Lok Sabha Question No. 119 (STARRED), answered on 2024-07-30
Subject: Welfare of Palm Oil Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Putta Mahesh Kumar

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE

## LOK SABHA STARRED QUESTION NO. 119

TO BE ANSWERED ON THE 30 TH  JULY, 2024

## WELFARE OF PALM OIL FARMERS

*119. SHRI PUTTA MAHESH KUMAR:

Will the Minister of AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कल्याण मंũी

be pleased to state: (a) the  details  regarding the total  number of oil palm farmers and hectares of land utilised for its cultivation in Andhra Pradesh during the last five years especially in Eluru district, year and district wise; (b) whether the Government has considered any welfare projects/initiatives taking into account  the  numerous  issues  faced  by  oil  palm  farmers  such  as  sudden  price drops, rugose whitefly and competition from imported oil products of Malaysia and Indonesia, if so, the details thereof; (c)  the  details  regarding  the  total  funds  allocated  and  utilized  under  the  National Mission on Edible Oils - Oil Palm for welfare and overall development of oil palm farmers in Andhra Pradesh, district-wise, especially in Eluru district; and (d) whether the Government has considered introducing a Minimum Guarantee Price (MGP) for the sale of per tone Fresh Fruit Bunches (FFB), if so, details thereof and

- if not, the reasons therefor?

## ANSWER

THE MINISTER OF AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कल्याण मंũी (SHRI SHIVRAJ SINGH CHOUHAN)

- (a) to (d): A statement is laid on the Table of the House.

STATEMENT REFERRED TO IN RESPECT OF PARTS (a) TO (d) OF THE LOK SABHA  STARRED  QUESTION  NO.  119  FOR  30 TH   JULY,  2024  REGARDING 'WELFARE OF PALM OIL FARMERS'

- (a): The details of year & district wise Oil Palm Area covered along with the total number of Oil Palm Farmers in Andhra Pradesh as provided by the state government during last five years with data of Eluru district are enclosed at Annexure-I.
- (b): Yes Sir. The National Mission on Edible Oils-Oil Palm (NMEO-OP) has been launched during the year 2021 with the aim to augment the availability of edible oil in the country by harnessing area expansion, increasing crude palm oil production with the  aim  to  reduce  the  import  burden.  The  salient  features  of  NMEO-OP  include assistance to farmers for planting material, inputs for intercropping and maintenance up to gestation period of 4 years, replanting of old plantation and few other inputs such as machineries and irrigation. Besides , industries are provided support for setting up of seed gardens, nurseries, custom hiring centers. North Eastern States (NES) are also supported for setting up of oil palm processing mills.

Besides,  to  ensure  remunerative  prices  of  Fresh  Fruit  Bunches  (FFBs)  to farmers , a system of declaring Formula Price (FP) every month (by states concerned) are also followed. Industries linked with a particular area has to mandatorily procure the FFBs from the farmers on declared Formula Price. Further, to mitigate the price risk  of  farmers  due  to  sudden  falling  of  international  prices,  a  system  of  declaring Viability Price (VP) by the central Government is also followed and the Viability Gap Payment (VGP) is provided to the farmers in case the Formula Price drops below the Viability Price of the particular year. This benefit of Viability Gap Payment is available to oil palm farmers in 13 oil palm growing states which have signed memorandum of understanding (MOU) with Government of India. However, this benefit is not available to farmers in Andhra Pradesh and Telangana since, they have not yet signed the MOU. Repeated requests have been made to both the state governments in this regard. Since  Formula  Price  (FP),  Viability  Price  (VP)  and  Viability  Gap  Payment  (VGP) already exist in the National Mission on Edible Oil -Oil Palm (NMEO-OP) to provide price  security  to  oil  palm  farmers,  hence  the  provision  of  any  kind  of  minimum guarantee price is not under consideration.

In order to address the incidence of Rugose Spiraling Whitefly in oil palm fields, the  state  government  of  Andhra  Pradesh  alongwith  India  Council  of  Agricultural Research - Indian Institute of Oil Palm Research (ICAR-IIOPR), Pedavegi and the Dr.Y.S.R Horticultural University have conducted field visits at village level, given wide publicity  on  the  control  of  pest  and  organized  training  programmes  on  easy  mass multiplication of the biocontrol agent, Isaria fumosorosea fungus (strain of National Bureau  of  Agricultural  Insect  Resources,  Bengaluru)  by  the  farmers  at  field  level. Further, farmers are also being supported by the State Government for establishment of Bio lab for production of bioagents for in turn supply to the co-farmers. In addition, the  Indian  Institute  of  Oil  Palm  Research  (IIOPR),  Pedavegi,  Andhra  Pradesh  is implementing Research and Development (R&D) projects on various aspects of Oil Palm including control of rugose whitefly.

(c): The  total  funds  allocated  and  utilized  with  respect  to  the  state  of  Andhra Pradesh under NMEO-OP for the past three years is as follows:

| Sl.   | Year    | Financial (Rs. In lakh)   | Financial (Rs. In lakh)   |
|-------|---------|---------------------------|---------------------------|
| No.   |         | Allocation                | Achievement *             |
| 1     | 2021-22 | 8144.92                   | 4189.77                   |
| 2     | 2022-23 | 10414.91                  | 6389.58                   |
| 3     | 2023-24 | 15167.61                  | 8881.67                   |

* The entire amount allocated by the central government is made available to the  state  government  in  installments . Based on the efficient  utilization  of  the  initial installments  by  the  state  government,  further installments  are  released.  Hence  the achievement figures are less than allocation.

The year & district wise details of financial allocation and expenditure incurred as provided by the state government are enclosed at Annexure-II.

(d): Already incorporated in part (b).

Annexure-I Year & district wise Oil Palm Area Covered (in Ha) and Farmers benefited (in Nos) in Andhra Pradesh State

| Sl. No.   | District             | 2019-20         | 2019-20          | 2020-21         | 2020-21          | 2021-22         | 2021-22          | 2022-23         | 2022-23          | 2023-24         | 2023-24          |
|-----------|----------------------|-----------------|------------------|-----------------|------------------|-----------------|------------------|-----------------|------------------|-----------------|------------------|
| Sl. No.   | District             | Phy Ach (in Ha) | Farmers (in Nos) | Phy Ach (in Ha) | Farmers (in Nos) | Phy Ach (in Ha) | Farmers (in Nos) | Phy Ach (in Ha) | Farmers (in Nos) | Phy Ach (in Ha) | Farmers (in Nos) |
| 1         | Srikakulam           | 3530            | 2594             | 3541            | 2640             | 3589            | 2766             | 3717            | 2898             | 3881            | 3042             |
| 2         | PVP Manyam           | 6611            | 3282             | 7017            | 3729             | 7628            | 4325             | 8443            | 5019             | 9486            | 5802             |
| 3         | Vizianagaram         | 9711            | 5196             | 9775            | 5304             | 9930            | 5413             | 10086           | 5688             | 10485           | 5947             |
| 4         | Visakhapatnam        | 101             | 45               | 104             | 45               | 104             | 45               | 104             | 50               | 124             | 57               |
| 5         | Alluri Sita Ramaraju | 3321            | 2128             | 3412            | 2247             | 3565            | 2372             | 3726            | 2473             | 4283            | 2968             |
| 6         | Anakapalli           | 8486            | 6769             | 8600            | 7040             | 8854            | 7658             | 9433            | 8226             | 10328           | 9189             |
| 7         | Kakinada             | 13362           | 11301            | 13892           | 12086            | 14558           | 13781            | 15996           | 15470            | 18134           | 18188            |
| 8         | East Godavari        | 23291           | 15289            | 23678           | 15660            | 24070           | 17829            | 26355           | 20750            | 29408           | 23939            |
| 9         | Konaseema            | 1098            | 1156             | 1101            | 1162             | 1106            | 1183             | 1121            | 1350             | 1231            | 1532             |
| 10        | Eluru*               | 92805           | 66932            | 97431           |                  | 103439          | 77033            | 106558          | 81010            | 116073          | 90430            |
| 11        | West Godavari        |                 |                  |                 | 72421            |                 |                  | 1943            | 1336             | 2105            | 1484             |
| 12        | NTR                  | 9997            | 4663             | 10089           | 4751             | 10234           | 4918             | 10509           | 5166             | 11519           | 5773             |
| 13        | Krishna              | 4141            | 2566             | 4455            | 2853             | 4820            | 3114             | 5151            | 3500             | 5811            | 4198             |
| 14        | S PS R Nellore       | 2543            | 807              | 2543            | 807              | 2543            | 812              | 2555            | 890              | 3035            | 1106             |
| 15        | Tirupati             | 325             | 148              | 325             | 148              | 325             | 148              | 325             | 178              | 400             | 227              |
| 16        | Chittoor             | 46              | 19               | 46              | 19               | 46              | 19               | 46              | 25               | 70              | 49               |
| 17        | Anantapuram          | 0               | 0                | 0               | 0                | 0               | 0                | 0               | 0                | 0               | 0                |
| 18        | Guntur               | 0               | 0                | 0               | 0                | 0               | 0                | 0               | 0                | 0               | 0                |
| 19        | Palnadu              | 0               | 0                | 0               | 0                | 0               | 0                | 0               | 0                | 0               | 0                |
| 20        | Bapatla              | 0               | 0                | 0               | 0                | 0               | 0                | 0               | 0                | 9               | 11               |
| 21        | Kurnool              | 0               | 0                | 0               | 0                | 0               | 0                | 0               | 0                | 3               | 2                |
| 22        | Annamayya            | 0               | 0                | 0               | 0                | 0               | 0                | 0               | 0                | 40              | 26               |
| 23        | Nandyal              | 0               | 0                | 0               | 0                | 0               | 0                | 0               | 0                | 0               | 0                |
| 24        | YSR Kadapa           | 0               | 0                | 0               | 0                | 0               | 0                | 0               | 0                | 102             | 47               |
|           | Total                | 179367          | 122895           | 186009          | 130912           | 194810          | 141416           | 206067          | 154029           | 226527          | 174017           |

Source: - State Government of Andhra Pradesh

Annexure-II Year & District-wise Financial allocation and Expenditure incurred under NMEO-OP in Andhra Pradesh State

(Rs.in lakh)

| Sl.   | District                    | 2021-22   | 2021-22     | 2022-23   | 2022-23     | 2023-24   | 2023-24     |
|-------|-----------------------------|-----------|-------------|-----------|-------------|-----------|-------------|
| No.   | District                    | Allotted  | Expenditure | Allotted  | Expenditure | Allotted  | Expenditure |
| 1     | Srikakulam                  | 161.75    | 91.38       | 251.38    | 66.13       | 306.93    | 77.61       |
| 2     | Parvathipuram Manyam        | 0.00      | 0.00        | 574.45    | 444.33      | 1121.09   | 462.11      |
| 3     | Vizianagaram                | 589.38    | 299.21      | 305.49    | 148.53      | 504.17    | 165.04      |
| 4     | Visakhapatnam               | 309.21    | 165.83      | 90.76     | 1.55        | 67.14     | 7.09        |
| 5     | Alluri Sitharama Raju       | 0.00      | 0.00        | 341.70    | 63.66       | 209.35    | 181.71      |
| 6     | Anakapalli                  | 0.00      | 0.00        | 448.44    | 234.67      | 919.10    | 367.15      |
| 7     | Kakinada                    | 0.00      | 0.00        | 918.90    | 617.99      | 1493.70   | 878.21      |
| 8     | East Godavari               | 1414.39   | 742.78      | 997.63    | 1235.54     | 2605.29   | 1422.74     |
| 9     | Konaseema                   | 0.00      | 0.00        | 208.64    | 40.47       | 229.96    | 52.17       |
| 10    | Eluru*                      | 3570.92   | 2072.79     | 2840.58   | 2639.18     | 5476.35   | 3808.92     |
| 11    | West Godavari               |           |             | 1314.84   | 134.48      | 225.32    | 103.33      |
| 12    | NTR                         | 0.00      | 0.00        | 339.03    | 164.27      | 704.64    | 387.63      |
| 13    | Krishna                     | 1265.95   | 593.60      | 435.97    | 215.19      | 528.15    | 270.78      |
| 14    | Sri Potti Sriramulu Nellore | 28.48     | 4.32        | 204.02    | 63.23       | 475.66    | 166.95      |
| 15    | Tirupati                    | 0.00      | 0.00        | 83.11     | 13.34       | 78.73     | 24.80       |
| 16    | Chittoor                    | 29.99     | 3.57        | 44.21     | 3.67        | 72.00     | 8.50        |
| 17    | Anantapuram                 | 0.00      | 0.00        | 0.00      | 0.00        | 0.00      | 0.00        |
| 18    | Guntur                      | 0.00      | 0.00        | 0.00      | 0.00        | 0.00      | 0.00        |
| 19    | Palnadu                     | 0.00      | 0.00        | 0.00      | 0.00        | 0.00      | 0.00        |
| 20    | Bapatla                     | 0.00      | 0.00        | 0.00      | 0.00        | 0.00      | 3.03        |
| 21    | Kurnool                     | 0.00      | 0.00        | 0.00      | 0.00        | 0.00      | 0.86        |
| 22    | Annamayya                   | 0.00      | 0.00        | 0.00      | 0.00        | 0.00      | 15.05       |
| 23    | Nandyal                     | 0.00      | 0.00        | 0.00      | 0.00        | 0.00      | 0.00        |
| 24    | YSR Kadapa                  | 0.00      | 0.00        | 0.00      | 0.00        | 0.00      | 36.23       |
|       | Head office                 | 774.85    | 216.24      | 1015.76   | 303.35      | 150.03    | 441.77      |
|       | Total                       | 8144.92   | 4189.72     | 10414.91  | 6389.57     | 15167.61  | 8881.67     |