Hyderabad: The state government has released Rs 100.76 crore in oil palm and micro-irrigation (drip) subsidies for 2023-34 and Rs 55.36 crore in outstanding micro-irrigation subsidies for 2022-23 to oil palm farmers and micro-irrigation firms.
Within two days the horticulture department is planning to deposit the funds in the accounts of the farmers, with a view to encourage farmers to increase the oil palm area of cultivation so that targets for 2024-25 could be reached.
In 2023-24, oil palm cultivation was extended in 59,261 acres across the state. As part of the subsidy amount for oil palm and drip irrigation, the Centre had released Rs 80.10 crore, and the then State government was supposed to release its matching grant of Rs 53.40 crore, bringing the total subsidy amount to Rs 133.50 crore.
However, the then State government had released only Rs 32.72 crore, leaving the rest of Rs 100.76 crore as outstanding due to various reasons, which had caused difficulties for oil palm farmers, companies and drip irrigation companies.
The State government has also released Rs 55.36 crore that was pending to be released as subsidies for micro irrigation for the year 2022-23, for cultivation of oil palms and other horticultural crops.
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