Progress Report on Oil Palm Cultivation in Karnataka
Karnataka State shows promising potential for oil palm cultivation with significant production and government support, though facing challenges. The progress under the National Mission for Oilseeds and Oil Palm (NMOOP) is detailed for 2015-16 and planned for 2016-17, highlighting key constraints in implementation.
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NATIONAL MISSION FOR OILSEEDS AND OIL PALM (NMOOP) MINI MISSION-II (OIL PALM) III EXECUTIVE COMMITTEE MEETING KARNATAKA DATE: 25.10.2016
INTRODUCTION 1. Karnataka State has a potential of 2.60 lakh ha. for oil palm cultivation. 2. Currently, in the State about 8600 farmers are cultivating oil palm in an area of 10400 ha. out of which 4300 ha. is under bearing, producing about 15000 M.Ts of Fresh Fruit Bunches (FFBs) annually. 3. The annual Crude Palm Oil (CPO) Production is about 2600 M.Ts worth about Rs.9.80 crores. 4. There are 4 oil palm processors in the State operating in specific districts. 5. The state has enacted Oil Palm Act in the year 2013 6. The State Government in the interest of the farmers has announced assured price since 2008. 7. The FFBs price for the month of Sept-2016 has been declared at Rs.7967/- per M.T.
8. Recently, the State Government has also announced assured price for 3 yrs starting from 2015-16 to 2017-18. 9. The assured price for the year 2015-16 has been declared at Rs.9500/- per M.T. 10. For the first time, Aadhar enabled payments have been made to the farmers to disburse Minimum Assured Price for the year 2015-16. 11. A Committee chairmanship of Principal Secretary to Govt., Horticulture will decide the assured price for the year 2016-17 and 2017-18. constituted under the
PROGRESS UNDER NMOOP- MM-II (OIL PALM) DURING 2015-16 Rs. in lakhs Opening Balance as on 1.4.2015 (GOI share) Allocation/ Approved Funds Release of Funds including revalidation of opening balance Expenditure Unspent Balance (GOI) as on 1.4.2016 GOI State Total GOI State Total GOI State Total 66.612 183.686 (33%) 375.776 (67%) 559.46* 158.45 323.978 482.43 134.635 320.098 453.44 23.817
PROGRAM AND PROGRES UNDER NMOOP MINI MISSION II (OIL PALM) FOR 2016-17 Rs. in lakhs Central Share (29%) Total State s matching Share (71%) Unspent balance as on 1.04.2016 or opening balance for 2016-17 Budget required during 2016-17 as per AAP 81.76 23.817 57.943 650.926 189.584 461.342 Total 213.401 519.285 732.686 Opening Balance as on 01.04.16 (GOI) 23.817 Release of Funds State Expenditure State Unspent Balance (GOI) GOI Total GOI Total 96.5192 234.8203 331.3395 73.06 166.37 239.43 23.4592
CONSTRIANTS FACED IN IMPLEMENTATIN OF THE PROGRAM Severe competition from Arecanut, Sugarcane, Coconut and Banana. Long gestation period in Oil Palm and Small holdings of the farmers. Difficulty in harvesting of FFBs from tall plantations and Non-availability of skilled labour for harvesting oil palm FFBs from tall plantations. Continued drought situation resulting in drying of bore-wells, open- wells and lakes. FFBs and edible oil Price fluctuation or Price in-stability. Low productivity due to non-practice of good management practices by the farmers. Acute power shortage. Import policy and low import duty on Crude Palm Oil by Govt. of India.