
mandals were identified in 10 districts, and 223 mandals
have been allotted to the Oil Palm companies as shown
in the Table 10.2.3. as a factory zone in 8 districts for
development of Oil Palm. Remaining 73 mandals in
the districts of Guntur and Prakasham were deleted due
to depletion of the ground water.
2.1.4 Dr. Kochu Babu, Director, NRC-OP stated that
they have assisted in identifying the new areas and
opined that micro level survey is needed to confirm the
total area suitability. He also said that there is some 1015 % area available in Prakasam and Guntur districts
and coastal area of Nalgonda district. AP OILFED with
the help of NRC-OP will submit the detailed report to
the Chairman after conducting micro-level survey.
2.1.5 Mr. Nasim Ali of Godrej Agrovet Ltd., mentioned
that they have identified 3,000 ha during 2005-06 in
West Godavari, Khammam and part of Krishna district.
They got good response from farmers many of whose
are getting an average yield of 17 MT/ha from matured
area. They introduced the tissue culture seedlings and
are having 7 ha. under tissue culture plantation and fixed
target of 15,000 ha for the next 5 years.
2.1.6 Shri. Prabhakar Rao of AP OILFED told that
15,000 ha is available in 8 mandals of Khammam district.
166
Chairman desired to submit a detailed village-wise
report keeping in view the parameters involved in Oil
Palm cultivation.
2.1.7 Mr. Narayana Murthy of Palm Tech India Ltd.
mentioned that they have identified 8 mandals in
Vizianagaram district. He suggested that while
assessing the area suitability, the experience of
entrepreneurs, support from the farmers, local agro
climatic conditions, availability of assured irrigation
facilities and existing cropping pattern may be taken
into consideration to translate the area expansion into
reality.
2.1.8 The representatives of Oil Palm Growers
Association from various districts of Andhra Pradesh
enumerated the following aspects which needs attention
to bring more area under Oil Palm cultivation
Availability of high yielding dwarf hybrid varieties.

Supply of sufficient quantity of quality seedlings.
Availability of new cultivation procedures and
encouragement to new entrepreneur to develop
healthy competition.
Harvesting technology.
Technical support and training.
90% ad-hoc advance payment.
90% subsidy for drip irrigation system.
Revision of FFB price.
Modification in price fixation formula.
Announcement of MSP price by Govt. as Rs. 4,000
per MT.
Establishing mills in newer areas.
Insurance coverage for Oil Palm.
2.1.9 The Chairman while intervening in the discussion

desired to have detailed village-wise micro level survey
report of each district including the parameters like
assured irrigation facilities, temperature, humidity, soil
type, cropping pattern etc with the target for next one
year, five years and 10 years (for total 16 years). He
desired that this may be done by Department of
Horticulture, Govt. of AP with the help of NRCOP and
the report be submitted by end of March, 2006.
(Action : Deptt. of Horticulture, Govt. of A.P)
2.2 Orissa
2.2.1 Dr. Sabyasachi Rath, Director, Member Secretary,
OHDS, Govt. of Orissa, while taking part in the
discussions mentioned that the Oil Palm cultivation was
started in Orissa in the year 1992-93 and State had
covered 2,014 ha till 2004-05. However, the existing
plantation is only about in 131 ha which is scattered

after uprooting (due to non establishment of Palm Oil
mill timely) and damage in Super-cyclone to the tune of
1,883 ha. Now the State has identified 1, 500 ha area
to be covered in 2006-07 in 18 blocks of Gajapati,
Ganjam, Rayagada and Koraput districts. He stressed
the need for the establishment of Palm Oil mill to build
up confidence in farmers growing Oil Palm.
2.2.2 He also gave the details of proposed potential
areas and area for Oil Palm cultivation during the next
10 years (2015). Table 10.2.4.
2.2.3 He also mentioned that the above blocks of
different districts are considered to be very potential
areas with assured irrigation facilities. He also gave
the target of area proposed to be covered in the next
ten years as given in Table 10.2.5.
2.2.4 The Chairman desired to have detailed villagewise micro level survey report of each district including
the parameters like assured irrigation facilities,
temperature, humidity, soil type, cropping pattern etc
with the target for next one year, five years and 10 years
(i.e., total 16 years). He desired that this will be done
by Department of Horticulture, Govt. of Orissa with the
help of NRCOP and entrepreneurs operating in the State
and report on this behalf be submitted by end of March,
2006.
(Action : Deptt. of Horticulture, Govt. of Orissa)
2.3 Chhattisgarh
2.3.1 No one attended the meeting from Chattisgarh
Govt. However, the Chairman desired that NRCOP with
the help of private entrepreneur will submit the report
on suitability of area keeping in view the desired
parameters like assured irrigation facilities, temperature,
humidity, soil type, cropping pattern etc with the target
for next one year, five years and 10 years like-wise for
total 16 years.
(Action : NRCOP)
Planting Material
The Chairman desired that the states may estimate

the planting material requirement for next one year, next
five years and next 10 years (total 16 years) based on
the targets fixed by the States. He also mentioned to
establish additional nurseries with more capacity to
produce sufficient seedlings. He desired to conduct a
study on the performance (yield & OER pattern) of
imported seedlings vis--vis indigenous seedlings in
demonstrations. He emphasized the importance of
tissue culture seedlings in the Indian context as it is
167

very much successful in the country like Malaysia and
suggested to explore the possibility of joint venture in
this behalf. However, the cost of tissue culture seedlings
has also to be kept in view. Godrej Agrovet Ltd.,
informed that the present cost of the seedlings is Rs.
350/- each. The Chairman also desired that the process
of quarantine may be looked into for the import of clones/
sprouts. Over produced/over matured and under
produced seedlings are of a major concern in supplying
good quality seedlings to the farmers to harvest a
comparable yield as these factors directly affect the yield
potential.
(Action : Deptt. Of Horticulture of different States)
3.1 Andhra Pradesh

3.1.1 In Andhra Pradesh, one Oil Palm seed garden
has been established to produce seed sprouts at
Rajhamundry. Presently the garden is supplying 5.00
lakhs seed sprouts. The State is also importing seed
sprouts from Costa Rica and other available places.
Quality plant material (Tenera Hybrid variety) is being
supplied to the farmers in the state.
3.1.2 Mr. Goenka of Food, Fats and Fertilizer Ltd., said
that the policy of Malaysian Government is a hindrance
in import of sufficient quantity of quality sprouts. He also
requested to look into the policy matter related to
development of seed gardens by private entrepreneurs
and approach the Ministry to start a fresh dialogue with
Malaysia for import of Oil Palm seeds.
Pricing
4.1 The Working Group was of the view that there

should be uniform and permanent pricing formula for
FFBs procurement. The existing pricing formula will
continue to operate till the NRCOP devises the new
scientific formula. NRCOP will workout various options
available with the help of Mr. Goenka of FFF Ltd. The
present price of FFB/MT in Andhra Pradesh is 12% of
net CPO price and it varies in different States.
(Action : NRCOP)
4.2 The representative of Orissa mentioned that as
soon as a factory is established in the State, the price
of FFBs shall be fixed in consultation with GOI. All care
will be taken to pay economic price of FFBs to the
farmers. Very often M/s Godrej Agrovet Ltd., collects
FFBs from scattered existing areas paying at the rate
of Rs. 37-40/ Kg at the spot to the farmers of Gajapati &
Rayagada districts.
4.3 Shri P. K. Sharma, Director (TMOP) asked the
Orissa Govt. to utilize the fund available under Post
Harvest Technology to establish the processing factory
in their State as soon as possible to avoid its lapse.
Transport
It was informed that satisfactory arrangements

exist for the transport of FFB by processors/
entrepreneurs in different States.
Processing
3.2 Orissa
6.1 Andhra Pradesh
3.2.1 The representative of Orissa informed that they

have procured the seedlings from the neighbouring
States at the price fixed by Govt. of India for immediate
coverage in the identified districts during 8th & 9th Five
Year Plan. The Department has also imported Oil Palm
sprouts from IRHO, Paris & ASD Costa Rica at the rate
fixed by the GOI. Table 10.2.6.
6.1.1 In Andhra Pradesh, the identified mandals have

been allotted to 12 Oil Palm Companies out of which 9
companies have already established the processing
units in their factory zones with a total crushing capacity
of 83 M.T per hour and the reaming 3 companies are
likely to establish the processing units by end of 2007.
3.2.2 Department of Horticulture, Orissa requested to

make budgetary provision to develop a seed garden in
an area limited to 2-3 ha in any of the districts like
Gajapati & Rayagada.
3.2.3 The newly identified areas measuring around
1,500 ha can be developed during the year 2006-07 on
availability of around 20,00,000 seedlings from any
identified sources of GOI.
6.2 Orissa
6.2.1 It was informed that the entrepreneur identified
by Orissa Government will have to complete at least
the civil works on or before 31.03.2006, which includes
procurement of plant & machinery. M/s. Godrej Agrovet
Ltd., is one of the short listed company who expressed
their interest in establishing a Oil Palm Mill in Orissa.
The details of required processing capacities up to 2015
are in Table 10.2.7.
168
Marketing
10 Budget
So far as marketing is concerned, there is no

problem as told by entrepreneurs. Palm oil is being
marketed in the form of Crude Palm Oil (CPO), refined
Palm Oil and Palmolein.
Research (Gaps/infrastructure)
8.1 The Working Group desired that NRC-OP,

Pedavegi will coordinate the research in the Oil Palm
cultivation aspects. Apart from this, All India Cocoordinated Project and RRL, Trivandrum is conducting
some research and developmental activities. NRC-OP
will take up work of improvement of existing harvesting
sickles and make them available to the farmers. At
present, the modified sickles are being imported from
London which are a costly affair.
8.2 Godgrej Agrovet Ltd., desired to conduct some
research on obtaining uniform Oil Extraction Ratio
(OER) in relation to peak OER period.
8.3 The Chairman desired that further research is
needed to address the physiological ripening of berry/
bunches. Likewise, leaf nutrient analysis and bunch
analysis may be refined. Pseudo ripening due to erratic
humidity needs to be addressed.
(Action : NRCOP)
It was desired by the participating States that

budget may be released directly to the implementing
agencies to avoid delay and confusion. In case of A. P.
budget may be released directly to the Commissioner
of Horticulture, as OPDP implementing agency.
(Action : TMOP Headquarters)
11 Policy Issues
11.1 Andhra Pradesh
The representative of Andhra Pradesh mentioned
that for the development of Oil Palm in Andhra Pradesh,
it needs to relax the land ceiling limit for cultivation of
Oil Palm (instead of declaring as a plantation crop,
keeping in view of the farming community) in the
identified potential mandals from existing one unit ( of
55 acres) to three or four units and allotment of waste
and uncultivated lands to the interested entrepreneurs
for raising captive plantations. This will defiantly give
good results and increase the Oil Palm area.
(Action : Govt. of Andhra Pradesh)
11.2 Orissa
The representative of Govt. of Orissa mentioned
that the following areas requiring intervention:
Transfer of Technology
9.1 Andhra Pradesh

9.1.1 The discussion revealed that all the entrepreneurs
operating in A. P. State are having well established
extension system supported by competent technical
staff. It acts effectively right from choosing the field
selection to transportation of FFBs from farmers field.
9.2 Orissa
9.2.1 State Headquarter: Special Officer (Oil Palm)
Shortage of Power & limited availability of new

electric connections in crop areas.
Non-enactment of Oil Palm Act in the State.
Failure of NABARDs refinance scheme in

providing timely loans to farmers.
Big farmers who can bring larger areas not eligible

for subsidy under OPDP.
Lack of processing facilities in the State.
Investment for providing irrigation facilities.
Govt. funding & flow is not assured for R&D

Programme.
based at the Directorate of Horticulture, Orissa.
9.2.2 Districts
Designation
Assistant Horticulture
Officer (Oil Palm)
-doHorticulture Overseer
Field Technician
No. of Place of posting

posts
1 No. Paralakhemundi,
Gajapati district
1 No. K. Nagar,
Dhenkanal district
2 Nos. Sukinda,
Joypur district
1 No. K. Nagar,
Dhenkanal district
(Action : Govt. of Orissa)

12. Finally, the Chairman pointed out that any
entrepreneur or farmer can send any suggestion for
consideration of the Committee either through State
Agency or directly to the Chairman on his E-mail
chadhacommittee2@yahoo.co.in
* More deployment of field level officers shall be made

at the execution period.
169
The meeting ended with vote of thanks to the Chair.
Sl. No. Name of the person
Organisation/Company
Dr. K.L. Chadha,
Chairman, Former DDG(H), ICAR &

Hort. Comm. GOI & Chairman Working Committee
Dr. T. Radha
VC & Managing Director, AP Oilseeds Growers

Federation ltd., Hyderabad
Shri P.K. Sharma
Director (TMOP), GOI, New Delhi
Dr. M. Kochu Bau
Director, NRC Oil Palm, Pedavegi
Shri S. Jagadishwar Reddy
Additional Director of Horticulture, A.P. State
Shri D.R. Gurumukhi
Director I/C, Directorate of Oilseeds Development, Hyderabad
Shri Sabyaruchi Rai
Director of Horticulture, Orissa
Dr. K. Ponnusamy
STA, Directorate of Oilseeds Development, Hyderabad
Shri S. Bucha Reddy
Assit. Director(Horticulture), AP State
10
Shri K. Ramesh Babu
Laxmi Balaji Oil (P) ltd
11
Shri D. Jagadishwar Rao
Laxmi Balaji Oil (P) ltd
12
Shri Anthony Chew
PalmTech India Ltd.
13
Shri A.S.Y. Narayana Murthy
14
Shri K.J. Prabhakar Rao
A.P. Oil Fed, Hyderbad
15
Shri B. Ravindra Rao
Godrej Agrovet Ltd., Orissa
16
Shri Nasim Ali
Godrej Agrovet Ltd.
17
Shri. N. Narasimha Reddy
SICAL
18
Shri P. Mallesham
DGM, Foods, Fats & Fertlizers, Hyderabad
19
Shri Srinivasa
Sri Srinivasa Palm Oil Mill
20
Shri P. Pandu Ranga Rao
Sri Srinivasa Palm Oil Mill
21
Dr. Suryanarayan Athni
Navabharat Agri Producers
22
Shri J.S. Reddy
Simhapuri Agro producers Pvt. Ltd.
23
Shri Parvatheneni Subba Rao
President, A.P. Oil Palm Farmers Association
24
Shri M. Murali Krishna
Farmer
25
Shri M. Purnachandra Reddy
Farmer, Khammam Dist. AP State
170
Table 10.2.1: Potential area identified and covered
in Andhra Pradesh
Sl. Name of the
No. District
Potential area
identified
(ha)
Area
covered
(ha)
1,00,000
11,972
East Godavari
Guntur
20,000
1,323
Khammam
20,000
3,343
Krishna
50,000
4,444
Nellore
30,000
3,289
Prakasham
10,000
1,114
Srikakulam
40,000
918
Visakhapatnam
10,000
1,887
Vizianagaram
20,000
2,757
10
West Godavari
1,00,000
21,157
Total
4,00,000
52,204
Table 10.2.2 : Potential Mandals identified for Oil

Palm cultivation in Andhra Pradesh
Sl.No Name of the District
1
Vizianagaram
Identified Mandals
Gantyada
Jami
Kottavalasa
Lakkavarapukota
Seethanagaram
Pusapati Rega
Terlam
Vizianagaram
Visakhapatnam
Achutapuram
Buchayapeta
Koyyuru
Makavarapalem
East Godavari
Atreyapuram
Kothapeta
Ravulapalem
Ainavalli
West Godavari
Undrajavaram
Peravalli
Table 10.2.3 : Allotment of Mandals to Oil Palm companies in Andhra Pradesh

Sl.No
Name of the company
Districts covered
M/s A.P.Oilfed
East Godavari,
West Godavari
Khammam
3
2
12
2
3
M/s Agro Co-Operative Corp.

M/s Foods Fats & Fertilizers
M/s Godrej Agrovet Ltd.,
M/s Lakshmi Balaji Oils
Visakhapatnam
West Godavari
Vizinagaram
Visakhapatnam
Khammam
West Godavari
Krishna
Khammam
Vizianagaram
9
6
4
2
5
4
2
10
8
6
7
M/s Navabharat Agro Product

M/s Palm Tech India Ltd.
M/s Radhika Vegetables Oils
West Godavari
Visakhapatnam
East Godavari
Vizianagaram
9
13
27
10
9
10
M/s Ruchi Soya Industries

M/s Sical Oilpalm
11
12
M/s Simhapuri Agro Products Ltd.,

M/s Sri Srinivasa Oil Palm Mill
Srikakulam
Krishna
West Godavari
Nellore
Srikakulam
10
21
3
46
17
Total
No. of Mandals
allotted to Company
223
171

Table 10.2.4 : Potential area covered and proposed to be covered in next 10 years in Orissa
District
Rayagada
Gajapati
Ganjam
Potential areas
Area covered
up-to 2005
Area coverage
for next 10 years
Rayagada, Gunupur, Gudari, Muniguda

Kasinagar, Gumma, Mohana, Udayagiri,
Chatrapur, Berhampur, Kodala, Aska
19 ha
35 ha
1500 ha
3000 ha
500 ha
54 ha
5000 ha
Total
Table 10.2.5 : Area proposed to be covered in next 10 years in Orissa

Sl. No.
1
2
3
4
5
6
7
8
9
10
Year
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
District
Blocks
Area (ha)
Rayagada
Rayagada, Gajapati
Ganjam, Gajapati
Ganjam, Gajapati
Ganjam
Gajapati
Gajapati
Ganjam
Gajapati
Rayagada
Gunupur
Kasinagar, Gudari
Aska, Kasinagar
Kasinagar, Kodla
Chatapur
Gumma
Mohana
Berhampur, Aska
Kasinagar, Udayagiri
Muniguda
1500
100
200
100
50
150
1200
300
1000
400
Total
5000
Table 10.2.6 : Details of planting material imported/indigenous -Orissa

Year
8th Plan
Nos. of sprouts
imported
30000
Source
Nos. of seedlings
procured
IRHO, Paris
1,08,729
Source
A. P. & Jalgaon,
(Maharashtra)
1997-98
7,000
1998-99
40,600
1999-2000
2006-2007
2,00,000
CPCRI, Kerala
ASD Coasta Rica
58,000
do -
Karnataka
Requirement of 2,00,000 nos. of sprouts (Proposed)
Indigenous/Import
Table 10.2.7 : Required processing capacity upto 2015

Year
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Expected bearing areas (ha)
Expected production(MT)
75.00
80.00
90.00
120.00
150.00
300.00
500.00
700.00
900.00
1100.00
90
1035
1080
1150
1800
3500
7000
10500
15300
18700
Required Capacity(TPH)
2.5
2.5
2.5
2.5
2.5
5.0
5.0
5.0
5.0
10.0
(Action : Govt. of Orissa)
172

PANJIM(GOA), 4th APRIL, 2006
1
Introduction
1.1 Shri R. G. Joshi, Director of Agriculture & In charge

of the Oil Palm, Govt. of Goa welcomed the Chairman
Dr. K. L. Chadha and other Members of the Working
Group, State representatives and entrepreneurs.
Thereafter, he briefed the Working Group that Oil Palm
was included under Technology Mission on Oilseeds &
Pulses (TMOP) through which Oil Palm cultivation is
being promoted in different states of the country
including Goa, Maharashtra and Gujarat.
while initiating the discussion stated that Oil Palm was
identified two decades back. Potentialities of Oil Palm
in three States viz., Goa, Maharashtra and Gujarat were
earlier worked out in 1988 and a DBT Project was
established in Maharashtra. Programmes are going on
with varying degree of success in different States of
the country. Andhra Pradesh was identified as one of
the potential States of the country. Planting material was
available with existing sources in different States of the
country. Incentives are being given by Govt. of India.
Some incentives are also being given by State
Governments. Policies and entrepreneurs have been
changing from time to time. The potential area should
be continued to be extended other than the reservation
of the total area. Farmers have not been taking up
cultivation of Oil Palm because of many reasons, for
example :
Factories are not available in their own areas,
Sometimes planting material may become

constraint,
Some policies are not farmers and entrepreneurs

friendly,
As Oil Palm was a new crop, lacking technology,
Dry weather is also one of the constraints,
Availability of land and water are also important,
Seeds are not being supplied, etc.
1.3 He further stated that Oil Palm cultivation is now

nearly 20 years old and now, XI Five Year Plan is about
to start. When we review the progress, wide gaps are
found; industries and planting material are not ready;
water is not available as per requirement; several

policies are not farmers friendly; land is becoming a
constraint; available water is decreasing; coconut
growers are not interested in Oil Palm; duty structure
any one keeps, palm oil varying frequently and several
barriers are affecting Oil Palm programme in the country.
He also wanted to know States performance in the
ongoing Oil Palm programme, response of farmers in
these States, need to change the incentives, policies
of various States for Oil Palm promotion, at which
capacity various mills are working, is total production
adequate, mills are taking interest in Oil Palm
development activities and so on. He drew the attention
of the house to the proceedings of second Working
Group meeting held at Hyderabad wherein Strengths,
Weaknesses, Opportunities and Threats to the Oil Palm
cultivation and Industry have been dealt with (at page
4&5). Thereafter, he wanted the State Govts/Millers/
Farmers to give their view point in this with respect to
issues raised above.
Maharashtra
2.1 Present Status

2.1.1 Shri B. R. Bali Joint Director of Agriculture
(Extension-I), O/o Commissionerate of Agriculture,
Maharashtra State, Pune mentioned that the coverage
of Oil Palm is concentrated in Sindhudurg district of the
Konkan Division of Maharashtra State. For the last 1015 years Konkan Board was there. There are 8 Talukas
in Sindhudurg district out of which only 4 Taluks
comprise the area of Oil Palm in about 1048.70 ha, the
breakup of which is given in 10.3.1.
2.1.2 It may be seen from above that major area falls
under Kudal and Kankavali Talukas. It was informed
that Maharashtra Govt. is implementing the Employment
Guarantee Scheme (EGS) based Horticulture
programme. In this district, Oil Palm is also covered
under EGS Horticulture on a limited area. The EGS
Horticulture subsidy for Oil Palm crop is about Rs.
27,041/- per ha for the plan period of 3 years. The
amount of subsidy for wages is Rs. 20,897/- and Rs.
6,144/- for material. The subsidy for drip and sprinkler
under Minor irrigation is also provided.
173

2.1.3 To boost up the programme for generating/
exploiting the area of Oil Palm, the Extension/Research
and Marketing efforts are required to be attempted jointly
for making the programme a grand success.
2.1.4 He also informed that in Sindhudurg district, Oil
Palm demonstrations were taken up on a large scale
but it became a failure on account of various reasons
viz; procurement, support price, other competing crops
like cashew & mango which does not require much water
and moreover fir which ready market was available
which was not the case in Oil Palm. Apart from these,
there was no processing unit and beneficiaries have to
wait for transport from long distance for procurement of
FFBs.
2.1.5 He desired that on Research side strong support
is needed and Traders should give better service to the
beneficiaries. There have joint ventures of the Traders,
KKV University and of concerned State Govt. is required.
Further, it was suggested to rejunvate areas planted a
few years back and make efforts for expansion of new
areas with the help of available extension staff. He
brought to the notice of the house that Godrej Co. has
established a processing unit at Belane but machinery
is not there. There is no local mill unit in Sindhudurg
district of Konkan Division of the State. Therefore,
Bhadravati Balaji Palm Oil Ltd, started procuring FFBs
from a distance of about 550 Km. where as from Goa, it
is in the range of 130-140 Km. He pointed out that
cultivators are interested in production of cashew nut
and coconut because of 100% subsidy. For example,
EGS give 100% financial assistance for fruit cultivation
to the extent of Rs.27,500/- per ha as against Rs. 22,000/
- per ha for Oil Pam. Thus, financial assistance for Oil
Palm cultivation is less by Rs. 5,000/- per ha than Fruit
crops. Further, there is no market for Oil Palm and
subsidy is low as stated above. On enquiry by the
Chairman, he informed that about 1500 trees of Oil Palm
are available at the Agriculture Research Station of the
Konkan Krishi Vidhyapeeth, Dapoli which produces
FFBs 55,000 tons/year and this year they expect around
65,000/- tons, (average 9 tons/ha). The Chairman
desired that some efforts for new areas be made by the
State Government.
2.1.6 Dr. Sharad H. Patil, Farmers representative from
District- Sindhdurg, Maharashtra informed that he had
planted 6 ha Oil Pam in 1995-96 of his own after tying
market with M/s Godrej Agrovet Ltd. The plantation now
gives yield of 10-12 tons/day. He did not get subsidy.
There was no market problem for cashew nut and

coconut but market problem is there for Oil Palm. He
also mentionedthat in other crops like cashew & mango,
theft takes place which is not in Oil Palm. Other
constraints like load shedding, irrigation and omission
of Oil Palm in new scheme by State Govt., etc. M/s
Godrej Agrovet procurement rate is highest Rs, 3300/and minimum Rs. 3000/- ex- Sindhdurg. Some problems
in drip irrigation like animals entering inside the fields,
even though fencing is there and remove laterals of
drips, therefore, he preferred sprinklers against drip.
2.1.7 Shri A. S. Chavan, Sub-Divisional Agricultural
Officer, Sindhdurg (Maharashtra) mentioned that
farmers planted 5.60 ha area under Oil Palm through
EGS Horticulture Scheme. But returns are not
encouraging, therefore, there is no logic to replace
coconut with Oil Palm.
2.1.8 As there was no progress in area expansion, Shri
P. K. Sharma, Director (TMOP), enquired about Action
Plan for area expansion for 2006-07 on which firm
commitment from higher level may be obtained. Shri
D.R.Gurumukhi, Director I//C, DOD, Hyderabad
mentioned that during 2004-05 and 2005-06, there were
no State sanctions & PMC meetings and NIL progress
was reported by the State Govt. It appeared that
Maharashtra Govt. is neither supporting Oil Palm
cultivation, nor making any efforts to promote Oil Palm
cultivation in the state. The Chairman desired that during
XI Five Year Plan, he would like like the State
Government to support for Oil Palm cultivation.
2.1.9 The Chairman desired to have a detailed villagewise micro level survey report of each district/talukas
including parameters like assured irrigation facilities,
temperature, humidity, soil type, cropping pattern, etc
with the targets for the next one year, five years and ten
years. He desired that this may be done by the State
Department of Agriculture looking after Oil Palm, Govt.
of Maharashtra, with the help of NRC-OP and
entrepreneurs operating in the State and the report in
this behalf be submitted by the middle of April, 2006.
(Action: State Dept. of Agriculture, Govt. of Maharashtra)
Goa
3.1 Present Status

3.1.1 Shri R. G. Joshi, Director of Agriculture & I/C Oil
Palm, Govt. of Goa, informed that the red Oil Palm crop
was introduced in Goa State during 1992-93 with
174
expectations to cover 10, 000 ha An area of 897 ha is
covered under the Oil Palm Development
Programme(OPDP) in the State till 2005-06. The details
of area and production were furnished. The major Oil
Palm growing Talukas are Sanguem, Sattari and
Quepem. In initial years, the planting material (sprouts)
of Tenera Hybrid were imported from Coasta Rica and
nursery was raised by M/s Godrej Agrovet Ltd. These
seedlings were distributed to the farmers by the factory
under the guaranteed buyback contract. The plantations
are subsidized under the Centrally Sponsored OPDP
@ Rs. 23,000 per ha. The response for the Oil Palm
cultivation by farmers was satisfactory in the initial years
and on an average an area of 150 ha was covered
annually under the programme till 1996. These
plantations started yielding from 1995-96 onwards.
3.1.2 The Oil Palm FFBs were purchased by M/s Godrej
Agrovet Ltd; who to processed the same in Andhra
Pradesh. Subsequently under assistance from GOI,
TMOP, an Oil Extraction Mill was installed by M/s Godrej
Agrovet Ltd at Velguem-Sattari in May, 2001 with
crushing capacity of 2.5 tons/hr. The total FFB
production in the State at present is about 2000 tons
which is far less than the required capacity of the mill.
The mill at present runs at just 20% of its capacity and
needs at least 8000 tons to run normally. The annual
FFB produced in the State from the year 1996-97 was
submitted. Delay in establishment of the oil mill in 2001
and poor production in field resulted in farmers shying
away from Oil Palm cultivation which reduced the pace
of area expansion to only 30 to 50 ha annually. The
total gross area covered under Oil Palm in Goa till 200506 is 897 ha.
3.1.3 The main reason for poor production is inadequate
irrigation facilities with the growers and poor
management. The light and porous soil of Goa does
not hold sufficient water and nutrition required by Oil
Palm. Due to poor performance of the crop as witnessed
in course of time, some farmers have uprooted/
abandoned about 71 ha of area and the present net
coverage of Oil Palm in the State is 823 ha. The list of
farmers who have uprooted the Oil Palm was also
furnished.
3.1.4 Average annual production in the State is about
2.4 tons per ha with total production of 2000 tons of
FFBs. Most of this production comes from 380 ha of
area, which produces average 5.5 tons per ha. The low
production has resulted in under utilization of the Oil
Palm mill in Goa. Though GOI targeted an area of 10,000
ha for coverage under Oil Palm in Goa, it would be

difficult due to non-availability of suitable land and
inadequate irrigation facilities. In fact, the irrigated land
is a limiting factor in Goa which has also to compete
with other crops like coconut and sugarcane. It is
pertinent to note that in spite of the establishment of
sugar factory in 1974; so far, the State is cultivating
sugarcane in only about 1200 ha. of area against
requirement of 3500 ha. It was originally expected to
cover the area under Oil Palm with the irrigation facilities
under Salaulim and Anjune irrigation projects. However,
the actual command area covered under these projects
is hardly 4100 ha. This is 35% of the originally estimated
area.
3.1.5 The need for the State is, therefore, to increase
the production per ha. from the existing plantation and
identify new areas that have adequate water availability
for irrigation. The existing gardens are also facing the
problems and difficulties in harvesting as the trees have
now grown taller and harvesting is difficult.
3.1.6 The promotion of Oil Palm cultivation, fixation of
rate for its produce, buy back arrangement, processing
and the facilities for the cultivation are regulated under
Goa Oil Palm (Regulation of Production & Processing)
Act, 1998. The Project Management Committee
constituted under this Act meet once in about 3 months
to discuss the progress in cultivation and rate to be paid
to the growers for fresh fruit bunches. The Committee
is headed by Development Commissioner or Secretary
to the Government In charge of Agriculture.
3.1.7 The rate for Oil Palm FFB is fixed by the Project
Management Committee based on the average crude
palm oil rate in the market. Ten percent of the prevailing
crude palm oil rate is provided for the fresh fruit e.g. if
the average crude palm oil rate for three months was
Rs.35,000 per ton, the farmers are paid Rs.3500 per
ton of FFB for next three months by M/s Godrej Agrovet
Ltd., upon approval of Project Management Committee.
However, the prices fixed by State of Goa are generally
lower compared to those paid by mills in other State
viz., Andhra Pradesh or Karnataka. This leads to
resentment among the growers and farmers are by and
large not happy with the rates recommended by Project
Management Committee. A uniform price on the basis
of crude palm oil rate for each month therefore, needs
to be circulated by Government of India to ensure a fair
deal to the Oil Palm Growers across the country. Any
additional amount to be paid by any processor should
be provided as a bonus or special incentives separately.
175

However a common price is required to be fixed by Govt.
of India.
3.1.8 On the efforts made for improvement of production
by the state of Goa, Shri Joshi mentioned that a properly
managed Oil Palm plantation gives about 15-20 tons of
FFB per ha. per year from 150 trees. However, the
apathy of the farmers to this crop has resulted in poor
productivity of the gardens. For improving the
productivity of Oil Palm in the State, the Directorate of
Agriculture gives price incentives to the growers for
increasing production over the previous year in addition
to payment done by M/s. Godrej Agrovet Ltd., as per
prescribed rate.
3.1.9 The rates of incentives provided by State
Department of Agriculture, Govt. of Goa are given in
Table 10.3.2.
3.1.10 On the proposed plans for Oil Palm plantation
in State, Shri Joshi stated that the Oil Palm plantations
have been taken up in irrigated areas. However, these
facilities are inadequate for a crop which requires
enormous water of nearly 200 lit. a day and therefore,
the plantations have been found to be low in productivity.
The strategy, therefore, is to emphasize (i) new
plantations in areas with high water availability such as
paddy fallow lands with fertile soils and (ii) increase in
the productivity of existing plantations.
3.1.11 In respect of Strategy proposed for area
expansion, Shri Joshi highlighted that the Zonal
Agricultural Officers of the Directorate along with
designated factory representatives are exploring areas
for area expansion. About 500 ha area have been
identified in Kuncolim, Velim, Ambelim, Assona, Jamgal,
Cottem, Valkinim, Xelyon, Asolda, Kakoda, Kotambi, etc.
The lands in question are mainly owned by the
communidade (community holding) or private holdings
some of these lands are in possession of the tenants
who have not been cultivating them. These tenanted
holdings may be required to be taken over by the
Government by enforcing the Tenancy Act provision for
failure to cultivate and transferred to a society of the
growers or leased out to the processor for raising Oil
Palm plantation. The lease rent may be fixed by
Government, which could be paid to the owners of land.
Necessary modification and enforcement in the revenue
rules may be required to be adopted for this purpose.
3.1.12 Out of an area of 16,900 ha estimated to be
covered under the new Tillari Irrigation Project during
the year 2006-07 to 2009-10, an area of 500 ha is
estimated as potential for coverage under Oil Palm in
this area by involving the processor and taking up
cultivation on contract basis. Suitable provisions are
required to be made in the revenue act/rules to

safeguard the owner from losing his land either to lessee
or to financing institute in case of borrowings by lessee.
3.1.13 As most of the land holding in Goa are too small
for taking up commercial cultivation an act for the
consolidation of holdings and checking fragmentation
of the holdings needs to be enforced to maintain large
areas which will help economical cultivation of Oil Palm
and other crops in the State.
3.1.14 As regard productivity improvement from existing
plantations, Shri Joshi said that the Oil Palm productivity
has been found to be low with about 2.5 tons per ha. for
a total area of 823 ha. the majority of the crop is
harvested from area of 380 ha. The productivity of this
area is found to be about 5 tons per ha. The Oil Palm
plantations in the State have productivity ranging from
1 ton to 25 ton per ha. Need is, therefore, felt to improve
the productivity from 5 tons per ha. to at least 15 tons
per ha.
3.1.15 The major reasons for lower productivity are
poor management, low irrigation, inadequate organic
manure, poor water holding capacity of soil, poor nutrient
availability besides non-availability of timely labour. The
problems could be overcome by extensive guidance to
the grower, providing support for the irrigation such as
water conveying pipe, assistance for chaff cutter for
cutting Oil Palm leaves and other bio-mass for
preparation of organic manure, providing mulching, etc.
As some of the plantations have become tall, providing
skilled services for harvest would also help in
continuation and maintenance of this crop by the
farmers. Soil and water conservation measures need
to be adopted on large scale.
3.1.16 Shri Joshi also highlighted few other issues and
gave suggestions as under:
ISOPOM Programme of Government of India for

Oil Palm: Government of India programme for
Integrated Development of Oil Palm is adequate
and needs to be continued for further progress
under Oil Palm. Two components viz; (i). Subsidy
for shredder for converting farm waste into compost
mulching, and (ii) assistance for conveying pipeline
for reducing water losses in light soils as in Goa
should be included to improve irrigation water
availability.
Availability of good planting material: The planting

material is made available by M/s Godrej Agrovet
Ltd. through their nursery located at Velguem
Sattari Goa to growers and depending on the field
programme M/s. Godrej Agrovet Ltd. may arrange
the seedlings.
176
Extension staff: As focus is to be laid on the

improvement of the productivity, a continuous
motivation and extension services are required. A
dedicated staff is required to be provided for this
purpose to educate the farmers on proper
management practices.
Irrigation: Drip irrigation is adequate in Coastal
area but to restrict the use of sprinkler sets/ microsprinkler sets.
Area expansion: Small holdings are there,
therefore, there is need to take lands on lease
basis from farmers.
Uniform policy should be there for Oil Palm. In Goa,
labour wages are more; therefore, cost of
production is more than returns .
3.1.17 Chief Engineer, WRD informed that plenty of

water is available in 3 Talukas. Shri Joshi said rainfall is
limited in the first 4 months and salinity in water is up-to
40%. Ground water goes to rivers. State Govt. has taken
lot of schemes to conserve water. About 24 structures
have already been completed which conserve 74 million
cubic water. Irrigation projects have already been
completed. There is no water problem. To develop water
resources, they have lot of innovative programmes.
However, internal problems like small holdings are there.
3.1.18 The Chairman desired to have detailed villagewise micro level survey report of each district/talukas
including parameters like assured irrigation facilities,
temperature, humidity, soil type, cropping pattern, etc
with the target for next one year, five years and ten years
like wise for total 16 years. He desired that this may be
done by the Department of Agriculture looking after Oil
Palm, Govt. of Goa, with the help of NRC-OP and
entrepreneurs operating in the State and the report in
this behalf be submitted by the middle of April, 2006.
(Action: Deptt. of Agriculture, Govt. of Goa)
3.1.19 While summing up the discussion, the Chairman
mentioned that Year-wise targets for area expansion
have to be fixed up up-to 2015 and for that Planting
material requirement for same area and how to propose
to meet it- whether from own nurseries, State Govts.
and companies, is required to be made. If any one is
aware of any other formula in the interest of the country,
they can suggest and he will take it into consideration.
He was of the opinion that subsidy on irrigation should
be more because of higher cost of production. However,
in inter-cropping, some additional income will be there
but inter-crop should not be competitive for the main
crop and second crop should have market assurance.
If feasible, farmers can go for coco, banana, etc. Oil
Palm requires more water, nutrients, and fertilizers and
pests & diseases should not be there for the main crop.
He supported the view that Oil Palm FFBs should have
market. In Maharashtra, Policy for area expansion and
Transfer of Technology (TOT) is required for revival of
old planting. He suggested few Action Points in areas
of TOT, Extension support like Spl. Officers appointment
to propagate new technology, Godrej Agrovet have to
concentrate on continuous visits and motivate farmers,
uniformity in price is important and GOI may send crude
oil price so that palm oil price can be decided on that
basis, inclusion of subsidy on pipeline in XI Plan, use of
more organic material for more yield of Oil Palm,
recycling of waste material be done, initial 5 years
support is needed for mulching, state Govts. have to
increase production incentives which will give
encouragement to farmers, some farmers have land but
they neither cultivate any crop nor give it on lease
because of no guarantee for land ownership so the
Govt. can intervene in the matter as a third party to
safeguard their ownership of land. Revenue policy
needs change. Extension of latest technology and
frequent visits to farmers have to be done. Quality
seedling production and supply and standard input
delivery system need Govt. support. Some areas are
not given to M/s Godrej Agrovet, so clear policy may be
brought out. Pricing disparity in Goa & Maharashtra
vis--vis leading A.P. & Karnataka States formula used
and what is best & uniform for the entire country has to
be worked out, cost-benefit ratio for Oil Palm, Cashew
nut, Areca nut and Coconut need to be studied. Facilities
available for National Horticulture Board(NHB) should
be available for Oil Palm in so far as marketability and
unforeseen advantages where thefts are common
problems, waste utilization, incentives for chaff-cutter,
etc.
Gujarat
4.1 No one attended the meeting from Gujarat Govt.

However, the Chairman desired that NRC-OP with the
help of private entrepreneurs will submit the report on
suitability of area keeping in view the desired parameters
like assured irrigation facilities, temperature, humidity,
soil type, cropping pattern, etc with the target for next
one year, five years and ten years (a total 16 years).
(Action: NRC-OP)
5. Finally, the Chairman pointed out that any
entrepreneur or farmer can send any suggestion for
consideration of the Committee either through State
Agency or directly to the Chairman on his e-mail:
chadhacommittee2@yahoo.co.in
The meeting ended with a vote of thanks to the
Chair.
177
Sl. No.
Name of the person
Organization/Company
Dr. K.L. Chadha, Chairman
Former DDG (H), ICAR & Horti. Commr. GOI & H. No.7281,
Working Committee.
B/10, Vasant Kunj, New Delhi 110 070.
Shri P.K. Sharma
Director (TMOP), GOI, M/o Agriculture, Department of

Agriculture & Cooperation, New Delhi 110001
Dr. M. Kochu Bau
Director, National Research Centre for Oil Palm, ICAR.
Shri R. G. Joshi
Director of Agriculture & I/C Oil Palm, Govt. of Goa,
Dr. Kari Kanti Math
Director, ICAR Res. Complex for Goa, Ela-Old-Goa
Shri D.R. Gurumukhi
Director I/C, Directorate of Oilseeds Development,
Shri R. B. Bali
Department of Agriculture & Cooperation, Hyderabad

Joint Director of Agriculture (Extension-I),
O/o Commissionerate of Agriculture, Pune
8
Shri Satish Tendulkar
Deputy Director of Agriculture, O/o Directorate of Agriculture ,

Govt. of Goa, Panaji, Goa.
Shri Sanjeev A. Mayekar,
Agriculture Officer (Coconut), O/o Directorate of Agriculture ,

Govt. of Goa, Panaji, Goa.
10
Shri Sameer Raikar
Godrej Agrovet ltd., Oil Palm Plantation Division, Sattari Goa.
11
Shri Satish Gurav,
Godrej Agrovet ltd., Oil Palm Plantation Division, Sattari Goa.
12
Shri Ashok G. Somanache,
Superintending Engineer (CADA),

Water Resource Department, Goa.
13
Shri P.B. Adgale
District Superintending Agriculture Officer,

District- Sindhdurg, Maharashtra
14
Shri S.T. Nadkarni
Chief Engineer, Water Resource Department, Goa
15
Shri Deelip K.Desai
P.O. Ponda-Goa
16
Shri A. S. Chavan,
Sub-Divisional Agricultural Officer, Maharashtra State
17
Shri V.Y. Gaonkar
Training Organizer, Krishi Vigyan Kendra,

ICAR Research Complex, Ela-Old Goa.
18
Dr. Sharad H. Patil
Wadas, Taluk-Ked, District- Sindhdurg, Maharashtra.
19
Shri Bajirao B. Zende
At Post-Hirlok, Taluk-Kudal, District- Sindhdurg,
20
Ambarish Nadkarni,
P.M.C. Member, At-Patte, P.O. Sanguem Goa-403 704
Table 10.3.1: Taluka-wise area under Oil Palm in

Maharashtra
Sl. No.
Talukas of
Sindhudurg district
Category
Area in ha.
1.
Kudal
2.
Sawantwadi
1.00
3.
Dodamarg
3.50
4.
Kankavali
Total
Table 10.3.2: Yield Obtained and Incentive

Paid in Goa
600.00
Yield
obtained
per ha.
Up-to 5 ton
II
5-15 ton
III
Above 15 ton
Incentive paid for

yield increased over
previous year
Rs.1/ -per kg
Rs.1.5/- per kg
444.20
1048.70
178
Rs.2/- per kg

BANGALORE, 5th APRIL, 2006
1
Introduction
1.1 Dr. Ikram Ullah Mahmood, Additional Director of

Horticulture (Oil Palm), Govt. of Karnataka welcomed
Shri. B.Nagaraja Shetty, Honble Minister for Fisheries,
Muzrai and Horticulture, Government of Karnataka,
Chairman of the Working Group, Dr. K. L. Chadha, Shri.
A.Ramaswamy, Principal Secretary (Agriculture &
Horticulture), Government of Karnataka, Mrs Leena
Nair, APC & Secretary-Agriculture, Govt. of Tamil Nadu,
Shri P. S. Sasi, Director of Agriculture, Govt. of Kerala,
Dr. Vashanthkumar, Director of Horticulture, Govt. of
Karnataka, Shri. P. K. Sharma, Director (TMOP), GOI,
New Delhi and Dr. Kochu Babu, Director, NRC Oil Palm.
1.2 In his address Shri. B.Nagaraja Shetty, Honble
Minister for Fisheries, Muzrai and Horticulture,
Government of Karnataka said that Oil Palm has great
potential in Karnataka State and it is of national
importance to bring more area under this crop and
produce more oil to reduce import from other countries.
India at present imports 40-50 lakh tons of palm oil
every year, costing around Rs.10,000 crores to the
exchequer. Therefore, improvement of Oil Palm
scenario assumes great importance. But, this has to be
made possible only by our farmers, as cultivation of Oil
Palm is in farming lands. What will motivate our farmers
to put in their best efforts? Obviously, it is the profits
that they expect from Oil Palm, when compared to other
competing commercial crops. Therefore, it is of prime
importance for us, to look at the whole exercise, from
the farmers point of view, so that we can hope for
achieving tangible results. All along, during the past 15
years or so, the emphasis has been to help farmers
with incentives and subsidies for production related
activities. The Government has spent crores of rupees
for this purpose. But, the results are not very satisfying.
Farmers compare this crop with other commercial crops
like Arecanut, sugarcane etc. So, it may be better for
the policy makers to shift the focus of incentives from
production related activities to the end price which the
farmer gets. A mechanism may be evolved, which
assures a farmer of an attractive price for his produce
on a long term basis. Then, it should not be difficult at
all for farmers to show amazing results by bringing more
area under Oil Palm and achieving higher production.
The money that is spent on subsidies for production
related aspects can be used for offering price incentive,
which may, no doubt, result in an improved situation for

Oil Palm. In this exercise of the working group, it may
consider selecting the most suitable areas depending
upon water availability and help the farmers to excel
with higher production of fresh fruit bunches by giving
latest technology. Therefore, the meeting of working
group is quite timely and important and he hopes that
the group will deliberate on all the important issues
related to Oil Palm Development.
1.3 Shri A.Ramaswamy, Principal Secretary
(Agriculture & Horticulture), Government of Karnataka
said that the targets that we set for ourselves, in the
previous plan periods, for area expansion and higher
productivity of Oil Palm, have largely remained
unattained. Oil Palm programme, so far, has had a
chequered phase of growth. Ground water levels in
many areas, identified earlier, have depleted, causing
hardship to farmers and set back to the project. Many
competing crops have taken priority in the farmers
decisions. The import policy of Government of India
regarding crude palm oil has also contributed its share
to the fluctuations in the Oil Palm development. The
uprootment of Oil Palm by farmers in many states had
also given a set back for quite a longtime. However, the
recent trends, in area expansion and the growing
inclination of farmers towards Oil Palm are very welcome
signs. We must cash upon these positive notes by
making our programme as realistic as possible. Ofcourse, proper selection of areas for Oil Palm cultivation,
good technology and strong backup network of
extension services will give the necessary frame work
for this project. However, the driving force on the part
of farmers to achieve excellence seems to be centered
on the price that their produce will fetch. Therefore, there
is a strong case for the planners to consider offering an
attractive price to farmers for one or two plan periods.
The subsidies now being offered for many items can be
tapered off and the same amount can be utilized for the
price stabilization fund. If this idea is implemented and
becomes successful, with more area and higher
production of Oil Palm in the country, then we can try
newer approaches, in the years to come. He expressed
his desire that hopefully the working group will look into
all these aspects, in greater detail so that the farmers
are benefited and the goals of programme are achieved,
to a great extent.
179

1.4 In his introductory remark, Dr. K. L. Chadha,
Chairman of the Working Group assured that the views
and concerns expressed by Shri. B.Nagaraja Shetty,
Honble Minister for Fisheries, Muzrai and Horticulture,
Government of Karnataka and Shri. A.Ramaswamy,
Principal Secretary (Agriculture & Horticulture),
Government of Karnataka will be taken care of while
formulating the strategies for development of Oil Palm
in the country. He also outlined the Strengths,
Weaknesses, Opportunities and Threats to the Oil Palm
cultivation and Oil Palm Industry, some of which are
given as under:-
Oil Palm is not raised in contract farming which is

possible only when it is declared as a plantation
crop. This may be looked into.
Inadequate subsidy support.
Opportunities
Self Sustainable crop no other crop is yielding

more oil than Oil Palm.
More and more area is emerging for Oil Palm

cultivation.
Scope for modifying the policies and input subsidy

structure.
Establishing Indias status as a major Palm Oil
producing country at international level.
Strengths
Declaration of Oil Palm as commercial crop.
High yield of oil per ha (4-6 tonnes/ha) than any

other edible oil yielding crop plants.
Threats
Coming up of new mills & processing factories in

potential areas.
Technical Training and Extension support by

National Research Centre on Oil Palm, Pedavegi,
A. P.
Facilities for indigenous production and supply of

planting material by NRC-OP, Pedavegi and sub
centres.
GOI support to Oil Palm cultivation in the form of

subsidy.
More income per ha with the mechanism of price

fixation.
Weaknesses
Slow progress under area coverage. Progress

under area coverage is also not up to the mark
and as expected.
Some of the areas identified in preliminary survey

are reported to be not available/not suitable for
Oil Palm cultivation.
Non availability of quality indigenous planting

material in proportion to the area expansion. The
country is primarily dependent on import of
sprouts/seedlings from ASD Costa Rica. More
number of nurseries should be established.
Non availability of processing mills where they are

required as in case of Orissa and where available
those are not running in full capacity.
Primitive infrastructure.
Unstable import policy..
Continuous drought conditions.
1.5 Dr. K. L. Chadha, Chairman also stated that

intercrop in Oil Palm plantations will help additional
income flow apart from giving income during gestation
period. In addition continuous flow of transfer of quality
technology to achieve maximum potential yields without
correlating the age of plantation, contract farming to
reduce transport loss as most of the Oil Palm holdings
are upto 1 ha., large mortality rates in plantations,
importance of rouging in the nursery to get potential
healthy seedlings, more thriving ability of indigenous
planting material vis--vis imported one, replanting and
rejuvenating after 20 years etc are some of the issues
which deserve attention. The Chairman then invited
the representatives of Government of Karnataka, Tamil
Nadu and Kerala to present their views under area
expansion considering following aspects of Oil Palm:
Critical appraisal of problems and prospects.
Area expansion in relation with availability of

irrigation facilities, climatic suitability, identification
of new areas with cropping pattern etc.

Over/under production of seed nursery linked with

Research & development infrastructure
180

capacities.
Incentives
Price fixation and budget
Policy issues
Karnataka
2.1 Dr. Ikram Ullah Mahmood, Additional Director of

Horticulture (Oil Palm), Govt. of Karnataka presented
the details on scope for area expansion in the State of
Karnataka. He stated that the increasing demand for
vegetable oil coupled with low production of oil seeds
in the country has necessitated the import of vegetable
oil. Currently, India is importing 45 50 lakh tonnes of
edible oil every year to bridge the gap between Demand
and Supply. This import is likely to increase further,
unless effective steps are taken to achieve self
sufficiency in edible oil production. In order to bridge
the gap it was recognized that cultivation of Oil Palm in
the country should be exploited to its full potential. With
this point in view, Government of India, in the year 1986
had set up a committee under the Chairmanship of Dr.
K.L. Chadha, the then DDG, ICAR to assess the
potentiality of Oil Palm cultivation in India.
As per the Committees report, 7.5 lakh ha. area
was found to be suitable for cultivation in the country.
2.2 In Karnataka, the committee identified 2.5 lakh ha.
as potential area for cultivation in 5 irrigation command
areas, namely:
Upper Krishna Command area => 100000 ha.

(Gulbarga, Bijapur and parts of Bagalkot district)
Thungabhadra Command area => 60000 ha.

(Bellery, Raichur and parts of Koppal and Gadag
district)
Malaprabha and Ghatta prabha command area =>

40000 ha. (Belgaum and parts of Uttar kannada
district)
Cauvery Command area => 25000 ha. (Mysore,

Mandya, Chamarajnagar, Coorg and Hassan
districts)
Bhadra Command area => 25000 ha. (Shimoga,
Davangere and parts of Chickmaglur and Haveri
district)
by Government of India (Department of Bio-technology)

and Government of Karnataka (Department of
Horticulture) and is now being implemented in the
following 18 districts of Karnataka State.
1. Mysore 2. Mandya 3. Kodagu 4. Chamarajanagar
5.Hassan 5. Shimoga 6. Chikmagalur 8. Davanagere
9. Haveri 10. Bellary 11. Gadag 12. Koppal 13. Raichur
14. Belgaum 15. Uttara Kannada 16. Gulberga 17.
Bijapur 18. Bagalakote.
2.4 Between the years 1997 to 2002, there has been
a setback to the area expansion because of fall in prices
of FFB (due to reduction of import duty for CPO), and
remunerative prices of competing crop like Arecanut.
Hence, the farmers preferred Arecanut when compared
to Oil Palm in Shimoga district. Companies withdrew
from the project, realizing that it was difficult to continue.
This gave rise to uprooting of plants in different districts,
mostly as a negative reaction.
2.5 However, during the last two years i.e., from 2003
onwards, the situation has improved considerably and
FFBs are fetching better price now (because of higher
import duty on edible oil). Therefore, the farmers are
interested to take up area expansion and also to
improve productivity in their existing gardens.
2.6 Since it is an irrigated crop, it was recommended
for cultivation only in Command areas and in such fields
where irrigation was assured. The estimation was then
made on a macro level, considering the irrigation
facilities that existed then and considering that about
10-15% irrigated area could be brought under Oil Palm.
However, only 12,391 ha. have been brought under Oil
Palm so far (Table 10.4.1-10.4.3). Though, extension
of irrigation channels has brought in more and more
areas under irrigated belt, due to erratic rainfall, in the
past few years, the ground water level had gone down
leading to drying of Bore-wells. However, due to good
rains last year, the situation has improved (Table 10.4.4).
2.7 He then submitted the following for consideration
of Government of India.
Evolving/importing germplasm that shows better

yield performance with less water.
Planting density/ geometry to be changed to allow

for inter crops.
The unit cost for micro irrigation has to be

increased to Rs.25, 000 per Ha. and 50% subsidy
to be allowed.
2.3 Oil Palm Development Programme (OPDP) in

Karnataka was started during 1990, jointly sponsored
181
The relaxation permitted to states by Government

of India for innovative items needs to be enhanced
to 25% of the outlay from 10% as at present.
Creating price stabilizations fund which can work

as given in Table 10.4.5.
2.8 Dr. Vasanthkumar, Director of Horticulture, Govt.

of Karnataka while intervening in the presentation by
Dr. Ikram Ullah Mahmood, Additional Director of
Horticulture (Oil Palm), Govt. of Karnataka expressed
the following facts and problems.
Productivity is going up though the area expansion

is less.
Impact of ground water depletion and continuous

drought on Oil Palm cultivation.
Economics was different at present compared to

when Oil Palm was established.
More income in other horticultural crops like

mango, pomegranate, coconut, areca nut etc, and
crop like sugarcane.
expressed her concern for the low price of FFBs in Tamil

Nadu to the magnitude of only Rs. 2500/- and the
remunerative price for FFBs is the key solution along
with enhancement in subsidy structure for future area
expansion under Oil Palm.
Apart from this she suggested uniform subsidy for
drip irrigation irrespective of different categories of
farmers. More publicity budget is required to be
allocated.
(Action: TMOP, GOI, Ministry of Agriculture, New Delhi)
3.2 Availability of sprouts to cover 1 lakh ha area
identified in the State may be ascertained and the source
for supplying 15 lakh seedlings over a period of 3 years
should be identified to cover the projected target area.
The higher yields of seedlings imported from Costa Rica
may be evaluated with indigenous seedlings to provide
quality indigenous seedlings.
Action: NRCOP, ICAR, Pedavegi.
3.3 She also mentioned that the details regarding
assessment of future potential for Oil Palm cultivation
in Tamil Nadu was already communicated to the
Chairman of the Working Group. However, the material
collected on future expansion in area of the Oil Palm
from State Govt. by the Directorate of Oilseeds
Development, Hyderabad.
Less land availability for further expansion.
No income in initial period of plantation i.e., during

gestation period.
Need of drought tolerant dwarf varieties.
High level of nutrient requirement and redefining

the fertilizer schedule.
Difference in water schedule for different soil.
Diesel and generator concession
3.4. Mr. V. R. Jayamani, M/s. Cauvery Palmoil Ltd., presented the prospects of area expansion in their present
operational area as detailed in Tables 10.4.6; 10.4.7;
10.4.8A to 10.4.8C.
Chance in power tariff policies and power problem

is not suitable for micro irrigation.
However, the expansion needs to be done in phased

manner over a period of 10 years (Table 10.4.8D).
Exploring the possibility of Oil Palm as bio-fuel as

diversified use.
3.4.1 The company is having adequate indigenous

planting material for covering 3400 ha during the year
2006-07. Further it was programmed to cover an area
of 4000 ha during year 2007-2008 for which they require
6.40 lakhs sprouts. Subject to the availability and
allocation of indigenous planting material the company
is prepared to import exotic planting material.
2.9 Dr. C. Arumugan, Scientist, RRL, Trivandrum was

of the opinion that remunerative price will play a great
role in area expansion. Price fluctuation and fragile
import duty structures are the negative factors for area
expansion. Attention is needed to be given to survival
rate of plantations. He also said that demonstration mills
may be continued in each State.
3.
Tamil Nadu
3.1 Mrs. Leena Nair, Agriculture Production

Commissioner & Secretary, Govt. of Tamil Nadu
informed that though 59% of targeted area is achieved
the survival rate is only 25% in Tamil Nadu. She
3.4.2He requested the committee to regularise the

allotment of the districts of Villupuram and Cuddalore
to Cauvery Palm Oil Limited. Also, the waiver/deferral
of purchase tax, sales tax & electricity generation tax
and extending concessional electricity tariff to the only
processing unit in the state would help the company to
stabilize its operations and the industry to survive in
the state.
182
3.5. Mr. R Sachithanandham, Secretary, Oil Palm
Growers Association, Thanjavur, Tamil Nadu enlisted
the problems initially faced by the Oil Palm growers of
Tamil Nadu and the role of M/s. Cauvery Palmoil Ltd.,
in solving the same to motivate the farmers to undertake
Oil Palm cultivation in the State. He also stated that
intensive propaganda in the mass media through News
Papers and All India Radio created awareness among
the farmers and there is a definite prospect for Oil Palm
cultivation in Tamil Nadu, which is far beyond doubt.
Organically produced Palm Oil and products might

help create a lucrative export market.
Grant waiver from Land Ceiling Act, Plantation

Crop status, (Rubber, Tea, Coffee, Cardamom etc.)
This would help attract corporate agriculture and
large-scale farmers to diversify into Oil Palm.
3.5.2 He also suggested the following research and

developmental activities
Set up a State of the Art Regional Research Centre

for Oil Palm in Tamil Nadu, since agro-climate
conditions in Tamil Nadu are vastly different than
neighbouring states.
Alternate efficient timely subsidy distribution

system needs to be developed replacing the
present inefficient and inappropriate system in
practice.
The Committee may please correspond with Tamil

Nadu Agricultural University suggesting it to
undertake basic and applied research on Oil Palm.
The Association notes with regret that no such
research activity has been undertaken so far by
Tamil Nadu Agricultural University. It appears that
many of the academics at Tamil Nadu Agricultural
University are negative to Oil Palm in Tamil Nadu.
The Tamil Nadu Agricultural University may be

requested to include Oil Palm in the curriculum in
the Under Graduate and Post Graduate courses.
The research students and academics should be
encouraged to conduct research on Oil Palm by
granting generous financial support to do so.
3.5.1 He suggested the following for encouraging the

farmers to take up Oil Palm plantations
Subsidy for Micro-Irrigation system may be raised

back to the original subsidy level of 90% to save
precious water and to ensure 100% irrigation.
Chickenwire mesh cages to control rat damage to
freshly planted seedlings, which works out Rs.18/
seedling, and is most essential in Paddy cultivated
area may be considered.
Subsidy for the supply of submersible pumps and

accessories instead of centrifugal pumps in the
deltaic district may be considered. The water level
has already gone down in many parts below the
pumping level of centrifugal pumps.
Subsidy for erection of bore wells.
Speedy E B connections for the new borewells dug

in the Oil Palm area on priority basis.
Tax waiver facilities extended to Tamil Nadu Oil

Palm industry as well, as practiced in neighbouring
states. If such facilities are extended as requested,
the Cauvery Palmoil Limited promises to pass on
the benefits to Oil Palm growers by way of
increased FFB procurement price.
Liberalization of crop loan approval formalities for

new plantings and maintenance loan for existing
plantations. Present rigid approval criteria creates
tremendous hardships and unnecessary delays,
especially in getting N 0 C and No Dues
Certificates from other financial institutions in the
planting area.
Encouraging organic farming concept by recycling
organic Oil Palm waste generated in the farm. For
this purpose, the shredder machines may be
supplied at 50% subsidy as done in Karnataka
State. Such a practice would help reduce fertilizer
application cost and improve the soil fertility status
tremendously.
4. Mr. Sanjay Goenka, M/s. Foods, fats, Fertilizers

Ltd., said that due to reduction in import duty,
companies backed out and continuous drought for 2-3
years contributed poor performance of Oil Palm in
Karnataka and enlisted the following issues:
Low productivity resulting in less income, hence,

factors contributing to low productivity may be
studied and identified.
Negative effects of micro-irrigation in higher

productivity as flood and channel irrigation modes
gives better productivity.
Recommend non competing intercrop system in

Oil Palm cultivation which results in higher
productivity.
Support for bore wells to farmers
183
Introduction of Oil Palm Insurance Policy for

ensuring security to the farmers.
Evolving one uniform scientific price fixation

formula for FFBs based on CPO and OER.
Relaxation of land ceiling.
Contiguous plantations-contract farming.
Establishment of mills in newer areas to build

confidence among the farmers.
Continuance of PHT fund with 50:50 share.
Provision for bank loan may be with tripartite

agreement.
5. Mr. Nasim Ali, M/s. Godrej Agrovet Ltd., who is

undertaking Oil Palm development in Belgaum district,
said that the following crops are competing with Oil Palm:
Main crops :Sugarcane : 50000 Ha. (15 Sugar Mills in
Belgaum + 20 in Kolhapur and Sangli Districts of
M.S. ); Vegetables: Over 50000 Ha; Other crops :
Banana , Soybean , Maize, Sorghum , Cotton, Pulses.
He suggested the following for increasing the area in
Belgaum Zone:
Captive Plantations through entrepreneurs to be

encouraged.
Exemption to be granted for Oil Palm under

KLR Act 1961 by giving the status of plantation
crop so that the corporates can take up large
areas under Oil Palm.
Exemption to permit corporates to take lands

on lease for Oil Palm.
Drip Irrigation subsidy to be extended for the

entire area brought under Oil Palm.
etc., and weaknesses like long gestation period,

perishable crop, inter crop not possible after 4 years,
lack of awareness on the crop etc. and suggested the
following:
Replace subsidy with crop production subsidy
Restrictions for seedling supply to be removed
Restriction for spacing (9mt) to be removed;

farmers can also go for other intercrops.
Import permit for seedlings may be continued.
Subsidy for bore wells and increase in subsidy for

micro irrigation.
Make availability of further processing facility for

CPO in Karnataka to have domestic market for
palm oil.
Increase the productivity of existing plots to act as

demo plots.
Rs. 100/tonne of FFB may be kept as contingency

fund.
Replace OFI subsidy with crop production subsidy.
7. Mr. L. V. Narasimham of M/s Bhadravati Balaji Oil

Palms Ltd., said that the essentiality of irrigation to the
Oil Palm from February-March which falls in scarce
period of canal. So alternate irrigation source like bore
wells and open wells must be ensured to irrigate the
crops in command areas and suggested following:
GOI support to open wells as these only suits in

some of the areas.
Irrespective of NABARD approval loan is not

available; hence, GOI may issue necessary
directives to the banks to issue loans to Oil Palm.
Cropping pattern to be fixed for Irrigation

Projects with area allocation of at least 5% for
Oil Palm.
Support for fencing.
1-2% from duty may be contributed to oil pool fund.
Uniform seedlings and FFB price.
Water conservation plots in Oil Palm plantations.
Research must be carried out to accommodate

more plants (High Density Planting).
Diesel generator is not advisable as it costs more

for fuel, hence 4 hrs assured power supply may
be ensured.
Packages of practices must be followed.
Higher productivity coupled with less area under

one farmer-higher resource allocation.
6. Mr. A.S.Y. Narayana Murthy of M/s. Palm Tech India

Limited enlisted the strengths of Oil Palm like Perennial
crop, Monthly income, Easy marketing, Govt. Support
8. Mr. Ravi Kumar, M/s Simhapuri Agri Tech told that

remunerative price for FFB will encourage the farmers
to take up Oil Palm cultivation.
9. The view points and suggestions of the Karnataka
State farmer representatives are given below:
Supply of harvesting sickles with poles.
Bore well subsidy.
184
Wide spread publicity may be given with

economics.
Pomegranate, grapes and sugarcane are

competing crops in Bagalkote region and hence
new survey may be undertaken in these areas. The
suitability of Oil Palm in these areas may be
ascertained and utmost care should be taken when
introduced with regular supervision.
Market for intercrop. Market in Bidar district needed

for tomato grown as intercrop.
Provision for water lifting from Thungbhadra River.
Irrigation facility may be provided in waste land

areas.
Expansion of Oil Palm in Kerala is not desirable.
Subsidy for intercrop may also be provided.
75% subsidy for drip irrigation facility irrespective

of gender/caste.
Large scale area expansion in other States should

not be undertaken without detailed studies,
research and debates.
Dwarf and less water requiring high yielding

verities.
All possible steps should be taken to prevent the

imports of cheaper edible oils such as palm oil,
which can totally uproot the traditional crops such
as coconut and also cause health problems due
to adulteration, harmful effects etc.
throughout the State. The State is undertaking

procurement of copra through NAFED at MSP fixed by
the Centre whereas the MSP system is not present in
FFB procurement. State has included the diversification
and value addition of coconut in their 2010 programme
apart from taking massive operation to control eriophyid
mite infestation and combating dreaded root (wilt)
disease.
10.2 As the cultivation of coconut is widespread
throughout the State irrespective of the holding size,
and considering the very high cropping intensity (130%),
the availability of land for Oil Palm cultivation in Kerala
is limited. Therefore, it is strongly felt that
10 Kerala
10.1 Shri P. S. Sasi, Director of Agriculture, Govt. of
Kerala during his presentation said that the cropping
pattern of Kerala is mostly coconut based rainfed
cropping system which includes seasonal, annual and
perennial intercrops. Irrigation is practiced only in paddy
areas. Since water is available in plenty drainage is a
big problem which Oil Palm cannot withstand. In Kerala,
coconut occupies an area of 9 lakh ha which is 41% of
the net cropped area of the State and accounts for 48%
of the coconut area of the country. The crop is cultivated
throughout the State irrespective of the size of holdings
and provides livelihood for more than 3.5 million people
and contributes substantially to the agricultural income
and has vital importance in the agricultural economy of
the State. Coconut oil is traditionally used as edible oil
11. In his concluding remarks the Chairman said that

the 9 mt spacing of the Oil Palm plantations may be
looked into to accommodate more plants per ha and
the cost benefit ratio may be studied for the competing
crops with Oil Palm like arecanut, sugarcane, grape,
mango, pomegranate etc. He desired them to furnish
the results of Govt. demonstrations on Oil Palm and
information on high achievers including the package of
practices followed and age of the plantation etc. He also
desired to give the source of seeds. Further he insisted
the house to give a short note on justification for revision
of issues discussed till now along with suggestions, if
any, on his e-mail: chadhacommittee2@yahoo.co.in.
The meeting ended with a vote of thanks to the Chair.
185
Sl.No. Name of the person
Dr. K.L. Chadha
Former DDG (H) & Hort. Comm. & Chairman

Working Group Committee.
Honble Minister for Fisheries, Muzrai and Horticulture,
Government of Karnataka
Govt. of Karnataka, Bangalore
Agriculture Production Commissioner & Secretary,
Govt. of Tamil Nadu, Chennai
Shri. B.Nagaraja Shetty
Shri. A.Ramaswamy
Mrs. Leena Nair
Dr. Vasanthkumar
Director of Horticulture, Govt. of Karnataka, Bangalore
Shri P.S. Sasi
Director of Agriculture, Govt. of Kerala, Trivandrum
Shri P.K. Sharma
Director (TMOP), GOI, New Delhi
Dr. M. Kochu Babu
Director, NRC Oil Palm, Pedavegi, Andhra Pradesh
Dr. Ikram Ullah Mahmood
Addl. Director of Horticulture (Oil Palm),

Govt. of Karnataka, Bangalore
10
Dr. C. Arumughan
Scientist, RRL (CSIR), Trivendrum.
11
Shri. Mahesh
Asstt. Director of Horticulture, Govt. of Karnataka, Bangalore
12
Dr. K. Ponnusamy
STA, Directorate of Oilseeds Development, GOI, Hyderabad
13
Shri Narayan Murthy
General Manager, Palm Tech India Ltd., Secunderbad
14
Shri Peter
General Manager, Palm Tech India Ltd., Secunderbad
15
Shri N.R. Devesh
Deputy Manager, Palm Tech India Ltd., Mysore
16
Shri B.R.V. Ramana
Manager, Bhadravati Balagi Oil Palm Ltd., Bhadravathi
17
Shri Ravi Kumar D.P.
Project Manager, Simhapuri Agritech, Davangere
18
Shri G. Virupakshappa
Project Manager, Simhapuri Agri Tech, Hospet
19
Dr. P.M. Ganesh
M/S Palm Tech India Ltd., Mysore
20
Shri L.V. Narasimhan
Vice President, Bhadravati Balagi Oil Palm Ltd., Bhadravathi
21
Shri Nasim Ali
General Manager, Godrej Agrovet Ltd., Tal Belguam,
22
Shri Samir Pai Raikar
Manager (OPP), Godrej Agrovet Ltd., Tal Belguam,
23
Shri P. Mallesham
Deputy General Manager, Foods, Fats & Fertilizers, Hyderabad.
24
Shri Sanjay Goenka
Foods, Fats & Fertlizers, Hyderabad.
25
Shri D.S. Chandrasekharappa
Manager, Foods, Fats & Fertilizers Ltd., Koppal
26
Shri R. Navaneethakrishnan
Technical Consultant, M/S Cauvery Palm Oil Ltd., Kumbakonam
27
Shri V.R. Jayamani
Chief Executive, Cauvery Palm Oil Ltd., Tirucharapalli
28
Shri R. Sachithanandan
Secretary, Oil Palm Growers Association, Thanjavur, Tamil Nadu.
29
Shri G. Khaji Hussain Niagi
Dist President Oil Palm, Bellary (Dist), Chittavadagi, Hospet.
30
Shri Ranganatha R. Kathure
Farmer, Bachigondam Halli, Dist Bellary,
31
Shri L.A. Anbu,
Farmer, Mandarvalli, Torikere Taluk, Chikkamaglure dist,
32
Shri K.V. Papanna
Farmer, Karakuchi Village, Torikere Tal., Chikamagalur dist.
33
Shri Ishwarappa. V. Hanchinal
PO: Nagarhalli, Tq: Mundargi, Dist:Gadag.
186
187
520
49
2001-02
Sub Total
447
523
2005-06
Sub total
4047
55
2004-05
Grand Total
250
21
2003-04
3,988
903
370
127
156
547
184
194
2002-03
X Plan
3,968
1,611
573
678
181
179
825
91
11
388
388
194
194
2000-01
104
239
1999-00
1998-99
484
65
49
1,532
857
575
1997-98
2,538
945
1,073
100
IX Plan
2361
Sub Total
1995-96
476
418
1994-95
1996-97
852
1993-94
400
215
1992-93
VIII Plan
1114
Sub total
249
1991-92
1,00,000 ha
-
40,000 ha
Upper Krishna
Project
area
865
25,000 ha
Malaprabha &
Ghatta prabha
command
area
1990-91
60,000 ha
Cauvery
Command
area
25,000 ha
Estimated area
Thunga
Bhadra
Command
area
VII plan
Bhadra
Command
area
Year
2,50,000 ha
Total
Table 10.4.1 : Area Expansion (Plan wise & Command area wise)
35,700
4,700
2,200
1,500
500
500
10,000
2,350
2,350
2,400
2,500
400
20,000
3500
5,000
5,000
6,000
500
1,000
500
500
Target
for area
expansion
in ha.
12,391
3,425
1,584
1,053
452
335
1,421
275
194
115
239
598
6,431
2,278
2,066
1,472
215
400
1,114
Achievement
in ha.
(Area in ha.)

Table 10.4.2: Actual Area developed, existing and yielding area under Oil Palm
Command area
Actual area
developed
Actual area
existing
Yielding area
(> 4years old)
3975 ha
824 ha
380 ha
Thunga Bhadra Command area
3969
837 ha
371 ha
Cauvery Command area
3915
2195 ha
563 ha
364
320 ha
12,391 ha
4176 ha
1314 ha
Bhadra Command area
Malaprabha & Ghatta prabha

command area
Total
Table 10.4.3: Abstract

Sl.
No.
Command area
Potential area
Area
as per K.L. Chadha developed
Committee report
Area
existing
Area that can be

developed in the
next 10 years
1.
Upper Krishna Command area
1.0 lakh ha
2.
Thunga Bhadra Command area
0.60 lakh ha
3988 ha
837 ha
10,000 ha
3.
Malaprabha & Ghattaprabha

Command area
0.40 lakh ha
388 ha
320 ha
10,500 ha
4.
Bhadra Command area
0.25 lakh ha
4047 ha
824 ha
8400 ha
5.
Cauvery Command area
0.25 lakh ha
3968 ha
2195 ha
10,500 ha
Total
2.50 lakh ha
12391 ha
4176 ha
59,400 ha
188
Basavana Bagewadi,
Indi, Muddebihal,
Sindhgi taluks in Bijapur
district.
Potential areas
identified earlier
189
(Potential area as
per Dr. K.L. Chadha
report: 60,000 ha.)
Thunga Bhadra
Command area:
Bellary district: Hospet,

Bellary, Sandur,
Siruguppa.
(Potential area as
per Dr. K.L. Chadha
report: 1,00,000
Jewargi, Shahapur,
ha.)
Shorapur taluks in
Gulbarga district
Upper Krishna
Project
Name of the
Command area
Devp.
Bellary tk.Hagari river 3988 ha

belt, Hospet tk.On the
right bank,
Tungabhadra river
belt, Daroji tank
area.H.B. Halli tk. T.B.
dam back water
villages.Malvi Dam
areaHuvinahadagaliRight
bank of
Thungabhadra river
belt.Thunga bhadra
Back water
Siruguppa tk.Hagari
river belt both sides of
Thulsigere,
Saganagadhi.
Devnahalli Bagalkote
taluk of Bagalkote
district.
Shorapur taluk,
Jewargi tk.
Kobal, Konehipperagi.
Shahpur tk.
Gogi, Madarike,
in Gulbarga district.
Basavana Bagewadi,
Indi, Muddebihal,
Sindhgi taluks in
Bijapur district.
Potential areas
as per latest study
837 ha
The Upper Krishna command area had

not been ventured for development
earlier. It is only recently during
December-05, that development
activities have started in this region. M/
s Bhadravathi Balaji s limited has been
allotted the area for taking up area
expansion activities. The company has
already identified an area of 1500 ha.
for development.
In this area, large extent of area
though under irrigation is uncultivated.
This area can be considered for.
Remarks
10000 ha Bellary district: Due to impounding of

Dam water, normally water table is
high behind Malvi dam. Thus Bore
well recharging is good in this belt.
Bellary Dist. 4000 Ha.
Koppal
- 1500 Ha.
Gadag
- 1500 Ha.
Raichur
- 3000 Ha.
10000 Ha.
20,000
ha.
Area
Existing For the
next
10 yers
Table 10.4.4: Re-assessment of Potential areas for development
190
Shimoga district,Parts
of Chickmaglur
districtDavangere
(Potential area as
district and parts of
per Dr. K.L. Chadha Haveri district.
report: 25,000 ha.)
Bhadra Command
area
Belgaum district:
Bahilhongal, Ramdurg,
Saundatti, Badami,
Hubli, Nargund,
Navalgund, Athani,
(Potential area as
per Dr. K.L. Chadha Chikkodi, Gokak,
report: 40,000 ha.) Hukkeri, Raibagh,
Jamakhandi, Mudhol.
Malaprabha &
Ghattaprabha
Command area
Lingsagur
tk.Mudhugal
circle,Veradobbi
circle,Kellareddy
circle. Mattmari,
Kattlatti.
Deodurga tk.
Jarabundi,
Jalahalli.Raichur taluk
Raichur district:
Manvi, Raichur,
Sindhanoor, Devdurga,
388 ha
Shimoga district:
4047 ha
Shimoga, Bhadravathi,
Hosnagar,
Theerthalli,
Sagar, Soraba,
Shikaripura taluks
Chickmaglur dist.
N.R. Pura, Koppa,
Tarikere, Kadur,
Mudigere and
Uttar Kannada dist.

Joida, Karwar,
Yellapur
Gadag
districtMundargi
taluk:Mundargi
hobli,Dumbal,
Mundavada hobli,
Belgaum district:
Belgaum, Bylhongal,
Raibagh, Sowdatti,
Khanapur, Hukkeri,
Athani, Ramdurga,
Gokak, Chikodi.
Kinnala hobli,Kappala
hobli,Ginigare
hobli,Allavaddi hobli,
Koppal district: Koppal,

Gangavathi,
the river.Tugabhadra
River right bank
824 ha
320 ha
8400 ha
10,500
Shimoga
- 3200 Ha
Chickmagalur - 2200 Ha
Davanagere
Haveri
3000 ha
After initial enthusiasm for Arecanut,

the farmers are not averse to
cultivation now.
Some area under Sugarcane can be

converted to.
This is a potential area for. The farmers

in this region cultivate mainly
Sugarcane, Banana, grapes under
irrigation conditions.
This is a potential area for.
Koppal district:Due to forth coming

Hirehalla dam, this district has good
potential for development in the
coming years.
2,50,000 ha.
Cauvery
Command
area(Potential
area as per Dr.
K.L. Chadha
report: 25,000
ha.)
Mysore,
Mandya,
Chamarajnagar,
Kodagu and
Hassan
district
Mysore district
Mysore tk. Bannur,
Ranganathapuram,
T.Narasipura, Kupya, Sumla
Hunsur tk. Hunsur, Thatekare,
Bilikare, Madvinkare,
Nanjangud tk. Kalmally, Ullali,
Suttur, Mathgalli, Gandhigram,
H.D. kote tk. Gadhige, Mullar,
Madhiyur
Piriyapatna tk. Bettadhapur,
K.R. nagara tk. Mirle,
Mandya district
Mandya tk.
Mandya, Kilara, Maddur tak.
Maddur, Gajjinakare,
Malavalli tk.
Malavalli, Kirugavalu,
Antharasanthe
Srirangapatna tk. Koddigalu,
Pandavapura tk. Haruve, Kupya.
K.R. Pet tk.
Hosadallu, Maduvinkode.
Chamarajnagar dist.
Chamarajnagar tk. Chandravadi,
Duggatti, Yelandur, Maralli circle.
Kodagu district
Virajpet tk., Madikeri tk.
Somavarpet tk.
Hassan district:
Holenarasipur, Sakleshpur,
Arkalgud.
Shringere taluks
Davangere district: Honnalli,
Chanagiri, Davangere,
Harpanahalli, Harihara
Haveri district:
Rannebennur
Hirekerur taluks in Haveri district.
12,391 ha. 4176 ha. 59,400 ha.
1500 ha.
2000 ha.
2000 ha.
4,500 ha.
500 ha.
10,500 ha.
Kodagu has developed into a very

potential area for development. The
paddy grown in low lying areas is not
profitable. The coffee planters are
converting their low laying paddy fields
to plantation, as it is less labour
intensive.
3968 ha 2195 ha 10,500 ha Mysore dist

Mandya dist.
Chnagar dist.
Kodagu dist.
Hassan district
Total:
191
Table 10.4.5: Minimum FFB Price

Minimum FFB price presumed
Rs.5500/- per Ton
Average FFB price (Fixed every 3 months)
Rs.3500/- per Ton
Difference between Price presumed and Average price fixed
Rs.2000/- per Ton
Total quantity of FFB produced in KTK/year
Around 5000 ton.
Amount required to incurred by Government (GOK & GOI)
Rs.2,000 X 5000 ton =

Rs.100,00,000/-(Rs.1 crore)
Table 10.4.6: Area expansion - (present / existing

and future coverage) - Tamil Nadu
Sl.
No
District
Area Targeted Total No. of

For next
Holdings
10** years (Ha.)
(No.)
1.
Trichy
96
2.2.5.00
2.
Karur
27
1-2
3.
Perambalur
730
2.0.2.5.00
4.
Thanjavur
172
1.3.0000
5.
Tiruvallur
150
1-3.00
6.
Nagapattinam
125
1.0-3.0
7.
Tiruvallur
52
1.0-1.5
8.
Vellore
67
1.5-2.0
9.
Cuddalore
60
2.0-2.50
10.
Villupuram
53
2.0-2.50
11.
Theni
52
1.5-2.00
12
Tirunelveli
60
13
Tuticorin
60
192
1.5-2Hac
Trichy
Karur
Perambalur
193
Tirunelveli
Tuticorin
Theni
Grand Total
Sub Total
M/S KKR
Thiruvallur
IV
Sub total
M/S Tenera
2000
Sub Total
III
500
1250
Nagapattinam
750
Tiruvarur
Thanjavur
M/S S & S Industries
750
750
1671.6
927.3
502
425.3
744.3
744.3
Achtmt
1993-94
Target
II
Sub total
M/S CPOL
District
No
Sl.
2000
1500
750
750
500
500
Target
2212.6
1717.6
722.3
995.3
495
495
Achtmt
1994-95
2000
1250
750
500
750
750
994
604
354
250
390
390
Achtmt
1995-96
Target
VIIIth plan
2000
1300
600
700
700
700
Target
1227
1023
357
666
204
204
Achtmt
1996-97
Table 10.4.7 : Oil Palm development programme - area expansion - State Tamil Nadu
6105.2
4271.9
1935.3
2336.6
1833.3
1833.3
Total
730
194
0
0
Tuticorin
Theni
Sub total
Sub Total
2300
Thiruvallur
Grand Total
M/S KKR
IV
Tirunelveli
M/S Tenera
1500
Sub Total
III
350
Nagapattinam
420
Tiruvarur
Thanjavur
Sub total
800
Perambalur
II
400
Karur
120
Trichy
280
M/S CPOL
Target
2072.8
1290.4
212.25
304.02
774.1
782.4
334.5
89.95
357.95
Achtmt
1997-98
District
No
Sl.
1230
280
100
100
80
400
75
125
200
550
250
150
150
Target
667.07
130.31
30.26
50
50.05
183.3
31.4
50
101.9
353.46
198.2
53
102.26
Achtmt
1998-99
1700
500
500
30
10
10
10
270
50
100
120
900
400
300
200
Target
741.83
48
48
54.55
39.45
15.1
264.5
29
100
135.5
374.78
260
45.88
68.9
Achtmt
1999-2000
IXth plan
1400
400
400
1000
600
250
150
Target
939
90.88
90.88
0.4
0.4
847.7
672.6
47.9
127.2
Achtmt
2000-01
2001-02
1100
100
100
1000
725
75
200
2050.8
249.23
742.91
Total
772
87.4
87.4
5192.65
226.28
226.28
185.26
65.55
1738.17
272.65
454.02
1011.5
684.6 3042.94
585.5
12.5
86.6
Target Achtmt
Table 10.4.7: (contd) Oil Palm development programme - area expansion - State Tamil Nadu
400
625
M/S CPOL
Trichy
Karur
Perambalur
Sub total
195
Nagapattinam
0
0
Tuticorin
Theni
Sub total
Sub Total
725
Thiruvallur
Grand Total
M/S KKR
IV
Tirunelveli
M/S Tenera
100
100
III
Sub Total
Tiruvarur
Thanjavur
II
25
200
570.3
5.3
5.3
565
460.8
102.2
Achtmt
2002-2003
Target
District
SlNo
800
170
50
45
75
630
475
21
134
724
120.8
49.5
41.8
29.5
603.2
463.44
20.6
119.16
Achtmt
2003-2004
Target
Xth plan
1200
479
167
173
139
721
555
30
136
Target
1091.21
404.93
150
144.78
110.15
686.28
530.28
30
126
Achtmt
2004-2005
1200
640
180
220
240
560
440
20
100
973
610
170
210
230
363
263
15
85
Achtmt
2005-2006
Target
Table 10.4.7: (contd) Oil Palm development programme - area expansion - State Tamil Nadu
Perambalur
Thanjavur
Tiruvarur
Nagapattinam
3.
4.
5.
6.
196
Cuddalore
Villupuram
Theni
Tirunelveli
Thoothukudi
9.
10.
11.
12.
13.
2200
450
500
800
325
25
100
2006-07
3000
50
100
200
100
250
50
50
450
500
800
325
25
100
2007-08
7000
300
700
1200
700
1200
350
350
450
500
800
325
25
100
2008-09
9000
600
1000
1500
1000
1500
600
600
450
500
800
325
25
100
2009-10
9000
600
1000
1500
1000
1500
600
600
450
500
800
325
25
100
2010-11
9000
600
1000
1500
1000
1500
600
600
450
500
800
325
25
100
2011-12
NOTE : * At Present Only one Entrepreneur is operating in Six District
Anticipating six more entrepreneurs the area coverage will be faster and more in XIth Plan.
Total
Vellore
8.
Tiruvallur
By New Entrepruners
Karur
2.
7.
Trichy
1.
M/S Cauvery
Palm Oil Limited
S. No Dristricts
9000
600
1000
1500
1000
1500
600
600
450
500
800
325
25
100
9000
600
1000
1500
1000
1500
600
600
450
500
800
325
25
100
9000
600
1000
1500
1000
1500
600
600
450
500
800
325
25
100
9000
600
1000
1500
1000
1500
600
600
450
500
800
325
25
100
2012-13 2013-14 2014-15 2015-16
Table 10.4.8 A: Area targeted for next 10 years (unit in ha.)- State Tamil Nadu
Trichy
Karur
1.
2.
197
Tiruvarur
Perambalur
Ariyalur
Jeyakondam
Thanjavur
Kumbakonam
Orathanadu
Papanasam
Pattukottai
Peravoorini
Thiruvaiyavur
Thiruvidaimaruthr
Kulithalai karur
Trichy Lalgudi
1,60,889
63987
42880
91549
Name of
Area
Mandals
under
Identified for assured
Oilpalm Culti- irrigation
vation
(Hac)
Factual
Tiruvarur
1,41,206
Nannilam
Valangaiman
Kodavasal
Needamangalam
Mannarkudi
6. Nagapattinam Mayilapluthur 1,48,174
Sirkali
Semmbanarkoil
7. Thiruvallur
Ponneri
83954
Kummidipoondi
Oothukottai
Thiruthani
5.
4. Thanjavur
3. Perambalur
Districts
Sl
No.
35-37
35-37
35-36
1341.7
1152.8
35-37
37-39
35-37
35-37
Max (c)
Type of
soil
23
Red
Laterite
Alluvial
25 Red loam
Alluvial
25 Red loam
Alluvial
Lateritic
Alluvial
25
Red,
ateritic
Alluvial
27
Red
Lateritic
Alluvial
25 Red loam
Alluvial
25
Min (c)
Average
Temperature
1129.9
1053.0
949.6
742.2
761.5
Area
Rainfall
(mm)
4863
3083
2180
16764
11065
6246
12990
11000
10000
12500
20000
8000
600
2500
10
Area under
Expected
plantation & extent of crop
commercial replacement
crops (Ha.) for Oil Palm
(Ha.) In 10
Years
Table 10.4.8B. District wise scope of development of Oil Palm State Tamil Nadu.
4600
4500
5000
8000
3250
250
1000
11
**Possible area
to be
covered
under Oil
Palm in
next 10
years(Ha.)
13
Tamilnadu is a
water starving
State. Hence
it is proposed
for
diversification
of crops from
Hydrophilic to
less water
requiring
crops. Since
Oil Palm is
proposed in
places of
perenical river
Source,
diversification
is expected by
reduction of
area from
paddy,
sugarcane
and Banana.
12
Area in Hectares
Reason Refor crop marks if
replace- any
ment
198
33 - 34
32 - 40
27 - 41
736.9
655.0
39.1
37
35-36
833.5
1029.4
1235.8
917.0
19 - 26 Red loam
Alluvial
Black
21 - 26 Red Loam
Alluvial
23 Red loam
Black
18/9 Red Loam

Alluvial
22 Red loam
Alluvial
25 Red loam
Black
9055
8591
8782
40546
33653
15079
10000
21000
20000
15000
20000
11000
Sl.No.
1
2
3
4
5
6
7
8
Districts
Tiruchirapalli
Perambalur
Karur
Thanjavur
Tiruvarur
Nagapattinam
Cuddalore
Villupuram
TOTAL
Potential areas as per latest information (ha)

1200
3000
300
15000
7000
6000
5000
5000
42500
Table 10.4.8C : Prospect of Area Expansion of M/s Cauvery Palmoil Ltd
Based on the Statistics Season crop Report 2004 05,

*Area under sugarcane crop and Banana.
Theni
Theni
52,657
Uthamapalayam
Periyakulam
12. Tirunelveli
Thenkasi
1,10,389
Tirunelveli
Sankarankoil
13. Thoothukudi Srivaikundam
40038
Thiruchendur
Kovilpatti
11.
2,22,021
Villupuram
Kallakurichi
Ulundurpet
Sankarapuram
Thirukovilur
Gingee Vanur
70294
10. Villupuram
Arakonam
Vniyambadi
Valajaya
Banrutti
1,46,355
Kattumannarkoil
Virudhachalam
Chidambaram
Thittakudi
Vellore
9. Cuddalore
8.
4550
7800
11900
7800
11950
4600
199
5250
2500
4000
3450
1100
41900
Thanjavur
Tiruvarur
Nagapattinam
Tiruvallur
Vellore
Cuddalore
5.
6.
7.
8.
9.
10. Villupuram
11. Theni
12. Tirunelveli
13. Thoothukudi
Total
4.
1800
1800
4500
5000
8000
3250
Karur
Perambalur
250
1000
3.
Trichy
1.
102850
3000
8000
10000
6250
13000
4500
4500
10000
12500
20000
8000
600
2500
Table B
Potential Expected
Areas
Suitable
Identified
areas
Earlier
as per
(Hac)
latest
inform
ation
as per
(Hac)
2.
S. Districts
No
60950
1900
4550
6000
3750
7750
2700
2700
5500
7500
12000
4750
350
1500
Variation
973
170
210
230
263
15
85
2200
450
500
800
325
25
100
Area
2006
Covered
up to
Feb06
(Hac)
3000
50
100
200
100
250
50
50
450
500
800
325
25
100
2007
7000
300
700
1200
700
1200
350
350
450
500
800
325
25
100
2008
9000
600
1000
1500
1000
1500
600
600
450
500
800
325
25
100
2009
9000
600
1000
1500
1000
1500
600
600
450
500
800
325
25
100
2010
9000
600
1000
1500
1000
1500
600
600
450
500
800
325
25
100
2011
600
600
450
500
800
325
25
100
600
9000 9000
600
1000 1000
1500 1500
1000 1000
1500 1500
600
600
450
500
800
325
25
100
2012 2013
9000
600
1000
1500
1000
1500
600
600
450
500
800
325
25
100
2014
9000
600
1000
1500
1000
1500
600
600
450
500
800
325
25
100
2015
Table 10.4.8 D: Factual potential areas and proposed area for Oil Palm cultivation for next 10 (upto 2015) years- State Tamil Nadu
Area in Hectares
200

AIZAWL (MIZORAM), 21St APRIL, 2006
1
Introduction
1.1 Shri L. Tochawng, Commissioner and Secretary

(Agriculture), Government of Mizoram welcomed the
Honble Minister of Agriculture, Govt. of Mizoram, Dr.
K.L. Chadha, Chairman of the Committee, Shri P.K.
Sharma, Director (TMOP), GOI, other members of the
Working Group and also the representatives of
processors and farmers. Thereafter, Commissioner
Agriculture expressed the resolve of Govt. of Mizoram
in promoting Oil Palm cultivation in the state to help in
the economic development of farming community. He
further stated that state Agriculture Department is
making serious efforts to discourage jhumming and
promote sustainable farming.
1.2 Dr. K.L. Chadha in his address outlined about the
purpose of the visit of the Committee to reassess the
fresh/potential areas of Oil Palm in north eastern states
including Mizoram. He made a mention about the import
of seeds from Costa Rica in the initial years of
introduction of cultivation of Oil Palm in the country. He
also made a mention about the establishment of NRC
OP, establishment of 18 palm oil mills in the country,
water requirement of Oil Palm all over the year,
government incentives, and the policies and price
stabilization fund. He also made a mention of the cap
of 5 ha for micro irrigation, new innovations and subsidy
on bore wells.
1.3 The Chairman then invited the representatives of
Governments of Mizoram and Chattisgarh to present
their views under area expansion considering following
aspects of Oil Palm.
Critical appraisal of problems and prospects.
Area expansion in relation with availability of

irrigation facilities, climatic suitability, identification
of new areas with cropping pattern etc.

Over/under produce seed nursery linked with

Research & development infrastructure

capacities.
Incentives
Price fixation and budget
Policy issues
(Action: State Department of Agriculture/Horticulture)
1.4 The Honble Minister of Agriculture, Government
of Mizoram in his short speech mentioned that in view
of shifting (jhum) cultivation, there is need for offering
an alternative to farmers for weaning them away from
jhum cultivation. He expressed the hope that the
promotion of Oil Palm cultivation in the state of Mizoram
may serve as an alternative to the jhum cultivation. The
intercropping of Oil Palm during gestation period for the
first four-five years may give extra income to the farmers.
The per capita income of the farmers can be increased
if the farmers are facilitated in crop growing and their
marketing etc. In order to safeguard the interest of the
farmers, the Oil Palm Act has been enacted by the
Government of Mizoram.
Mizoram
2.1 Shri L. Tochawng, Commissioner and Secretary

(Agriculture), Government of Mizoram while presenting
the progress of Oil Palm Development Programme
(OPDP) in the state mentioned that the entire allocation
of Rs.107.00 lakh for the year 2004-05 has been utilized
fully for infrastructure development and capacity building
etc. During 2005-06, the State Department proposed
an area coverage of 2000 ha which was later on down
sized to 1000 ha. The purchase of seed sprouts to the
tune of 3,50,000 numbers i.e., 2.5 lakh from state
horticulture nursery, Rajmundary (AP) and 1 lakh from
NRCOP, Regional Station, Palode was made during
2005-06. As per the Action Plan drawn by the State
Department of Agriculture for the terminal year of 10th
Plan i.e., 2006-07, an area coverage target of 2,000 ha
and maintenance of 1000 ha of existing plantation has
been planned. Commissioner stated that six districts
have been identified for cultivation of Oil Palm viz.
Aizawl, Serchhip, Mamit, Kolasib, Lunglei and Saiha.
201

MOUs have been signed with reliable companies like
Godrej Agrovet Ltd and Food, Fats Fertilizers Ltd.
Negotiations are also in progress to sign agreement
with Palm Tech India Ltd. Processing units are also
proposed to be set up by them as per requirement.
Commissioner, Govt. of Mizoram emphasized the need
for setting up of a demonstration unit of palm oil mill
under TMOP Grant-in-Aid which is vital for the
development of Oil Palm in the state of Mizoram. He
also mentioned that the area coverage under Oil Palm
is expected to increase in the state of Mizoram in coming
years. The area expansion target envisaged for the state
of Mizoram is given in Table 10.5.1 for the coming years.
2.2 The Chairman, MIP Marketing Board suggested
that Oil Palm, being a horticulture crop, should be
brought under the control of the Horticulture
Department of the State as is being followed in other
states. He also stressed the need for a uniform policy
in the promotion of Oil Palm in north eastern states.
He further presented a case for enhanced rate of
subsidy to be given to the NE Region farmers for Oil
Palm cultivation. The Chairman agreed that
administrative Department handling Oil Palm in the state
sould be the same preferably Department of Horticulture
as Oil Palm was similar to other palms eg. arecapalm,
coconut, datepalm and palmyra palm.
2.3 Mr. Bhattacharya, Joint Director mentioned that dry
spell in the state of Mizoram starts from October and
continues up to January. Therefore special incentives
are required to be given to the state of Mizoram. There
is need to make provision for rain harvesting structures
for the success of the programme. The lack of
connectivity to the project area is a hindrance in the
successful implementation of the programme. There is
a misconception amongst the farmers that fertilizer is
not required for Oil Palm cultivation. Therefore, lot of
extension work is required to be done by the companies
in this regard.
2.4 Shri P.T. Natrajan, representative of Food, Fats and
Fertiliser Limited in his presentation mentioned that the
company is expanding its operation to other identified
states viz. Gujarat, Orissa, Tamil Nadu, Assam, Tripura
and Mizoram. The company is also looking for
establishment of seed gardens to produce Tenera
Hybrid seed to move towards selfsufficiency in
indigenous seed production. The establishment of
nurseries/crude palm mill and refinery in each of the
states is also proposed to be taken up. The setting up
of power plants in different states to use palm waste

from palm oil mill, as a fuel mix is also proposed to be
taken up.
2.5 He presented the Action Plan of Food, Fats and
Fertilisers Limited for undertaking Oil Palm cultivation
in the districts of Aizawl, Serchhip and Saiha of Mizoram.
The area coverage target projections for future years is
given in Table 10.5.2.
2.6 The representative of FFFL made a mention about
the rainfall of 2500 mm and the presence of some rivers
and a large number of streams in the state and
expressed the view that if these are tapped for irrigation
it would help in promoting Oil Palm cultivation in the
state. With regard to extension activities, the company
is planning to recruit Agriculture Graduates one for each
district. The company will also take up the activities
for training of extension personnel and farmers in Oil
Palm cultivation. The other activities like publicity
campaign, development of irrigation infrastructure, soil
and leaf water analysis, fertilizer recommendation and
supply of inputs, recommendation of suitable crops, pest
control measures and introduction of pollinating weevil,
development of Vermi-compost in the plantation and
liaisoning with financial institutions to provide credit
facility are also contemplated. The representative of
FFFL mentioned that some action is required to be taken
by the state government with regard to constitution of
Advisory Committee and Zonal Committee as per the
provision of The Mizoram Oil Plam (Regulation of
Production and Processing Act, 2004), investment on
link roads, development of irrigation infrastructure,
fixation of price of exotic and indigenous seedlings,
arrangements for disbursement of subsidies, publicity
and propaganda, allotment of land on lease for seed
gardens, allotment of Lunglei district in lieu of Aizawl
disctrict and allotment of Lawngtlai district for area
expansion. They desired that a Price Fixation
Committee be set up in the state of Mizoram.
Action: FFFL & Deptt. of Agri., Mizoram
2.7 The representative of Godrej Agrovet Ltd. in his
presentation mentioned that the company has signed
MOU with Department of Agriculture, Government of
Mizoram on 14.9.2005. He stated that Godrej Agrovet
has been allotted districts of Kolasib, Mamit and Lunglei.
He presented the Action Plan of Godrej Agrovet for
undertaking Oil Palm cultivation in the state. The area
coverage target projections for the next 10 years are
given in Table 10.5.3.
202
2.8 At present the company has identified two nursery
sites one at Saihapui at Kolasib district and another
at Bawngva at Mamit district. It was indicated that the
company has sourced the planting material from M/s
Univanich Palm Oil Public Limited Co., Thailand and
ASD Costa Rica. The Company also made a request
for grant-in-aid for establishment of a demonstration
unit of palm oil mill in Mizoram under TMOP scheme as
a special case for North East Region. The Company
also made a commitment that if they are not able to
establish a factory, even then they will purchase the
FFBs from the farmers. They also made a request that
a Price Fixation Committee be set up in the State of
Mizoram.
(Action: Godrej Agrovet & State Deptt. of Agri., Mizoram)
Chhattisgarh
3.1 Shri Bhupendra Kumar Pandey, Assistant Director

(Hort) Government of Chhattisgarh while making a
presentation indicated that as per report of NRC (OP),
Pedavegi, about 5000-10,000 ha. area in the plains and
Bastar plateau can be made suitable for Oil Palm
plantation by utilizing the underground water resources.
The river belt zones of Raipur, Bilaspur, Raigarh, plains
of Jagdalpur and Dantewada of Bastar plateau regions
are also potential areas. It can be taken up in the
Sheonath river belt, villages of Raipur-Bilaspur districts
and Arpa river belt of Bilaspur district. In the above
suggested areas, Oil Palm can replace or be taken up
along with existing crops like paddy, millets and
vegetables. The success of Oil Palm crop in adjacent
areas of Andhra Pradesh should convince the farmers
to take up Oil Palm cultivation in the state of
Chhattisgarh. In view of this NRC (OP) has
recommended for Oil Palm cultivation in the above
mentioned areas of Chhattisgarh.
3.2 The state Department of Agriculture, Chhattisgarh
informed that the Oil Palm has been taken up in an
area of 3.14 ha at Government Coconut Farm,
Pamalwaya, Tehsil Bijapur, District Dantewada wherein
318 plants of oil palm are in fruiting stage. Another
plantation of 1.25 ha has been taken up at Government

Coconut Farm, Keralapal, Tehsil Narayanpur, District
Bastar wherein 250 plants of Oil Palm are in fruiting
stage.
(Action: State Deptt. of Horticulture, Chhattisgarh)
4. No. representatives from the State of Assam and
Tripura attended this meeting.
5. While summing up the discussion, the Chairman
mentioned that Year-wise targets for area expansion
have to be fixed up up-to 2015 and for that Planting
material requirement for the same area and how we
propose to meet this requirement whether from own/
State Govts. and companies nurseries. If any one is
aware of any other formula in the interest of the country,
they can suggest and this will be taken into
consideration. He was of the personal opinion that
subsidy on irrigation should be more because of higher
cost of production in this region. However, in intercropping, some additional income will be there but intercrops should not be competitive for the main crop and
secondly these should have market assurance
5.1 The Chairman in his concluding remarks desired
that:
A suitability report of the areas along with historical

perspective be prepared and submitted to the
Chairman as also to Director (TMOP), GOI on
priority.
A note about the planting material, where the

nurseries are to be established, import of Oil Palm
sprouts etc is also to be prepared and sent to
Chairman as also to Director(TMOP). GOI
immediately. The companies are also requested
to indicate future source of import of the planting
material.
Any entrepreneur or farmer can send any

suggestion for consideration of the Committee
either through state agencies or directly to the
Chairman on his
e-mail: chadhacommittee2@yahoo.co.in.
The meeting ended with vote of thanks to the chair.
203

Sl. No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
Name of the person

Shri H. Rammawi
Dr. K.L. Chadha
Shri P,K, Sharma
Dr. M. Kochu Babu
Shri Lalramthanga Tochhawng
Shri P Bhattachrjee
Shri Bupendra Pandey
Shri C.Laisarliana
Shri J Thangkhuma
Shri L.V. Zomuana
Shri Lalsangura Sailo
Shri D.Lalmauanzovi
Rev.Liandawala
Wing Cdr. Lalnghinglova
Shri Lalengzami Haolai
Shri C. Vanlalhruaia
Shri P.T. Natarajan
Shri KVS Prasad
Shri P.C. Lalnghaksangi
Shri F.Lalhmunsiama
Shri Lalmingthanga
Shri R. Thansiama
Minister of Agriculture, Mizoram
Chairman
Director (TMOP), GOI
Director, NRC-OP, Pedavegi
Commissioner & Secretary, Agri. & Hort, Govt. of Mizoram
Joint Director Agriculture, Mizoram
Asst. Director of Horticulture, Govt. of Chhattisgarh
Project Director, MIPEA, Deptt. of Agri., Mizoram
Deputy Director (Extension), Directorate of Agri., Mizoram
Agronomist, Dte. of Agri., Mizoram
SMS(Remote Sensing, Mizoram)
Asst. Project Director, MIPEA
Vice Chairman, MIPEA
Chairman,MIPMB-cum-Member, MIPEA
Seed Analyst, Dte. of Agri., Mizoram
Agri. Extn. Officer, Dte. of Agri., Mizoram
GM.M/s FFFL, Hyderabad
Godrej Agrovet Ltd., Mizoram
Development Executive, Godrrej Agrovet,Mizoram
Secretary, AMFU, Aizawl
Farmer, Lp;ason, Mizoram
Farmer, Thingdawl, Kolasib Dist. Mizoram
Table 10.5.1: Action Plan for Area Expansion
Table 10.5.2: Action Plan of FFFL on Area Expansion

Year of
plantations
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
3012-13
2013-14
Total
Year
Proposed Area
under Oil Palm
2005-2007
1,200 ha
2007-2008
6,000 ha
2008-2009
6,000 ha
2009-2010
6,000 ha
2010-2011
6,000 ha
2011-2012
6,000 ha
2012-2013
6,000 ha
2013-2014
6,000 ha
2014-2015
6,000 ha
Total
49,200 ha
(Action: State Deptt. of Agri., Mizoram)
Table 10.5.3: Action Plan of Godrej Agrovet for Area Expansion

Year
Kolasib
Mamit
2006-07
200
2007-08
500
1,000
2008-09
500
950
2009-10
400
950
2010-11
400
900
2011-12
400
900
2012-13
400
900
2013-14
400
1,000
2014-15
400
1,000
2015-16
400
1,000
Total
3,800
8,600
204
Area proposed to be
covered (in ha)
0
500
1,000
1,500
2,000
2,000
2,000
1,000
10,000
Lunglei
500
400
350
350
350
400
400
350
350
3, 450
Total (ha)
200
2,000
1,850
1,700
1,650
1,650
1,700
1,800
1,750
1,750
16,050

AHMEDABAD, 31st MAY, 2006
1
Introduction
1.1 Dr. B. R. Shah, Director of Horticulture, Govt. of

Gujarat welcomed Dr. Avinash Kumar, Additional Chief
Secretary, Agriculture, Government of Gujarat;
Chairman of the Working Group, Dr. K. L. Chadha; Dr.
R. A. Sherasiya, Director of Agriculture, Government of
Gujarat; Shri. P. K. Sharma, Director (TMOP), GOI, New
Delhi; Shri S. C. Srivastav, Managing Director, Gujarat
Agro Industries Corporation Ltd., Ahmedabad; Dr. M.
Kochu Babu, Director, NRC-Oil Palm, Pedavegi; Dr. P.
M. Desai, Director of Research, Navasari Agril.
University, Gujarat; Shri P. M. Asari, Deputy Secretary,
Department of Agril. & Coopn., Government of Gujarat;
Shri. Bhupendra Pandey, Assistant Director of
Horticulture, Govt. of Chhattisgarh, Raipur and other
Members of the Group. However, no representative from
the States of Assam, Tripura and West Bengal
participated in the meeting. Likewise, no farmers
representative was invited for the meeting.
in his opening remarks while emphasising the need for
organizing Working Group Meeting on the Oil Palm
Development also mentioned the follwing:.
1.2.1 Five meetings have been conducted so far to
assess the fresh potential areas in the identified states
and this is the sixth meeting for the states which could
not participate in earlier meetings in which they were
invited. Hence, it was felt that a final opportunity may
be given to interested States to submit their view points
on the development of Oil Palm in their States.
Accordingly, this meeting has been organized for the
States of Gujarat, Assam, Tripura, Chhattisgarh and
West Bengal. Since, no representatives from the states
of Assam, Tripura and West Bengal participated in the
meeting, and no interest in participation of Oil Palm
development programme has been shown, it can be
safely concluded that these states are not interested in
promoting Oil Palm cultivation programmes under
Centrally Sponsored programmes.
1.2.2 This meeting has been organized to discuss the
potential areas for Oil Palm cultivation and related
issues. He said that import of Palm Oil has increased
manifold and it is the need of the time to go for vast
plantations of Oil Palm suitable areas of the Country.
However, while promoting cultivation of this crop, it
needs to be ensured that temperature and rainfall are

ideal for its cultivation. Areas which are not suitable
must be discouraged from planting Oil Palm. Hence,
Gujarat state may take up oil p alm cultivation
programme in three districts viz., Valsad, Surat &
Navasari. For this, a realistic target has to be fixed for
the next one year, next five years and next 10 years
(totaling sixteen years). Yield of Oil Palm varies from
state to state and within the state. For instance the
highest achieved in the state of Andhra Pradesh is 41
tonnes of FFBper ha which has produced 8 tonnes of
Crude Palm Oil (CPO). Oil Palm has several other
factors like its perennial nature being less prone to pest,
diseases and bird attacks in its favour. He also indicated
several suggestions already received from various
states which are under consideration of the Committee.
1.2.3 The Chairman intervened that while planning for
Oil Palm plantations, there should be advance planning
for planting material and processing facilities. Exotic
sources of planting material may also have to be
explored. Various schemes with different pattern of
assistance were implemented from 1985 and as the
cost of cultivation has increased manifold, it may be
relevant to consider amendments to the policies &
incentives and pattern of assistance. As far as possible
the entrepreneurs may be given contiguous areas so
that the cost of transport and diminution in oil extraction
may be minimized to the possible extent. The production
of FFB in 3 shifts will have to be followed during peak
production so that the processing costs may be
minimized. Poaching in other entrepreneur areas for FFB
should be avoided. A uniform price fixation may be
devised considering all the factors involved in the Oil
Palm cultivation so that farmers are ensured with
remunerative price which in turn motivate other farmers
to take up Oil Palm cultivation. For this, a State Price
Fixation Committee has been appointed and GOI is even
considering a Central Price Fixation Committee. There
should be separate and distinct extension functionaries
for Oil Palm development who may take care of aspects
like planting material, subsidy linkages in public and
private sector, ensuring infrastructure development,
ensuring operational efficiency, dissemination of new
technology to the farmers and feed back of farmers
difficulties to relevant agencies. He pointed out that cost
of production of palm oil can be reduced by utilizing
205

waste material in raising the crop, preparation of vermicompost and use as energy. Diversification of palm oil
as bio-diesel like Jetropha is also under investigation.
He pointed out that Malaysia has not responded
positively in Oil Palm technology and planting material
to flow to India even though our imports of palm oil
have increased considerably. He also pointed out that
as Oil Palm grows in height year after year, harvesting
problems arise. So, it is important to procure or design
harvesting tools to harvest fruit bunches without any
damage and reducing labour cost. The Chairman then
invited the participants to express their view points on
the above aspects of Oil Palm for the consideration of
the Working Group.
2. Shri P. K. Sharma, Director, TMOP, GOI mentioned
that though the Oil Palm Development activities were
taken in Gujarat from 1991-92, only about 725 ha area
has been covered under Oil Palm ias against the
potential area identified earlier to the extent of 60,000
ha which is very meager when compared to the time
span it took. He desired that the constraints encountered
in area expansion may be spelt out to take up
appropriate action to counter them by the Working
Group. Further in 1998-99, a processing mill was
established at Navasari by GOI and FFBs were not
made available to run the mill. State Govt. may take a
decision to hand over the mill a to private entrepreneur.
The state may also take steps soon to identify new
entrepreneurs and allot the factory zones along with
identifying the fresh potential areas.
3. Dr. M. Kochu Babu, Director, NRC-Oil Palm,
Pedavegi mentioned that Gujarat ranked third in
potential area survey among the identified states
surveyed earlier. However, the area covered so far is
very meagre. The major reason is non-identification of
entrepreneurs and allotment of factory zones to them.
Therefore, the state Govt. should take appropriate action
to identify the entrepreneurs. NRC-OP is able to supply
sufficient planting material. Technologies and trainings
facilities are available with NRC-OP.
4. Dr. Avinash Kumar, Additional Chief Secretary,
Agriculture, Government of Gujarat informed that
Gujarat is having potential for Oil Palm to the extent of
90,000 ha and accordingly they are planning for Oil Palm
cultivation in the state. The state is also having 30 %
irrigated area which is occupied by commercial and
food crops and the Oil Palm development should take
place by market driven approach. At the same time, the
food security may be ensured. Oil Palm plantation should

not take place at the cost of food crops. He requested
the Committee to lay down the principles of allocation
to entrepreneurs. There was a mismatch between
processors and area. He advised that entrepreneurs
should take up contract farming. The two states were
then requested to make their respective presentation.
Chhattisgarh
Shri. Bhupendra Pandey, Assistant Director of

Horticulture, Govt. of Chhattisgarh, Raipur informed that
demonstrations on Oil Palm Plantation are established
at Government Coconut Farm, Pamalwaya, Tehsil
Bijapur, District Dantewada and at Government
Coconut Farm, Keralapal Tehsil Narayanpur, District
Bastar. While presenting the scope for Oil Palm
cultivation, he mentioned that Paddy is the major crop
in the State which is cultivated mainly during the Kharif
season. The area under commercial crops is negligible.
The income realized per unit area is not competitive.
As Oil Palm cultivation can generate a net revenue to
the tune of Rs. 50,000 to 60,000 per ha, it is expected
that the farmers would readily come forward to cultivate
the crop. Thereafter, he presented the potential areas
for Oil Palm cultivation in the State of Chhattisgarh as
follows:
5.1 Details of potential for Oil Palm Cultivation

in Chhattisgarh State are given in Table 10.6.1.
About 40,000 ha of area in the plains and Bastar
plateau has been identified for Oil Palm cultivation
keeping in view the underground water potential. This
is particularly so in the river belt zones of Raipur,
Bilaspur, Raigarh in the plains and Jagdalpur and
Dantewada of Bastar Plateau regions. He informed that
area expansion programme will commence during the
financial year 2006-07 with a modest target of 500 ha
and thereafter the state plans to cover 20,000 ha spread
over in 9 districts (divided into three factory zones) within
a time span of 10 years. (Table 10.6.2 and Table 10.6.3).
The balance potential area of 20,000 ha would be
covered in the next five years.
5.2 Objectives
206
To create assets and resources that can be utilized

for import substitution as at present large amount
of edible palm oil (approximately 27 lakhs tones)
is being imported.
To utilize the vast pockets of Chhattisgarh, which

are congenial for propagation of Oil Palm.
To ensure sustainable income for livelihood of rural

people for over long period as the life of this crop
is more than 25 years.
To augment socio-economic conditions of the Tribal

and other weaker sections of the society as well
as improving the living standards of the people of
Chhattisgarh State.
5.3 Role of Horticulture Directorate

The Directorate of Horticulture will facilitate the Oil
Palm cultivators and processors and create an enabling
environment for the development of Oil Palm in
Chhattisgarh State. In addition to its regular activities,
the Directorate of Horticulture will concentrate on the
following:
Provide plant material subsidy to developers &

nurseries and cultivation subsidy to farmers.
Provide subsidy for micro-irrigation systems in Oil

Palm and extending the same benefits to weaker
sections of the society to encourage them to get
involved in the programme.
Assisting, guiding and facilitating the Oil Palm

growers to obtain loans from Nationalized and
Cooperative Banks.
5.5 Constraints & Strategy for implementation

Based on the experience of other states, it was
felt that a few constraints would have to be taken care
in the Oil Palm Development Programme. These are as
follows:
Non Availability of suitable high yielding varieties.
Delay in taking up the nursery programme due to

good quality sprouts.
Lack of crushing and processing units in the State.
Lack of Insurance mechanism.
Mortality Rates and loss of plants between the

number of plants originally planted and those
surviving at the end of 4-5 years.
5.6 In order to address the above constraints, the

Horticulture Directorate will take the following
measures
Prior arrangement of suitable high yielding varieties

from reliable sources such as NRC, other Institutes
and Research Stations.
Proper scheduling of activities as per Action Plan

and also planning about procurement of inputs
from various sources well in advance.
Taking help and consultation with established

sources and agencies such as the ISOPOM,
National Research Centre, Foods, Fats &
Fertilizers Ltd., Horticulture Directorates from other
States, etc in implementing the programme in
Chhattisgarh State.
Promotion of Oil Palm cultivation and processing

under cluster approach.
Establish seed gardens, maintenance of nurseries

for supply of quality seed and planting material to
the farmers in time at reasonable cost.
Guiding and facilitating oil extraction entrepreneurs.
Encouraging private sector investment in Oil Palm

promotion.
Monitoring and Evaluation of the programme.
Acting as Nodal agency for Oil Palm Programme

in Chhattisgarh State.
Encouraging private sector investment in

establishment of processing units.
Supporting Oil Palm Growers Associations in

Marketing Arrangements.
Arranging for advanced marketing arrangements

through facilitating MOUs between growers and
buyers.
Institutionalizing Insurance arrangement for the Oil

Palm crop.
Extension of financial arrangements for farmers

to motivate and support them.
Proper care and attention to the plantation to
5.4 Departmental Capacity / Support

It was pointed out that District officers are placed
in all the selected districts with their supporting Staff at
Block levels for extension activities. Good network of
nurseries at Block levels to ensure demonstrations to
farmers and production of quality planting material.
207

prevent mortality and immediate gap filling of Oil
Palm plantations and augmentation of adequate
irrigation facilities to take the plantation to high yield
levels.
5.7 Extension support and Farmers motivation

Activities that would be taken up under Extension
Activities would include:
5.10 Processing
The potential areas would be grouped under three
Factory Zones at three districts each. A small mill of 1
MT FFB/ Hr. capacity will be established in each zone
in the third year. With increase in crop area, the crushing
capacity will be enhanced in a phased manner
depending upon the need. (Table 10.6.4)
5.11 Marketing Arrangements
Identification and selection of Target Groups.
Identification of Training needs among Trainers and

Cultivators.
CPO will be marketed within the state. Value

addition would be made by interested entrepreneurs in
due course.
Training of Extension Personnel.
5.12 Project Cost
Imparting training to farmers on Oil Palm cultivation

practices.
Massive and broad based publicity campaign for

awareness generation.
Development of Irrigation Infrastructure.
At the rate of Rs. 50,000 per ha the investment

required on the project for developing 40,000 ha would
be Rs. 200 Crores out of which the farmers contribution
will be Rs. 100 Crores. The balance Rs. 100 Crores will
be contributed by the Central and State Government in
the ratio of 75:25%.
Appropriate analysis of bio-mass, soil and water.
Determination of area specific requirements of

inputs such as fertilizers, irrigation etc.
Developing area-specific and suitable intercropping models.
5.13 Suggestions for improving the

implementation of the project in Chhattisgarh
State
Considering the shortage of indigenous seed

sprouts, a Hybrid Seed Garden may be established
in the State.
Inclusion of Vermi-composting and organic farming

in Plantations.
Regional Station of NRCOP may be established

in the State to conduct location specific research.
Credit support and financial arrangement through

viable sources.
Regular consultation through established agencies

and scientists.
One Demonstration unit of Palm Oil Mill is required

for the State to build up confidence of the farmers
in the crop.
Rate of Drip Irrigation Subsidy may be enhanced

to 75% for General category and 90% for SC/ST,
women and small/marginal farmers(S&MF).
Separate Staff required in the Department of

Horticulture, exclusively for implementation of the
Oil Palm Development Programme.
6.
Gujarat
5.8 Plantation Under Cluster Approach

Clusters will be formed after surveying the selected
districts and identifying the villagers and farmers in the
cluster. This will enable to generate continuous patches
of land and identified groups of farmers which may then
be formed into Oil Palm Growers and Processors
Association.
5.9 Harvesting and Collection

Farmers will harvest the FFBs once in a fortnight
and deliver the produce to the collection centers to be
established by the entrepreneurs at various locations.
Weighment will be done in the presence of the farmers
and proper receipt issued.
6.1 Area Expansion

Dr. B. R. Shah, Director of Horticulture, Govt. of
Gujarat presented the present scenario of Oil Palm in
the State of Gujarat and scope for area expansion in
the fresh potential area (Tables 10.6.5 and 10.6.6).
6.1.1 Expert Committee of Govt. of India has identified
the various areas feasible for Oil Palm plantation in
Gujarat State as under
208
Ukai kakarapar irrigation project

area i.e., Surat and Valsad distric
15000 ha.
Damanganga command area of

Valsad distric
15000 ha.
Sardar Sarovar project in Bharuch,

Vadodara and Panchmahal distric
15000 ha.
Aliabet high laying are
1350 ha.
6.2 Processing facilities
Kadana command area of

Kheda district
10000 ha.
Sardar Sarovar command area

in costal area of Bhavnagar
5000 ha.
Total
61500 ha.
In the year 1993-94, Oil Palm plantation was

started under OPDP program. But unfortunately,
processing facilities were not established side by side
at proper time and this factor adversely affected the
entire OPDP in Gujarat. In the year 1998-99, FFBs
were ready but processing facilities were not available.
To overcome this situation, the state government
decided to establish country type mill on temporary basis
through Shri. Kalyan Agril. Crop Sales and Processing
Co-operative Society Ltd. Mahuvar, Marol bazar, Dist.
Navsari. (State Designated Agency-S.D.A.) and
established indigenous type mill. The mill was
commenced from December 1999 but oil recovery is
only 10% to 11% crude oil, which was not edible. With
this facility, the society has started to purchase FFBs,
but it was not so effective and farmers are not coming
forward for new plantation. Meanwhile, processing plant
was established with the help of Government of India.
The details of the processing plant are as below.
Narmada, Vadodara, Anand, Kheda & Ghodhara

more area will be brought under irrigation. These
areas are also included in proposed area.
Looking to the potential, new districts like
Vadodara, Anand, Kheda & Godhara will be brought
under Oil Palm cultivation.
6.1.2 He further informed that looking to the agroclimate required by Oil Palm and the most suitable agroclimatic conditions of Surat and Valsad district, it was
decided to introduce Oil Palm in Surat and Valsad
districts of Gujarat State in the initial stage on trial basis.
The Oil Palm in Development Programme was launched
during 1991-92 Gujarat state. Oil Palm plantations were
started during the year 1993-94. However production
started during 1997-98 onwards. During that period,
there were no marketing and processing facilities. At
the end of 1998-99, about 452 ha of area was covered
under Oil Palm. Due to lack of marketing and processing
facilities, farmers were not getting any remuneration
from Oil Palm plantations, which ultimately resulted in
uprooting of Oil Palm plantations. This situation has
adversely affected the Oil Palm Development
Programmme in the state.
6.1.3 He mentioned that at the end of the March, 2006
about 725 ha area was covered under Oil Palm
plantation. But due to the above mentioned reasons,
farmers have uprooted about 525 ha plantation. Now,
only about 200 ha area remained under oil palm
plantations, out of which about 80 ha plantation is more
than 5 years old, and is in fruiting stage. He further
stated that :
Oil Palm is highly suitable in the South Gujarat

districts i.e., Valsad, Surat and Navsari.
The crop diversification is possible by the

replacement of Sugarcane, Paddy & other existing
crops and also by bringing waste land area under
Oil Palm.
With the commencement of Sardar Sarovar

Narmada Project i.e., in the districts of Bharuch,
2.5 MT/hour Crushing capacity
Rs.4.00 Crores total cost of project.
*Rs.2.40 Crores as a subsidy by Government of

India.
Rs.1.60 Crores investment by Shri. Kalyan Agril.

Crop Sales & Processing Co-operative.
September-2000 Construction was started.
June-2001 Completion of the project
6.2.1 Existing processing plant requires approximately

6000 MT FFBs per year, for one shift per day. Thus,
processing plant is ready but FFBs are not available as
per requirement. Minimum 700 to 800 ha adult plantation
(i.e., 7 to 8 years old) is required to produce 6000 MT
FFBs to make this processing plant economically viable.
6.2.2 A Joint Team consisting of various Officials
nominated by Govt. of India visited Surat, Navsari, and
Valsad district during 2nd to 6th November 2004 to
asses the present status of Oil Palm processing plant
and Oil Palm plantation in the State. Some
209

recommendations were made by the Joint team which
are as under.
New beneficiary probably a Private company may

be identified by the Govt. of Gujarat through
advertisement, who is willing to operate the Palm
Oil mill.
As in other States, the Zones may be allotted by
Govt. of Gujarat to the newly identified Company
as their operational area to promote Oil Palm
plantations. This will encourage them to invest
confidently on promotional efforts.
6.2.3 In this connection, presently three entrepreneurs

Godrej Agrovet Ltd., Parle Products Pvt. Ltd., and Foods
Fats & Fertilizers Ltd. have come forward for the
development of Oil Palm in Gujarat. However allocation
of zone to private entrepreneurs is under process.
6.3 Status of Planting Material

Payment of Rs. 10 lakhs has been made to NRCOP Pedavegi for supply of 1,00,000 Oil Palm sprouts.
However, 45,000 sprouts are supplied up-till now and
55,000 sprouts are yet to be supplied. To cover 500 ha
area during 2007-08 under Oil Palm cultivation, 1,00,000
Oil Palm sprouts are required during the year 2006-07.
Accordingly, NRC-OP, Pedavegi has called for demand
of sprouts for the year 2006-07. At Present about 65,986
seedlings are being raised in the Oil Palm nurseries of
Paria, Chanwai, in districts Valsad and Navsari
respectively
6.4 Constraints in Oil Palm Development
When Production was started, there were no

marketing and processing facilities. Due to lack of
marketing and processing facilities, farmers were
not getting any remuneration from Oil Palm
ultimately resulted in uprooting of their plantation.
This situation has adversely affected on Oil Palm
Development Programme in the State.
Area under Oil Palm Plantation is only about 200
ha. Out of which about 80 ha is in fruiting stage.
Newly constructed processing plant requires upto 6,000 MT FFBs per year according to the one
shift per day.
Thus processing plant is ready, but FFBs are not
available as per requirement i.e., 2.5 MT per hour.
Minimum 700 to 800 ha area is required to produce
6,000 MT FFBs to make this processing plant
economically viable.
Due to economical problems, Shri Kalyan

Agriculture Crop Sales and Processing Cooperative Society Ltd. have decided to leave the
responsibility of Processing Plant.
The existing plantation is in scattered area. So

farmers are not ready to bring their produce up to
the processing mill, because transportation is not
economical for them. Collection centers could not
be establishment.
More remunerative crops like Banana, Mango,

Sapota, Papaya, Sugarcane and Vegetables are
being grown in the Oil Palm potential area.
Recently farmers get good remunerative from
sugar cane due to high rate.
6.5 General Observations

6.5.1 Dr. R. A. Sherasiya, Director of Agriculture,
Government of Gujarat said that the area occupied by
the Sugarcane in the potential area for Oil Palm will not
change and hence the target fixed should be realistic.
The diversification of one crop to other crop is based
on the economics of the crop to be introduced newly.
Farmers should be impressed with the economics rather
than persuasion.
6.5.2 Shri S. C. Srivastava, Managing Director, Gujarat
Agro Industries Corporation Ltd., Ahmedabad pointed
out that the production must be driven by market linked
with contract farming.
6.5.3 Mr. Samir Pai Raikar, Manager (OPP) of Godrej
Agro-Vet Ltd. informed that the company has planned
to cover 20,000 ha in Gujarat particularly in Valsad,
Navasari & Surat districts during 2006-07 to 2013-14
and suggested the following for the development of Oil
Palm in the State of Gujarat:
Allotment of Factory Zone
Revival of existing plantations of farmers and

the Palm Oil Mill
Allocation of uncultivated lands to entrepreneurs

for Oil Palm plantation
Captive Plantations through entrepreneur to be

encouraged
Exemption to be granted for Oil Palm by giving

the status of plantation crop so that the
corporate can take up large areas under Oil
Palm
Exemption to permit corporate to take lands

on lease for Oil Palm
210
Increase the maintenance subsidy because of cost

of cultivation increase.
Exemption to be granted for Oil Palm by giving

the status of plantation crop so that the
corporate can take up large areas under Oil
Palm
Exemption to permit corporate to take lands on

lease for Oil Palm
Drip Irrigation subsidy to be extended for the

entire area brought under Oil Palm
Cropping Pattern to be fixed for Irrigation

Projects with area allocation of at least 5% for
Oil Palm.
6.5.4 Mr. P. T. Natarajan of Foods, Fats & Fertilizers

Ltd., informed informed that the company has planned
to cover 10,000 ha in Gujarat particularly in South
Gujarat region during 2007-08 to 2012-13 and
suggested the following for the development of Oil Palm
in the State of Gujarat under three categories:
6.7 Action required by State Government
Immediate allotment of Factory Zones
Enactment of Oil Palm Act
Revival of Processing Facility
Intensive Publicity / Awareness Campaigns
Allotment of Land for Oil Palm Nursery
Allotment of Land for R & D Farm / Seed Garden
Fixation of Price for exotic and indigenous

seedlings
Arrangements for disbursement of subsidies
6.8 Action required by Central Government
Evolving / Importing drought tolerant & dwarf

varieties
Change in Planting density / geometry to promote

intercropping
Increase in unit cost for micro irrigation to Rs.

25,000 per ha and rate of subsidy to 50%
6.6 Extension Activities
Recruitment of Agricultural Professionals
Revision of Fertilizer schedule
Training of Extension Personnel
Enhanced outlay for innovative components
Publicity Campaign
Farmers Study Tours
Standardization of procedure for disbursement of

subsidies
Development of Irrigation Infrastructure
Uniform pricing policy for FFB
Soil, Leaf and Water Analysis
Uniformity in selling price of seedlings
Fertilizer recommendations and supply of inputs
Comprehensive Crop Insurance
Recommendation of suitable intercrops
Pest control measures and introduction of

pollinating weevil
Development of Vermi-compost in the Plantations
Liaison with financial institutions to provide credit

facility
7. At the end, the Chairman desired the house to

give a short note on justification for revision of issues
discussed till now along with suggestions, if any, on his
e-mail: chadhacommittee2@yahoo.co.in.
The meeting ended with a vote of thanks to the
Chair.
211

Sl. No.
Name of the person
Dr. K.L. Chadha
10
Dr. Avinash Kumar,

Additional Chief Secretary, Agriculture
Dr. B. R. Shah, Director of Horticulture
Dr. R. A. Sherasiya,
Director of Agriculture
Shri P.K. Sharma
Shri S. C. Srivastav, Managing Director
Dr. M. Kochu Babu
Dr. P. M. Desai, Director of Research
Shri. P. M. Asari,
Deputy Secretary, Agriculture
Shri. D. R. Gurumukhi, Director i/c
Former DDG (H) & Hort. Comm. & Chairman

Working Group Committee.
Government of Gujarat, Department of Agril. &
Co-op, Sachivalaya, Gandhinagar, Gujarat.
Govt. of Gujarat, Gandhinagar, Gujarat.
Government of Gujarat, Gandhinagar, Gujarat.
11
Dr. K. Ponnusamy
12
Shri T. S. Ingrodia, Dy. Director of

Horticulture, Gandhinagar
Shri. V. C. Sawaiya, Jt. Director of
Horticulture, Gandhinagar
Shri R. M. Solunke, Jt. Director of
Horticulture, Baroda
Shri S. S. Ganvit, Dy. Director of
Horticulture, Valsad
Shri B. D. Ahir, Dy. Director of
Horticulture, Navasari
Shri. Bhupendra Pandey, Asstt. Director
of Horticulture, Raipur, Chhattisgarh
Shri. K. G. Patel, Asstt. Director of
Horticulture, Gandhinagar,
Shri. R. K. Parmar, Horticulture Officer,
Gandhinagar
Shri. K. M. Panchotiya,
Horticulture Officer, Gandhinagar
Shri. N. M. Trivedi, In-charge,
Department of Horticulture, Gandhinagar
Shri P. T. Natarajan, General Manager,
Oil Palm Division, Foods,
Fats & Fertilizers Ltd.
Shri. Samir Pai Raikar, Manager,
Godrej Agrovet Ltd.
Shri. Devang I Desai, Manager, OPP,
Godrej Agrovet Ltd.,
3
4
5
6
7
8
9
13
14
15
16
17
18
19
20
21
22
23
24
Director (TMOP), GOI, New Delhi.

Gujarat Agro Industries Corporation Ltd., Ahmedabad.
Director, NRC Oil Palm, Pedavegi, Andhra Pradesh
Navasari Agril University, Gujarat.
Government of Gujarat, Department of Agril. &
Co-op, Sachivalaya, Gandhinagar, Gujarat.
Directorate of Oilseeds Development,
Govt. of India, Hyderabad.
STA, Directorate of Oilseeds Development, GOI,
Hyderabad
Department of Horticulture, Gandhinagar, Gujarat.
Department of Horticulture, Baroda, Gujarat.
Department of Horticulture, Valsad, Gujarat.
Department of Horticulture, Navasari, Gujarat.
Department of Agriculture, Raipur, Chhattisgarh.
Foods, Fats & Fertilizers Ltd., Hyderabad.
Godrej Agrovet Ltd., Goa.

Godrej Agrovet Ltd., Sachin, Dist. Surat, Gujarat.
212
Table 10.6.1: Districts selected in Chhattisgarh state for Oil Palm cultivation
Agro-Climatic Zone
Northern Plains
Chhattisgarh Plains
Bastar
Districts
Part of Raigarh (Dharamjaigarh tehsil)
Raipur, Mahasamund, Durg, Bilaspur, Korba,
Part of Kanker district (Narharpur and Kanker Block)
along with part of Raigarh district
Jagdalpur, Dantewada and Remaining part of Kanker district.
Table 10.6.2: Area expansion : existing and future coverage in Chhattisgarh

Sl.No. District
Zone - I
1
Dantewada
2
Jagdalpur
3
Kanker
Total
Zone - II
4
Durg
5
Raipur
6
Mahasamund
Total
Zone - III
7
Bilaspur
8
Korba
9
Raigarh
Total
Grand Total
* Demonstration plots
PotentialArea
identified
Area
Covered
AreaTargeted
for next10 Years
Area in ha
(Ha.)
(Ha.)
(Ha.)
Total No.of
Holding
Average size
of Holding
4000
6000
5000
15000
3.14*
1.25
Nil
4.39
3000
3000
2000
8000
3000
3000
2000
8000
1.0
1.0
1.0
3.0
5000
5000
3000
13000
Nil
Nil
Nil
0
2000
2000
2000
6000
2000
2000
2000
6000
1.0
1.0
1.0
3.0
4000
4000
4000
12000
40000
Nil
Nil
Nil
0
4.39
2000
2000
2000
6000
20000
2000
2000
2000
6000
20000
1.0
1.0
1.0
3.0
9.0
Table 10.6.3: District and year-wise targets for next 10 years (in ha) in Chhattisgarh State
Name of District 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Total
Zone - I
Dantewada
75
113
150
225
300
375
412
450
450
450 3000
Jagdalpur
75
112
150
225
300
375
413
450
450
450 3000
Kanker
50
75
100
150
200
250
275
300
300
300 2000
Total
200
300
400
600
800
1000
1100
1200 1200
1200 8000
Zone - II
Durg
50
75
100
150
200
250
275
300
300
300 2000
Raipur
50
75
100
150
200
250
275
300
300
300 2000
Mahasamund
50
75
100
150
200
250
275
300
300
300 2000
Total
150
225
300
450
600
750
825
900
900
900 6000
Zone - III
Bilaspur
50
75
100
150
200
250
275
300
300
300 2000
Korba
50
75
100
150
200
250
275
300
300
300 2000
Raigarh
50
75
100
150
200
250
275
300
300
300 2000
Total
150
225
300
450
600
750
825
900
900
900 6000
Grand Total
500
750
1000
1500
2000
2500
2750
3000 3000
3000 20000
213

Table 10.6.4: Required Processing Capacities up to 2015
Year
2006-07
2007-08
2008-09
Expected
Bearing
area
Nil
Nil
500
Expected
Required
Production
Processing
(Tonnes) Capacity (TPH)
Nil
Nil
Nil
Nil
750
1.0
2009-10
2010-11
1250
2250
3625
9250
1.0
3.0
2011-12
2012-13
2013-14
3750
5750
8250
18750
34250
57000
6.0
12.0
20.0
2014-15
2015-16
11000
14000
86625
123250
30.0
44.0
Remarks
(Strategy to meet)
Three mills each having one M.T. FFB/hr

capacity will be established to cater to the
needs of three Factory Zone.
3 M.T. FFB/hr mill will be established in each
Factory Zone.
Capacity of 3 M.T. mills will be doubled
Capacity of 6 M.T. mills will be doubled
Crushing Capacity will be increased tothe extend
necessary in the respective Factory Zone.
Table 10.6.5: Year-wise area covered under

Oil Palm in Gujarat
Year
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
Total
Area in ha
40.44
231.91
27.94
143.87
8.08
20.32
21.71
192.74
8.31
2.34
27.54
725.20
Table 10.6.6: District-wise potential areas identified earlier and proposed potential area in Gujarat
Sl.
No.
1
2
3
4
5
6
7
8
9
10
Districts
Anand
Bharuch
Bhavnagar
GodharaPanchmahel
Kheda
Kutch
Navsari
Surat
Valsad
Vadodara
Total
Potential Areas
identified earlier (ha)
8000
8350
5000
1000
2000
0
5000
10000
15000
5000
61350
214
Suitable areas as per latest

information (ha)
15300
7000
0
4500
4500
0
15000
18337
18000
5600
90237
Variation
(+) 7300
(-) 1350
(-) 5000
(+) 3500
(+) 2500
(+) 10000
(+)8337
(+) 3000
(+) 600
(+) 28887
COMMITTEE MEETING
NEW DELHI, 20th JULY, 2006
1.
The Chairman extended a warm welcome to the
participants and then made a multi media presentation
of the draft report. He briefly explained the background
of constitution of the Committee and the objectives of
the meeting. He requested the states to make
suggestions and clarify any points of difference on the
recommendations made by the Committee. Thereafter,
during his presentation of the Report, he enumerated
terms of reference (TOR) of the Committee, Structure
of the Report, details of Chapters and potential areas
state-wise, requirement of planting material, additional
processing capacity, suggested changes in subsidy/
strategy and strategies for achieving the objective. The
presentation lasted for about two hours.
2.
The Chairman then invited the view points/
suggestions of Members of the Committee from different
Oil Palm implementing states.
2.1 Shri Ikram Ullah Mahmood, Addl. Director (Oil
Plam), Govt. of Karnataka indicated that the state is in
agreement with all the recommendations as well as area
projections given by the Committee. The state also
agrees with the targets fixed for 2006-07, XI and XII
Plan. As regards establishment of new seed gardens
the states requested for one additional seed garden in
northern Karnataka. He also requested for grant of 2.5
MT/hr capacity mill in the state. He also indicated that
Oil Palm Act is under final stages and would be placed
before the Assembly in the next session. Further he
also suggested changes in the proposed pattern of
assistance for different components of the programme
as already submitted to the Committee. In addition to
this he suggested provision of assistance for fencing
of area of Oil Palm plantations. This item however did
not receive support of participants from other states.
2.2 Shri H.S. Chahar, Principal Secretary (Agri), Govt.
of Orissa agreed with the recommendations of the
committee and stated that subsidy to farmers who have
uprooted the plants should not be stopped because they
were forced to do so for want of availability of processing
units in the state. To this, the Chairman mentioned that
this can only be done in case there is some guarantee
from the beneficiaries that they will not uproot the newly
planted area.
2.3 Dr. T. Radha, Vice Chairman and Managing
Director, AP Oilfed mentioned that he totally agrees with
the recommendations of the Committee. However, he
mentioned that the price mechanism is a cause of
concern. To this the Chairman suggested that few
important states should sit together with 1-2

representatives from processors and come out with a
price mechanism for Oil Palm which could be considered
for the whole country uniformally.
2.4 Shri Bhupendra Kumar Pandey, Asstt. Director
(Hort.), Govt. of Chattisgarh agreed with the
recommendations and mentioned that fencing subsidy
to the extent of 50% of the cost i.e., Rs. 60,000 per ha
should be given to the Oil Palm farmers. The Chairman
said that matter needs to be discussed. The
representative of Karnataka intervened that NABARD
guidelines exist in the matter. Director (TMOP), DAC
said that there is no need to provide fencing subsidies
to the Oil Palm plantations.
2.5 Shri B.R. Shah, Director Horticulture, Gujarat
mentioned that the state has a potential area of 90,250
ha. Already two entrepreneurs, namely, M/s. Godrej
Agrovet and M/s. FFFL(AP) have been allotted 12,000
ha each and accordingly the state Govt. has asked them
to submit their Action Plan for consideration. He further
requested to allow to engage consultants for Oil Palm
development.
2.6 Shri M.N. Babu, Addl. Director (Agri.), Govt. of
Kerala mentioned the reservations of the state about
area expansion under Oil Palm because of pressing
need of other crops like coconut and paddy in the state.
2.7 Shri D. Jayachandran, Jt. Director of Agriculture,
Govt. of Tamil Nadu mentioned that they will try to meet
all the targets under Oil Palm area expansion. He also
requested that there should be one demonstration after
every 50 ha area coverage under Oil Palm. However,
Chairman did not agree to this suggestion. The
representative of the state also suggested that the
amount for farmers training should be increased from
Rs. 15,000 per training of 50 farmers to Rs.25,000 (i.e.,
Rs.300 per farmer to Rs.500 per farmer) which the
Chairman agreed to consider. He suggested that crop
insurance should start from 1st Year onward itself instead
of 7th year. Director (TMOP), DAC asked the state
representative if the farmers will be willing to pay the
premium right from the 1st year and if farmers are ready
then there may not be any problem. Besides this, he
also suggested that the amount fixed for publicity should
be increased from Rs.50,000 to Rs. 1 lakh. The
Chairman desired that the state representative may
submit details of the publicity components of the
proposal.
The meeting ended with vote of thanks to the Chair.
215

Sl. No.
Name of the person
1.
Dr. K.L. Chadha,
Chairman, Working Committee,

H.No.7281, B/10, Vasant Kunj, New Delhi 110 070.
2.
Shri S.M. Desalphine,
Additional Secretary,
Deptt. of Agriculture & Cooperation
3.
Shri M.N. Babu,
Addl. Director Agriculture, Govt. of Kerala,

Vikas Bhavan, Thrivanthapuram
4.
Shri. D. Venkateswara Rao

Government of Karnataka, MS Building, 4th Floor,
Gate No.2, Ambedkar Road, Bangalore- 500 001.
5.
Dr. Ikram Ullah Mahmood,
Additional Director of Horticulture (Oil Palm),

Govt. of Karnataka, Lalbagh, Bangalore- 560 004.
6.
Shri H.S. Chahar
Principal Secretary Agriculture Deptt.,

Government of Orissa, Rajiv Bhavan, Bhubaneswar
7.
Shri Bhupendra Kumar Pandey,
Asstt. Director Horticulture, Deptt. of Horiculture,

Govt. of Chhattisgarah, VP Estate,
Near VIP Club, Khamadih, Raipur
8.
Dr. George V Thomas
Director, CPCRI, Kasaragod 671124, Kerala.
9.
Shri D. Jayachandran
Joint Director of Agriculture, Dte. of Agriculture,

Chennai, Tamil Nadu.
10.
Shri P.K. Sharma
Director (TMOP), Government of India,

Ministry of Agriculture (Department of Agri. .& Coopn,),
Room No.246, Krishi Bhavan, New Delhi 110001.
11.
Dr.D.V.S. Reddy
Deputy Commissioner, TMOP, New Delhi
12.
Dr. M. Kochu Babu
Director, National Research Centre for Oil Palm,

West Godawari District, near Jawhar Novodaya Vidyalaya,
Pedavegi 534 450, Andhra Pradesh
13.
Dr. B.R. Shah
14.
Dr. T.Radha,
Director of Horlticulture, Govt. of Gujarat,

Gandhinagar (Gujarat)
Vice Chairman & Managing Director,
Andhra Pradesh Oil Seed Growers Federation,
9th Floor, Parishram Bhavan, Basheer Bagh,
Hyderabad 500 016.
15
K.J. Prabhakara Rao
Divisional Officer, AP OILFED, Eluru
16.
Shri G. Raghunantha Reddy
Dy. Manager (OPD), AP OILFED, Hyderabad
17.
Shri D.R. Gurumukhi
Director, Directorate of Oilseeds Development,

Govt. of India, Ministry of Agriculture
(Department of Agri. & Coopn.), Telhan Bhavan,
Himayatnagar, Hyderabad 500029.
18.
Dr. K. Ponnusamy
STA, Directorate of Oilseeds Development, Govt. of India,

Ministry of Agriculture (Department of Agri. & Coopn.),
Telhan Bhavan, Himayatnagar, Hyderabad 500029.
216

DR Chadha Committe Report

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PROGRESS AND POTENTIAL OF

OIL PALM IN INDIA

Dr. K.L Chadha, Chairman

Department of Agriculture & Co-operation

Oil Palm Committee Report - 2006

PROGRESS AND POTENTIAL OF

Area, Production and Productivity

Demand and Supply

Major Oilseed Crops

Deficit and Imports

Importance of Palm Oil

Initiatives Taken for Promotion of Oil Palm

Problems Faced in Area Expansion

Reasons for Uprooting

Impact of Oil Palm Development Programme (OPDP)

Future Prospects of Oil Palm Cultivation

IDENTIFICATION OF NEW AREAS

Recommendations of Chadha Committee -1988

Future Area Expansion

Oil Palm Committee Report - 2006

Importance and Type of Planting Material

Early Introduction of Seeds

Recommendations of Chadha Committee -1988

Import of Oil Palm sprouts

Establishment of seed gardens

Planting material produced and distributed

Planting material available

Requirements of Planting Material

Estimates (2006 - 2017)

Strategy to Meet Requirements

Augmenting production of existing seed gardens

Establishment of new seed gardens

Related Technical Issues

Selection of seed parents

Seed quality standards

Ideal seedlings for planting

PRODUCTION AND PRODUCTIVITY

Production of Oil Palm

Harvesting and handling

Causes for Low Yields in Oil Palm

Quality of planting material

Age of the palms

Pests and diseases

Harvesting and handling operations

Recommendations of Chadha Committee -1988

Establishment of Processing Units

Palm Oil/Palm Kernel Oil Produced

Oil Extraction Ratio (OER)

Oil Quality and Quality Control

Required Processing Capacity

RESEARCH AND DEVELOPMENT

Recommendations of Chadha Committee - 1988

Oil Palm Committee Report - 2006

Extension staff in different states

Staff with processing companies

Land Related Issues

Oil Palm Act

Price Stabilization Fund

Private Sector Participation

7.8.1 Area expansion

7.8.2 Development of irrigation facilities

7.8.3 Promotional activities