Godrej, Ruchi evince interest in oil mill

Godrej Agrovet Ltd and Ruchi Soya and Hyderabad-based 3f Ltd (Food, Fats and Fertilisers Ltd) have expressed interest in reviving a closed palm oil mill located at Navsari in south Gujarat.

The move is aimed at encouraging the palm growers of the surrounding area. However, the proposals are still at the review stage and it will take another month for the state agriculture department to finalise the company.

Talking to Business Standard, S R Chaudhari, director of horticulture, said, "The palm oil processing mill at Mahuvar village in Navasari district will be revived to encourage farmers in the area to grow more palm. The mill was closed down some four years ago." Before its closure, Shri Kalyan Agriculture Crops Sales and Processing Co-operative Society Ltd, Mahuvar, ran the mill.

According to him, the state government and the horticulture department have decided to give away the mill to private players, who can run the mill.

However, the proposals are at the primary stage and the finalisation process may take one or two more months as it also needs approval of the Centre. "The Centre had given Rs 2.40 crore as subsidy to the co-operative and before taking any decisions its permission has to be taken. The move also involves transfer of the land lease from the society to the company selected for takeover of the mill," Chaudhari said.

According to an annual action plan of the Directorate of Oil Seeds Development under Oil Palm Development Programme, 2005-06, the reason for the closure of the mill was non-availability of fresh fruit branches (FFBs) and the non-functioning of the private player.

According to Chaudhari, the mill after reopening will not face the problem it faced the last time as the farmers are willing to take up oil palm crop and there won't be any shortage of FFBs this time around.