Telangana Oil Palm push begins paying off as farmers report better returns

The expansion of oil palm cultivation in Telangana is yielding results years after the BRS government launched an extensive promotion drive. Experts and farmers now want stronger incentives and financial support to accelerate crop diversification.

Hyderabad: Much before the Congress government turned its attention to crop diversification, the BRS government had anticipated the challenges posed by extensive paddy cultivation and promoted alternative crops on a large scale.

As part of that effort, the previous government encouraged oil palm cultivation. The initiatives taken then are now yielding results, with farmers reporting good returns.

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In a landmark decision in 2020, the Telangana Cabinet approved oil palm cultivation across 20 lakh acres. Several awareness programmes were conducted to educate farmers about the benefits of cultivating oil palm, a tree crop.

Oil palm cultivation was included in the State’s flagship programmes. Presentations were made to legislators and elected representatives. Officials were also sent on study tours to Thailand, Indonesia and Malaysia. Regular reviews of cultivation were conducted at all levels, from the Chief Secretary to District Collectors.

A Central team had identified 14 lakh acres as suitable for oil palm cultivation. However, the State government urged the team to survey additional areas. Following this exercise, 20 lakh acres were declared suitable for cultivation.

Convincing farmers to take up oil palm cultivation was not easy. Despite having limited staff, horticulture officials conducted awareness programmes with support from Agriculture Extension Officers.

Farmers were informed about the subsidies offered by the State government. Training programmes were also organised on inter-crop cultivation, as oil palm takes around three years to start yielding returns.

Nearly 30,000 farmers from Nagarkurnool, Mahabubnagar, Siddipet, Nirmal and several other districts were taken on free study tours to oil palm fields and processing factories in Ashwaraopeta and other parts of the erstwhile Khammam district.

The previous government continued to promote oil palm cultivation despite spending nearly Rs.1,000 crore annually on the initiative. It also extended substantial subsidies and incentives to farmers. These measures have helped expand oil palm cultivation beyond the pockets of the erstwhile Khammam district where it was once concentrated.

In 2020-21, oil palm cultivation covered about 35,000 acres in Khammam. The area has now expanded to 2.93 lakh acres across the State. The current price of Fresh Fruit Bunches (FFB) stands at Rs.23,852 per metric tonne.

What experts recommend

Former Horticulture Commissioner L. Venkat Ram Reddy says large-scale paddy cultivation places a burden on both the government and farmers. He believes Telangana has significant potential for oil palm cultivation and can emerge as a leading State in the sector.

Venkat Ram Reddy, who cultivates oil palm himself and regularly interacts with growers across the State, says the government should promote the crop aggressively, if it is serious about diversification.

He suggests that subsidies and incentives be provided to encourage farmers. According to him, extending to oil palm the support available to paddy, including MSP and bonuses, would boost farmer confidence.

He also recommends promoting Casuarina plantations along field borders and cultivating Ginny grass as an intercrop. Such measures, he says, can provide additional benefits to farmers.

“The best thing about oil palm is that it is environment-friendly. It helps reduce edible oil imports, lowers foreign exchange outflow and offers assured profits to farmers,” Venkat Ram Reddy says.

What farmers want

Before 2020, oil palm cultivation in the erstwhile Nalgonda district was limited to 200 to 300 acres. The acreage has now reached 15,000 acres and another 2,000 acres are expected to be added shortly, says Nalgonda Oil Palm Farmers Society president Guruva Reddy.

He says several farmers are recording high yields. In Chowdarpally village, Narketpally M Ramchandra Reddy harvested 80 tonnes from his 12-acre farm. While the national average yield is three tonnes per acre, Telangana farmers are achieving an average of five tonnes per acre, he says.

The State government is currently providing bonuses for certain fine rice varieties. Guruva Reddy points out that if a farmer produces 40 quintals per acre and receives a bonus of Rs.500 per quintal, the benefit amounts to Rs.20,000.

He suggests that the same amount be extended to oil palm farmers in three installments. Under his proposal, Rs.10,000 could be paid in the first year and Rs.5,000 each in the second and third years. He believes such support would encourage more farmers to shift to oil palm cultivation.

Support extended by BRS government

• Signed agreements with 11 companies to expand oil palm cultivation in 26 districts.
• Established 28 nurseries with the capacity to raise 2.25 crore oil palm seed sprouts annually.

• Supported drip irrigation systems costing Rs.20,000 per acre. The Central government contributed Rs.6,000, while the State government bore the remaining cost.
• Provided a subsidy of about Rs.193 for each oil palm sapling.

• Extended a subsidy of Rs.16,800 towards urea and other expenses over four years, amounting to Rs.4,200 per acre annually.