government promoting oil palm with buyback, is it worth planting, how does it work AP
Is oil palm farming profitable in India and how does the company tie up work?
NNageswara Rao10mo ago · 372 views
3 Answers
🌾Farmer.in Krishi TeamExpert ✓10mo ago
Oil palm can be profitable in suitable high rainfall or assured irrigation zones and is being pushed under the national oil palm mission with company buyback arrangements, but you must understand the model before committing. You plant under an agreement with a designated processing company that buys your fresh fruit bunches, since the bunches must be processed within a day or two and cannot be sold in an open mandi, so you are tied to that mill. The price of fresh fruit bunches is linked to a formula based on crude palm oil prices, so your income rises and falls with global palm oil rates. It is a long gestation crop, taking around 4 years to start bearing and several more to reach peak yield, and it needs a lot of water. Before planting, verify the buyback price formula, the assured purchase terms, transport and the company catchment for your village, and confirm water availability, because without enough water oil palm fails. Check current terms with the oil palm mission staff and the company, and talk to existing growers nearby.
SSuryanarayana9mo ago
In our area the company collection is regular and once the palms matured the income became steady. But the early 4 years you only spend, no return. And you cannot sell to anyone else, only the assigned mill. Water is a must, mine is under bore and canal.
KKondaiah9mo ago
The rate is tied to the palm oil price so it goes up and down. Some years very good, some years average. Read the buyback agreement properly and check how far the mill is, transport of bunches matters.