The Hindu Business Line : Oil Palm India to set up kernel oil processing plant

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Oil Palm India to set up kernel oil processing plant

Aravindan

First such unit in India

Kottayam , Sept. 22

Oil Palm India Ltd, a joint venture between the Union and Kerala Government, will set-up a new kernel oil processing plant at an outlay of Rs 2 crore during the current fiscal. The project report of the factory has already been presented for approval. The expenditure would be met from the company's own funds, Mr V.B. Binu, Chairman, Oil Palm India, told Business Line.

The company based at Kottayam has oil palm cultivation in 10,000 acres in three estates at Eroor, Chithara and Kulathupuzha in Kollam district. The modern factory at Erroor has a processing capacity of 20 tonnes a hour. Another research institute is functioning at Thodupuzha in Idukki District.

Pilot Project

During the current year the company has posted a profit of Rs 13 crore. There is no other factory in India, which produces kernel oil from oil palm seeds. The kernel oil, which has immense marketing potential, is at present imported. Oil Palm India is producing 70,000 tonnes of crude palm oil every year.

Under the Oil Palm Development Programme (OPDP) implemented by the Government of India, the growers would get a subsidy of Rs 23,000 per hectare for oil palm cultivation. There is also a pilot project under which a grower could get Rs 73,000 for cultivation in Kari lands. Dr Chadha Committee appointed by the Government has recommended to enhance the subsidy further. The company has already expanded the oil palm cultivation to 800 acres owned by the small growers. An area of 200 acres in Kallara, Kottayam was also brought under cultivation.

Oil Palm Cultivation

The successful cultivation under OPDP, by the growers in the Central Kerala, has sent positive signals to the northern districts of the State. A survey conducted in Malappuram Wynad and Kozhikode districts identified over 10,000 acres suitable for oil palm cultivation. Of this, cultivation has already been done in 200 acres.

Harvesting is done on the fourth year of cultivation and the proceeds from one hectare would be from Rs 60,000 to Rs 100,000. Being a sustainable crop, growers get the benefits of the harvests continuously for 35 years, said Mr Binu.

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