Annexure-I
Pattern of Financial Assistance under Oil Palm Development Programme (OPDP)

Financial assistance available under OPDP is as follows:

A)           Assistance to Farmers:         

I.  Assistance for Planting Material: 75% of cost of seedlings with a ceiling of Rs.5,400/- per ha, for entire land holding of the farmer.  In  major oil palm growing states,  namely, Andhra Pradesh, Karnataka and Tamil Nadu, different area  zones have been   allotted  to companies,  which are raising Oil Palm seedlings and supplying to farmers.  In  the  states where  zones  have not been allotted, State Government raises oil palm seedlings for supply to farmers. 

II.          Assistance for Cultivation Cost:  50% of the cost of inputs during the gestation period of 4 years with a ceiling of Rs.15,500/- per ha admissible upto 6 ha for individual farmer. Illustrative phasing of cultivation assistance during gestation period is indicated below:

          Norms of assistance indicated above were revised w.e.f. 08.02.2000 to keep parity with the increase in the cost of planting material and cultivation inputs.  Comparative details of financial assistance under OPDP prior to 08.02.2000 and after 08.02.2000 are as under:

          Drip Irrigation: Assistance for the Drip Irrigation  component of OPDP has been revised during 2000-01 as under :   

The assistance for drip irrigation will be 50% of the cost for Small, Marginal, SC, ST and Women farmers and for other category of farmers the assistance will be 35% of total cost of the prevailing competitive market rate of the system upto the maximum as indicated in the table below:

A.    SC/ST/Small/Marginal/Women Farmers (50% of total cost of system or following whichever is less

(Rs. per Ha)

B.    Other category of Farmers (35% of total cost of system or following whichever is less

(Rs. per Ha)

The assistance will be provided for a maximum of 4 ha per beneficiary. 

The State Government' s share for drip installation would be 10% for all states except the States of Assam & Tripura for which entire cost on installation of drip irrigation system in oil palm plantation would be met by Centre. 

          Assistance for the following components of OPDP has been continued as during Eighth Plan :

(i)                Training

Some of the potential oil palm growers are being trained at National Research Centre for Oil Palm, Pedavegi (Andhra Pradesh), Central Plantation Crops Research Institute, Palode (Kerala) and established Oil Palm Plantations in Andhra Pradesh and Karnataka.  The farmers are entitled for a daily allowance @ Rs.70/- per day for a maximum of 5 days (including the travel time).  The farmers are also entitled for 2^nd class to and fro rail fare by the shortest route from their native plance to the plance of training.

B)    Assistance to State Governments

(i)                Training

The officers and extension workers of the State Governments implementing OPDP are also being trained at National Research Centre for Oil Palm (NRC-OP), Pedavegi and Central Plantation Crop Research Institute (CPCRI), Palode.  During 1994-95, 50 officers from Centre/State Governments/ Cooperatives/Private Companies were sent to Nigeria for a four week training on oil palm production and processing.

(ii)             Extension and Publicity

Oil Palm being a new crop, extension and publicity are of great importance for awareness among farmers about oil palm cultivation.  Under this component the State Governments bring out pamphlets, printed material, video films and publicity materials.

(iii)          Establishment & Provision for Staff for implementation the project

Since the programme has been taken up recently on a large scale, staff is being provided for implementation of OPDP in identified States.

(iv)           Seed Gardens: Seed Gardens at Rajamundry (Andhra Pradesh), Taraka (Karnataka) and Thodupuzha (Kerala) are being maintained by utilizing OPDP funds.

(v)              Front Line Demonstration Project at Bheemanakolli in Karnataka: Being maintained by utilizing OPDP funds.

(vi)           Leaf Nutrients Analysis Laboratories: Leaf Nutrients Analysis Laboratory in Karnataka is being maintained by utilizing OPDP funds.

B.          Assistance to Ic

(i)                Testing of different Oil Palm Genotypes under varied environmental conditions, training and leaf analysis laboratory : National Research Centre for Oil Palm (ICAR) is being provided assistance under OPDP for Testing of different Oil Palm Genotypes under varied environmental conditions, training and leaf analysis laboratory.

          Besides above, following new components have been introduced w.e.f 08.02.2000:

(a)           Assistance  for  diesel  pumpsets:   In  view   of shortage  of power, it has been approved to provide an  assistance of  50%  of the cost subject to a maximum of Rs.  8,000  for installation of diesel pump sets, at least to those  farmers who take up 5 ha. and more of oil palm plantation

(b)          Development  of Wasteland: 15% of the funds  under OPDP will be earmarked for taking up special projects  aimed at bringing under Oil Palm the wasteland or low productivity land, owned by farmers or Government land allotted to the farmers. These projects  would  involve integrated  package  of  activities including   procurement/production  of  planting   material, development of land and water sources, cultivation of  crop, arrangement  for installation of processing facility etc..  Major assistance  for  planting  material,  cultivation  and  drip irrigation would be made available under OPDP on the pattern proposed.   Projects would be implemented by State  Governments, farmers  co-operatives  or  voluntary  organizations.  Projects for wasteland development would be considered and approved at the Central Government level by a Screening Committee of the Central Government.