NEW DELHI” The government allowed 100 percent FDI in five plantation crops, mainly Coffee, rubber, cardamom, palm oil tree & olive oil tree via automatic route, a move hailed by the industry.
At present, 100 per cent FDI is allowed only in tea plantation through the government approval route.
” In line with this sector, the government has decided to open certain other plantation activity namely, coffee, rubber, cardamom. palm oil tree & olive oil tree plantations also for 100 per cent foreign investment,” the Commerce and Industry Ministry said in a statement.
foreign Investment in the plantation sector would henceforth be under automatic route, it added.
Welcoming the decision, Mumbai- based Solvent Extractors Association (SEA) Executive Director B V Mehta said, ” Allowing FDI in palm oil tree is a welcome step and will boost domestic production.”
He, however, said that the benefits would be more if the government declares palm oil tree as a plantation crop and exempted from land ceiling act.
The country produces annually around 3 lakh tonnes of coffee, over 8-9 lakh tonnes of rubber and about 17,000 tonnes of cardamom.