Tour report of M.N. Sukumaran, Director (Oil seeds) during his visit to Kollam District in Kerala from 19th – 21st August, 2014 to monitor the progress of NMOOP

Department of Agriculture and Cooperation had on 18 June, 2014 approved the Annual Action Plan of Kerala for implementation of NMOOP at Rs.0.92 crore (Rs.0.69 crore Central share and 0.23 crore State share). Kerala Government is implementing only Mini Mission II i.e. Oil Palm. The sanctioned amount is to be utilized as per the conditions laid down in the sanction letter. Physical and financial progress reports of the scheme are required to be submitted by the State Government on monthly basis to the DAC.

2. The undersigned visited Kollam District of Kerala on 22nd August, 2014 to assess the progress of oil palm planting in the district.

3. Oil Palm India Limited, a joint venture of Government of India and Government of Kerala is entrusted with the responsibility of oil palm cultivation in the State. At present oil plam is cultivated in 13 districts of Kerala, except Trichur District.

4. Oil Palm plantation in Kollam District started in 1971 in two estates (Yeroor Estate 3,600 ha and Chitra Estate 1,500 ha). I visited the Yeroor estate during the period of stay. The plantation in Kollam District is the oldest in India and is rain fed. Bore well pump set and drip irrigation are not there in the plantation. The average yield per hectare is 4-5 tonnes. The best season is March-April-May. Re-planting has been done in the year 2014 in 100 ha. The Oil Palm India Limited (OPIL) has a nursery at Kulathupuzha which has about 80,000 plants there was also visited.

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5. During the visit, I had interaction with two prominent farmers Mr. Divakaran Pillai (who owns 4 hectares) and Mr. Bijoy Alex (who owns 6 hectares).

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Both are committed farmers and have plantations which are about 20-25 years old. Both are interested in having more plantations provided they get a remunerative price. At present they produce about 1.0 lakh tonnes of FFBs from 4 hectares per month and earn about Rs.7,000/- per tonne. Of this about Rs.2,000/- is spent on, fertilizers, labour charges etc. Both of them felt that coconut plantation is getting better price when compared to oil palm. Rubber which is the dominant crop is fetching a price is Rs.150/- per kg against Rs.70/- for palm oil. Farmers are reluctant to change to oil plam. Committed farmers like Bijoy Alex and Divakaran Pillai feel that oil palm should be allowed to be planted in agricultural land (which is not possible at present in as per the existing regulations).

6. Mr. Krishna Kumar, Mr. Ibrahim and Vincent George, Officers from Oil Palm India

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Limited(OPIL) assisted the undersigned during the visit. I had interaction with Managing Director Mr. K.N. Ravindran also. Due to absence of State Government official, the position regarding issue of State level sanction for implementation of NMOOP and the district wise action issued by Govt. of Kerala could not be ascertained. It has been observed that the plantation of oil palm in Kerala is largely managed by Oil Palm India Limited which organizes regular monthly meetings with cluster of farmers all over Kerala. The FFBs produced in the State are purchased by OPIL and is processed in their plant at Kollam. The price as on date is Rs.7,000/- per tonne which has been fixed as per the guidelines issued by Government. Outside agencies are not involved in the process. Payment to the farmers are made on-line in cases where bank accounts are available and in other cases through cheques.

7. The oil palm mill of OPIL where the processing of FFBs are done and crude palm oil is produced was also visited. The crude oil produced is sold through e-auction. Refining facility has not yet been set up so far. The plant is being run in a systematic manner and is run three shifts during peak season and in 2 to 2- ½ shifts during off season.

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Action Points:

1. State Govt. may be requested for active their involvement in implementation of NMOOP in association with OPIL.

2. Involvement in monitoring and submission of regular monthly/quarterly progress reports to DAC.

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