Govt releases Rs 100 cr pending dues to farmers, companies

Hyderabad: Agriculture Minister Tummala Nageswara Rao on Tuesday asked the Horticulture department officials to take steps to encourage farmers to take up oil palm cultivation as per target set for 2024-25.

After reviewing the release of pending subsidies, he said an increased need for crop rotation in the State, the government is promoting oil palm cultivation and micro-irrigation in horticultural crops on a large scale by giving subsidies.

He said for 2023-24 an extent of 59,261 acres have been newly brought under oil palm cultivation. Under the Oil Palm Cultivation Scheme (NMEO-OP) for 2023-24, the Central government has released Rs.80.10 crore. The government has given administrative permission to release Rs.133.5 crore, including the State's share of Rs.53.40 crore. Of this amount, only Rs.32.72 crore was released in 2023-24, while Rs.100.76 crore remained due for various reasons. This has prevented the Horticulture department, farmers and oil palm/drip companies from releasing dues on time. Following this, the issues were brought to the notice of the Chief Minister, and the government released Rs.100.76 crore.

The minister said that the Horticulture department was taking steps to deposit the dues in 2-3 days for the subsidies related to maintenance of oil palm plantations and cultivation of inter-cropping, in accounts of farmers.

Similarly in 2022-23, the government released Rs.55.36 crore in connection with micro-irrigation. The amount has been released as pending cotton arrears to the micro-irrigation companies which installed drip devices in farmers’ fields in oil palm and other crops.