The Oil Palm Developers and Processors Association (OPDPA), the nodal body for oil palm development in India, has welcomed the central government's move to allow 100 percent FDI in oil palm plantations.
The body said this was one of the important steps which would help meet the edible oil deficit in India.
The country today has more than two lakh hectares under oil palm, with an additional potential of around 20 lakh hectares.
"With this positive step from the government of India, this massive potential can be cashed into and India's palm oil import burden of $10 Billion can be reduced," said Sanjay Goenka, president-OPDPA.
OPDPA has suggested further measures to accelerate the development of oil palm and address the problems faced by the industry and farmers.
It called for long term subsidy policy to support the farmers, a viable FFB formula that takes into account valid costs of the industry, a separate palm oil import policy and relaxation of land ceiling norms for oil palm growth to allow large scale plantation.
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The body also suggested a separate oil palm development board to aid the promotion of the industry.
These steps will go a long way in protecting the interest of all the stakeholders ie domestic farmers, workers, industry and government of India, paving way for the country to reach a stage of self sufficiency in edible oil, said the statement.