Leveraging on the increased attention on edible oils, Oil Palm India, the Kerala-based public sector venture established to promote oil palm cultivation in the nation, is all set to increase its production through massive re-plantation schemes and by bringing more area under cultivation. Increasing profitability and importance has prompted the company also to add a refining plant to produce refined palm oil and a processing plant to process palm kernel oil.
An investment of Rs 10 crore will help the company sell its own branded refined palm oil in the market, VB Binu, chairman of the company told FE. Oil Palm presently sells crude palm oil to private players who process it into refined palm oil.
The palm kernels, which are presently sold at a throwaway price, can also be converted to palm kernel oil, a superior product similar in nature to coconut oil and in great demand by the confectionery and soap manufacturers, he said.
The company has three estates in the state totaling 10,000-acre and an annual production of 7,000 tonne of crude palm oil. ?We plan to increase the area under cultivation by more than 50% in the immediate future. The government is giving a subsidy of Rs 23,000 per hectare to farmers to promote oil palm cultivation,? he said.
It is proposed to cultivate 2000 hectare area under the scheme during the ensuing XI five year plan. ?More farmers are coming forward to cultivate oil palm given the increasing returns and buy-back arrangement provided by the company,? he added.
Meanwhile the company?s own estates are going through a re-plantation scheme to augment productivity. ?Most of the oil palm trees are old and re-plantation would help us double the capacity even without increasing area under cultivation,? Binu said.
Oil Pam has a seed garden in Thodupuzha district and has plans to double its capacity in a span of five years.