MAYILADUTHURAI: Paddy farmers in Mayiladuthurai, facing recurring crop losses from erratic rainfall and flooding, are being encouraged to shift to oil palm cultivation. The Horticulture Department is offering 100% subsidy under the National Mission on Edible Oil - Oil Palm for the 2025-26 financial year, positioning it as a climate-resilient alternative.
Official sources said that untimely rainfall and extreme weather events have made paddy cultivation increasingly risky in the coastal delta region. "While many farmers are exploring alternative crops, oil palm is being actively promoted as a stable and profitable option with support from both union and state governments. With India's edible oil demand rising sharply, oil palm has become central to the government's strategy to reduce imports and strengthen domestic production," said P Chandra Kavitha, deputy director of horticulture.
Under the National Mission on Edible Oil - Oil Palm, Mayiladuthurai has been allocated a target of 100 hectares for 2025-26. Participating farmers will receive oil palm saplings worth Rs 29,000 per hectare, supplied through Godrej Agrovet Limited, completely free and delivered directly to their fields.
Each hectare accommodates 143 saplings planted at nine-metre spacing. Beyond planting support, farmers receive financial assistance during initial years. For the first four years, the government provides Rs 5,250 per hectare for crop maintenance and another Rs 5,250 for intercropping, totalling Rs 10,500 per hectare annually.
"Even if rainwater stagnates temporarily, the crop remains largely unaffected, unlike paddy, which is highly vulnerable at critical growth stages. Yield begins in the third or fourth year at around five tonnes per hectare, increasing to 12 tonnes in the fifth year and 25 tonnes in the sixth year. Subsequently, farmers can expect approximately 30 tonnes per hectare annually for nearly 30 years," Kavitha said.
This long productive life translates into stable annual income of Rs 4.5 to Rs 5 lakh per hectare, according to departmental sources. Farmers achieving higher yields are eligible for an additional incentive of Rs 1,000 per tonne. Importantly, oil palm prices are government-fixed, protecting farmers even when market prices fall. Currently, oil palm is priced at roughly Rs 16,010 per tonne.
Officials noted the model allows intercropping during early years. Crops like tapioca, turmeric, and banana can be grown alongside oil palm, offering farmers extra income before trees reach full production. This combination of assured pricing, long-term yield, climate resilience, and intercropping potential is drawing increasing interest across the district.
Speaking on the benefits and profits of oil palm farming, Ilamparuthi, a 64-year-old oil palm farmer from Sirkazhi, said, "I started oil palm farming on two acres 17 years ago, and now harvest from six acres. Last season, from March to September 2025, I harvested over 25 tonnes, earning roughly Rs 5.80 lakh with expenditure of just Rs 60,000. Unlike paddy, which requires huge investment and faces risk during heavy rains or drought, oil palm is more profitable. Most farmers aren't aware of these benefits, and more awareness should be raised."
However, farmers raised concerns about traditional harvesting methods and sought government and private sector support for modern equipment with subsidies and training.
Farmers wishing to enrol have been advised to contact their nearest block-level Horticulture Office in Mayiladuthurai district for details and registration.