3F Oil Palm signs Rs 550 crore pact with Andhra for plantation, processing

Palm oil company 3F Oil Palm on Wednesday said it has inked an agreement with the Andhra Pradesh government to invest Rs 550 crore over next five years for oil palm plantation, development and processing.

Under the Memorandum of Understanding (MoU), 3F Oil Palm will develop nursery, crop maintenance facility, farmer services, fresh fruit bunches (FFB) collection and handling, research and development facilities, and a greenfield integrated palm oil processing complex in Ayyavaram village, Nallajerla Mandal, East Godavari, the company said in a statement.

The company has also been allotted an additional 24 zones in the five districts of Tirupati, Chittoor, Guntur, Nandyal and Krishna with a potential area of over 1,00,000 hectares, it added.

"We are enthusiastic to embark on this transformative journey with the farmers of Andhra Pradesh. Our milestone investment of Rs 550 crore not only signifies our confidence in the potential of the region but also our commitment to sustainable and inclusive development. Together, we aim to create a thriving ecosystem that benefits all stakeholders," 3F Oil Palm Managing Director and CEO Sanjay Goenka said.

This MoU reaffirms the state government's trust in our ability to deliver on our promise, to empower our farmers to make India self-reliant in edible oils, he added.

The company is planning to cover oil palm in 25,000 hectares in the state reaching 50,000 farming families.

3F Oil Palm currently operates in Karnataka, Assam, Chhattisgarh, Gujarat and Arunachal Pradesh, other than Andhra Pradesh, with a cultivation area spread over more than 55,000 hectares and five processing units.