The Solvent Extractors’ Association, which represents the edible oils industry, has urged the Centre to declare palm a plantation crop and exempt the 1 million hectares of land identified for palm cultivation, from the Land Ceiling Act.

This will not only facilitate corporate participation, but also help the Centre realise its target of bringing 10 lakh hectares under palm cultivation and produce 4 million tonnes of fruits a year.

Land identified In 1983, the government had identified specific land for palm plantation in Goa, Kerala, Andhra Pradesh and Tamil Nadu, but has managed to bring only 2.50 lakh hectares under cultivation.

Of late, the government has included Mizoram, Nagaland and Arunachal Pradesh in the 33-year-old plan to boost palm production and reduce India’s dependence on imports.

BV Mehta, Executive Director, Solvent Extractors’ Association, said that once palm cultivation is given plantation crop status, corporate houses can take it up in a big way as in the case of tea and rubber.

Though amending the overall Land Ceiling Act is a touchy subject, both the State and Centre can amend the law only for the 1 million hectares of identified land for palm plantation, he suggested.

Import reduction The move will help India reduce its import bill substantially, as the country ships in about 9 million tonnes of palm oil annually.

Currently, companies such as Godrej Agrovet and Ruchi Soya are involved in palm plantation through contract farming and the yields are comparable to that of Indonesia and Malaysia, the largest palm producers.

Previous experiences have shown that farmers uproot the plant if prices drop sharply. The industry has developed various techniques to halve the water usage of 240 litres a day in palm cultivation, said Mehta.

On the subject of government permission for farmers to grow genetically modified (GM) oil seeds, Mehta said the deadline for submission of individual opinions on the matter ends this week, and a decision is expected before the next crop season. The industry expects the government to allow GM in mustard.

Plea to lower duty Meanwhile, he said, the government should reduce import duty on non-GM oilseeds from 30 per cent to 5-10 per cent, as the oilseeds produced in India are not enough to operate mills at full capacity.

At present, oil mills operate at less than half of their annual capacity of 30 million tonnes. To protect farmers’ interests, said Mehta, the Government can allow oilseed imports during the lean season, between April and September.

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