National procurement policy proposes to cover tree based oil seeds

Also backs subsidy for oil palm in ensuing kharif

The procurement policy for oilseeds and oil palm has been revamped for the ensuing kharif season under the National Mission on Oilseeds and Oil Palm (NMOOP).

This is to give a boost to the tree based oilseeds (TBO) which have a utility as an alternative source of energy in addition to fossil fuel.

Besides the overall policy objective will be to ensure remunerative prices for collection, promotion and marketing of these non conventional oilseeds over and above the seven oilseeds currently covered Minimum Support Price Scheme.

To this effect, the procurement policy is proposed to be extended to tree borne oilseeds. TRIFED  (Tribal Cooperative  Marketing Development Federation  of India Ltd )  under the ministry   of Tribal Affairs  will be involved as a procurement agency for tree based oilseeds. A lump sum grant of Rs 50 lakh  per annum will be provided  to TRIFED  for promotion of TBO seeds.

Tree borne oilseeds are Jatropha, Karanaj and Simarouba fruit and kernel which are useful   to develop alternative and complementary source of energy.

Besides, a comprehensive contingency plan has been  worked out  to ward off the impact of the aberrant weather conditions on the food grain production  which has gained additional importance after the Food Security Bill  and also to minimise imports.

This time an innovative scheme has been worked out called crop and fodder seed banks  at village level  to ensure seed supply of in adverse conditions  of crops fixed  as per the contingency plan.  The bank assumes tremendous important  for augmenting fodder supply  in dry lands  during drought conditions.

Similarly,   to protect interest of cultivators in oil palm, subsidy will be provided for setting up  of oil palm mill in north east  other hilly states. The subsidy will be  at the rate of 50%  cost of the plant and equipments up to a ceiling of Rs 2.5 crore  per unit of 5 metric tonne per hour processing capacity The subsidy will be provided to state government agencies, cooperative sector, government recognised farmer associations. Further subsidy will be provided  for creation of additional capacity for crushing of fresh fruit bunches (FFBs) of palm.

Currently, oil palm, since perishable in nature, hence the commodity is not covered under MSP. However is covered under market intervention programme  at the specific request of the states.

Another measure for this season will be opening up of outlets for procurement of oilseeds by nodal agency  National Agricultural Cooperative Marketing Federation of India (NAFED). This will be for seven oilseeds covered under MSP programme like groundnut, soyabean, sunflower, sesame, niger, rapeseed and mustard and safflower.