Even as the Union government is pushing the States to increase the area under oil palm, farmers are flagging certain challenges such as fluctuations in the prices of fresh fruit bunches (FFBs), poor quality of saplings and refinery facilities in the vicinity.

Farmers belonging to the Telangana Oil Fed Aswaraopet Oil Palm Growers Society alleged that the plants they received were of low quality, resulting in either low or no yields in a significant part of their plantation area.

Bonthu Rambabu, a leader of Telangana Rythu Sangham, told businessline that the farmers are being forced to pluck the plants well after four years. “Plants to the tune of 10-50 per cent turn out to be of no use. Had they (officials) taken enough care when grading the plants, we’d have averted losses,” he said.

Unlike other crops, which take 3-4 months to complete the lifecycle, oil palm takes four years to start producing the FFBs.

“Imagine our plight if we have to remove the plants after four years of hardwork,” he told over phone from Khammam.

Undivided Khammam area is home to nearly half of the State’s 1.2 lakh hectare oilpalm acreage.

“As per the standard norm of sprout suppling companies, if the curling rate is more than 25 per cent complete batch must be destroyed as that will affect oil palm yields by 50 per cent if they go into the farmers’ plantations,” Uma Maheshwara Reddy Thumburu, President of the Aswaraopet Oil Palm Growers Society contended.

He alleged that the farmers were being sold genetically defective plants. “Recently, we identified a serious issue in farmers’ plantations. There are approximately 10 per cent of the plants giving only male flowering and just 2 or 3 female bunches in a year. We suspect this is a genetical defect,” he said.

Price fluctuations

Rambabu argued that the recent reduction in import duties on crude edible oils by 10 per cent resulted in a sharp decline in the price of FFBs. It fell to ₹18,700 a tonne. 

“The move would adversely impact the oil palm farmers. The price may fall by ₹2,000-3,000 more in the next few weeks,” he said. He wanted the government to take measures to protect the interests of oil palm farmers.

Agri Minister’s appeal to the Centre

Meanwhile, Telangana Agriculture Minister Thummala Nageswara Rao has appealed to the Union Agriculture Minister Shivraj Singh Chouhan to fix the minimum support price for oil palm at ₹25,000 a tonne.

Rao recently submitted a memorandum to Chouhan asking him to revisit the decision to reduce the import duties on crude edible oils. 

Pointing out that the oil palm companies are dependent only on 4-5 suppliers for sourcing quality seeds, he wanted the Centre to empanel the best suppliers globally. “This will help in the government’s target to extend the area,” he said.

His suggestions came in the wake of reports suggesting that the country might miss the targets in expanding the oil palm acreage.

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Published on June 13, 2025