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Wed, April 26, 2006 : Last updated 21:41 pm (Thai local time)



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Home > Business > Turning palm oil into energy





Turning palm oil into energy

The Cabinet yesterday approved a seven-year plan to support alternative energy by expanding the country's oil-palm plantation areas by 11 million rai.

Deputy government spokesman Chalermchai Mahagitsiri said the plan would consist of two phases: the first from 2006-09 and the second from 2010-12. In the first phase, the government will encourage farmers to grow oil palms on 6 million rai.

Of the total, 2.2 million rai will be planted in the South, 1.2 million in the East and 540,000 in the Northeast. Existing trees on another 1 million rai will be replaced by high-yielding varieties. A further 90,000 rai will be planted in military areas and the remaining 1 million rai will be expanded into neighbouring countries.

The government will provide guaranteed high-quality palm oil trees to registered farmers, compensating them Bt363 for each tree found to be of poor quality. Farmers have to buy local oil palm trees at a minimum price of Bt65 per tree and Bt75 for imported trees.








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