Commodity Online
CHANDIGARH : Israeli company, Indolive Enterprises is to sign another agreement for olive oil cultivation in India after its successful tie up with Rajasthan government.

This time it is the Punjab government came forward to launch olive cultivation in the state over 300 hectares under a pilot project. Punjab Agro, the nodal agency for this project, has held negotiations with Indolive Enterprises on Tuesday.

Punjab Chief Minister Parkash Singh Badal who also attended the meeting has asked Punjab Agro to encourage farmers to take to olive cultivation, as the climatic conditions in the state were suitable for moderate to high yield of olive.

At present, olive oil costs $3.6 per kg. At that price, income would be approximately over Rs.300,000 per hectare from the sixth year onwards as fruiting starts from the third year.

Investment in this project is expected to be around $2.5 million (Rs.100 million). Of this, 25 percent will be covered by subsidies from the National Horticulture Board and the Nation counting for the remaining 30 percent.

Indolive Enterprises would also invest in the extraction of plants and will guarantee to buy the fruits from the farmers at a price linked to rates prevailing in the olive oil market in Spain.