Hyderabad: The Telangana government moved to set up an oil palm mill in Kodangal with a proposed investment of around ₹100 crore to strengthen agriculture and raise farmer incomes.
Officials said the plan aimed to improve processing capacity and ensure better price realisation for farmers. At the same time, the project would support the expansion of oil palm cultivation in the region.
Oil palm expansion to boost farmers and the rural economy
India’s demand for palm oil stands at nearly 100 lakh metric tonnes. Moreover, palm oil accounts for about 60% of edible oil imports. Therefore, officials estimate that cultivation must expand to 70 lakh acres nationwide to reduce dependence.
In Telangana, the government promoted oil palm farming across all 31 districts. Currently, farmers cultivate the crop on about 2.90 lakh acres, involving 79,379 farmers.
With continuous monitoring, the state secured the second position nationally in oil palm cultivation. In addition, it recorded an oil extraction rate of 20.01%, while fresh fruit bunch prices reached ₹21,546 per metric tonne.
To encourage farmers, the government provides financial assistance of up to ₹50,918 per acre. This support, moreover, covers planting material, drip irrigation, maintenance for four years, and intercropping.
Under Oil Fed, two mills operate at Aswaraopet and Apparaopet with a capacity of 120 tonnes per hour. In addition, a new facility in Siddipet began operations on March 22, 2026.
The Chief Minister directed officials to take steps to establish oil palm mills in Kodangal and Vikarabad. Subsequently, the Agriculture Minister instructed the department to coordinate with companies for setting up the unit.
In a meeting held on March 23 under Agriculture Secretary Surendra Mohan, officials reviewed the proposal. Meanwhile, representatives of Eco Palm Oil and Fats Pvt Ltd attended, along with horticulture and Oil Fed officials.
The company agreed to set up a processing mill and refinery in Kodangal. It also sought 50 acres of land for a unit with a capacity of 10 tonnes per hour.
The firm said it would complete the project within one year at an estimated cost of ₹75 crore. As a result, the proposed unit is expected to generate around 100 direct jobs and nearly 1,000 indirect employment opportunities.
🌴 Boost to Farmers & Agro Industry in Kodangal 🌾
₹100 crore investment proposed for setting up Oil Palm Mills in Kodangal to strengthen agriculture and increase farmer incomes. 💰🌱
✅ ₹50,918 per acre financial support to farmers
✅ 2.90 lakh acres already under oil palm… pic.twitter.com/6AEjSiMFtU— IPRDepartment (@IPRTelangana) March 23, 2026