HYDERABAD: Agriculture Minister Singireddy Niranjan Reddy will plant oil palm saplings at Beechupally Oil Mill on Monday and formally launch the works for reopening the closed oil mill.
The Beechupally Oil Mill was started in 1990 and was closed in 2003 due to losses. The oil mill had to pay Rs 26.03 crore debts to the National Dairy Development Board (NDDB). However, the TS OILFED had reached an agreement with the NDDB to clear the debts by paying Rs 8.44 as one time settlement. As per the agreement, the OILFED has already paid Rs 4.22 crore.
When the oil mill was closed, a large number of farmers protested against it and Niranjan Reddy also too took part in the agitation. Now, as a Minister, he started efforts to reopen the oil mill. Niranjan Reddy said that the oil mill would be reopened in a phased manner. The oil palm cultivation would be encouraged in Atmakur, Alampur, Gadwal, Kollapur, Nagarkurnool and Wanaparthy areas, the minister said.
The government would provide Rs 20,000 subsidy for four years for cultivating the oil palm trees in one hectare. The oil palm tree would start bearing fruits from the fourth year. Farmers would get Rs 75,000-80,000 income, he explained.
The Agriculture Minister would also lead a delegation of farmers to West Godavari district in Andhra Pradesh, where oil palm cultivation was high. “Our idea is that oil palm cultivation should be started in Palamuru district from the next agriculture season,” Niranjan Reddy said.
According to a study, as many as 206 mandals in the State were suitable for the oil palm cultivation.