The Andhra Pradesh government and Hindustan Unilever Limited (HUL) are in talks to collaborate on palm oil production, the FMCG major has said.
The two sides are looking at setting up a palm plantation and oil mill, which is expected to create over 1,000 direct and indirect jobs.
Palm oil finds wide use across industries — from biscuits to personal-care products. India is the world's biggest importer of palm oil.
The government expressed its desire to attract investments in the palm oil sector, highlighting the benefits for farmers and the industry, as well as the reduction in dependence on imports of the commodity.
HUL is looking to collaborate with over 15,000 farmers in Andhra to set up at least 30,000 hectares of oil palm plantations. The proposed plan includes setting up sapling nurseries, palm fresh fruit bunch collection centres, and a state-of-the-art oil mill in the state, with investments exceeding Rs 300 crore over the project development period, the company said.
HUL reaffirmed its commitment to partnering with the state in the agriculture sector during a meeting between HUL delegates and Andhra Pradesh's agriculture, cooperation, marketing, and food processing minister Kakani Govardhana Reddy in Nellore on February 12.
HUL will also provide agricultural extension services and implement a comprehensive farmer outreach programme to introduce best-in-class farming practices. The collaboration aims to contribute to the sustainable localisation of palm oil production in India.
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