The Union Finance Minister, Shri Pranab Mukherjee has proposed to provide an amount of Rs. 300 crore to bring 60,000 hectares under palm oil plantations, by integrating the farmers with the markets.

While presenting the Union Budget for 2011-12, in the Lok Sabha today, Shri Mukherjee said that the domestic production of edible oil meets only about 50% demand. The gap in supply is met through imports, which are often at high prices. To achieve a major breakthrough, special attention has been paid to palm oil as it is one of the most efficient oil crops, Shri Mukherjee said. The Finance Minister added that the initiative would yield about 3 lakh metric tones of palm oil annually in five years.

Budget allocation for palm oil promotion to expand domestic production and reduce import dependence through farmer-market integration. A budgetary allocation of Rs. 300 crore is proposed to promote palm oil by bringing 60,000 hectares under plantation and integrating farmers with markets to boost domestic edible oil supply, targeting an increase in palm oil output to about three lakh metric tonnes annually within five years to reduce import dependence.