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Vizianagaram, July 23 Oil palm farmers in the State have sought diesel subsidy and enhancement of price for fresh fruit bunches (FFBs), as the processing units are making good profits.

The demands were voiced at a regional convention of oil palm farmers here on Wednesday in which farmers from Srikakulam to West Godavari district, scientists and Government officials participated.

Mr P. Subba Rao, President of the National Oil Palm Farmers’ Association, said Andhra Pradesh was the leading State in oil palm cultivation with 60,000 hectares under the crop, but there was still unexploited potential.

“The present pricing formula, at 12 per cent of crude palm oil price a tonne of fresh fruit bunches, should be revised upwards by at least two percentage points. Besides, there is also an urgent need for providing diesel subsidy to oil palm farmers as the power situation in the rural areas is very bad. Farmers are forced to run the pumpsets on diesel and cultivation is becoming impossible without subsidy,” he said. Dr S. Chellappa, Principal Secretary (Agriculture and Co-operation), said the State Government was committed to promoting oil palm cultivation and would extend maximum help to farmers. He urged farmers to make the best use of subsidies offered on the crop and follow the recommendations of the scientists to get the results.

Mr B. Kishore, Collector of Vizianagaram, said oil palm was being cultivated in more than 5,000 hectares in 22 mandals out of the 31 mandals identified as suitable for the crop and three companies had been allotted zones in the district for setting up processing units.

Dr M. Kochi Babu, Director of the National Research Centre on Oil Palm, said oil palm was particularly suited to the north-coastal districts of Andhra Pradesh and farmers should take it up, as it was very remunerative. The State Government had fixed a target of bringing an additional 20,000 hectares this year (2008-09) under oil palm cultivation. Though it was a bit ambitious, it could be achieved, he said.

On a question of diesel subsidy, he said it would have to be cleared by the Union Government and the Planning Commission.

Dr Babu said oil palm farmers in Andhra Pradesh were getting a much better price at Rs 5,800/ tonne of FFBs than their counterparts in most other States. “For instance, in Tamil Nadu, it is as low as Rs 3,500/tonne. The Chadha Committee has recommended a uniform pricing policy across the nation for oil palm and I think it should be implemented,” he said. From August, he said, the oil palm farmers in Andhra Pradesh would be getting more than Rs 6,000/ tonne of FFBs.

Mr B.V Rama Rao, President of the Federation of Andhra Pradesh Industries, said the demand for diesel subsidy was justified in view of the power situation in the State and the Government should concede it. Oil palm farmers should be paid a remunerative price and middlemen should be eliminated in the agricultural sector.

More Stories on : Oilseeds & Edible Oil | Andhra Pradesh

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