The oil palm industry has asked the Union Government to come out with a robust MSP (minimum support price) framework to protect the palm farmers in the country. “We need such a framework as recommended by the Commission for Agricultural Costs and Prices to protect the interests of the farmers,” Sanjay Goenka, President of Oil Palm Developers and Processors Association (OPDPA), has said.

“It is imperative that a price stability mechanism be put in place to protect the Indian oil palm farmer from fluctuations in the price of the produce. Currently, the price of the produce is fixed by a scientific formula, derived by the CACP committee, which links the price payable to the farmer to the landed cost of imported palm oil,” he said.

The association had represented the case to the government along with members of the oil palm farming community. “We are confident that the government will consider the request,” he said in a statement on Monday.

The association welcomed the proposal to extend assistance under NMOOP (National Mission on Oilseeds and Oil Palm) for more than 25 ha area per farmer. This should help increase the area under oil palm coverage in the country.

“While this development is extremely progressive, a combination of reforms via the approved Cabinet note and a mechanism to protect the farmers against price fluctuations would make the oil palm programme a huge success in India,” he felt.