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Palm oil price slide impacts OPIL plans

Aravindan

KOTTAYAM, April 30

THE expansion programme of Oil Palm India Ltd (OPIL) has been seriously affected by the sharp fall in palm oil prices and as a result, the targets fixed under the Five-Year Plan to extend oil palm cultivation to 1,000 hectares could not be achieved accor ding to Mr O.V. Jose, OPIL's new Managing Director.

As against 1,000 hectares targetted for development last year during the Plan period, only 100 hectares was brought under oil palm. The agitation started by political parties against oil palm coupled with the negative attitude shown by the farmers for fe ar of continuous depression of oil prices marked the beginning of a troublesome period for this plantation crop.

Though several reasons were attributed to the price fall, farmers' reluctance slowed down the expansion. The price fall had brought down the profitability level of the crop considerably.

OPIL was established in 1983 as a joint venture of between the Union Government and the Government of Kerala for extensive cultivation of oil palm and to minimise the shortage of edible oil.

With the Central and State Governments extending subsidy, it was expected to start cultivation in 1,000 hectares in Kollam and Kottayam districts in the State assuring a subsidy of Rs 16,250 per hectare. Oil palm is now cultivated in area of 3,647 hectar es in Kerala.

To supplement the loss of income from oil, OPIL plans to embark upon a diversification programme. A feasibility survey would commence soon and based on this survey report, details of the new project would be worked out.

However, during the initial period, the company would bring out new products such as margarine and shortening for bakery sector and soap needles for soap industry. Other products under the project would be finalised on receipt of the survey report.