New Delhi, Aug 18 (PTI) Industry bodies COOIT and OPDPA on Wednesday welcomed the new Rs 11,040-crore scheme to promote oil palm farming, saying assistance to be given to farmers and other stakeholders will help boost acreage.

The Cabinet on Wednesday approved the National Mission on Edible Oils-Oil Palm (NMEO-OP), aimed to cover oil palm in an additional area of 6.5 lakh hectare by 2025-26.

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Currently, oil palm is cultivated in only 3.70 lakh hectare in the country.

In a statement, Central Organization for Oil Industry and Trade (COOIT) President Babulal Data said this new mission is a step in the right direction.

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"The decision to compensate farmers of oil palm in case the prices fall below minimum support price and enhancement of input subsidy from Rs 12,000 per hectare to Rs 29,000 per hectare will encourage farmers to undertake cultivation of oil palm," he said.

It is also important that oil palm plantation is provided industry status and FDI is also allowed, he added.

Oil Palm Developers and Processors Association (OPDPA) President Sanjay Goenka said it is a landmark reform, and years of efforts in making these demands for the benefit of farmers, industry and economy have come to fruition.

"OPDPA as the nodal agency has been relentlessly pursuing the government to bring about reforms in the sector to help create a sustainable environment for the farmer and the industry — be it the pricing mechanism or other subsidy measures towards increasing the crop cultivation," he said.

The new scheme will benefit the farmer — the most important stakeholder in making oil palm cultivation widespread a reality and whose welfare the association has been fighting for, he said.

The Cabinet's nod for the mission will have a positive impact on the sector making it viable for the industry to continue to contribute towards being self-sufficient in edible oil requirements, he added. HRS hrs

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