Centre to procure 90,000 tonnes of palm oil from Andhra Pradesh

NEW DELHI: The Centre has sanctioned a scheme for procurement of 90,000 tonnes of oil palm fruit from market in Andhra Pradesh during January-March 2013, Parliament was informed today.

"On the request of Andhra Pradesh government, Agriculture Ministry has sanctioned Market Intervention Scheme (MIS) to procure 90,000 tonnes of oil palm fresh fruit bunches...in the state," Minister of State for Agriculture Tariq Anwar said in a written reply to the Rajya Sabha.

The procurement would be done at the market intervention price (MIP) of Rs 5,720 per tonne with overhead expense of Rs 100 per tonne or actual whichever is less from January 1, 2013 to March 31, 2012, he added.

Anwar informed that the Centre has rejected the Andhra Pradesh government's request to announcing minimum support price (MSP) for this crop.

"Since oil palm is a perishable commodity, it is not covered under MSP. However, it is covered under Market Intervention Scheme (MIS) which is implemented on the request of state governments for procurement of perishable and horticultural commodities in the event of fall in market price. The above position has been communicated to Andhra Pradesh government," the minister said.

Country's crude palm oil (CPO) production has increased to 1,10,541 tonnes in 2011-12 under the Oil Palm Development Programme compared with 28,168 tonnes in 2002-03.

Andhra Pradesh is the biggest producer of crude palm oil at 97,987 tonnes during 2011-12.