Silchar, Oct. 6: Mizoram is now forging ahead with palm oil cultivation as a part of the state government’s co-ordinated bid to create more avenues for the rural population to earn a livelihood.

According to sources in the agriculture and horticulture departments in Aizawl, the government has a target of expanding the reach of the farming of the palm plants by another 5,700 hectares this year.

Mizoram has now 17,588 hectares of area under palm tree cultivation.

An official source in Aizawl said both the agriculture and horticulture departments are expanding palm cultivation with the aim of distilling oil from the palm fruits in the three plants being set up in the state by Maharashtra and Gujarat-based industrial units.

The state government has sanctioned Rs 7.4 crore for the setting up of the three plants.

Sources said the 10,800 families living in 225 villages are now engaged in the farming of palm plants.

According to an agreement signed recently between the farmers and the three industrial houses, the entire lot of the palm fruits to be produced in Kolosib and Mamit districts will be purchased by the Mumbai-headquartered Godrej Agrovet Company. The firm has already set up a palm processing factory at Bukvahnel village under Kolosib district, about 120km from Aizawl.

The company has started processing the palm fruits in the beginning of this year even as the output is now very low.

Sources said palm fruits from farms in Aizawl, Serchip and Saiha districts would be purchased by Gujarat-based 3F Oil Palm Agrotech Pvt Ltd and those harvested in Lunglei and Lawngtlai districts would be processed and marketed by another Gujarat company, Ruchi Soya Industrial Ltd.

The palm oil fruits will be purchased by these three companies at Rs 5.50 per kg and the farmers’ bank accounts will be credited within one week from the date of buying, it added.