This is because cultivation of different types of edible oil crops such as groundnut oil, sesame oil, rice bran oil are seasonal in India. Also, these crops are rainfed crops, which are heavily dependent on monsoon. Add to these, the yield per hectare of such crops are around 300 kg per hectare, which is low to meet India's demand for edible oils.

Oil palm with fewer labour requirements, its perennial nature, higher productivity of around 4 to 5 tonnes per hectare, was seen as an answer to meeting India's burgeoning demand for edible oils. However, how far has the country been successful in this endeavour?

During the latter half of the eighties, the government actively encouraged oil palm cultivation in thecountry in the form of 100 per cent subsidies for farmers, training and providing minimum support price, among other measures. Yet, of the estimated identified potential of 8 lakh hectares of cultivable land, the country has not been successful in popularising oil palm cultivation in at least 50 per cent of the identified land.

Of the 8 lakh hectares identified, nearly 4.1 lakh hectares are in 11 coastal districts of Andhra Pradesh stretching from Srikakulam to Nellore, says, assistant director of horticulture, Andhra Pradesh government, C Sri Venkateshwara Rao.

In Andhra Pradesh itself, so far only 25,000 hectares of land have been brought under oil palm cultivation so far, Venkateshwara Rao says. The major problems associated with oil palm cultivation, Rao says, is the long gestation period for crop output. It takes nearly 4 years for the oil palm crop to flower.

The investment needed for oil palm cultivation is also large. As per Nabard stipulated rates, a farmer needs to invest around Rs 43,000 perhectare. Also, the country imports the seedlings from Costa Rica and Papua New Guinea.

Yet, things could get on the fast lane, if one takes into account the new initiatives of the Andhra Pradesh government. Earlier this year, the state government brought oil palm cultivation under the district credit plans. This would enable oil palm farmers to secure finances from nationalised banks, Venkateshwara Rao said.

The state government was also the first in enacting a legislation, the Andhra Pradesh Oil Palm (Regulation of Production and Processing) Act whereby factory zone have been allotted to different oil palm companies for raising nurseries, area expansion and establishment of processing units. The fresh fruits bunches are purchased by the companies at the rates prescribed by the government from time to time.

However, when The Financial Express spoke to the Oil Palm Developers and Processors' Association, its president Sanjay Goenka attributed the farmers' difficulty in securing electricityconnections as the major problem in popularising oil palm cultivation in the state.

``Oil palm requires regular watering. Hence electricity is essential for irrigation,'' he says. ``The first question we ask a farmer interested in oil palm cultivation is if he has proper irrigation facility,'' he said emphasising the importance of electricity for oil palm cultivation.

``Oil palm cultivation provides income to the farmer during the normal lean agricultural season of April-September. That is one of the foremost advantages in oil palm cultivation,'' Goenka says. ``Labour requirement is negligible,''Goenka said pointing to another advantage of oil palm cultivation.

However, there is a silver lining in the clouds. The rising popularity for oil palm cultivation is seen in the increasing number of processing units being set up in the state. Until 1992, there was not a single processing unit in the state.

Today, there are 4 units involved in oil palm processing. Four others are being established and six moreunits are in various stages of implementation of their units.