The Oil Palm Developers and Processors’ Association (OPDPA) has welcomed the Centre’s move to allow 100 per cent Foreign Direct Investment (FDI) in oil palm plantations.  The association feels that the move would help fill the gaps in supply of the edible oil.

It, however, wants relaxation of land ceiling norms to facilitate the growth of oil palm acreage and to allow large-scale plantation.

India, which grows oil palm in 2 lakh hectares, has a potential to expand the acreage to 20 lakh hectares, keeping in view the demand. The industry, which provides employment to 20,000, can create two lakh jobs more if growth projections are to be met.

“With this positive step from the Government of India, this massive potential can be cashed into and India’s palm oil import burden of $10 billion can be reduced,” said Sanjay Goenka, President of OPDPA, has said.

While calling for an exclusive palm oil import policy, the association feels that the current import duty levels are not supportive to oil palm farmers and the industry.

He called for formation of a separate oil palm development board to aid the promotion of the industry as planned by the Government. “This will also help address issues facing the farmers and industry on a regular basis. These issues are largely going unattended and is one of the reasons for poor palm oil development in the country,” he felt.

The association also wanted the Government to draft a long-term subsidy policy to support the farmers.

“The palm oil industry deserves highest priority and encouragement to meet the internal demand of edible oil, resulting in strong imprint on savings of foreign exchange,” he said.

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