Palm oil industry hails move to allow 100% FDI

The Oil Palm Developers and Processors Association(OPDPA) has welcomed the Centre's decision to allow 100 per cent FDI in oil palm plantations, saying it is one of the important steps in helping fill the gap of edible oil deficit in the country.
India today has more than two lakh hectares under oil palm, with an additional potential of around two million hectares, according to OPDPA, the nodal body for oil palm development in the country.
"With this positive step from the Centre, this massive potential can be cashed into and India's palm oil import burden of USD 10 billion can be reduced," OPDPA President Sanjay Goenka said in a release.

OPDPA also said a separate Palm oil import policy needs to be put in place, claiming that the current import duty levels are not supportive to oil palm farmers and the industry.
It also called for relaxation of land ceiling norms for oil palm growth, to allow large scale plantation, in addition to the present contract farming mode.
OPDPA suggested formation of a separate oil palm development board to aid the promotion of the industry as planned by the government.
"This will also help address issues facing the farmer/industry on a regular and priority basis, which presently is largely going unattended and is one of the reasons for poor palm oil development in the country", it said.