Edible oil processors upbeat on govt move

Subsidy and FDI norms eased to encourage palm plantations; industry predicts big changes for better

The area under palm plantations is likely to increase significantly in the coming years, with the government's relaxation in norms for subsidy and foreign direct investment (FDI), to promote sourcing of vegetable oil from domestic sources.

There are only a few large corporate entities involved in palm plantation, due to a long gestation period and the economic value. Normally, the first palm fruit can be obtained only after at least three years of planting. Therefore, only large corporates with deep pockets like Godrej Agrovet and Ruchi Soya Industries have evinced interest.

Consequently, the actual plantations have never achieved more than half the