Arunachal govt signs deal with Ruchi Soya,3F Oil Palm Agrotech

Arunachal Pradesh government has signed memorandums of understanding (MoUs) with Hyderabad- based Ruchi Soya Industries and 3F Oil Palm Agrotech Ltd for increasing oil palm output in the state.
The MoUs inked yesterday by Agriculture Commissioner Hage Khoda on behalf of the state government and representatives from both the companies would pave the way for oil palm development in East Siang and Lower Dibang Valley districts covering an area of 5,000 hectares each.
The MoU has incorporated buy-back guarantee of fresh fruit bunch (FFB) produced by the farmers in plantation zones and is based on contract farming model, Khoda said in a statement today.

On an average, a farmer is expected to earn Rs 80,000 to Rs 90,000 per hectare annually by selling FFBs, he added.
An MoU for development of 5000 hectare area in Lohit, Changlang and Tirap districts was earlier signed with Sivsais Oil Palm Ltd, and a nursery for oil palm seedlings has already been set up in Jairampur, he said.
In order to reduce India's dependence on import of edible oil from countries like Malaysia and Indonesia, the union agriculture ministry has accorded top priority for area expansion under oil palm cultivation by launching the National Mission on Oilseeds & Oil Palm (NMOOP) and prioritised area expansion for it in the north east considering its agro-climatic suitability, Khoda said.

Based on assessment, Arunachal Pradesh has more than 1 lakh hectares suitable area for oil palm cultivation.
Denuded forest areas in the foothills of the state can be brought under perennial oil palm plantation for raising farmers' income besides rural livelihood support, employment generation and uplift of the state's economy, he said.