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VAT on palm oil scrapped, subsidy announced

Posted by on June 22, 2011 0 Comment

Hyderabad: Palm oil crop farmers in the state on Wednesday received a shot in the arm after the state government decided to scrap the Value Added Tax on palm oil crops.

This apart, a subsidy of Rs 72,000 per hectare has also been announced to the farmers raising the palm oil crops.

There are about one lakh farmers raising the said crop in one lakh hectares.

When compared to other crops, Palm Oil crops produce the largest amount of oil per unit area. The average production of palm oil is said to be over 4,000 kg yearly from a hectare where as oil from soya was said to be 480 kg in a hectare, and 500 kg in a hectare from rapeseeds.

In view of the demand for the palm oil, the government is contemplating to expand the cultivation on a large-scale which also facilitates the depending farmers (on palm cultivation) to thrive on their production.

Apart from providing the said farmers’ incentives to overcome any hurdles, entrepreneurs too were also kept in their mind while removing VAT on palm oil as is was being imported from countries like Singapore despite local refineries engaged in the business.

The vegetable oil imports did cost the country as much as about $ 1800 million yearly.

There was a time when the oil palm farmers were forced to uprooting oil palm trees to raise other crops.

At a review meeting chaired by Chief Minister N Kiran Kumar Reddy, the government took several decisions to meet the pressing demands of the farmers engaged in horticulture, fruit gardens and floriculture.

The Chief Minister has decided to provide subsidy to the farmers to enhance the crop area.

Accordingly, Rs 50,000 per hectare as subsidy has been sanctioned to the farmers with an assurance to hike this later.

For SC and ST farmers, the subsidy is 100 percent to promote the palm oil crop cultivation, as also to encourage them. This pattern would help curtail dependence on vegetable oils.

Another important development which Horticulture Minister Ramreddy Venkat Reddy announced at the press briefing was the setting up of cold storage plants shortly for preserving the vegetables.

In view of the successful programme of the mango show at several places, the government has decided to repeat their shows in Rythu Bazaars in districts, towns and villages during May and June next year to motivate the farmers concerned.

The Minister also announced that the farmers will have the facility of sending SMS messages every month to the officers concerned to register their complaints or any other requirements.(INN)

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