Godrej Agrovet signs MoUs with NE states for oil palm cultivation

Diversified agri business company Godrej Agrovet on Monday announced that it has signed three MoUs (Memorandum of Understand) with Assam Manipur and Tripura state governments for development and promotion of oil palm cultivation in the region under the National Mission on Edible Oils-Oil Palm (NMEO-OP) scheme.

Godrej Agrovet is the largest oil palm processor in India and works directly with the farmers for the entire lifecycle of their crop. The MoUs are in line with Godrej Agrovet’s long-term strategy to be the catalyst in India’s oil mission through sustainable growth of oil palm production and double farmer’s income.

In August 2021, Government of India had launched the National Mission on Edible Oils – Oil Palm (NMEOOP) with planned outlay of ? 11,040 Crore. Under this mission, Government has envisaged to raise area under cultivation of oil palm to 10 Lakh hectares by 2025-26 and 16.7 Lakh hectares by 2029-30 with special focus on the North East region and the Andaman and Nicobar Islands.

As part of the MoU signed, Godrej Agrovet will be allotted land across the three states for promotion and development of sustainable palm oil plantations in the region. The collaboration will bring new opportunities and growth in building oil palm plantation in these three state and would help to provide the required support to the farmers.

Balram Singh Yadav, Managing Director, Godrej Agrovet said, “With more than thirty years of experience in oil palm business, Godrej Agrovet has been working and educating farmers from North East on sustainable palm oil plantation processes. Currently, we have around 65,000 hectares under palm oil cultivation across the country, which we plan to increase to 1 lakh hectares in the next few years. We are confident that the National Mission on Edible Oils - Oil Palm (NMEO-OP) along with active participation of responsible organisations such as Godrej Agrovet will lead to bridging the gap in India’s oil mission.”

Sougata Niyogi, CEO – Oil Palm, Godrej Agrovet Limited, added, “We have been invested in promoting and developing north east as a growth market for palm oil cultivation for over a decade. According to industry estimates, these states have utilised less than 1% of its potential. These states promise huge opportunity for growth and improving income of the farming household. With our processing plant in Mizoram, we are prepared to sustainably serve the demand of the north east markets. With the signing of these MoUs (with Assam, Tripura and Manipur) we are confident that these states will play a key role in positively contributing towards the nation’s need for sustainable palm oil growth. With active support of the state governments we can develop 15000 hectares in four North Eastern states in the next five years. ”

India is a net importer of palm oil. The lack of domestic production not only puts a pressure on the industry and the allied sectors but also on India’s economy. India follows a sustainable model of palm oil plantation which is based on intercropping and scientific farming processes. Most of the palm oil cultivation in the country is done by converting paddy fields which have been contributing towards surplus produce.