The Business Bytes
TBB BUREAU
BHUBANESWAR, JAN 30, 2024
Karnataka-based MK Agrotech Pvt. Ltd., a prominent player in the Indian edible oil and food industry, has joined hands with M11 Industries Pvt. Ltd. to launch an extensive oil palm plantation program in Odisha. This ambitious initiative, inaugurated under the aegis of the National Mission on Edible Oils – Oil Palm (NMEO-OP), marks a significant step towards bolstering domestic production of edible oils.
The collaboration between these Karnataka-based entities and the Government of Odisha, formalized through a Memorandum of Understanding (MoU), sets the stage for the cultivation of oil palm in Nuapada and Bolangir districts. With 31 farmers already enlisted, the program aims to establish a palm oil mill in the state by 2029-30, equipped with a Fresh Fruit Bunch (FFB) processing capacity of 10 Metric Tons per Hour (TPH) initially.
M11 Industries Pvt. Ltd. has taken proactive measures to engage with progressive farmers in Bolangir and Nuapada districts, spearheading the identification process and offering technical support, training, and capacity building. The focus lies on facilitating the establishment of nurseries and ensuring the supply of high-quality planting materials. Additionally, the introduction of micro-irrigation systems is poised to revolutionize farming practices, enhancing productivity and sustainability.
Benefiting from similar climatic and soil conditions as neighboring Bargarh district, oil palm plantations in Bolangir and Nuapada are poised for success. Farmers in Bargarh have embraced oil palm cultivation, citing favorable returns, minimal labor requirements, and a threefold increase in profits compared to traditional crops like paddy.
India’s burgeoning demand for edible oils underscores the urgency of augmenting domestic production. In the fiscal year 2020-21 alone, the country imported approximately 13.35 million tonnes of edible oils valued at Rs 80,000 crore. Palm oil constituted the majority share at 60%, followed by soybean oil (25%) and sunflower oil (15%). Despite concerted efforts, domestic production has struggled to keep pace with escalating consumption, which exceeds 25 million tonnes annually.
Mannan Khan, Director of MK Agrotech Pvt. Ltd., elucidated on the strategic rationale behind venturing into oil palm cultivation in Odisha. “Originating from West Africa, oil palm boasts unparalleled yield potential, surpassing traditional oilseed crops by more than threefold. Recognizing the imperative to reduce dependence on imports, the Government of India has been steadfast in its endeavor to expand oil palm cultivation across various states, a mission that MK Agrotech is proud to champion,” Khan said.
