Oil Palm Cultivation in Telangana: A Booming Opportunity for Farmers
Hyderabad, March 1, 2025: The oil palm sector in Telangana is witnessing significant growth, with the price of oil palm fresh fruit bunches (FFBs) reaching ₹20,871 per tonne. This marks an increase of more than ₹7,000 compared to last year’s price of ₹13,135 per tonne in February 2024. The sharp rise in prices has brought cheer to farmers, with many now considering oil palm as a highly profitable crop.
Government’s Push for Oil Palm Expansion
Telangana’s Agriculture Minister Tummala Nageswara Rao emphasized the government’s commitment to making oil palm cultivation more lucrative for farmers. Given the increasing demand for edible oils, the state is actively promoting oil palm cultivation on a large scale. So far, 2.39 lakh acres have been brought under oil palm farming, and the government is aiming to expand cultivation by another one lakh acres in the coming year.
To encourage farmers, the government is offering a subsidy of ₹50,918 per acre over four years for oil palm cultivation. This financial support covers the cost of saplings, fertilizers, and other essential inputs, reducing the initial burden on farmers.
Improved Oil Recovery and Modernization
A key factor driving the price increase is the improvement in oil recovery rates. The Oil Fed processing mills at Apparaopet and Aswaraopet have installed advanced machinery, leading to an increase in oil extraction rates (OER) from 19.02% to 19.42% per tonne. This modernization ensures better returns for farmers by maximizing oil output from harvested oil palm bunches.
Minister Tummala Nageswara Rao stated that oil palm price determination is based on two factors:
- Oil recovery percentage in processing mills
- Market price of crude palm oil
This transparent pricing mechanism has strengthened Telangana’s oil palm industry, ensuring that farmers receive competitive prices.
Competition with Andhra Pradesh Oil Palm Industry
The Minister also pointed out that Telangana’s oil palm farmers benefit from price parity with Andhra Pradesh, where companies must offer similar rates. He alleged that certain brokers from Andhra Pradesh were attempting to discredit Telangana Oil Fed but assured that the state’s cooperative efforts remain strong.
Why Farmers Should Consider Oil Palm?
- High Returns: With prices touching ₹20,871 per tonne, oil palm is proving to be a lucrative crop.
- Government Subsidies: Farmers receive financial support of up to ₹50,918 per acre for four years.
- Year-Round Yield: Unlike seasonal crops, oil palm provides continuous harvesting opportunities.
- Increased Oil Recovery: Modern processing mills ensure better extraction rates, leading to higher profits.
Future of Oil Palm Cultivation in Telangana
The Telangana government’s focus on expanding oil palm cultivation, modernizing processing units, and ensuring fair pricing is creating a promising future for the sector. Farmers are encouraged to take advantage of the rising market demand and government incentives by embracing oil palm cultivation on a larger scale.
With prices surging and government backing, oil palm is emerging as a game-changer in Telangana’s agricultural landscape, offering farmers a profitable and sustainable alternative.
