The Telangana Cabinet has decided to incentivise farmers who go in for oil palm plantation. The Cabinet, which met here for the second consecutive day on Wednesday, decided to expand oil palm coverage to 8.08 lakh hectares (lh) by the end of 2023.
The State has decided to tap the opportunity in the edible oil crop, banking on enhanced irrigation facilities in the last 2-3 years.
Oil palm cultivation is restricted to only 20,234 hecares in 4-5 districts of the State. The State is now planning to promote the plantation crop in 25 districts.
Investment subsidy
The Cabinet has decided to give an investment subsidy of ₹26,000 an acre in the first year and ₹5,000 each in the second and third years of the crop. The long gestation crop requires heavy investments in the first few years, holding the farmers back from shifting to oil palm from other traditional crops.
The Cabinet has directed the Forest Development Corporation, Panchayat Raj and Rural Development Departments to grow oil palm nurseries and make the plants available for farmers.
It has also decided to send a team comprising Ministers, people’s representatives and officials to countries like Malaysia, Thailand and Indonesia to study the best practices in growing oil palm plantations there.
It asked the officials to extend financial incentives to oil palm processing units through Telangana State Industrial Development and Entrepreneur Advancement and Telangana Special food Processing Zones.