Engineer-turned-farmer rakes in ₹85 L annually
Source: Chronicle News Service

Imphal, December 31 2024: A story of success in oil palm farming has emerged from Eluru, Andhra Pradesh, where an engineer in the United States left his lucrative job to dedicate himself to agriculture.

The decision has paid off handsomely, with the farmer earning an impressive annual profit of Rs 85 lakh from his 9-hectare oil palm farm.

The farmer, whose journey was recently highlighted during the Eluru visit of the state agriculture director, exemplifies the profitability and sustainability of oil palm cultivation.

Apart from its economic benefits, the farmer noted that oil palm farming positively impacts the environment by improving air quality and supporting better monsoon outcomes.

The farmer explained that cultivating oil palms requires an initial wait of three years for the trees to bear fruit.

To sustain his livelihood during this period, he engaged in intercropping, deriving his primary income from these activities in the first three years.

By the fourth year, his oil palms began producing fruits.

On his 9-hectare farm, he planted 143 oil palms per hectare.

Each fully grown, healthy plant produces 10 bunches of fruit per season, with each bunch weighing between 20 and 25 kg.

Farmers in Eluru sell their produce to oil palm processing factories, including Godrej Agrovet and Patanjali, at a rate of Rs 18 per kilogram.

The farmer provided a breakdown of his income, noting that each plant generates Rs 3,600 per season and Rs 7,200 annually, as oil palms yield fruit twice a year.

This equates to Rs 10,29,600 per hectare annually and a staggering Rs 92,66,400 for his entire 9-hectare farm.

After deducting wages for farm labourers and other expenses, he earns a net annual profit of approximately Rs 85 lakh.

Reflecting on his decision, he remarked that his earnings from oil palm farming far exceed what he could have earned in the United States.

Although the Andhra Pradesh government does not provide direct financial assistance to oil palm farmers, processing companies play a crucial role by offering technical support, raw materials, and fertilisers at subsidised rates.

These companies also purchase the produce directly from farmers, ensuring a seamless supply chain and steady market access.

The farmer expressed optimism about oil palm farming initiatives being undertaken in north-eastern states, including Manipur, under the National Mission on Edible Oil-Oil Palm (NMEO-OP).

Under this central government scheme, farmers in the Northeast are eligible for a 90 per cent subsidy, significantly enhancing the profitability of oil palm cultivation in the region.

He described farmers in Manipur as "lucky" due to the substantial support they receive.

Mention may be made that the Ministry of Agriculture and Farmers' Welfare has identified 66,652 hectares of land across six districts in Manipur as suitable for oil palm cultivation.

Under NMEO-OP, oil palm processing companies provide quality planting materials, technical support, and extension services directly to farmers.

These companies also guarantee procurement of produce, eliminating the need for third-party intermediaries.

To address potential fluctuations in market prices, the Ministry has introduced the Viability Gap Payment (VGP) scheme, under which farmers receive a remunerative income through direct benefit transfers (DBT) if the price of fresh fruit bunches drops below a specified threshold.

The success story of the engineer-turned-oil palm farmer underscores the immense potential of oil palm cultivation as a profitable and sustainable agricultural practice.

With government support and favourable policies, the sector holds promise for farmers of the state, where initiatives like NMEO-OP are set to transform livelihoods and bolster the economy.

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