Market Intervention Scheme announcement by GoI is timely and a boon to Farmers of Oil Palm Plantations: OPDPA

Chandigarh, April 22, 2016: The Oil Palm Developers and Processors Association (OPDPA), the nodal body for oil palm development in India, applauded the move of the Central Government to assist the Palm Oil farmers by implementing a Market Intervention Scheme for Fresh Fruit Bunches (FFB) of Oil Palm to Rs.7888 per ton. Declining crude oil prices over the past year has been the bane of the industry, and has resulted in severe distress for both farmer and industry. OPDPA has made continuous recommendations to the Government, fighting for the cause of the farmers during this time of globally falling commodity prices. OPDPA has been constantly persuading the state and the central Governments to introduce Minimum Support Price (MSP) or Market Intervention Scheme (MIS) to help farmers withstand external conditions.

Commenting on this development Mr. Sanjay Goenka, President – OPDPA said; “The announcement of MIS by the government is a huge relief for the farmers and also for the industry which has been bleeding over the last season. OPDPA’s agenda will continue to pursue the cause of getting the much required changes made to existing policies, enhance subsidies and to undertake other significant initiatives to help sustain this important industry.”

This move is a welcome respite for the farming community in India.

India’s dependence on vegetable oils is growing at an alarming rate and is expected to grow to 22 million tons by 2020. Today, India has more than 2 lakh hectares under oil palm cultivation, with an additional potential of around 2 million hectares. The industry already employs 20,000 people and has the potential to create 2, 00,000 jobs.