Tamil Nadu's Department of Agriculture today signed a Memorandum of Understanding (MoU) with Cadbury India Limited, one of the leading cocoa and chocolate manufacturers in the country, for enhancing cocoa cultivation in the state.

The MoU was signed by Horticulture and Hill Crops Commissioner Jagmohan Singh Raju and Cadbury India Limited (CIL) Associate Vice President K P Magudapathy in the presence of State Agriculture Minister Veerapandi S Arumugham here.

Talking to newspersons, Mr Arumugham said objective was to promote cocoa as an inter-crop in the coconut fields, since it grew best in coconut groves.

The average yield of coconut was stagnating at 4,590 nuts per acre leading to a low income of Rs 15,000 per annum in the state.

Cultivation of cocoa was expected to yield about 1,000 kg of beans per hectare. Even if it was sold at Rs 60 per kg, the farmers could get additional income of Rs 60,000 per hectare and a net profit of Rs 40,000.

He said as per the MoU, the Commissionerate of Horticulture would identify the clusters and farmers for cultivation of cocoa, render certain financial and technical assistance under various government schemes and through CIL, arrange for technical assistance and institutional credit for the farmers.