Refuting reports that they had decided to pay only Rs 2,160 per tonne of FFB to the farmers, the Oil Palm Developers and Processors' Association (OPDPA), said on Tuesday and added that it had decided to prevail with the old price despite heavy losses during the entire period last year. Executive director of the association NV Raja Rao said despite heavy losses during entire last year due to steep decline in crude palm oil (CPO) prices, we continued to pay farmers at the government rate till the last date.

He said as per the weighted average prices of CPO that prevailed during November 1998 to October 1999 and according to the price fixation formula, the FFB price works out to Rs 2,160 per tonne only. But we requested the central and state governments so as to enable the farmers to get Rs 3,000 per tonne of FFB.

We again reiterated that at no time we said that the farmers should get lesser amount than their due. The oil palm industry is in no position to incur further losses. The governments should take prompt actions immediately, Rao said.

According to him, the association has suggested the following actions: a)To subsidise the farmers to the extent of the differential price of FFB; b)To increase duty on import of CPO and palm oil from 15 per cent to 65 per cent, the original level; c) To prevent dumping in of cheap import CPO and palm oil of all descriptions as oil imports are brought under OGL and d)To import edible oils to the extent required only.