Oil palm farmers celebrate hike in demand & price for FFB
Although the current price is still below the Rs 23,000 per tonne seen in June 2022, it represents a substantial improvement. The higher import duty has led to a rise in domestic prices, making it more profitable for farmers to sell their produce.
Hyderabad: The price of oil palm fresh fruit bunches (FFB) in Telangana has seen a significant increase, reaching Rs.17,043 per tonne. This hike follows the Centre’s recent decision to raise the import duty on non-refined palm oil from 5.5% to 27.5%, the results of which have been welcomed by oil palm farmers as a Dasara bonanza.
The price increase is the result of two years of campaigning by organizations advocating for fair prices for oil palm farmers. Although the current price is still below the Rs 23,000 per tonne seen in June 2022, it represents a substantial improvement. The higher import duty has led to a rise in domestic prices, making it more profitable for farmers to sell their produce.
The change has also posed challenges for refiners, some of whom have started cancelling contracts due to the increased costs. Currently, about 61,000 acres are under oil palm cultivation in Telangana, with major cultivation areas in Khammam, Bhadradri Kothagudem, Nalgonda, and Suryapet. The state government plans to expand cultivation to additional districts, including Nirmal, Mahabubabad, Kamareddy, Warangal-Rural, and Nizamabad, under the Telangana Oil Palm Mission.
This initiative aims to increase the area under cultivation to over 20 lakh acres in the coming years. Despite the recent downturn due to falling FFB prices, oil palm remains one of the highest-yielding oilseed crops, requiring relatively less water when compared to paddy. The returns from oil palm are also much higher, making it an attractive option for farmers.
Over the last seven years, the State has been working on establishing the necessary infrastructure, including nurseries, plantations, and oil mills, to support oil palm cultivation. The State Cooperative Oil Seeds Growers Federation Limited (TSOILFED) is actively involved in promoting and processing oil palm. The government aims to bring more farmers into oil palm cultivation and reduce dependency on imported palm oil. With increased irrigation potential and crop diversification efforts, Telangana is poised to become a major player in oil palm production.
Alapati Ramachandra Prasad, president of the Telangana Oil Palm Growers’ Association, emphasized that resolving pricing and import duty issues on a long-term basis would be crucial for the sustained growth of oil palm cultivation in Telangana.
