The government of Andhra Pradesh has enhanced prices of the palm oil crop from Rs 6,907 per tonne to Rs 7,516 per tonne. The Chief Minister of the state announced the enhancement by Rs 609 a tonne thereby benefiting 58,000 palm oil farmers to the tune of Rs 48 crore. The announcement comes in the wake of repeated pleas from farmers and associations for a hike in price and abolition of VAT (value-added tax) on the palm oil crop.
The Chief Minister held meetings with stakeholders and abolished VAT. The minister also requested the Prime Minister and the Union Agriculture Minister to encourage palm oil farmers, as the country was importing about Rs 50,000 crore worth palm oil annually.
Further, in order to seek assistance to the tune of Rs 20,000 crore for ten years (Rs 2,000 crore annually) for the promotion of oil palm crop the minister told officials to prepare a detailed project report and to submit it to the Prime Minister and Union Minister.
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